This section is from the "Source Book In Economics" book, by F. A. Fetter. Amazon: The Principles Of Economics.
[The conditions of the wood supply in America have been rapidly changing. An interesting illustration of the manner in which this change is related to prices, and the way it is affecting the use of land for timber (which is coming to be looked upon as a growing crop instead of an incumbrance on the land), is found in a portion of "An Agricultural Survey," by G. F. Warren, and others, Bulletin 295, of the N. Y. State College of Agriculture, 1909, p. 464, ff.]
Development of the woodlot. A little over a hundred years ago Tompkins County was covered with a dense stand of excellent virgin timber. This consisted of white pine, oaks, hemlock, maples, beech, elm, basswood and many other species. In the early days there was little market for lumber and in the haste to get the land cleared for farm purposes much of the finest timber was burned. It is estimated by men whose fathers settled the county that fully 60 per cent of the virgin forest was cut and burned in order to clear the land. Unfortunately, neither the early or later clearing had much reference to the character of the soil. Woodlots are still common on some of the level rich land; and poor barren hillsides that are too steep for tilled crops or even for good pastures were cleared. There seemed to be no plan or system in clearing land. Whether a field was cleared or not seems to have been a matter of chance rather than a result of judgment.
Prices of lumber. The "log-run" prices of timber for a number of years show how rapidly the price that the lumberman gets for timber has increased. Not only have the prices increased but many kinds of lumber that once had no value now sell at fair prices. The figures in Table 68 give the average prices obtained by examination of the books of some of the oldest lumbermen. They are for the lumber just as it comes from the saw-mill, or "log-run" prices.
Present condition of the woodlots. The present conditions of the farm woodlots in Tompkins County are representative of the conditions of the woodlots in many other counties in New York State. They might well be described as irregular, detached pieces of woodland, consisting of all sizes and ages of mixed deciduous and coniferous species, of first, second, and stump growths. They occupy no definite position as regards soil or altitude. Steep hillsides and ravines are denuded of their forest covers, in certain sections, and in other sections more or less thrifty woodlots occupy good agricultural land. They have no definite relation to the general lay-out of the farms. They are composed of dead, diseased, young, mature and weed trees all thrown in together. The valuable are left to struggle for supremacy with the useless but hardy species, and in addition are frequently required to withstand the ravages of stock. The fact that useful woodlots persist in spite of
1843. | 1850. | 1860. | 1870. | 1880. | 1890. | 1900. | 1908. | |
White pine.. | $6 00 | $ 8 00 | $12 00 | $16 66 | $21 33 | $24 00 | $28 00 | $35 00 |
Hemlock ....... | • • • • | 4 00 | 4 66 | 6 33 | 7 00 | 9 33 | 12 33 | 18 66 |
White oak ......... | • • • • | 6 00 | 7 50 | 14 00 | 15 33 | 16 00 | 18 66 | 2666 |
Red oak ............ | • • • • | 10 00 | 12 00 | 13 33 | 14 50 | 15 33 | 18 33 | 22 50 |
Hickory ........... | • • • • | 18 00 | 20 00 | 20 00 | 22 50 | 22 00 | 26 00 | 27 33 |
White ash .......... | • • • • | 12 00 | 12 50 | 16 00 | 19 00 | 19 00 | 20 33 | 26 00 |
Cherry ..... | • • • • | 7 00 | 12 50 | 18 50 | 19 50 | 24 00 | 26 50 | 35 00 |
Basswood ........ | • • • * | 6 00 | 8 00 | 9 00 | 11 00 | 12 66 | 15 66 | 20 66 |
Hard maple ..... | • • • • | • • • • | 6 50 | 8 00 | 10 50 | 12 00 | 14 33 | 19 00 |
Chestnut . . .... | • • • • | • • • • • | 7 00 | 8 00 | 10 66 | 14 66 | 17 66 | 21 33 |
Elm........ | • • • | • • • • • | 9 00 | 12 00 | 14 00 | 15 00 | 19 50 | 20 50 |
Birch ....... | • • • • | • • • • | 8 00 | 10 00 | 14 00 | 14 50 | 17 50 | 21 50 |
Beech....... | • • • • | • • • • • | • • • • • | ..... | 5 00 | 7 00 | 11 00 | 15 00 |
Chestnut rail- | ||||||||
road ties ....... | • • • • | • • • • • | ..... | • • • • • | • • • • • | 28-42C | 28-45C | 30-50C. |
Oak railroad | ||||||||
ties ...... | • • • • | • • • • • | • • • • | 50 | 50 | 42-58 | 45-60 | 50-75 |
Soft cord- | ||||||||
wood .......... | • • • • | • • • • • | • • • • • | • • • • • | • • • • • | • • • • • | 150 | 2 00 |
Hard cord- | ||||||||
wood .......... | • • • • | • • • • • | • • • • • | 3 00 | 3 25 | 4 00 | 4 50 | 4 00 |
Total sales, lumber and lot resold...... | ..... $5,094 |
Cost of cutting and marketing ................................................................ | 1,500 |
------------------ | |
Net sales ................................................................................................ | ..... $3,594 |
Price paid for farm ............................................................................... | ..... 500 |
Profit.......... | $3,094 |
500,000 ft. mixed lumber at $20.00 per M ................___ | $10,000 |
500 cds. slab wood at 50c .......................................................................... | 250 |
Resold farm with top wood ....................................................................... | 700 |
Total sales ................................................................................................. | $10,950 |
Cost of cutting and marketing .................................................................. | 4,250 |
Net sales ................................................................................................... | $6,700 |
Price paid for farm ................................................................................... | 1,750 |
Profit ........................................................................................................ | $4,950 |
Example II.
