Investing in Forest Investing in Forest Fertilization: Fertilization:

tools, measures, analysestools, measures, analyses

Investing in Forest Investing in Forest Fertilization: Fertilization:

tools, measures, analysestools, measures, analyses

By Ralph WinterBy Ralph Winter

Forest Practices BranchForest Practices Branch

July 25, 2005July 25, 2005July 25, 2005July 25, 2005

ObjectivesObjectivesObjectivesObjectives

review the growth and yield tools that we usereview the growth and yield tools that we use review stand level outcomesreview stand level outcomes review forest level outcomesreview forest level outcomes review industry commentsreview industry comments summarysummary

Ministry has comprehensive Ministry has comprehensive growth and yield toolsgrowth and yield tools

Ministry has comprehensive Ministry has comprehensive growth and yield toolsgrowth and yield tools

These tools help integrate These tools help integrate biological information biological information with treatment effect and with treatment effect and stand management stand management actions actions

Tree and Stand Simulator Tree and Stand Simulator (TASS) and TIPSY are (TASS) and TIPSY are the primary tools to the primary tools to evaluate stand treatmentsevaluate stand treatments

Typical TIPSY outputTypical TIPSY outputTypical TIPSY outputTypical TIPSY output

Volume/age information from Volume/age information from TIPSYTIPSY

Volume/age information from Volume/age information from TIPSYTIPSY

Volume/age information from Volume/age information from TIPSYTIPSY

Volume/age information from Volume/age information from TIPSYTIPSY

Typical TIPSY outputTypical TIPSY outputTypical TIPSY outputTypical TIPSY output

Analysis of a fertilized spruce plantation at age 50 Analysis of a fertilized spruce plantation at age 50 compared to untreated. A volume response at age 70 of compared to untreated. A volume response at age 70 of

16 cubic metres.16 cubic metres.

Analysis of a fertilized spruce plantation at age 50 Analysis of a fertilized spruce plantation at age 50 compared to untreated. A volume response at age 70 of compared to untreated. A volume response at age 70 of

16 cubic metres.16 cubic metres.

Analysis of a fertilized spruce plantation at age 35 Analysis of a fertilized spruce plantation at age 35 compared to untreated. A volume response at age 70 of compared to untreated. A volume response at age 70 of

17 cubic metres.17 cubic metres.

Analysis of a fertilized spruce plantation at age 35 Analysis of a fertilized spruce plantation at age 35 compared to untreated. A volume response at age 70 of compared to untreated. A volume response at age 70 of

17 cubic metres.17 cubic metres.

The Internal Rate of Return for The Internal Rate of Return for fertilization is dependant on time to harvestfertilization is dependant on time to harvest

The Internal Rate of Return for The Internal Rate of Return for fertilization is dependant on time to harvestfertilization is dependant on time to harvest

0

5

10

15

20

10 15 20 25 30 35 40 45

Number of years until harvest

IRR

(p

erce

nt)

IRR Financial

Spruce plantaions - 100 km - SI 19.6

5% IRR can be achieved if time to harvest is less than 35 years -

30 to 40 year Govt bond rates are at 4.73%

Silviculture affects conditions Silviculture affects conditions produced at the forest levelproduced at the forest level

m3 (millions)2.5

1.0

2.0

1.5

0.5

01 2 3 4 5 6 7 8 9 10 11

LRSY

untreatedharvest

schedule

treated LRSY

current AAC is maintained longercurrent AAC is maintained longer

decades

treated harvest schedule

Allowable cut effect - Allowable cut effect - sustain harvest levels longer and 5.9 % increase sustain harvest levels longer and 5.9 % increase

in the midtermin the midterm

Allowable cut effect - Allowable cut effect - sustain harvest levels longer and 5.9 % increase sustain harvest levels longer and 5.9 % increase

in the midtermin the midterm

Cranbrook TSACranbrook TSA

Forest level analysis - TFL 52Forest level analysis - TFL 52Forest level analysis - TFL 52Forest level analysis - TFL 52

TFL 52 commentsTFL 52 commentsTFL 52 commentsTFL 52 comments

TFL 52 commentsTFL 52 commentsTFL 52 commentsTFL 52 comments

Other factors that have been analysed in Other factors that have been analysed in comprehensive silv strategiescomprehensive silv strategies

Other factors that have been analysed in Other factors that have been analysed in comprehensive silv strategiescomprehensive silv strategies

direct and indirect jobs direct and indirect jobs income tax generatedincome tax generated wildlife habitatwildlife habitat biodiversitybiodiversity

Log quality profilesLog quality profiles changes in harvest changes in harvest net revenue impacts net revenue impacts stumpagestumpage

SummarySummarySummarySummary

fertilization research is included in GY & forest models. fertilization research is included in GY & forest models. models are used to forecast a variety of measures including models are used to forecast a variety of measures including

volume, value, revenue, ROI and jobsvolume, value, revenue, ROI and jobs analyses indicate that fertilization can have a positive impact analyses indicate that fertilization can have a positive impact

when done at the right sites for the right reasonswhen done at the right sites for the right reasons every tree to be harvested in the next 20-60 years is in the every tree to be harvested in the next 20-60 years is in the

ground today. Fertilization treatments need to commence ground today. Fertilization treatments need to commence soon if significant short or mid term timber supply soon if significant short or mid term timber supply improvements are desired improvements are desired

operational support from industry for forest fertilizationoperational support from industry for forest fertilization

Industry comments in FIA Industry comments in FIA submissionssubmissions

Industry comments in FIA Industry comments in FIA submissionssubmissions

“Increase wood volume and utilization. This will increase product output and reduce recovery costs. Also, reduce rotation age” - Bonaparte Kamloops TSA

"Fertilization is a silviculture treatment that can be effectively used to increase the merchantable yield and value of established forests". - TFL 14

“Operational Fertilization programs have been recognized as a high priority for the future timber supply issues through the TSA silviculture analysis” - Westfraser

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