- 4 -
Because of purchases and sales, in 1987, the timberland
totaled approximately 44,972 acres. On or about February 6,
1987, decedent gave an undivided 25-percent interest (the
undivided interest) in the timberland to separate trusts
established for the benefit of her 10 grandchildren (the 1987
gifts).
Partnership's Management Philosophy
Two management philosophies exist in the timber industry:
That which produces a majority of pulpwood, known as plantation
stand or even age management (pulpwood management), and that
which produces a majority of saw timber, known as natural stand
or uneven age management (saw timber management). The objective
of saw timber management is to allow trees to grow to maturity,
which can take as long as 50 years, for use as lumber and poles.
Each tree to be harvested is specially selected and marked.
Pulpwood management, used by those who grow pulpwood for use by
paper companies, involves clear-cutting a certain number of acres
on a shorter rotation, before the trees reach their maturity.
Consequently, pulpwood management, which harvests younger trees,
accelerates the cash-flow from a given stand of timber. Saw
timber management, on the other hand, reduces current cash-flow
by postponing the harvests and sales until later years, when the
trees reach maturity. The risk of loss to trees on account of
pests, disease, and other factors increases, however, as they
age.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 Next
Last modified: May 25, 2011