The purpose of this paper is to present recommendations for reforestation with hinoki (Chamaecyparis obtusa) on low-productivity forest sites. Recently, hinoki reforestation has increased rapidly on lower-productivity sites where, for example, Japanese pine has been killed by nematodes. However, much money is being invested in hinoki reforestation on these sites without investigation of the economic effects. This paper 1) presents a model for economic evaluation of a silvicultural investment, 2) uses it to estimate the volume and price of hinoki logs, and 3) demonstrates an economic evaluation. The model shows that investment profitability is affected greatly by site quality and that solving problems of low quality sites requires that logging and stand-tending costs be minimized while large subsidies must be paid. Reforestation of such sites must only proceed after completing an economic evaluation including consideration of site quality and logging and stand-tending costs.