D ue to use of m arket interest rate in the economic analyses in the pnblic sector, inconvenient results tended to come out historically. T he public sector has quite different socio-economic conditions an d objectives comp ared to the private sector. F or this reason, in the economic analysis the social Interest rate began to be used, instead of m ark et interest rate in the pnblic sector. This interest rate called “ social discount ra te ” is com puted by various approaches. These approaches a re m ark et interest rate, governm ent borrow ing rate, social opportunity cost rate, and social tim e preference rate. R esearches on a reasonable interest rate to be used in economic analysis in public sector are stili continuing. In this article an approach th a t has been developed for the estim ation of the interest rate to be used in the public forestry sector is revealed. In this new approach the interest rate, is estim ated on the basis of the expectation values of the forest lands and the values of land used in the m ost sim ilar and the best alternative activity in com parison w ith forestry.