AN ECONOMIC COMPARISON OF BLACK SPRUCE AND JACK PINE TREE IMPROVEMENT

Black spruce and jack pine seed orchard programs in Ontario are compared using cost-benefit analysis. The analysis illustrates economic relationships that should be considered when developing tree improvement programs, particularly if budgets are limited. Important factors include stumpage values, potential size of the improved planting program, magnitude of the genetic pin, quality of the land-base, the discount rate and the fecundity of seed orchards through time. Optimal economic rotation ages were calculated for unimproved and improved plantations. The difference in net present value of an infinite number of unimproved and improved plantations was compared to research costs to determine if tree improvement was economically worthwhile. This approach enables each generation of tree improvement activities to be considered on its own potential merits. Jack pine tree improvement consistently outperformed black spruce tree improvement in its economic potential.