Profitability of fertilization of young pine stands in northern Ostrobothnia

1993

20 S.

zahlr. Lit. Ang.

Bandaufführung

37347

The profitability of PK and NPK fertilization in Scots pine stands on ditched peatlands was investigated. The aim was to determine the private profitability of a single and repeated fertilization separately. The data (site and stand parameters) was collected from 8 fertilization experiments established during the 1960's and 1970's in northern Ostrobothnia. In thick- peated sites self-financed PK treatment turned out to be rather profitable both in the first and the second fertilization. The real internal rate of return was 6-7 % at the end of the calculation period (11 years). It was not possible to determine the optimal duration for the self-financed fertilization investment within the calculation period. The maximum net present value with the 3 % interest rate was 450 FIM/ha. The use of nitrogen (NPK treatment) increased the stand growth response, but the increment was not big enough to cover the higher cost. In thin-peated sites the first fertilization was not profitable when self-financed because of the poor increment. The state forest improvement subsidies increased considerably the private profitability of all the fertilization treatments. Real internal rates of return increased by 10.6 % on the average consequently shortening the optimal duration for investment. Profitability of the NPK treatments increased most. The first fertilization on thin-peated sites was not profitable even if subsidized. Reasonable changes in ther fertilization costs and stump prices did not significantly increase the risk of running a loss, especially if the investment was financed with the state forest improvement subsidies.