Economic assessment of transformation to continuous cover forest management in Estonia

The discussion surrounding forest management principles, particularly those related to rotation and continuous cover forestry (CCF), has gained considerable momentum in Estonia in recent years. Advocacy for the adoption of selection cuttings over clear-cutting has been prominent. Despite the longstanding practice of continuous cover forest management in Estonia, there is a noticeable absence of economic analyses on this subject. This study aims to investigate pertinent criteria and methodologies for the economic assessment of alternative silvicultural systems. Additionally, we deliberate on the factors influencing the transition from even-aged to uneven-aged forest management. The profitability of uneven-aged stand management was compared with even-aged forest management using an experimental stand that underwent recent selection cutting. To compute cash flows, stand inventory and removal data, categorised by timber assortments, were utilised to delineate changes in growing stock, timber prices and forest management costs. Net present value (NPV) was employed to assess rotation and continuous cover forest management scenarios. The calculation results indicate that, in the long term, the NPV of CCF management is relatively similar to even-aged stand management at a 1% interest rate but lower when higher interest rates are applied. Prevailing requirements currently limit the economic attractiveness of transformation from even-aged to uneven-aged stand management. Revising forest management rules is imperative to enhance the profitability of uneven-aged forest management in Estonia. Adjustments to the stand age should be made, enabling selection felling and reducing the required minimum post-cutting basal area. Keywords: continuous cover forestry; silvicultural systems; selection cutting; economics