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11.5 Valuation
Authors: B ManleyPublication: NZIF Forestry Handbook, Volume Section 11 – Forestry business and investment, pp 5, Dec 2023
Publisher: New Zealand Institute of Forestry
Abstract: The market value of a tree crop is defined (NZIF 1999) as the amount for which it should exchange on the date of the valuation; -between a willing buyer and a willing seller; -in an arm’s length transaction; -after proper marketing; and -wherein the parties had each acted knowledgeably, prudently and without compulsion. Transaction Evidence This suggests the use of transaction evidence to determine market value. The NZIF Forest Valuation Standards in fact require that "The market value of a crop of trees shall be derived from transaction evidence where this is available and suitable for the purpose in terms of reliability, comparability and volume of transactions."