An economic analysis of landowner propensity for woodlot management and harvesting in northwestern Saskatchewan

The recent development of new processing facilities in Meadow Lake, Saskatchewan has created a long-term market for timber in the region. Although these processing facilities are currently supplied by crown timber reserves, increasing pressure on public forest resources from multiple users has caused processors to consider private woodlots as a supplemental source of fibre. A survey was undertaken to investigate conditions under which landowners may respond to the emerging demand by managing their timber resources for harvest and sale.Survey results indicate that, although virtually no management or harvesting has occurred in the past, approximately half of those interviewed would consider timber management and harvesting in the future. Logit analysis identified landowner characteristics that were related to landowners' willingness to consider forest management and harvest in the future and the likelihood that they would consider a timber contract. Significant characteristics of landowners in influencing the propensity to manage and harvest their woodlots included: the diversity of farm operations, the length of family tenure of the land, the number of ways respondents use their forest land, and area of forest owned. A preferred timber contract was identified as having: a duration of 1 to 5 years, young growth established at the end of the contract term, and payments for harvesting and management services made through a crop share arrangement. Key words: private forestry, forest economics, timber contracts, landowner characteristics, woodlot management