Timberland Management
HARVEST SCHEDULING
A forest stand becomes a candidate for a final harvest when the value growth equals the optimal rate of return. TIR recognizes, however, that there are instances when a client may wish to depart from this financial rule, such as:
- The time horizon of investment may not coincide with its optimal rotation age. For example, a stand that is 22 years of age may be harvested in the last year of the investment, even though age 25 represents the optimal rotation age.
- The client may have some constrained minimum annual cash flow requirements.
When regular cash flows are required, a management science application, known as harvest scheduling, can be used to determine the optimal cutting schedule over an entire investment period. TIR is committed to solving the harvest scheduling challenge with a flexible approach that permits investment-specific objectives and constraints that are most appropriate for the client's long term investment goals.