scholarly journals What is the Value of an Existing Forest Stand?

EDIS ◽  
2019 ◽  
Vol 2019 (6) ◽  
pp. 3
Author(s):  
Andres Susaeta ◽  
Chris Demers
Keyword(s):  
Forest Resources ◽  
Forest Stand ◽  
Present Value ◽  
Expectation Value ◽  
Fact Sheet ◽  
Land Expectation Value ◽  
Main Indicator ◽  
Bare Land ◽  
Value Of Cash

Traditionally, the land expectation value (LEV) formula, the present value of perpetual cash inflows of timber revenues minus the present value of cash outflows of costs, has been employed as the main indicator of the value of a forest investment. However, when a forest stand is already established, the LEV approach is incomplete because it applies only to bare land. Thus, it is necessary to determine the value of a property with an existing forest stand. This 3-page fact sheet written by Andres Susaeta and Chris Demers and published by the UF/IFAS School of Forest Resources and Conservation provides the formula to determine the value of an already established forest stand at any stage of its development. This approach, known as the forest value formula, includes the value of the timber and the land. It can be used to compare the value of the stand when it is immediately harvested or when it is economically immature. http://edis.ifas.ufl.edu/fr423

Economic Aspects of the Forest Regeneration Delay Decision

1985 ◽  
Vol 9 (2) ◽  
pp. 91-94 ◽  
Author(s):  
Thomas J. Straka ◽  
James E. Hotvedt
Keyword(s):  
Real World ◽  
Forest Regeneration ◽  
Forest Stand ◽  
Economic Aspects ◽  
Expectation Value ◽  
Land Expectation Value ◽  
Bare Land ◽  
Bare Land Value ◽  
The Cost ◽  
Delay Decision

Abstract Regeneration lag, the cost resulting from a delay in reestablishment of a forest stand, represents an important opportunity cost̶the cost of the foregone opportunity to grow timber over the period of the delay. The land expectation value (Le) criterion is used to evaluate the costs associated with one-time-only and perpetual lags. Significant decreases in wealth, or bare land value, were found using a simplified example with real-world cost and price data. Changes in required land bases resulting from regeneration delays were also reviewed. The additional land requirements resulting from scheduled delays in regeneration can be costly.

scholarly journals Determining the Net Present Value of Timber Investments and Comparing Investments of Different Rotations

EDIS ◽  
2019 ◽  
Vol 2019 (6) ◽  
pp. 4
Author(s):  
Andres Susaeta ◽  
Chris Demers
Keyword(s):  
Net Present Value ◽  
Forest Resources ◽  
Forest Stand ◽  
Present Value ◽  
Fact Sheet ◽  
Short Rotation

Would a forest landowner be economically better off growing a forest for pulpwood production with a short rotation instead of growing the same forest for sawtimber production with a longer rotation? To help answer this and related questions, this 4-page fact sheet written by Andres Susaeta and Chris Demers and published by the UF/IFAS School of Forest Resources and Conservation presents two approaches to determine the profitability of a forest stand. The net present value (NPV) of a single rotation provides the criterion to choose between different forest project investments of equal lives, whereas the equivalent annuity approach (EAA) is employed when forest project investments have different time lengths. http://edis.ifas.ufl.edu/fr421  

scholarly journals The Optimal Forest Management of an Even-Aged Stand: The Biological Rotation versus the Land Expectation Value

EDIS ◽  
2019 ◽  
Vol 2019 (6) ◽  
pp. 4
Author(s):  
Andres Susaeta ◽  
Chris Demers
Keyword(s):  
Forest Management ◽  
Investment Decisions ◽  
Forest Resources ◽  
Forest Stands ◽  
Forest Landowners ◽  
Expectation Value ◽  
Fact Sheet ◽  
Land Expectation Value ◽  
Optimal Rotation ◽  
Rotation Age