Example I.
A farm of 122 acres, 80 acres of which was woodland consisting of mixed hard and soft wood timber: oak, basswood, hemlock, maple, cherry, beech, ash, birch, elm.
Proceeds from lumber sales: these conditions is evidence of the excellent adaptation of this region to the growth of trees.
It is a deplorable yet self-evident fact that only a few of the farmers in Tompkins County have done anything toward improving their woodlots. When a piece of land is cut over, little attention is given to saving the young growth. Probably one-third of the woodlots of the county are being pastured. Such land is rarely worth much as a pasture, and the stock greatly injure the woods.
The woodlots are worth saving. Farmers are usually not aware of the value of their woodlots. Estimation of the value of standing timber is not easy for an experienced lumberman. Many farmers seem to have no idea of the value of timber. The following are a few examples taken from lumbermen's books:
A farm of 50 acres, 35 of which was of mixed hardwood.
A lot consisting of 16 acres of mixed hardwood.
Cost of putting lumber on the market. The cost of putting lumber on the market is quite variable, depending on the kind of lumber and the distance that it must be hauled. The price is constantly rising as wages advance. An average of $10 per thousand board feet is perhaps a fair estimate for a farmer to make.
Most of the timber cut in Tompkins County is sawed by portable sawmills. The lumber then has to be hauled to market. The distance to market varies greatly, but ordinarily it is two to six miles. The estimated cost of cutting the timber, sawing and delivering to market is as follows :
Proceeds from lumber sales ............................................................................... | $2,194 |
Cost of cutting and marketing ........................................................................... | 900 |
Net sales ............................................................................................................ | $1,294 |
Price paid for lot ............................................................................................... | 500 |
___________ | |
Profit ................................................................................................................. | $794 |
Cutting (logs) per thousand feet ........................................................................... | $ 75 |
Skidding to mill per thousand feet ...................................................................... | 2 00 |
Sawing per thousand feet .................................................................................... | 3 00 |
Sticking (piling lumber) per thousand feet..... | 40 |
Delivering to market per thousand feet ............................................................... | 2 00 |
Estimated overrun per thousand feet ................................................................... | 35 |
Total expense per M. board feet .......................................................................... | $8 50 |
The woodlot now a profitable farm crop. As an example, a farm on the hill lands of southern Tompkins County consists of 100 acres, 30 acres of which is in timber. This wood-lot was cut in 1907 for the third time in 90 years. Each time it has been cut with entire disregard for the future. The third cutting on the 30 acres sold for $2,100, standing. In spite of the present high price of lumber, no attention was given to the future in this cutting. Young trees that were scarcely worth cutting, but that would be valuable in 10 to 20 years, were cut. Those that were too small to cut were broken down.
This is the almost universal practice, in spite of the profits that come from such a woodlot.
After "skinning" the woodlot, the entire farm of 100 acres, with buildings, was sold for $1,400. This farm would not rent for $1 per acre, as indicated by the selling price. But, in spite of the owners, it has grown $70 worth of wood per acre since the last cutting 30 years ago. If the $1 per acre rent were placed at compound interest at 5 per cent., it would not amount to $70 at the end of 30 years. In other words, the wood land pays better than the farm land. If the wood land were given a very little attention in cutting, so as to maintain a stand of the best kinds of trees, the returns could probably be doubled.
As another example, a lot consisting of 35 acres composed of mixed hardwood was cut and the net proceeds from the timber sales amounted to $4,938. Men who knew the history of this woodlot asserted that 75 per cent of the wood had grown in the past 22 years. That is, the lot was cut over 22 years ago and the greater part removed. According to these estimates, $3,704 of timber grew on the 35 acres in 22 years. This is $106 per acre or $4.82 per acre per year. This land would not sell for over $15 per acre.
These examples are fairly typical of southern New York woodlots. Neither of them received any care. If the diseased trees and weed trees had been cut and the woodlot looked after as a farm crop, the income would have been much greater.
 
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