Reviewing a Timberland Appraisal for Accuracy and Credibility

Agenda
Start Date: June 30, 2015
Location: DoubleTree Hotel Lloyd Center, Portland, OR

Tuesday – June 30, 2015

1:00 pm Overview of Forest Management: Concepts and Terminology
o What are the major timber producing regions of the U.S?
     o What are the major timber types within each region?
     o Site productivity: The potential of an area to grow trees
     o Timber Stands: A management entity within forestry
     o Timber management strategies: Even-aged and uneven-aged         management
     o Improving the growth of timber through silvicultural practices
     o When to harvest timber: Rotation length and financial vs. biological maturity
     o Logging methods for timber harvest: ground vs. cable and types of equipment
     o Where do the logs go? Timber products, relative values, and their end-use markets

2:15 Counting Your Trees: An Overview of Timber Inventories
     o Measuring nature: Trees are not cans of beans
     o Sampling techniques and statistics used in forestry inventories
     o How do we measure trees? Units of measurement – cubic, board feet,   and weight measures
     o Field measurement techniques for counting trees in the field
     o Back at the office: Compilation of data into inventory programs
     o How often are trees measured? Setting inventory cycles
     o Growing trees between field measurements
     o Integrating inventory data with geographic information systems

2:45      Break

3:00 Counting Your Trees (Continued)

3:30 Drivers of Timberland Value
     o Timber type
     o Site productivity
     o Terrain
     o Age class distribution
     o Stocking of trees
     o Location
     o Road systems
     o Management history
     o Impact of regulatory and environmental issues on value
     o Other cost considerations

4:30      Adjourn

Wednesday – July 1, 2015

8:00 am Key Concepts and Principles of Valuation
     o Fundamental land rights: It is more than just the physical property
     o Different forms of land ownership
     o Value is an opinion as of a specific date
     o The concept of Highest and Best Use
     o Types of value
     o Elements of market value

8:30 ABCs of Uniform Standards of Professional Appraisal Practice (USPAP)
     o Applicability
     o USPAP Background
     o Components of USPAP
     o Ethics rule
     o Recordkeeping rule
     o Competency rule
     o Scope of work questions
     o Client and intended users
     o Intended use
     o USPAP Standards
     o Extraordinary assumptions & hypothetical conditions

9:30      Break

10:00 The Three Approaches to Valuation and Their Use in Timberland Appraisal: How does the Appraiser Decide Which Approaches to Use?
     o Income Approach
     o Sales Comparison Approach
     o Cost Approach

10:30 Key Drivers of Value Under the Income Approach
o Using a single stand as an example
o Applying income approach to the whole property
o Key factors affecting discounted cash flow valuations
o Projecting log prices
o Determining market discount rate
o Determining the growth and yield of the forest
o Calculating production and management costs
o Reversion

Noon      Lunch (included with registration)

1:00 Selection of Sales and Adjustments Under the Sales Comparison Approach
     o Selecting “comparable” sales
     o Sale adjustments and analysis

2:00 Is the Cost Approach Appropriate for Timberland Appraisals?
o Example of young stand valuation
     o Use of cost approach in other regions

2:30      Break

2:45 Effective Appraisal Review and Interaction with the Appraiser
     o How to select the right appraiser
     o Providing the right data to the appraiser
     o Complete appraisal review checklist

4:00      Session adjourns

4:15 Optional Session: Emerging International Standards: IFRS and IVS
     o What are International Valuation Standards?
     o Mark to market accounting – IFRS
     o IFRS vs. GAAP
     o IFRS valuation requirements
     o Appraisal standards under IVS: Land value, biological assets and improvements.

5:00      Optional session adjourns

An appraisal review checklist will be provided with the course materials. Use this checklist for a structured and systematic approach to reviewing an appraisal for USPAP compliance as well as evaluating key components of the analysis.

Upcoming Conferences and Workshops
2018 PNW Reforestation Council Annual Meeting
Start Date: September 27, 2018
Conference Location: Heathman Lodge, Vancouver, WA
Westside Forest Health Issues: Identification and Management
Start Date: October 18, 2018
Conference Location: Holiday Inn Portland South, Wilsonville, OR
Mapping the Course: Timberland, Forest Products Processing, and Fiber Issues for 2019
Start Date: January 24, 2019
Conference Location: Heathman Lodge - Vancouver, WA
Optional Workshop – Growth Rings: Professional Development and Communication Skills
Start Date: January 23, 2019
Conference Location: Heathman Lodge, Vancouver, WA
2018 Joint Southern and Northeastern Mensurationists and IUFRO 4.01 Conference
Start Date: October 28, 2018
End Date: October 30, 2018
Conference Location: Inn at Virginia Tech, Blacksburg, VA
International Workshop for Certified Forest Products and Sustainable Forestry
Start Date: October 30, 2018
End Date: November 1, 2018
Conference Location: Beijing, China