%0 Research Notes
%T Profitability of ditch-network maintenance on some oligotrophic pine mires
%A Hytönen, Leena
%A Aarnio, Jukka
%D 1998
%J Suo - Mires and peat
%V 49
%N 3
%U http://suo.fi/article/9776
%X The paper presents the results of a study to assess the profitability of ditch-network maintenance on some oligotrophic pine mires. The alternative ditch-network maintenance methods compared were: ditch cleaning, complementary ditching, and ditch cleaning and complementrary ditching combined. Nine drained pine-dominated mires were chosen for investigation. Only the ditch-network maintenance costs were included in the calculations. Profitability was calculated for two cases: 1) the forest owner pays all the costs and 2) he obtains the maximum state grant. Without the state grant ditch-network maintenance provided a net present value of 870 FIM ha-1 with a 3 % rate of interest, of 220 FIM ha-1 with the 5 % rate of interest, and on internal rate of return of 5 %. With the state grant the results were: 1620 FIM ha-1, 970 FIM ha-1 and 10%, respectively. The conclusions were that in most cases ditch-network maintenance is profitable even without state grant. By using 3 % and 5 % interest rates, the complementary ditching and combination provided similar profitability, specially when the state grants were provided. Using the IRR criterion, the complementary ditching provided the best profit.