The Forest Resource Analysis System Software (FRASS) is an internet accessible Software-as-a-Service (SaaS) program identifying financially optimal timber harvest rotation timing and asset value. This Highest and Best Use (HBU) solution gives landowners and resource managers an Income Capitalization Approach asset value. Here we detail how to realize this value with harvest timing for each timber stand; now and into perpetuity.
This Software solution presents a reliable and efficient system for scheduling economically optimal forest management activities. We do this while determining the value of timberland properties – one timber stand at a time. In FRASS, tree growth data is combines it with detailed information about the parcel. This engages delivered log market data predictions to give financially optimal timber harvest rotation dates and values into the future.
Some of these economic features may seem ‘obvious’ to many foresters. But, realizing them through time requires the combination of physical site properties such as:
- Road networks,
- Tree growth characteristics, and
- Wildlife habitat reliance on the forestland features they depend on.
At the same time, microeconomic realities of an organization must be woven within the macroeconomic market. The value of the commodity known as logs, and the International Economic condition of our nearest trading partners must be considered and understood. We manage forestlands locally, but participate in international timber markets. This is where we bring insights and powerful analytic tools to our clients.
FRASS results create a road-map to financial optimization
Generating forestland data into Geographical Information System (GIS) data layers is a task most forestland managers embrace. These are best known as maps, but the data underneath these images is loaded with valuable information. Those information filled layers contain a spatial reference to link them with other data. Other data sources span the spectrum of elevation, soils, aspect, and slope. Of course, the spectrum extends other attributes using the land such as wildlife, birds, and fish in the rivers and streams.
Trees are planted, they grow and modify the landscape through time. It is this modification that leads to new and special land uses, some intended and some incidental. Forestland owners have different goals for the resources they manage, but most share the objective of generating revenue from forest management activities. Timber harvest generates revenue to cover forest management expenses, property taxes, and a financial return on investment. Other financial benefits can include Conservation Easement payments, Carbon Sequestration revenue, or even community watershed endorsement. The options are broad, but all are linked to the resources managed and conveyed through the FRASS Platform.
This is what FRASS does
While all of this is valuable for the forestland manager to know and verify, it also serves the Land Appraiser to establish the property’s Highest and Best Use value leading to an Income Capitalization Approach Value for the property.
Forestland Managers Join the Platform
Our clients join us create subscriptions to host their data to explain it with our analysis tools. Within FRASS, confidential access points process factors into meaningful value terms. Our client’s data are adapted to meet the needs of a secure and optimized database structure. Customized resource maps are generated, timber stand photographs integrated, and report formats are optimized. When the FRASS program becomes operational, we will deliver a detailed training session to use the Platform.
Forest Resource Analysis System Software (FRASS) presents a reliable and efficient system for scheduling economically optimal forest management activities. It expresses the value of timberland properties – one timber stand at a time. FRASS assembles tree growth data combined it with detailed information about parcels, and engages price predictions. This gives financially optimal timber harvest rotation dates and values into the future.
Forest Econometrics Reveals Value
The FRASS focus shifts to parcels with timber stands, roads, rivers, and physical site characteristics. We apply merchantability factors of timber species in concert with unique spatially explicit virtual tools to highlight:
- Soil sensitivity,
- Wildlife Habitat,
- Riparian zone protection for riverine and bird species,
- Zoning regulations, and
- Critical infrastructure features.
An approach that makes this analysis platform unique is the way it is designed:
- Variable land characteristics combined with forest growth and yield data,
- Viewed against the background of economic data,
- Supported by complex mathematical analyses,
- all joined into a seamless ready-for-immediate-use package.
Advanced and specific economic profiles (Real Price Appreciation) are applied to the markets where the forest products will be sold. Expenses for transportation, road maintenance, and reforestation are factored in for all timber rotations into perpetuity. Timber price predictions are based on monthly updated market data to formulate optimal management decisions.
FRASS Users are as diverse as the forestland resource
This approach creates a better way to determine the probable sales price of parcels based on timber production as the Highest and Best Use. It is the Uniform Standards of Professional Appraisal Practice (USPAP) approach to valuing forestlands. The most appropriate of the three options to forestland valuation, is the Income Capitalization Approach. This is the framework applied in the FRASS Platform.
Forestland value generated with this approach applies equally to a broad collection of decision makers:
- Forestland Appraiser seeking asset value,
- Chief Financial Officer seeking cash-flow, asset value, and revenue projections,
- Forestland Managers scheduling all activities on the forestland to achieve long-term goals, one step at a time.
Explore this site and when you are ready, contact us to schedule a live tour of the FRASS Demonstration site of Pack Forest near Eatonville, Washington, USA. Next, it will be your forestlands showing on the screen, with all of the tools available for you. Contact us when you are ready: FRASS@Forest-Econometrics.com
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