The German struggle between the ‘Bodenreinertragslehre’ (land rent theory) and ‘Waldreinertragslehre’ (theory of the highest revenue) belongs to the past — but what is left?

Möhring, Bernhard

doi:10.1016/s1389-9341(01)00049-1

Cited by 30 publications

(19 citation statements)

References 3 publications

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“…The ignorance of economic theory obviously does not prevent actions, according to this theory. This insight might be a basis for closer links between practical forestry and forest economic work in future (Möhring 2001).…”

Section: Concluding Remarks and Discussionmentioning

confidence: 91%

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The unresolved problem of determining the forest interest rate

Adamowicz

2018

Folia Forestalia Polonica

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Valuation of forests and their components is a significant problem, both for science and practice. At present, in many countries, the market of forest property is limited. As a result, no conclusions may be inferred on the forest value based on the information on forest purchase and sale transactions. In this situation, we apply static methods of forest valuation. The problem of forest statics has been discussed for years (e.g., Brukas et al. 2001;Chang 1983 Chang , 2001 Dieter 2001;Hartman 1976;Manley and Bare 2001; Mohring 2001; Zhang 2001;Viitala 2016). Static methods of forest valuation are well known. In the construction of the proposed mathematical formula (Eq. 6), the Faustmann theory was applied, concerning the economic equilibrium in forestry. Numerous modifications of his equation for economic equilibrium were used to develop, for example, an income method for forest valuation based on discounting the final value or prolongation of initial value. The forest interest rate is a key element in these equations. At present, there are no procedures for the establishment of this interest rate, which would be generally accepted by the scientific community. Therefore, the article presents and discusses selected concepts for determining the forest interest rate.

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Section: Concluding Remarks and Discussionmentioning

confidence: 91%

“…During the last two centuries, many well-known forestry scientists and practitioners have worked on this topic (Möhring 2001). Valuation of assets is a significant element in the realisation of contemporary politics and economy.…”

Section: Introductionmentioning

confidence: 99%

The unresolved problem of determining the forest interest rate

Adamowicz

2018

Folia Forestalia Polonica

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“…There has been a debate, indeed sometimes a conflict, between these theories, and the forest rent theory will be applied even to day in Central Europe (Möhring 2001). Forest rent theory in fact develops from the land rent theory when the interest rate is assumed to be zero (Bentley and Fight 1966).…”

Section: Historical Remarks On Various Traditions From the Point Of Vmentioning

confidence: 99%

Portfolio management and the competitiveness of forest ownership

Penttinen¹

2007

Diss. For.

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Few forms of production can compete with forestry regarding the amount of conflicting theories, paradigms, beliefs, passions and interests that have been engendered. This is also true for forest economics, where forest rent theory and land rent theory have been accompanied with interest theory to produce various foundations for profitability calculations. Many researchers and practitioners assume a steady-state economy, but most rely on the deterministic world in their modelling. However, risk inclusion has recently attained a dominant position in the investment analyses. The purpose of this study has been to develop novel solutions and constructions for return on forest ownership, and to apply new approaches to the profitability of forestry and the assessment of competitiveness of non-industrial forest ownership.First, financial and cost accounting has been developed for non-industrial private forestry (NIPF), implementing the solutions for a test enterprise. Financial accounting will also be developed for both the net profit of the enterprise and the calculated profit of the property applying extensive, balance and intensive strategies. The requirements of the International Financial Reporting Standards (IFRS) were researched and implemented in the forestry accounting of agricultural profitability book-keeping farms and the EconomyDoctor service of the MTT Agrifood Research Finland.. Secondly, returns on stocks, debentures, offices, bonds and housing were estimated in addition to the return on forest ownership estimates, showing that NIPF ownership was not as competitive as expected, with a statistically significant correlation with private housing and the market portfolio. The return on NIPF ownership was divided into price change, felling, cost and change in growing stock components, the first of which was compared with the inflation rate.Finally, optimal harvesting age solutions and numerical results recognising price drift, price and growth volatility, volume growth, value growth and stand establishment costs, as well as thinning benefits, were provided by proxying the stumpage price and volume growth processes by geometric Brownian motions. Moreover, comparative static and sensitivity solutions, including numerical results, showed the impact of the discount rate, price drift, and price and growth volatilities on optimal harvesting age.In all, solutions have been implemented in the METINFO Internet service and tested for the farm accountancy data network (FADN) of the EU. Moreover, developed optimal rotation programs can be incorporated into forest management planning software products such as MOTTI and MELA, which are widely used in Finland.Keywords: modern portfolio theory, accounting, profitability of forestry, return on forest ownership, return components of forest ownership, optimal timber harvesting age The bottleneck in this research has been the availability of empirical evidence. The leader of the Forestry Centre Lapland, Jukka Ylimartimo, proposed that jointly-owned forests (JOFs) of Lapl...

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“…During the last two centuries, many well-known forestry scientists and practitioners have worked on this topic [4]. Valuation of assets is a significant element in contemporary politics and in economy.…”

Section: Introductionmentioning

confidence: 99%

A Review of Selected Methods to Determine the Economic Value of Forest: Polish Research

Adamowicz¹

2018

New Perspectives in Forest Science

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Value is a multifaceted term, and for this reason, forest economics uses a set of various categories of forest value. Two basic categories of value, with which we deal in economics, are connected with market value and non-market value. Market value is specified by the market as a result of interactions of supply and demand. Occasionally, market value is referred to in Polish literature as exchangeable value and value in exchange. Non-market value is a value ascribed by consumers to a good or service, for which there is no real market. In such cases, many methods have been used over the years to appraise the value of forests. This study presents a synthetic review of scientific thought connected with forest valuation. Concepts of static and empirical schools are discussed, indicating the role of Polish scientists in the development of forest economics in terms of forest value appraisal.

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The German struggle between the ‘Bodenreinertragslehre’ (land rent theory) and ‘Waldreinertragslehre’ (theory of the highest revenue) belongs to the past — but what is left?

Cited by 30 publications

References 3 publications

The unresolved problem of determining the forest interest rate

The unresolved problem of determining the forest interest rate

Portfolio management and the competitiveness of forest ownership

A Review of Selected Methods to Determine the Economic Value of Forest: Polish Research

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