1 / 8

Factors Influencing Timber Valuation and Desirability: A Comprehensive Guide

Gain insights into the key factors affecting timber value, from species and grades to market access and sale circumstances. Explore the desirability of timber, different pricing sources, and the Land Expectation Value formula. This guide is essential for timber management enthusiasts.

colman
Télécharger la présentation

Factors Influencing Timber Valuation and Desirability: A Comprehensive Guide

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Stand Valuation

  2. Factors Affecting Value of Timber • 1. The nature of the timber • Species, total volumes, grade, etc. • 2. The nature of the tract on which the timber is located, and its market access; and • 3. The circumstances surrounding the sale • Stumpage price is paid by the mill. They expect to absorb the cost of logging and still make a profit from the lumber.

  3. The Desirability of the Timber

  4. Desirability of the Timber Location

  5. Quality of the Transaction

  6. Sources of Timber Pricing • Comparable timber sales • Timber price reporting services • Timber Mart South • http://www.tn.gov/agriculture/publications/forestry/tfbp.pdf • Extraction from delivered log prices

  7. Not ready for harvest? • LEV – Land Expectation Value • Present Value = a/(1+i)t-1 • a = value received every t years in perpetuity • i = interest rate • t = years between annuity payments • This is covered in Timber Management class

More Related