5.1 Selection of Forest Land

Authors: T G M Vos, A. C. Tizzard
Publication: NZIF Forestry Handbook, Volume Section 5 – Plantation silviculture, pp 1, Dec 2023
Publisher: New Zealand Institute of Forestry

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Abstract: n selecting land for production forestry it is necessary to consider the resources required to maximise returns on the investment and identify the environmental and physical constraints, which are likely to impact on the value of the land for forestry. Table 1 shows important factors to consider and their impacts. Whether selecting which land to plant on an existing holding, or selecting land for purchase, the best way to rank options is to estimate the return on investment over a full rotation. This involves quantifying the tree growth, growing and log production costs and log revenues associated with each block of land. A comparison of the internal rate of return (IRR) for each block, or the rate of return on investment after tax (depending on the tax position of the investor), will allow a ranking based on maximizing profit.

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