Tree selection based on the financial maturity of northern hardwoods
Keywords:tree selection, revenue
Northern hardwood forests are managed to achieve a variety of objectives, including generating revenue by harvesting trees and creating conditions for future value growth by retaining other trees. Decision about tree selection for harvesting and retention are typically guided by parameters such as residual basal area, q-ratio, and maximum diameter. Whereas residual basal area and q-ratio are biological concepts related to the stocking level of forests, maximum diameter is an inherently economic concept that identifies the point of financial maturity. Previous assessments of maximum diameter of northern hardwoods focus on the rate at which trees increase in value due to growth and product development, but few also considered the risk of a tree declining, decaying, or dying between harvests. By considering the rate that trees increase in value as well as the risk of retaining trees between harvests, our analysis of long-term datasets provides a new operational perspective on maximum diameter, and therefore financial maturity, among northern hardwoods.