The discount rate at which the rotation’s discounted revenue exactly offsets its discounted costs — the annualised return on capital, accounting for the long wait between planting outlay and harvest income.
Well-sited short-rotation hardwood plantations typically target a real IRR of around 6–9%, above a commercial hurdle rate.
ABARES ↗IRR is how forestry is judged against every other investment competing for the same capital. Clearing a commercial hurdle rate is what keeps land in trees rather than converted to a faster-paying use, so it frames every replant decision.
Silo pulls each of these from the sources the operation already uses, and keeps the figure current automatically.
Bring revenue forward by harvesting at the MAI culmination age.
Keep establishment spend disciplined — it discounts the hardest.
Raise yield and price so the single harvest cash flow lands larger.
The discount rate at which the rotation’s discounted revenue exactly offsets its discounted costs — the annualised return on capital, accounting for the long wait between planting outlay and harvest income.
You need: Establishment & tending cash flows ($), Harvest revenue ($), Rotation length (yr). Silo pulls each of these from the sources the operation already uses and keeps the figure current automatically.
Well-sited short-rotation hardwood plantations typically target a real IRR of around 6–9%, above a commercial hurdle rate.
Bring revenue forward by harvesting at the MAI culmination age. Keep establishment spend disciplined — it discounts the hardest. Raise yield and price so the single harvest cash flow lands larger.
Connect the software, spreadsheets and records you already keep, and Silo keeps every benchmark on this page current automatically.
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