Sustained forests; sustained profits
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Parks and forests in the public domain are usually financial drains. Even if direct costs are ignored, they represent a loss of land for taxation for communities. The cost of owning land is, at minimum, the annual tax burden on the landowner. The bottom line for success of the Lasting Forests is that, at least, the annual tax equivalent of associating landowners is paid by the project operation.
Depending on inventory, adopted accounting procedures and policies, and the planning horizon, the costs of system development can probably be paid for exclusively from funds derived from the Forests. Development capital is needed to implement 22 units or enterprises within the first 2 years for stability and continuous development. (A slowly developed, less profitable, and more uncertain venture of 13 units is discussed below). We may cautiously gain funds from the various properties and activities (intensive use of forests, pastures, facilities, and creative development of ancillary operations). Driven by incentives, the shared profits gained will build the enterprise.
The preliminary estimates for start-up work are based on emphasizing:
Gross estimates of the costs to develop each unit to initial readiness are presented below. Funds required in a 2-3-year development period of staffing, acquisition of equipment, initial site work, and start-up work. The gross estimate is for an investment of approximately $2 million in the first year and about that much in the second year, a total of $4 million start-up costs. Annual profits of about $4 million are estimated being made by the end of the 5th year after debt repayment.
There are uncertainties in these estimates but they are conservative. They are based on a sponsoring company or group of investors holding tracts of 10,000 - 20,000 acres, the land having residual tree resources, and the land having some generally attractive appearance and no major toxic or other traits that will exclude use of the land. Generally, the area imagined was that in Virginia in the vicinity of Roanoke and westward and into West Virginia. It may include abandoned surface-mined land. The more mature the forests, the larger the area, the better the access, the more amicable the people, the greater will be the successes. These topics are yet unknown. The cost estimates expected during the first 2 years are shown.
|Unit Name||First Two Year
|Likely Fifth Year Profits|
|1. Forests (Main and Associated)||200,000||200,000|
|1a. Walnut Vales||30,000||60,000|
|1.b The Foresters||30,000||40,000|
|1.c Fire Force||200,000||200,000|
|3. The Wildlife Group|
|3a. Official Avi||400,000||200,000|
|3b. The Wild Turkey Group||80,000||90,000|
|3c. The Raccoon Group||30,000||50,000|
|3d. The Deer Group||150,000||200,000|
|3e. Good Dog||60,000||8,000|
|4. The Pest Force||80,000||80,000|
|5. The Fishery||200,000||100,000|
|6. The Range and Pasture Group||50,000||100,000|
|7. Nature Folks||80,000||100,000|
|7a. The Plant People||35,000||90,000|
|7b. The Owl Group||45,000||90,000|
|7d. The Butterfly Band||45,000||60,000|
|7e. Wilderness Group||30,000||50,000|
|7f. Wildland Walkers||30,000||100,000|
|7g. The Wildland Crew||50,000||40,000|
|7i. The Rollers||30,000|
|8. The Lasting Forests Camps||100,000||50,000|
|8*. Writers' Camps||17,000||60,000|
|10. The Tours Group||20,000||300,000|
|10a. China Tour Example||45,000||80,000|
|10b. Grandeer Tours example||20,000||30,000|
|13. The Products Group||50,000||150,000|
|15. The Certification Group||50,000||100,000|
|16. The Wildland Knowledge Base||50,000||150,000|
|20. The Warehouse Group||30,000||150,000|
|21. The System Base||45,000||55,000|
|22. System Central||300,000|
|22a. The Trevey||50,000||250,000|
|22b. The Energy Core||30,000||5,000|
|22e. Security and Safety||50,000||80,000|
A new personal incentive-driven procedure is available.
A modest development might be selected. It reduces risks in managerial skills but increases the risks of the total system failing to perform at expected levels. It delays the development of the total system by many years. The following proposals are based on deleting certain units from the above list, emphasizing low-cost and high return units, and cutting back on the scope or size of others.
The 2-year development costs of the modest option are:
|Foresters, Anglers, Stalkers, etc.||100,000|
|The Deer Group||100,000|
|The Products Group||50,000|
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Last revision January 17, 2000.