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stumpage
Stumpage is the price a private firm pays for the right to harvest timber from a given land base. It is paid to the current owner of the land. Historically, the price was determined on a basis of the number of trees harvested, or “per stump”. Currently it is dictated by more standard measurements such as cubic metres, board feet, or tons. To determine stumpage, any stand that will be harvested by the firm is first assessed and appraised through processes aimed at finding the volume of timber that is to be harvested. A given stumpage rate, measured in $/volume, is then applied to the amount of timber to be harvested. The firm will then pay this price to the landowner.〔B.C. Ministry of Forests (2008, March). Glossary of Forestry Terms in British Columbia. Province of B.C. Website. Retrieved March 21, 2012, from http://www.for.gov.bc.ca/hfd/library/documents/glossary/Glossary.pdf〕
==Stumpage in Canada==
Canadian forests exist mainly on what is considered to be crown land, under the provincial governments' control. Legislation dictates the fees that Canadian firms will pay for stumpage, and long-term agreements are reached regarding the management and harvesting performed on crown land. These long term agreements, called tenures, commonly involve 20 year concessions, with "rolling renewable" provisions, whereby the firm is capable of retaining a given management area.〔Sedjo, R. A. (2006). Comparative Views of Different Stumpage Pricing Systems: Canada and the United States. Forest science, 52(4), 446-450.〕
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