Stumpage value: comparative analysis among different approaches reported by the Italian forest literature

Abstract

One of the most relevant professional task for a forestry consultant is to determine the stumpage value of a forest standing. It is an important information for the forest owner interested to know the market value of the actual timber production. Nevertheless, assessment approaches commonly used by scientists and forestry consultants go back to the beginning of XIX century, thus not considering the evolution of institutions, law and the socio-economic contests occurred in the meanwhile. Based on a case study located in Latium (central Italy), a comparative analysis of the main estimation approaches from the Italian forest literature have been carried out. A wide range of stumpage values has been obtained, with a coefficient of variation of 682%. Three underlying causes have been identified for such variation: revision of some components of the elementary costs, different calculation of cost procedures, new additional costs. Reiterate use of the above approaches affects transparency, traceability and documentation of the evaluation process, weakening the theoretical basis of the appraisal doctrine. Four issues to overtake this situation are proposed and discussed.

Keywords

• Stumpage value
• Stumpage price
• Production costs
• General costs
• Transaction costs