Stumpage is the price a private firm pays for the right to harvest timber from a given land base.
On Canadian crown land, stumpage is known as the market value of standing trees that must be paid by firms for the right to harvest timber, currently measured in $/cubic meter.
Long-term agreements are reached regarding the management and harvesting performed on each province's crown land.
In the United States, much of the land used for harvesting timber is private wherein, "stumpage prices are determined by the market".
The United States' representatives claim the Canadian system of determining stumpage fees amounts to a subsidy.
St = Σ ( At * pT * QT) / (1 + r)T−t Only receipts from harvesting mature timber are included.