This 4-page fact sheet written by Andres Susaeta and Chris Demers and published by the UF/IFAS School of Forest Resources and Conservation provides a guide for forest landowners, managers, and stakeholders in conducting a valuation of timber investments. It reviews and provides examples of two different approaches for determining the optimal rotation age of even-aged forest stands. These methods can help forest landowners and managers in making forestry investment decisions. https://edis.ifas.ufl.edu/fr424

scholarly journals Evaluating the effects of risk on the economics of juvenile spacing and commercial thinning

1991 ◽  
Vol 21 (9) ◽  
pp. 1390-1400 ◽  
Author(s):  
William J. Reed ◽  
Joseph Apaloo
Keyword(s):  
Net Present Value ◽  
Fire Hazard ◽  
Fire Risk ◽  
Economic Benefits ◽  
Present Value ◽  
Expectation Value ◽  
Commercial Thinning ◽  
Land Expectation Value ◽  
Optimal Rotation ◽  
Rotation Age

The temporarily increased fire hazard that is believed to result from the process of thinning is included in a single-stand model for assessing the economic benefits of juvenile spacing. Formulas for the expected net present value and the land expectation value are given along with methods for determining the age of financial maturity and the optimal rotation age. A numerical example is given to illustrate the degree of loss due to the increased fire risk. The problem of commercial thinning when the risk of fire is present is addressed using continuous-time models. It is shown how, when the fire hazard is exogenous to the thinning activity, the problem reduces to one of deterministic optimal control with the discount rate adjusted upward by an amount equal to the fire hazard rate. In the case when the fire hazard increases whenever thinning is taking place, it is shown that in general the optimal thinning policy is qualitatively different from that which is optimal in the no-risk case and involves periods of thinning at the maximum rate interspersed with periods of no thinning activity.

Assessing the long-run yield of a forest stand subject to the risk of fire

1985 ◽  
Vol 15 (4) ◽  
pp. 680-687 ◽  
Author(s):  
W. J. Reed ◽  
D. Errico
Keyword(s):  
British Columbia ◽  
Forest Fire ◽  
Forest Stand ◽  
Expectation Value ◽  
Long Run ◽  
Land Expectation Value ◽  
Optimal Rotation ◽  
Graphical Technique ◽  
Rotation Age ◽  
Theoretical Results

The problem of determining the effects of forest fire on stand yields is often neglected in forest yield analyses. Using previous theoretical results, "fire-adjusted, volume–rotation curves" can be developed which provide a graphical technique for determining optimal rotation age and long-run yield when the risk of fire is present. For white spruce of the northern interior of British Columbia it is shown that even modest rates of fire can result in very large reductions in long-run yield. Similar results are established for the effects of fire on land expectation value, which is dissipated very quickly under the risk of fire.

Red Heart Disease in Pines Caused by Porodaedalea (Phellinus) pini in Florida

EDIS ◽  
2020 ◽  
Vol 2020 (1) ◽  
pp. 3
Author(s):  
Yin-Tse Huang ◽  
Jeffrey Eickwort ◽  
Jiri Hulcr
Keyword(s):  
Heart Disease ◽  
Forest Resources ◽  
Fact Sheet ◽  
Cavity Nesting ◽  
Pine Species

All pine species in Florida are susceptible to red heart disease. The disease can decrease timber value and weaken trees, making them threats to people and property. In forests, however, the same disease can be beneficial to cavity-nesting animals like red-cockaded woodpeckers. This 3-page fact sheet written by Yin-Tse Huang, Jeffrey Eickwort, and Jiri Hulcr and published by the UF/IFAS School of Forest Resources and Conservation describes the disease and provides some tips to manage it in areas where it could cause problems for people.http://edis.ifas.ufl.edu/fr425

Land Use in the Wildland-Urban Interface: Urban Sprawl and Smart Growth

EDIS ◽  
2009 ◽  
Vol 2009 (1) ◽  
Author(s):  
Lauren McDonell ◽  
Martha C. Monroe ◽  
Gene Boles ◽  
Terri Mashour
Keyword(s):  
Land Use ◽  
Urban Sprawl ◽  
Smart Growth ◽  
Forest Resources ◽  
Economic Effects ◽  
Wildland Urban Interface ◽  
Fact Sheet ◽  
Guiding Principles

