Abstract

The characteristics of forestry in New Zealand have provided a particular basis for the development of forest valuation that makes it unique internationally. In particular, forest valuation techniques place an emphasis on the valuation of the forest crop separately from the land that it is growing on. This distinction arises from a number of factors, including the dominance of exotic, plantation-based forest crops grown on relatively short rotations, the Forestry Rights Registration Act of 1983, privatization of government-owned plantation forests in the early 1990s, and the growth of joint-venture-type arrangements between landowners and forestry investors. The use of exotic species grown in plantations and managed under clearfell regimes generally simplifies management decisions to financial rotation criteria, while the latter three factors have led to the importance of determining crop values separate from land. This in turn provides the basis for a range of valuation methods, including cost-based approaches, liquidation value, and net present value, rather than a single valuation approach to be applied to forests or stands depending on their age or age-class structure.