ABSTRACT
This chapter describes the highest yield principle, which has increasingly lost ground. It presents a brief discussion of the problem concerning the calculation of the profitability of forestry. According to the land rent theory, the rotation period that maximizes the land value and the land rent is the economically correct one. Improvements in forestry technology have led to an increase in productivity, which can not be ignored when determining the rate of return. If productivity is able to rise by 1% per year with regard to the quality and quantity of timber, a yield of 4% of the cost price is satisfactory. If, in addition to this, there is a real rise in timber prices amounting to 1% yearly, one can probably be satisfied with a return of 3% during the first years, without sustaining any losses.
