Comparing Industrial and Nonindustrial Landowners' Production and Investment Behavior
Investigators:
David N. Wear,
USDA-Forest Service, Southern Research Station
David H. Newman, University of Georgia
Description:
The production behavior of nonindustrial forest owners has long been a concern of forest policy
makers. They control the largest share of the southern forest landscape, yet their response to market
signals has been in doubt. This study examined the timber production behavior of NIPF and industrial
landowners. An empirical profit function--first applied to forestry by the authors--indicates that profit
maximization cannot be rejected on both industrial and NIPF lands. However, there are significant
differences in the production behavior of the two ownerships. NIPF landowners' behavior is consistent
with either a lower discount rate or a higher value placed on the aesthetic values of esepecially older
forests. Own and cross-price elasticities for sawtimber and pulpwood provide additional contrasts
between timber production by the two owner groups.
Problem Area(s):
Objectives and behavior
Status:
Completed
Products:
Newman, David H.; Wear, David N. 1993. Production economics of private forestry: a comparison of industrial and nonindustrial forest owners. American Journal of Agricultural Economics. 75(3):674-684.
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modified:
13-MAR-2000
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USDA FS SRS
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