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A Technique for Estimating Timber Value Based on Tree Size, Management Variables, and Market Conditions

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Abstract:

Based upon revealed market preferences for timber, the authors developed an empirical stumpage valuation model for three ranger districts of the Lolo National Forest. The equation suggests how tree diameter, volume per acre harvested, reproduction systems utilized, logging systems employed, and market conditions affect the selling value of timber. Increase in volume per acre harvested, the amount of a sale that is clearcut or tractor skidded, and increases in the real value of lumber all increase the amount bid for a timber sale. Likewise, the diameter mix included in a sale will affect bidding levels. Of particular importance is the method developed which shows the effect of the mix of tree diameters in each sale on sale value. Brief remarks concerning the use of the model conclude the paper. Forest Sci. 25:620-626.

Keywords: Valuation; appraisal; conversion returns

Document Type: Journal Article

Affiliations: Doctoral Candidate, Montana Forest and Conservation Experiment Station and School of Forestry, University of Montana, Missoula, Montana 59812

Publication date: December 1, 1979

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