Revised! FOR199, a 5-page illustrated fact sheet by Lauren McDonell, Martha C. Monroe, Gene Boles, and Terri Mashour, outlines the ecological, social, and economic effects of urban sprawl and describes the guiding principles of smart growth and how it can help address these issues. Includes references. Published by the UF School of Forest Resources and Conservation, July 2008. FOR199/FR260: Land Use in the Wildland-Urban Interface: Urban Sprawl and Smart Growth (ufl.edu)

scholarly journals Comparative Analysis of Determining the Market Value of Forest Real Properties Using Various Valuation Techniques

2018 ◽  
Vol 26 (1) ◽  
pp. 51-62
Author(s):  
Małgorzata Buśko
Keyword(s):  
Forest Management ◽  
Market Value ◽  
Management Plan ◽  
Forest Resources ◽  
Forest Stand ◽  
Individual Tree ◽  
Market Values ◽  
Significant Difference ◽  
Forest Management Plan ◽  
Survey Approach

Abstract The paper presents procedures for determining market values of forest real properties, with particular emphasis placed on the forest stand. The mixed-approach valuation procedure - land valuation index method - was analyzed. The practical part of the work regarding the valuation of the forest stand introduces the various techniques of valuation and acquisition of data on forest resources used, i.e.: index-based valuation approach and stock survey approach. The subject of the research is part of a forest property, which represents an assessment area, typical of the southern part of Poland, located in the Tenczynek Forest Division. There is a forest management plan for the analyzed property which, together with the assessment descriptions, was used as one of the sources of data for valuation. The second source of data for valuation were direct field surveys, i.e.: geodetic surveys for determining the assessment area and the stock survey approach with individual tree assessment with respect to data on the stand. Based on the research, it may be concluded that both valuation techniques and methods used to capture data on forest resources significantly affect the final value of forest properties. The market value of the stand, determined by the index-based valuation approach, demonstrates a significant difference when compared to the value of the stand determined by the stock survey approach. The forest management plan should only be used as a supplementary material and only to identify site types of forests by property valuers and, partially, together with economic maps, to determine the boundaries of assessment areas.

scholarly journals ECONOMIC PERFORMANCE OF LOBLOLLY PINE STANDS IN SOUTHERN BRAZIL AS A RESULT OF DIFFERENT CROWN THINNING INTENSITIES1

2019 ◽  
Vol 43 (2) ◽  
Author(s):  
Mário Dobner Jr ◽  
Dagoberto Stein de Quadros
Keyword(s):  
Loblolly Pine ◽  
Economic Performance ◽  
Southern Brazil ◽  
Expectation Value ◽  
Economic Output ◽  
Land Expectation Value ◽  
Pine Trees ◽  
Crown Thinning ◽  
Log Price ◽  
Pinus Taeda L

ABSTRACT Approximately 1.6 million hectares of southern Brazil are cultivated with pines, and mainly with the loblolly pine (Pinus taeda L.). More than one third of the stands belong to independent log producers, whose aim is to maximize their economic results. In this study, a thinning experiment was evaluated over a production period of 30 years. The stands evaluated were submitted to three different crown thinning intensities, with an unthinned stand used as a control. The aim of the study was to evaluate economic criteria regarding realistic discount rates and production periods varying between 16-30 years. For the circumstances that were evaluated, 'extreme' and early release from competition of pruned loblolly pine trees lead to the best economic performance (land expectation value = ~36,000 US$ ha-1, i = 3% yr-1). Stands subjected to crown thinnings, independently of intensity, produced three times the economic output of unthinned and unpruned stands. Although the optimal harvest ages, according to the internal rate of return, are between 18-22 years for thinned and unthinned stands, from a long-term perspective (land expectation value) and for the current relationship between log price and size, the optimal economic performance requires that production periods are extended (to 24-26 years) from those currently practised in southern Brazil (15-20 years).

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