Presentation on how trees grow incorporating examples and experience from the Potts Tree Farm.

1. HOW DO TREES GROW Dick Potts Potts Tree Farm Holmes County, Ohio $$$

2. Basic Biology of Tree Growth Trees are plants, not animals.

3. Tree Growth Factors Woodlot Management: How It Grows West Virginia University Extension Service

4. Tree Growth Rate Woodlot Management: How It Grows West Virginia University Extension Service

5. Tree Growth Rings Woodlot Management: How It Grows West Virginia University Extension Service

6. How are your trees growing? Time period: annual (per year) Height: feet (above ground level) Pine: 1’, 2’, or 3’ per year Diameter: inches (at DBH) 1”, ½”, ¼”, or 1/8 ” per year Volume: board feet? BdFt = 1” x 12” x 12” Mass (Weight): Tons (of chips) (~ 1/3 is underground in roots)

7. Volume in Board Feet Cylinder – 12” dia., 16’ long V = l  r 2 = 16’ x 3.14 x (0.5’) 2 = 12.57 ft 3 12.57 ft 3 x 12 BdFt/ft 3 = 150.8 BdFt Log Rule Scales International ¼” and Doyle Measurement Location DBH – diameter at 4.5’ above ground DIB – diameter inside bark at small end

8. Board Feet Volume Growth Volume Growth with ½” Diameter Increase After 1 year, diameters are 12.5”, 16.5” and 24.5”. Calculations for 16’ cylinder

9. Growth Volume Woodlot Management: How It Grows West Virginia University Extension Service

10. Potts Tree Farm Measurements and Data 1963 Five Areas Selected Property No. 1 55 Acres Purchased 1957

11. Area Descriptions History Prior to purchase, the Property was heavily harvested with everything over 14” diameter being removed. Area Characteristics Area A: creek bottom Area B: old field corner Area C: north facing slope Area D: old field north slope Area E: ridge

12. Tree Measurement Select Trees About 12 per Area Mark Trees: Area Letter & Number Measurement Line Repaint when needed Measurement Interval Every five (5) years 1963 – 2003 (40 years)

13. Diameter Data

14. Tree Growth Textbook Example: Tree Height vs Years Similar for diameter. Relationship of Height (Diameter) to Time is not linear, but is sigmoidal.

15. Graphs of Diameter vs Year Area A: 10 YP (2) Area B: 7 YP (5) Area C: 8 YP (8) Area E: 5 YP, 3 BW, 2 RO, 1 RM (1 WA)

16. Graph of Area D Diameters Area D: 11 WP (23)

17. Rate of Growth Difference in diameters divided by 5 for Annual Growth.

18. Growth Rate Graphs Trees are not sick and dying, just getting older. Trees have matured and the canopy closed.

19. Area D Growth Rate

20. Volume Growth Performer Int’l ¼” Log Rule Scale, DBH

21. Management, Harvest, Economics What management should be done? When should trees be harvested? What is the rate of return? Can harvesting trees be sustainable? Is forest management a reasonable investment?

22. Silvicultural Management What management should be done? Management Plan: Even-aged or Uneven-aged. Timber Stand Improvement (TSI). Crop Tree Release. Intermediate or release harvests. Invest time and money where it makes the biggest impact.

23. Biological and Financial Maturity When should trees be harvested? Some people love their trees and don’t want to ever cut them. They’ll love their trees to death.

24. Financial Maturity - Rate of Return What is the rate of return?

25. Sample Interest Calculation Yellow Poplar – 1 : 18” DBH 2 logs 160 BdFt (Doyle) Present Value = 160 BdFt x $.15/BdFt = $24 10 years later: 22” DBH (5 rings/inch) 2 ½ logs 340 BdFt Future Value = 340 BdFt x $.15/BdFt = $51 Annual Compound Interest = 7.8% Yellow Poplar – 2 : 18” DBH 2 logs 160 BdFt Present Value = 160 BdFt x $.15/BdFt = $24 10 years later: 20” DBH (10 rings/inch) 2 logs 220 BdFt Future Value = 220 BdFt x $.15/BdFt = $33 Annual Compound Interest = 3.2% Assume no change in log quality, timber price, inflation, etc..

26. Ohio Timber Prices State Mean, Doyle Scale, No data for F ’01, Sp ’02, F ‘02

27. Trees: Renewable Resource Can harvesting trees be sustainable? Timber is a commodity - Crop Rotation: Pine – 60 yrs., Oak – 100 yrs., Maple – 120 yrs. Potts Tree Farm - 200 acres Clearcut 20 acres every 10 years for 100 year rotation. 10,000 BdFt/acre x 20 acres = 200,000 BdFt harvested every 10 yrs. 250 BdFt/yr/acre x 20 acres x 10 yr = 10,000 BdFt growth 250 BdFt/yr/acre x 50 yr = 12,500 BdFt/acre

28. Woodland as an Investment Is forest management a reasonable investment? How do you treat your woodlot (IRS)? Hobby, Investment, Business What is your acceptable Rate of Return? 5%? Parallel to Securities Investment Portfolio: Stocks Trees Holdings: Diversified Multiple species & age Strategy: Aggressive or Conservative Management Plan Preferred: Blue Chip High Value Species Purpose: Retirement & Estate Satisfaction & Estate Goal: Lifetime Generations Advice: Financial Advisor Professional Forester

30. An Investment Gone Bad