estimated value of Spruce plantation?

John Kelly of

Hi guys
my mother owns a spruce plantation about 40 acres of varying quality. The timber is due for clearfell in about 5 years. Most of it is excellent and some is poor.
She is insisting on giving it now to one of the children who really wants to take it over and pay off the rest.
Question is how much do you guys reckon the land is worth right now? Is there a formula to work this sort of thing out?
thanks in advance

SILVAMAN

John Kelly of wrote: »

Hi guys
my mother owns a spruce plantation about 40 acres of varying quality. The timber is due for clearfell in about 5 years. Most of it is excellent and some is poor.
She is insisting on giving it now to one of the children who really wants to take it over and pay off the rest.
Question is how much do you guys reckon the land is worth right now? Is there a formula to work this sort of thing out?
thanks in advance

I have spoken to forestry companies and to two auctioneers about how to value land currently under forest. They say that after clearfell it must go back to trees,thus rendering it ineligible for any sort of grant aid forestry wise or agriculturally.
So they value peat soils a €400-€500 /acre, and mineral soils at €700- €750/ acre.
It's a pretty rough calculation, but across the board this is what I was told.
What value Revenue puts on afforested land I don't know.
Go to this website and give Paul Lafferty a shout. I reckon he'd have a better idea than most http://www.forestsales.ie/

John Kelly of

thanks SILVAMAN thats helpful. the valuation you have on there allows for the fact that the place has to be replanted right? I have been told that would be 1000 per acre and obligation would fall on new owner.
Now we have to figure out how much the timber growing on it is worth.

accidental forester

I'd suggest you get a registered forester to take a look at the plantation. They'll evaluate the quality and grow rate and give you an estimate of the total volume. From this, they can give an rough figure on the value of the standing timber. If you don't have it already, get copies of the original planting documents from the Forestry Service. From that the forester will have the actual area planted and species.

We did this a number of years ago on a plot we were interested in buying. It was well worth the couple hundred Euro. They'll have local knowledge regarding the values of any forestry that has sold in the area, very useful for comparison.

Link to Teagasc Forester's list https://www.teagasc.ie/media/website/crops/forestry/grants/List-of-Registered-Foresters.pdf

John Kelly of

thanks guys