Analysis of the value of the State plantations sold in 1990

Authors: B. Manley, A. Bell
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 1992, Issue N.Z.J.For. 37(3) 1992, pp 22-27, Nov 1992
Publisher: New Zealand Institute of Forestry

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Abstract: Data from the 1990 sale of cutting rights to 43 State plantations in 12 transactions have been used to develop a model to explain the difference between the values of the forests sold. The model developed explains forest value as a function of the discounted net clearfell revenue associated with the average stand in the forest less silvicultural and overhead costs. Parameters within the model include log prices, transport cost and discount rate. The model explains 92.7% of the variation in market value of the 12 sales.

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