Forest Economist Michigan Department of Natural Resources East Lansing, Michigan, United States
This study examines the critical role of the rollback factor in determining the advertised price of timber sales, exploring its impact on market dynamics and economic conditions. Through analysis of state agency practices and Michigan DNR data, it offers insights to inform adjustments and optimize timber sale strategies.
Learning Objectives:
Understand the intricate process of determining the advertised price of timber, including the role of timber appraisal, the application of rollback factors, and their significance in fostering competition and managing market fluctuations within the forest products industry.
Evaluate the effectiveness of rollback factor utilization by state agencies and the U.S. Forest Service through an analysis of its calculation and application, as well as its impact on optimizing timber sale prices.
Interpret empirical findings derived from Michigan DNR timber sale data to discern the effects of adjustments in the room-to-bid percentage on average stumpage prices and instances of no-bid or over-bid sales, enabling informed decision-making regarding the establishment of rollback factors in timber sale programs.
