Timber production factor shares by forest tenancy group

Knowledge about factor shares in timber production by land ownership assists policymakers in identifying the means for creating income among targeted land owner groups. Factor share identification for timber production is based on the wealth aspects of growing stock, land, and labor. This paper identifies principles relevant to estimating returns to factors of production for forests in a regional economy and presents empirical estimates of factor shares for a region where timber production and wood processing are large components of regional output. Factor shares are shown to differ among land tenancy groups and are a function of land management intensity.