Text Size:   A+ A- A   •   Text Only
Site Image
First approximation: break-even formula
Break-even (B-E) formula
Property tax deferred annually ($)    

  = Annual break-even volume (MBF)
Severance tax rate ($/MBF)    

  = 154.24 MBF
Conclusion for example:

  • If harvesting more than 154 MBF/year, choose forestland program.
  • If harvesting less than 154 MBF/year, choose STF option.
Assumption to make B-E formula work
  • Must harvest the same amount annually.
MBF = thousand board foot.