Financial maturity of Popolus deltoides Marsh. (Case study: Shalyshel village, Kurdistan province)

In this paper the financial maturity and optimal rotation age of poplar (Popolus deltoides Marsh.) was studied in a study site in in Kurdistan province. First, the growth information of poplar was obtained from poplar plantation plans of Agricultural and Natural Resources Research Center in Sanandaj. Then data concerning stumpage price, fix and variable cost per hectare were collected by using questionnaires and conducting interviews with local people and poplar farmers. Finally, the age in which farmers achieve the maximum net present value was determined using the expected value of land model, i.e. Faustmann model. The findings showed that optimal rotation period occurs at the age of 12 years, where the marginal revenue and marginal cost curves intersect. However, the local farmers cut poplar trees at the premature ages of 6-7 years, thereby ignoring higher profits associated with the further growth. The obtained results can be attributed to the risks in regional poplar market, which is attempted to be avoided by the farmers.