Forest growth simulator calculates and predicts forest growth in the future. Simulation can be done for both mixed and mono species forests. Simulation results can be combined with wood prices to predict future cash flows, and calculate ROI-%.
Forest simulator helps:
- Everyone who would like to have simulated growth calculation with harvesting treatments
- Investors looking to create cash flow predictions for parcels of forest land
- Forest owners who’d like to get predictions for upcoming harvests
I started building forest simulator to be able to calculate forest parcel valuations more accurately than what is the traditional way in Finland. Traditional forest valuations are calculated quite crudely based on existing wood volume and applying opaque multipliers. Forest simulation would be a better starting point for forest valuations since basing it on volume growth prediction investor would be free to also model in their chosen method of harvesting treatment.
Acquired timeline for harvesting treatments can be converted to a timeline about wood volumes extracted from the forest. Those wood volume flows can then be quite easily converted to cash flows, which can be further discounted into present day aggregate value to get a single valuation for the forest.