Question

Q2. Write five advantages and five disadvantages of the forest.
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Answer 1

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DISADVANTAGE:

i)It destroys the habitat of animals and birds.

ii)It causes floods and fires.

iii)It causes green house gases build-up.

iv)It can limit the supply of wood or timber.

v)It can affect the discovery of new herbal medicines

ADVANTAGE:

(i) Influence on Climate

(ii) Control of Runoff

(iii) Flood Control

(iv)Wildlife Habitat Provision

(v) Prevention of Soil Erosion

Answer 2

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UR ANSWER IS HERE

Advantages

• Many opportunities exist to advance the quality of timber stands with active management.
• Timber production can be timed to provide periodic returns.
• This income can be a means of paying taxes on land held for future use for heirs under an estate plan.
• Timber income qualifies for capital gains tax treatment, which is considerably lower than taxes on ordinary income.
• Reforestation investments are often eligible for cost-share programs and can be amortized as well as provide immediate tax credits up to 10 percent of costs.

Disadvantages

• Forest investments are long-term propositions.
• The risk is real in the form of fire, insects, disease and environmental/social constraints.
• Often there is a heavy front-end capital investment required for stand initiation and loans for forestry investments can be difficult to acquire.
• Timber buyers are not attracted to small tracts and the costs of additional land purchases may be prohibitive for forestry investments.
• Fluctuations in price may be on a longer time-scale.

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