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Estimating the Capital Recovery Costs of Alternative Patch Retention Treatments in Eastern Hardwoods

Abstract We used a simulation model to estimate the economic opportunity costs and the density of large stems retained for patch retention in two temperate oak stands representative of the oak/hickory forest type in the eastern United States. Opportunity/retention costs ranged from $321.0 to $760.7/ha [$129.9 to $307.8/acre] depending on the species mix in the stand, the logging technology used, and rotation lengths. The resulting capital recovery costs ranged from $12.8 to $30.4/ha/year [$5.2 to $12.3/acre/year] depending on the degree of retention desired, the logging technology used, and the species composition of the tract. Opportunity/capital recovery costs are greatest in stands that have high-value species mix, are harvested with low-cost logging technologies, and/or managed on longer rotations. The approach described in this paper can be used to help forest landowners, managers, loggers, and other decision/policy makers understand the opportunity/capital recovery costs and ecological benefits associated with patch retention.