310 acres of age-16 pine, stocking says thin now, pulp stumpage says wait
Bought this two years ago as the boring end of a portfolio that's otherwise flips and a small BRRRR stack. Loblolly plantation, planted in a good year, 310 acres of which about 288 are productive. Rows are 10x8ish, never thinned.
Where it sits now per the forester's walk-through: basal area running 145 to 160 square feet per acre depending on where he stood, average DBH about 7.8 inches, crowns are closed and I can see the live crown ratio dropping. Textbook says thin. Diameter growth is going to stall if I sit here.
The money side is uglier. First thin projects out around 22 to 25 green tons per acre of pulpwood. Local pulp stumpage quotes I'm getting are 8 to 10 a ton. Call it 200 an acre gross, maybe 175 after the forester's 10 percent and the road work. On 288 acres that's roughly 50k, minus about 14k of road and gate repair I'd have to do anyway before a crew comes in.
Carrying cost is 6.40 an acre in property tax, so about 1,970 a year, plus 900 for insurance and mowing the firebreaks.
So I can take a weak 36k net now and put the growth into fewer, bigger stems, or defer three years hoping pulp recovers and accept slower diameter growth on a stand that's already crowded. Deferring harvest is supposed to be the whole advantage of this asset class, except the flexibility they describe is about deferring a final harvest of sawtimber, and this is a thinning that's mostly a silviculture decision wearing a revenue costume.
What I can't get comfortable with is how much diameter I actually give up in three years at 155 basal area. Nobody will give me a number.