BC FOREST APPRAISAL SYSTEM terms Flashcards
1
Q
Define timber appraisal. What 2 questions does it answer?
A
economic assessment of the monetary value of a stand of timber
- What is there?
- What is it worth?
Trying to provide true market value
Value derived for timber used to set stumpage rate
2
Q
what is the stumpage rate calculation?
A
value of timber - (total cost of extraction + fair profit + risk)
Appraisal is process used to get rate
stumpage is the rate itself
3
Q
Comparitive Value Pricing System
A
- implemented in ‘87 to solve softwood lumber dispute between canada and US (US claimed Canada unfairly subsidizing lumber with too low stumpage rates)
- focused on gov’t setting a target average stumpage rate for harvested timber at beginning of each fiscal quarter
- Composite of Stats Canada indexes(lumber and chips in interior) gave the target price
4
Q
How are individual CP stumpage rates derived under CVPS?
A
5
Q
describe the “waterbed effect”
A
6
Q
Describe the Market Pricing System
A
7
Q
Stumpage rate derivation for timber sold by BCTS
A
- PEWB derived using regression analysis of market values determined from timber sales
- PEWB adjusted for certain specified operations costs not factored into regression analysis
- PEWB reduced by 30% to derive Upset Rate
- Upset Rate + Highest Bonus Bid = Stumpage Rate
8
Q
What is PEWB
A
9
Q
What is included in Adjusted Costs used to derive stumpage rates?
A
- forest planning
- road development
- silviculture investments
- administrative overhead
- forest mgmt costs
10
Q
Stumpage rate derivation for Comm For agreements and Woodlot cutting permist
A
