The value of timber inventory information for management planning

Timber inventory data is the basis for many monetary transactions related to timber and timberland sale and (or) purchase as well as for development of timber management plans. The value of such data is well known and much appreciated for sale and (or) purchase of standing merchantable timber. Unfortunately, the value of timber inventory data for planning purposes is less well understood. We report on the results of a large simulation study that was undertaken to evaluate the utility and value of timber inventory data for timber management plan development for a typical timberland ownership in the southern United States. Our results indicate that timberland managers are likely producing management plans that do not maximize the profitability of their timberland holdings. Specifically, our results indicate it is likely that timber management organizations that develop timber management plans with stand level data that has a sampling error of 25% are experiencing expected losses in net present value in excess of 170 US$center dot ha(-1) on a large proportion of the acreage found on typical timberland parcels in the southern United States.