Break-Even Analysis for Forest Carbon Contracts

| comments (6) in Forest Carbon, Forest Finance & Economics, Timberlands

This post is the fourth in a series related to the Q2 2021 Forisk Research Quarterly (FRQ), which includes forest industry analysis, timber price forecasts and featured research on forest carbon. Markets facilitate trade between buyers and sellers; they assign value more…

Softwood Lumber Production in Eastern Canada: A Closer Look

| no comments in Forest Finance & Economics, Softwood Lumber, Timber Market Analysis, Wood Demand & Procurement

Over the past decade, Eastern Canada has consistently been the fourth-largest installed base of regional softwood lumber manufacturing capacity in North America, behind the U.S. South, the U.S. West, and Western Canada. However, the region has gained importance as a more…

Timberland Investments and the Strategic Role of Technology

| no comments in Forest Finance & Economics, Forest Technology, Risk Management, Timber Market Analysis, Timberlands, Wood Demand & Procurement

Mid-way through a ninth year of increasing housing starts and growing lumber consumption, timberland investors and forest owners in the U.S. South continue to struggle with flat and, in certain local markets, falling sawlog prices. Previous posts discuss how this more…

Forest Finance: When is the “Current Stand Approach” Useful for Valuing Timberlands?

| no comments in Forest Finance & Economics, Timberlands

When talking about timberland investing while having a beer or standing over the hood of a truck, not when signing checks or allocating capital….. A reasonable estimate of a forest’s current economic value equals the standing merchantable volume multiplied by the more…

Forest Finance: What Does a Negative or Zero NPV Say About My Potential Timberland Investment?

| comments (2) in Forest Finance & Economics, Timberlands

Attention shoppers!  An NPV of zero does not necessarily indicate “bad investment.”  Previously, we discussed applications and limitations of using cash-on-cash (COCR) return as a metric for analyzing forestry and timber investments, as well as questions related to internal rate more…