Harvest Scheduling

Bennett & Peters has developed a proprietary harvest scheduling model, our Forest Management Planning Model (“FMPM”). This sophisticated biological and financial model can be used to optimize management over an entire southern pine forest of any size.

The biological portion of the FMPM "grows" each forest stand using the latest U.S. Forest Service growth and yield models. Then, the financial analysis module of the FMPM "manages" the forest through time, choosing the timing of thinnings, harvest and regeneration for each stand that will maximize the net present value of the forest asset.

Controlling the FMPM financial analysis are user-supplied assumptions such as discount rate, inflation rate, timber product prices, real rates of change of timber product prices, management costs, regeneration costs, income tax rates, ad valorem tax rates and forest management costs. Each of these assumptions can be varied to fit the needs and outlook of the owner/manager. In addition, restraints on income, acres harvested, volumes harvested, acres regenerated, etc., can be applied. After changes in any of the model's assumptions or restraints, the FMPM can again simulate management of the forest through time and re-optimize the net present value of the forest asset.

The output of the FMPM includes (by time period) product volumes harvested, acres regenerated, gross income, management costs, ad valorem taxes, depletion, income taxes and net cash flow. Summary information includes net present value and internal rate of return on investment.