Appraisals Flashcards
How often does the ministry of forest produce stumpage appraisal manuals?
Once per year
What is a cutting authority?
Any license that gives the holder the authority to cut timber.
What are non competitive cutting authorities issued under?
What about competitive?
non competitive: all tenures that are not BCTS
Competitive: BCTS - uses end product appraisal with the market pricing formula
What is the difference between competitive and non competitive licence when it comes to stumpage?
Competitive (BCTS) = Upset Rate(SP - OC+S.Ops) + Bonus Bid
Non competitive = SP - (OC + Specified Ops + Tenure Obligations)
What are the 4 types of stumpage?
Fixed rates - $/cubic meter (WLL, CFA)
Royalty rates - specialty products like posts and shingle
Calculated rates - stumpage paid by major tenure holders including TFLs TSAs WLLs CFAs FNWLs
Miscellaneous - low grade/salvaged timber
What is end product appraisals?
The price of the timber being appraised reflects the value of the end product, so it is dependant on market values.
On the coast, the end product goes to the vancouver log market
In the interior it is lumber and chips at the mill yard.
What is does the Vancouver log market refer to?
All arms length transactions between log dealers in the straight of georgia area.
What is the difference between coastal and interior log markets with respect to end product?
On the coast mills are designed to produce specific products and end up selling logs that don’t meet the specifications, this leads to allot more interaction between mills and logs are sold as logs. The interior mills tend to use most of their wood. As such they do not engage in sales as extensively.
What is stumpage?
Stumpage is the value of timber in a forest stand. It can be simplified to revenue expected from a efficient producer minus the losses associated with harvesting and producing timber.
What are stumpage rates for special forest products referred to?
it is determined in $ per ___?
Royalty Rates or Special Forest Products stumpage rates
calculated in $/unit.
What are the stumpage rates for low grade/ salvaged timber?
Miscellaneous rates
What are the stumpage rates for AAC related harvesting refferred to?
Which tenures specifically
Calculated rates
TFLs TSAs WLLs CFAs FNWLs
What are stumpage rates for woodlot license and community forest licenses referred to?
fixed rates
How does one apply for stumpage determination?
BC ministry of forests lands and natural resource operations has an Electronic Commerce Appraisal System that licensee’s for TL, FL, WLL, CFL, FNWL must apply to
BCTS determines and appraises stumpage for TSL’s.
How does the BC market pricing formula work?
The system calculates a stand selling price, based on current market value for the timber and applies several steps to simulate open market competition to generate a “calculated stumpage” rate.
