Projection Tables for Koa Sustainable Hardwood Timber Investment
| Year | Number of Trees Harvested | Marketable Wood per Tree in Board Feet | Value Per Board Foot | Gross Proceeds | Milling, Harvesting, and Processing Costs | Net Harvest Proceeds | Maintenance and Care | Harvest Net Profit | Cumulative Net Proceeds |
|---|---|---|---|---|---|---|---|---|---|
| 1-7 | Non-Marketable | Thinning and selection | |||||||
| 8 | 37 | 22 | $13.53 | $11,013 | $407 | $10,606 | $1,061 | $9,546 | $9,546 |
| 13 | 10 | 78 | $18.11 | $14,126 | $515 | $13,611 | $1,361 | $12,250 | $21,796 |
| 17 | 10 | 152 | $22.86 | $34,747 | $1,277 | $33,470 | $3,347 | $30,123 | $51,919 |
| 21 | 17 | 260 | $28.86 | $127,561 | $4,685 | $122,876 | $12,288 | $110,588 | $162,507 |
| 25 | 11 | 354 | $36.44 | $141,897 | $5,218 | $136,679 | $13,668 | $123,011 | $285,519 |
| Total Proceeds: | $285,519 |
This projection table is based on the following assumptions:
- The market price for koa in today's market is $9.00 per board foot
- The rate of increase in market prices for koa will average 6% per year
- The carrying capacity of our planting site is 175 square feet of basal area per acre
- The average growth rate is 1" of diameter per year
- The overall mortality and initial culling rate is 15%
- The milling and harvesting costs will remain the same for small diameter trees
- The market value for 8 year old timber will be consistent with the overall koa market
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Koa Projection Table Alternate #1
Projections for 100 tree lot
| Year | Number of Trees Harvested | Marketable Wood per Tree in Board Feet | Value Per Board Foot | Gross Proceeds | Milling, Harvesting, and Processing Costs | Net Harvest Proceeds | Maintenance and Care | Harvest Net Profit | Cumulative Net Proceeds |
|---|---|---|---|---|---|---|---|---|---|
| 1-7 | Non-Marketable | Thinning and selection | |||||||
| 8 | 43 | 23 | $7.23 | $7,146 | $989 | $6,157 | $616 | $5,541 | $5,541 |
| 13 | 16 | 91 | $20.27 | $29,513 | $961 | $28,552 | $2,855 | $25,697 | $31,238 |
| 17 | 9 | 155 | $26.57 | $37,065 | $921 | $36,144 | $3,614 | $32,530 | $63,768 |
| 21 | 3 | 260 | $34.83 | $27,167 | $515 | $26,653 | $2,665 | $23,987 | $87,775 |
| 25 | 9 | 356 | $45.65 | $146,263 | $2,115 | $144,148 | $14,415 | $129,733 | $217,488 |
| Total Proceeds: | $217,488 |
This projection table is based on the following assumptions:
- The market price for koa in today's market is $9.00 per board foot
- The rate of increase in market prices for koa will average 7% per year
- The carrying capacity of our planting site is 175 square feet of basal area per acre
- The average growth rate is 1" of diameter per year
- The initial culling and mortality rate is 15% with another 5% over 25 years
- The milling and harvesting costs for small diameter trees will be double the average
- The market value for 8 year old timber will be one half the overall koa market
_________________________________________________________
Koa Projection Table Alternate #2
Projections for 100 tree lot
| Year | Number of Trees Harvested | Marketable Wood per Tree in Board Feet | Value Per Board Foot | Gross Proceeds | Milling, Harvesting, and Processing Costs | Net Harvest Proceeds | Maintenance and Care | Harvest Net Profit | Cumulative Net Proceeds |
|---|---|---|---|---|---|---|---|---|---|
| 1-7 | Non-Marketable | Thinning and selection | |||||||
| 8 | 43 | 23 | $8.23 | $8,135 | $989 | $7,146 | $715 | $6,431 | $6,431 |
| 13 | 16 | 91 | $25.31 | $36,851 | $961 | $35,890 | $3,589 | $32,301 | $38,732 |
| 17 | 9 | 155 | $35.73 | $49,843 | $921 | $48,923 | $4,892 | $44,030 | $82,763 |
| 21 | 3 | 260 | $50.44 | $39,343 | $515 | $38,828 | $3,883 | $34,946 | $117,708 |
| 25 | 9 | 356 | $71.20 | $228,125 | $2,115 | $226,010 | $22,601 | $203,409 | $321,117 |
| Total Proceeds: | $321,117 |
This projection table is based on the following assumptions:
- The market price for koa in today's market is $9.00 per board foot
- The rate of increase in market prices for koa will average 9% per year
- The carrying capacity of our planting site is 175 square feet of basal area per acre
- The average growth rate is 1" of diameter per year
- The initial culling and mortality rate is 15% with another 5% over 25 years
- The milling and harvesting costs for small diameter trees will be double the average
- The market value for 8 year old timber will be one half the overall koa market
2014
2015
2016
2017
2018
2019
2020
2021
2022