1. Han and Renzie (2005) estimate that the cost for processing before loading in the field (at the harvest site), which is comprised primarily of delimbing and debarking, is CAN$3.55/m3 in 2001 Canadian dollars. Inflated to 2005 (see http://www40.statcan.ca/101/cst01/econ46.htm), the cost is CAN$3.87/m3 in April 2005. Using the May 2005 US$/CAN$ exchange rate of $US0.666/$CAN, this processing cost would be US$2.58/m3.
2. Howard J.L. 2003. “U.S. Timber Production, Trade, Consumption, and Price Statistics 1965 to 2002.” Research Paper No. FPL-RP-615, Department of Agriculture, Forest Service, Forest Products Laboratory, Madison, Wisconsin.
3. The GFPM calculates market equilibria by maximizing the sum of consumer and producer surplus net of transport costs (Samuelson 1952). However, this is only a computational device, and we cannot interpret the level of the objective function nor its change as a measure of the level of welfare or its change.