The Basics of Forest Land and Timber Appraisal
Location: Oregon State University, Corvallis, OR
June 9 -13, 2014
Oregon State University, Corvallis, OR
This session is a 5-day course, newly designed to offer intensive instruction in timber and timberland appraisal for natural resource professionals, appraisal professionals, finance, tax and legal professionals. You will learn how to construct an accurate appraisal for Pacific Northwest forest assets (timber and land). An accurately performed appraisal will help you receive top dollar when selling forest assets or bid at a competitive price when buying. Confidence in your appraisal will help minimize business and financial risks, simplify your documentation and reduce the amount of outside appraisal review. The workshop is taught by Vic Musselman and Norm Elwood, each with over 30 years of experience in forest appraisal, economics and taxation.
Upon course completion, you will have the skills and know-how to:
- Use the three standard approaches to valuing forestland and timber in all Pacific Northwest regions
- Research appraisal and market data
- Conduct discounted cash flow analysis
- Apply the three standard approaches to various purposes for appraising forestland and timber
Workshop Agenda:
Monday, June 9, 2014 • 8:00 – 4:30
A.M: An overview of the Uniform Standards of Professional Practice (USPAP) will be presented along with an overview of the three methods of appraisal analysis: the Cost Approach, the Income Capitalization Approach and the Sales Comparison Approach. A discussion will follow on kinds of data necessary to accurately appraise forest properties.
Lunch (included with registration)
P.M: Two timberland properties, one in the westside coastal area of the Pacific Northwest and the other in the eastside Pine region, will be explored. These properties will be the subject of the appraisal analyses studied for the rest of the week. An overview of what is needed to prepare for appraising these properties and how to start collecting that data will be discussed.
Tuesday, June 10, 2014 • 8:00 – 4:30
A.M: The process for collecting all market transaction data necessary to appraise both subject properties will be presented as well as all the cost factors necessary for appraising merchantable timber.
Lunch (included with registration)
P.M: The afternoon will be spent completing the process of valuing the merchantable timber component of both subject properties.
Wednesday, June 11, 2014 • 8:00 – 4:30
A.M: This morning’s instruction will cover how to gather specific data from timberland sale transactions that can be used in both the Cost and Sales Comparison Approaches to valuation. Then instruction will be given on how to use this data to develop land and other use values speÂcifically in the Cost Approach. Finally, the Cost Approach will be completed for Westside subject property.
Lunch (included with registration)
P.M: The Cost Approach will be completed for the eastside property and timberland transactions selected for use in the Sales Comparison Approach. The process will be described for developing adjustments to be used in the Sales Comparison Approach to adjust for differences in stocking of non-merchantable young growth, condition of the land and other land uses.
Thursday, June 12, 2014 • 8:00 – 4:30
A.M: Half of the morning will be used to complete the Sales ComÂparison Approach analysis of both subject properties. The other half will cover how to gather the data necessary to undertake the Income Capitalization Approach. The principles necessary to develop a timÂberland Discounted Cash Flow (DCF) analysis will be presented. A DCF analysis is the heart of this Approach.
Lunch (included with registration)
P.M: The entire afternoon will cover developing DCF models for both the westside and eastside properties.
Friday, June 13, 2014 • 8:00 – 3:40
A.M: Instruction the entire morning will focus on completing the Income Capitalization Approach for both subject properties and arÂriving at the final estimate of value for each.
Lunch (included with registration)
P.M: The afternoon lectures will be focused entirely on valuing forÂest land for Higher and Better uses. A class wrap up will follow.
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About the Speakers:
Victor Musselman is the owner/manager of Musselman Appraisal & Forestry LLC and is a recognized authority with 40 years of experience in all aspects of timber and timberland valuation. He has developed an extensive system of analyzing and reporting timberland values using in-house databases of historic market data. In addition to serving clients throughout the western United States, Mr. Musselman has completed valuation projects in Brazil, Japan, New Zealand and the Russian Far East. He has been a Co-Instructor, Duke University short courses Forest Appraisal and Reporting the Results of Forest Land Appraisals. Lead Instructor, World Forestry Center short course Timber and Timberland Appraisal: From Theory to Practice. Co-Instructor of Oregon State University short course The Basics of Accurate Forest Land Appraisal – Precisely! and Forest Appraisal Mysteries Explained.
Norman Elwood, Ph.D. recently retired from Oregon State University as Associate Professor and Extension Business & Tax Specialist. Norm has taught forestry business, taxation, estate planning, and project analysis to forestry professionals, land owners, and business and tax practitioners since 1979. Supporting this teaching, he has written extensively including articles, Extension publications, software programs, and comprehensive teaching materials. While at OSU, Norm developed and led the Forest Business & Tax Series. Currently, he is the owner/manager of Elwood & Assoc. LLC, a consulting firm specializing in forest taxation and education. Norm Elwood and Vic Musselman have collaborated in the teaching short courses since 1998.
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[WFCASidebar Location:]The workshop will be held in Room 107 in Richardson Hall on the Oregon State University campus in Corvallis, OR. Attendees will receive a campus map and parking options with their confirmation. A limited number of free parking permits will be available.[/WFCASidebar]
[WFCASidebar Parking:]Paid parking ($7/day) is located south of Reser Stadium or the parking deck north of the Alumni Center. Daily passes may be purchased from pay stations in both locations. Cash (exact amount in bills only) and credit cards accepted. Free parkÂing is available in the fenced, gravel lot just east of the Hilton Garden Inn. Hilton patrons may park free in the hotel lot. Only a few parking spaces are available in the Richardson Hall (workshop location) lot. We ask that you leave these spaces available for workshop participants with special mobility needs. Those needing to park close should see a workshop instructor for passes.[/WFCASidebar]
[WFCASidebar Lodging:]A block of reduced rate rooms is availÂable at the Hilton Garden Inn on the southern edge of the OSU campus. Call 541-752-5000 and mention “forest appraisal workshop†to receive the reduced rate of: $129 single room plus tax. After May 18, 2014 the reduced rate rooms will be subject to availability. The Hilton is located at 2500 SW Western Blvd and is a 10 minute walk across campus to the workshop location in Richardson Hall. The Hilton is the nearest hotel to the OSU campus. Other Corvallis lodging options are at www.visitcorvallis.com and are within convenient driving distance.[/WFCASidebar]
[WFCASidebar Registration:]Register early, the course will be limited to 45 atÂtendees due to depth of instruction and the topic. A waiting list will be established when attendance exceeds 45. The workshop will be canceled if attendance is less than 23. Past workshop attendees can register for $950, with no late fee. For all other attendees, the early registration fee is $950 if registering before May 19. After May 19, the registration fee is $1,025. The fees include daily refreshments, lunch, and a 235 page binder of workshop materials. Make checks payable to Western Forestry and Conservation Association. Purchase orders, VISA/MasterCard, and American Express are accepted. The WFCA tax ID is 930-331-712.[/WFCASidebar]
[WFCASidebar Professional Continuing Education Credits:]
Continuing education credits have been approved from the following organizaÂtions:
• Society of American Foresters: 36.5 hours
• Oregon Appraiser Certification and Licensure Board: 39 hours
• State of Washington Department of Licensing – Real Estate Appraiser Section: 39 hours
• Reciprocity credit is expected from California and Idaho Real Estate Appraiser[/WFCASidebar]
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