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Board discusses option to optimize sustainable harvest calculation for volume rather than value
Summary
Board considered a conceptual alternative to optimize the model for harvest volume rather than net present value and debated market interactions, operational feasibility and beneficiary impacts of volume-based formulations.
One conceptual alternative staff presented would explore how the harvest level changes if the sustainable harvest calculation model optimizes for harvest volume rather than net present value.
Board members cautioned that a purely volume-based target could interact poorly with market prices and local infrastructure. "If the market is really doing poorly out there, and we're still driving the same volume out there to meet our target, we're contributing to, to an excess volume in the market and lowering prices," Board member Chris Reykdal said, arguing for considering revenue dynamics alongside volume targets.
Staff and board members agreed the sustainable harvest calculation defines a decadal strategic volume but that tactical, year-to-year adjustments could be used to smooth market effects. Staff said the tactical implementation and financial analysis would be developed alongside model formulations so the board could compare outcomes on NPV, volume, carbon and resilience metrics.
