Stumpage


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Stumpage

 

funds received in the state budget of the USSR and local budgets from logging organizations for the standing timber released to these organizations by state forestry establishments; such funds also cover windfall timber.

Stumpage is paid by the logging organizations according to a schedule established by the Ministry of Finances of the USSR. It is the principal type of forestry income and is reflected in the net cost of timber hauled. Stumpage is designed to compensate for the costs of forestry, to stimulate efficient use of forest resources, and to make logging and timber distribution establishments uniformly profitable. It is computed and collected by state forestry establishments from all logging organizations according to forest tariffs ratified by the State Committee for Prices of the Council of Ministers of the USSR.

Stumpage developed as a form of forest rent and was first collected in Russia’s state forests in 1799. After the Great October Socialist Revolution, it was instituted in 1923. It was abolished for the chief logging organizations in 1930 but was restored in 1949. In 1974, stumpage amounted to about 12 percent of the net cost of timber hauled. The rate of stumpage is determined by forestry expenditures, and tariffs are differentiated according to forest stands, region, type of tree, quality of timber, and hauling distance.

REFERENCES

Vangnits, P. R. Taksy i tseny na lesoproduktsiiu. Moscow-Leningrad, 1953.
Shkatov, V. K. Popennaia plata v SSSR. Moscow, 1965.

V. K. SHKATOV

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Much as it is the case for all goods and services in the economy, the price of stumpage is determined by the interaction of the supply and demand.
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Straka and Bullard argue that the LEV calculation is not normally used by appraisers because the formula requires judgments with respect to stumpage prices, reforestation costs, and forest yield, which are beyond the scope of expertise of most appraisers.
Kittredge, Rickenbach, and Broderick (1999) compared stumpage values over 5 yr for two adjacent states (Massachusetts, which has extensive forestry-related regulations, and Connecticut, which has extremely limited regulations) and found that such regulations do not adversely affect stumpage prices or landowner profits.
Timber TPS -- a comprehensive and reliable database of stumpage pricing for actual North American timber sales - also saw a 96% increase in the number of participating organizations.
The BLM's stumpage forecasts are based on 2005 prices, the highest in many years.
market because Canadian timber is mostly owned by provincial governments that set stumpage prices at artificially low levels resulting, essentially, in a subsidy to the Canadian timber industry.
On average in the past decade, BC collected $1 billion annually in stumpage fees from forest companies logging public lands--the same lands claimed by First Nations.
Simply put, the case against Canadian wood exports is that stumpage rates are too low, amounting to a subsidy for Canada's industry.
Thomson, 1992, "Optimal Forest Rotation When Stumpage Prices Follow a Diffusion Process", Land Economics, 68:329-342
South has both an abundant supply of pulpwood and a market system that has kept pulpwood stumpage prices relatively stable and low.
Department of Commerce (DOC)'s failure to conduct pass-through analysis as to upstream lumber transactions did not comport with either SCM Agreement or GATT 1994; whereas neither DOC's finding that provincial stumpage programs amounted to financial contribution nor its determination of amount of benefits involved clashed with SCM Agreement