Income value

The incom value is based on the forest estate's expected returns, which consist of future net cash flows. The Forest and Trees service cash flows are based on future wood sales revenues, as well as various expenses. However, there are various uncertainties about future income, which are taken into account by discounting future cash flows to the present. Future wood sales revenues are estimated using stand growth models that predict future stand growth. Forest management work, such as tillage and afforestation after felling and the care of seedlings, incurs costs which are also taken into account in the calculations. In addition, the income value calculation takes into account other costs related to forest use, such as road maintenance, forest insurance and administrative costs.