Stand valuation
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Stand Valuation. 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

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Stand Valuation

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Stand valuation

Stand Valuation


Factors affecting value of timber

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.


The desirability of the timber

The Desirability of the Timber


Desirability of the timber location

Desirability of the Timber Location


Quality of the transaction

Quality of the Transaction


Sources of timber pricing

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


Not ready for harvest

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


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