Current issue: 54(3)
Under compilation: 54(4)
The article introduces methods that can be used to calculate economic profitability of draining of peatlands, and discusses their advantages and weaknesses. The time span from draining of a peatland and the future income is usually decades, which makes it difficult to assess profitability for the investment. For instance, income from future fellings depends on chosen rotation time, and price of timber that can fluctuate strongly.
When calculating the profitability, the drained area can be treated as a separate unit of account or as a part of the forest holding. In the first case, several methods can be used. First, yield in terms of value is a suitable method only if the peatland has no existing forest. Second, annual yield of a drained peatland and peatland in natural state can be compared. In this case yield can be defined in several ways. Third method uses value increment of the growing stock. Fourth method estimates value of increment for both the growing stock and land. Fifth method is based on present value of the future felling income, and sixth on actual value of the growing stock and yield in terms of value.
The PDF includes a summary in German.