The financial cost to forest landowners who implement forest management guidelines: An empirical assessment

To assess the financial costs that forest landowners incur when applying Minnesota's forest management guidelines, we conducted a study involving 27 public timber tracts auctioned in fall 2002. Each tract was offered in two ways-with and without the requirement to use guidelines-and loggers submitted paired bids. Stumpage bids averaged $2.66 per cord (10 percent) lower when guidelines were required. Across the study tracts, use of the guidelines decreased harvestable timber volume an average of 2.4 cords per acre. Taken together, the financial cost of guidelines to a forest landowner averaged $136 per acre, suggesting a minimum benefit value if their use is to be justified on financial grounds.