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Abstract
Timberland investment performance depends on internal and external factors. Forestland owners can control the establishment location, the level of genetically improved seedlings, and management regimes that maximize the timber production profitability. Therefore, analyzing forest growth and yield factors, silvicultural responses (and potentially genetic gains of yield), and measures of the amount of merchantable volume is essential for forestland owner decision making. However, the effect of external economic factors such as the global market, interest rates, and macroeconomic stability may affect timberland investment returns as well. Thus, understanding the effect of the economy on timberland investments is also crucial. For instance, analyzing how the current economic outlook affects timber cutting contracts based on option pricing gives insight into the financial performance of timberland investments. Although the problem and justification addressed in this dissertation is globally applicable, we focused on loblolly pine in the southeastern United States because the combination of the species and region represents the most relevant timberland investment in the world. The general objective of this research was to determine the chief drivers of loblolly pine timber production, and to assess for the effect of the present external economic context on the timberland investments in the southeastern U.S. Regarding timber production drivers, the effect of the physiographic region, level of genetic improvement, level of management regime, stand density, and proportion of sawtimber were evaluated. Timber prices, timber price volatility, and interest rates were utilized to understand the effect of the current economic context on the estimated value of timber cutting contracts. In brief, this investigation gives insight to private and public forestland owners, forest products companies, timber investment management organizations (TIMOs) and real estate investment trusts (REITs) to make informed decisions on timber production and timberland investments in the southeastern U.S.