Resource Details

A Financial Analysis of Small-Scale Tropical Reforestation with Native Species in Costa Rica

Literature: Journal Articles

Streed, E., Nichols, J.D. & Gallatin, K. July/August 2006, "A Financial Analysis of Small-Scale Tropical Reforestation with Native Species in Costa Rica", Journal of Forestry, vol. 104, pp. 276-282(7).

Contact Info

Corresponding Author: estreed@usaid.gov

Affiliations

  • US Agency for International Development, USDA Foreign Agricultural Service, Washington DC
  • Sustainable Forestry Program, School of Environmental Science and Management, Southern Cross University, Lismore, New South Wales, Australia

Link(s)

Journal of Forestry

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Species Info

  • Acacia magnium (exotic)
  • Tectona grandis (exotic)
  • Astronium gravolens
  • Platymiscium pinnatum
  • Cordia allidora
  • Bombacopsis quinatum
  • Aspidosperma megalocarpum
  • Pithecollobium arboreum
  • Terminalia ivorensis
  • Calophyllum brasiliense
  • Terminalia amazonia
  • Cedrela odorata
  • Shizolobium parahybum
  • Vochysia hondurensis
  • Terminalia oblonga

Description

  • This article describes the financial expenses and revenues incurred by the 15th year of a small (24ha) native species plantation in Costa Rica.
  • The authors use forecasting models that consider the already realized growth patterns, production costs, and wood prices in order to provide data on the net present value and internal rate of return for the project.
  • The labor for the plantation was conducted primarily by one full-time employee and contracted to others as needed.
  • The wood was milled into rough-sawn boards with a purchased band saw and delivered with a cargo truck to the market.
  • Oxen teams were used as an inexpensive method for skidding small logs.
  • The revenues included the proceeds from logs sold after thinning and providing a sawing service to other landowners.
  • By 15 years, the expenses broke down as full-time labor (52%), establishment materials (24%), management fees (11%), vehicle costs (4%), equipment purchase (3%), felling/hauling/drying (2%), building construction/maintenance (1%), milling equipment (1%), accountant/attorney fees (1%), and part-time labor (1%). They estimate that the project can provide a 7.37% rate of return if labor is part of the cost and a 16.4% return if the owner provides their own management and labor.
  • The authors assert that the small scale of the plantation can make it less profitable than if larger areas were used; however, it did not prevent the project from being profitable.

Geographical Region

  • Southern Central America
  • Country

  • Costa Rica
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