Articles containing the keyword 'forest valuation'

In this article the methods of forest valuation, especially the sales value tables previously published in Finland are critically examined. In this connection attention is drawn to the rate of interest used in calculating the forest values.

The PDF includes an abstract in English.

• Hämäläinen, E-mail: jh@mm.unknown

Silva Fennica Issue 92 includes presentations held in 1956 in the 8th professional development courses, arranged for forest officers working in the Forest Service. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service.

This presentation discusses different ways to determine the price of growing forest stock in settlement farms. The Settlement Act describes the main principles for the evaluation of forests. The growing stock of forest land has been devided into valueable and small timber. Construction timber and valuable trees are marked separately, and small timber is estimated by line survey. According to the act, the total price of a farm should be only what a sensible buyer would pay for it. Therefore, the value must be reduced to a reasonable price if the added value of the different parts is too high considering, for instance, the location of the farm and construction and clearing costs.

• Klemetti, E-mail: vk@mm.unknown

Silva Fennica Issue 92 includes presentations held in 1956 in the 8th professional development courses, arranged for forest officers working in the Forest Service. The presentations focus on practical issues in forest management and administration, especially in regional level. The education was arranged by Forest Service.

This presentation describes the directions of Ministry of Agriculture in Finland, issued in 1947, concerning evaluation of settlement farms and supplementary lots. The new direction differs from the old ones especially in the evaluation of small timber. Arable land has to be valued at a price corresponding to its forest yield value. As it is a prequisite for the profitability of a new farm, the writer points out that such land should be valued at higher price than a corresponding forest land. A way to count out the price is presented.

• Johansson, E-mail: ej@mm.unknown

The Moscow Peace Treaty created a need to calculate values of large forest areas in Finland, such as the value of the private and state forests lost in the Second World War, or value of the remaining forests and the value of forests to be assigned to the evacuees. The article describes principles of evaluation of large forest areas. It concludes that use of felling value of the trees is the right method only if felling of the whole tree stand and sale of the wood is actually possible. If these prequisites cannot be fulfilled, the right method to evaluate the forest area is yield in terms of value. When calculating the yield in terms of value, also other incomes and costs related to fellings should be included.

The article includes an abstract in German.

• Saari, E-mail: es@mm.unknown

The result of forest valuation depends heavily on the interest rate and hence determining the rate of interest for forest is the one of the most important tasks of forest valuation.

When defining the interest rate for forests, we need to take into account not only the common interest rate in the country, but also other factors. Those are for example the increase in timber price. By calculating the land expectation value we assume that costs for felling, regeneration and other management will rise by same percent.

The article presents the common formula of land expectation value and discusses its pros and cons. Because of the bad condition of Finnish forests, the forest valuation has not been used widely in practice and hence also the research on theme has been minor. The development of the forests in future will make the theme more relevant. 

The volume 34 of Acta Forestalia Fennica is a jubileum publication of professor Aimo Kaarlo Cajander.

• Heikkilä, E-mail: th@mm.unknown

The aim of the study is to generate yield tables that enables calculating the stumpage values of the forests in different ages. The article investigates the diameter distribution of a stand at the breast height and their changes with the age of the stand.  In an even-aged stand the calculating of the stumpage value is based on height and breast height diameter. Hence the diameter distribution of a stand determines the stand volume, the stem frequency distribution series can be used as the basis of compiling the yield tables, in which the volume is the main factor.   

The study is based on spruce and pine mensuration data from Finland, pine stands from Prussia, and spruce stands from mountainous area of Switzerland. The article presents the characteristics of stem frequency distribution series based on the data. The studied characteristics are arithmetic middle, dispersion, asymmetry (skewness) and excess.

It can be recommended to create tables that show the different developments for age classes. Based on such tables the expected value of the stand can be calculated in practical forest management. Determining a general value of a stand in different forest site types would be important for forest valuation and forest statistics.    

• Cajanus, E-mail: wc@mm.unknown

The aim of the study was to discover a model by which the determination of the discount value of a woodlot can be simplified so as to make it possible to avoid both the computation of a cutting budget and the customary discount procedure itself. The regression analysis of the cutting budget data that indicates the discounted amount of the fellings to be expected and the assortment composition can be discovered rather accurately as a function of the measured stand characteristics only.

The PDF includes a summary in German.

• Ahonen, E-mail: la@mm.unknown

This methodical study aims at assessing discount value and its nature and function in setting a price for a forest holding. The aim is to study how the subject interested in buying or selling a woodlot could in the most meaningful way use discount value to prepare the sale and aid the decision making, taking account his personal interests. The paper includes a literature review on the determination of value.

It is concluded that woodlots have no «correct and real» values and, therefore, they cannot be calculated. Value is formed for the woodlots only in connection to the subject running the household, and his environment and actions. A discount value can be defined as a discount value of future net incomes. In the study different ways to calculate discount value are analysed.

The PDF includes a summary in German.

• Ahonen, E-mail: la@mm.unknown

• Rohner, Renewable Resource Modeling, D-63477 Maintal, Germany E-mail: rohner@rrmodeling.de
• Böswald, Factor Consulting + Management AG, CH-8045 Zurich, Switzerland E-mail: kb@nn.ch