AN AFTER-TAX ANALYSIS OF ENERGYWOOD HARVESTING COSTS

The after-tax costs of energywood harvesting were analyzed with emphasis on the site preparation savings gained from such operations. A break-even analysis was conducted using cost data from previous studies, and two break-even points were identified. One break-even situation occurred where energywood harvest revenues equalled the direct costs of the harvest. When the site preparation savings resulting from the energy-wood harvest were included in the analysis, however, a different break-even point was determined. Considering the after-tax site preparation savings, the energy-wood harvesting operation could operate at a slight loss, yet benefit the woodlands division as a whole.