Finding suitable tree species that not only grow well on nutrient poor soils but are also safe financial investments is one of the major obstacles to successful reforestation efforts in the tropics. Our study compared the financial viability and growth of valuable timber species in monocultures and mixtures on infertile soils. Our work shows the extraordinary growth in volume and value of Dalbergia retusa and Terminalia amazonia while underscoring the poor financial viability of Tectona grandis and Pachira quinata , all commonly planted timber species in Panama and much of Central and South America. Using Bayesian statistics, our predictions show that T. amazonia monocultures could reach nearly 200 m 3 ha −1 of merchantable volume after 30 years compared to the ~ 40 m 3 ha −1 that T. grandis could accumulate in the same time frame. While D. retusa monocultures did not have the highest predicted merchantable volumes of all the species, it did have the highest predicted net present value (NPV), with a predicted mean NPV of > US$97,000 ha −1 , quadrupling the species with the next highest monoculture’s NPV, T. amazonia monocultures (~ US$20,000 ha −1 ). Our work emphasizes that reforestation can be financially viable on low nutrient soils, even in the absence of fertilization or other silvicultural manipulations, if species selection and site are carefully considered and matched.

Restoration of forests in low- and middle-income countries (LMICs) has the potential to contribute to international carbon mitigation targets. However, high upfront costs and variable cashflows are obstacles for many landholders. Carbon payments have been promoted as a mechanism to incentivize restoration and economists have suggested cost-sharing by third parties to reduce financial burdens of restoration. Yet empirical evidence to support this theory, based on robust, dynamic field sampling is lacking. Here we use large, long-term datasets from Panama to evaluate the financial prospects of three forest restoration methods under different cost-sharing and carbon payment designs where income is generated through timber harvests. We show some, but not all options are economically viable. Further work combining growth and survival data from field trials with more sophisticated financial analyses is essential to understanding barriers and realizing the potential of forest restoration in LMICs to help meet global carbon mitigation commitments.

There is growing interest among farmers in the northeast US in silvopasture and other practices that would help them expand their agricultural land base in this forested region. Unfortunately, little quantitative data exist regarding forage performance and economic outcomes associated with different forest-to-agriculture conversion strategies, particularly for the northern tier of states. This research examined forage dry matter production and quality in six forage treatments (orchardgrass, bluegrass, brome, and perennial ryegrass bicultures with white clover; cut hay; and a control) in newly-established silvopastures and open pastures converted from an early successional northern hardwood forest in New York. In addition, we conducted a financial analysis of the establishment of both agricultural systems, as well as a thinned forest treatment managed solely for wood products. Total forage dry matter production (planted forages plus volunteer grasses) was greater in open pastures than silvopastures in the first year after establishment; however, no differences in total forage production were found between silvopastures and open pastures in June or August of the second year. Total forage dry matter production was greater in the orchardgrass-white clover biculture compared to the control treatment in both years. Orchardgrass percent crude protein was lower in open pastures (10.7%) compared to silvopastures (12.9%) in June of year two. The financial analysis indicated that silvopasture outperformed open pasture and thinned forest treatments in terms of both IRR and NPV. We conclude that forage production in silvopastures can be competitive with that in open pastures on sites with a similar, forested, starting condition.

Single-tree and small-group selection silviculture are widely used uneven-age management regimes in the northeastern United States to create structural diversity and provide high quality timber. However, analysis of long-term performance of these systems is uncommon, largely due to limited access to long-term data sets in the region. The Bartlett Experimental Forest, one of the few permanent experimental research sites in the region, offers a rare opportunity to investigate effects of management practices over 60 yr. Modern forestry seeks both economic and ecological goals, and typically entails harvesting to promote growth and regeneration of commercially valuable trees while creating structural and biological diversity. Comparatively little attention has been given to whether silvicultural treatments can sustainably achieve these goals over many harvests and rotations. We examined two selection silviculture techniques and an unmanaged site in New Hampshire to assess tree quality changes by comparing tree grades over 60 yr. We also measured a one-time inventory of downed-woody debris abundances, an important contributor to ecological diversity. We found that tree grades improved over 60 yr of management and differences among abundances of downed wood between sites. We conclude that selection silviculture has the potential to influence tree quality and ecological diversity.

This special issue of Forest Policy and Economics is based on the papers presented and discussions held at the International Conference on the New Frontiers of Forest Economics, June 26–30, 2012 held at ETH, Zurich, Switzerland. This paper discusses the need of new frontiers of forest economics, provides an overview of the special issue, and presents thoughts about new frontiers. The paper suggests that all knowledge of forest economists is conjectural, and without the competition of contradictorily theories forest economics sinks into intellectual poverty. The progress of forest economics will need a never ending fabrication on new and venturous theories for solving problems and strong attempts to refute, to critically assess and discuss, and to test empirically the new theories. The paper discusses three areas for new frontiers of forest economics — integration of sciences using multidisciplinary and transdisciplinary approaches, incorporation and integration of various streams of economics, and answering the unanswered questions by developing new models and methods.

Although it is an important component of the northern forest, eastern hemlock (Tsuga canadensis (L.) Carr.) is a secondary species in its regions' markets. In this paper, we examine the markets for hemlock, analyze price trends for stumpage, and suggest implications of market forces for management of forests containing hemlock. The characteristics of hemlock wood limit its use to relatively low-grade products, such as structural lumber, pulpwood, and pallets, although higher value niche markets exist, such as post and beam house frames. Analysis of trends for sawlog and pulpwood stumpage prices from publicly available reports indicates little change in inflation-adjusted prices over long time periods. Such price performance indicates that available supply is more than adequate to meet demand throughout hemlock's natural range. Markets for hemlock have rarely been strong and are not likely to become so. Therefore, forest management plans that require the removal of hemlock may require opportunistic harvesting decisions. Eastern hemlock's nonmarket values must also be incorporated into management plans.