WEBINAR ON FOREST RESOURCE
VALUATION
November 17-18, 2020
For. Imelda T. Ngaloy
Science Research Specialist II
Watershed & Water Resources Research, Development and
Extenson Center (WWRRDEC)
BACKGROUND
Environmental resources, currently, are undervalued
in the Philippines.
Free access to environmental resources have been
practiced through generations and fees and charges,
if there are any imposed mostly by indigenous
Cultural Communities are after very low to matter.
People collect orchids, bamboos and other wildlife
resources at a give a way fees either to local
government units or to indigenous cultural communities;
water distributors which collect raw water from
sources and sell them to consumers, are imposed with
very low taxes.
BACKGROUND
Under valuation of the resources that the
ecosystems provide is proving to be costly to the
government in terms of damages to the environment,
loss of human lives and properties; and increasing
risks passed by the changing climate.
Efforts to address this concern have been in
progress for the past decade.
Valuation methodologies and environmental
accounting have been in progress since the 1990’s it
is an effort to come up with a system that would
correct the under valuation of environmental issues.
BACKGROUND
In 2013, the United Statistical
Commission approved the System of
Environmental Economic Accounting as
an experimental step towards the
development of a statistical
framework for ecosystem accounting
(System of Environmental- Economic
Accounting (UN and WB 2013).
FOREST RESOURCES VALUATION
The stumpage value of trees and the market value
of timber shall be used in the estimation of the
value of forest in the area.
Physical accounting of forest resources shall use the
geographic information system (GIS) and sampling
using the quadrat or circular method, as well as
secondary data.
Data on the stock of forest trees resources were
primary data gathered through the establishment of
sampling plots and identification of forest tree
resources growing with the sampling plots.
FOREST RESOURCES ACCOUNTING AND
FOREST RESOURCES VALUATION
VALUATION
After deriving the physical volume
estimates, the monetary account is
computed by multiplying the volume
accounts by the stumpage value of forest
resources per specie.
The stumpage value was taken from the
weighted log prices (in pesos per cubic
meter) obtained from DENR DAO 2000-
63.
Basic Equipment and Tools
• Diameter tape: it is a measuring tape that measures (direct
reading) the diameter of a given tree (DBH), in centimeters.
• Bearing Compass: it is an instrument that gives the direction
(north, south, west, east direction) of the next tree to be
measured.
• Meter tape: it is an instrument that measures the distance of the
next tree to be measured.
• GPS receiver: it is an instrument that locates the exact
location/position by giving its coordinates acquired through
satellites feeds.
• Laser Dendrometer (e.g. TruPulse)/Haga altimeter: it is an
instrument that measures the height of a given tree, in meters
SAMPLING TECHNIQUES
• Circular Plot Method
• Plot-less method used in timber survey to determine stem
cover or basal area
• Trees are counted in a circle from central sampling
point
• Only trees with larger diameter (5cm-DBH up) are
included in the count
• Appropriate for a more or less homogenous
stand/vegetation like pine forest, reforestations
or plantations
• The output is usually stand and stock table
SAMPLING TECHNIQUES
• Circular Plot Method
Data Conversion, Volume
• For data measured in terms of cubic meters and
board feet:
Volumem3 = Volumebd.ft/424
• Wherein: 1 m3 = 424 bd.ft
Reference: FMB Technical Bulletin N0. 3
• Measurement Standard Procedures
a) Diameter Measurement
b) Tree Height Measurement
c) Tree Identification
d) Post Inventory Activities: Volume computation
e) Preparation of Stand and Stock Table
Monetary Asset Account (Php)
Valuation using Market Price Approach
• In determining the stumpage value of merchantable
timber, the following formula was used:
SV = SP - (PC+ mpr)
Where: SV = Timber value
SP = prevailing market selling price
PC = production costs
mpr = margin of profit and risk (based on
bank rate)
Production Cost
• All items of cost incurred in forest production by the seller
• Breakdown of Production Costs:
1) Forest inventory
2) Administrative costs
3) Reforestation costs
4) Taxes and fees (forest charges and realty tax)
• Based on DENR DAO No. 2000-63: New Rates of Forest
charges Pursuant to Republic Act No. 7161 and based
on the 1999 FOB Market Price of Forest Products
Valuation using Market Price Approach
• Used in determining the monetary of the standing
timber.
• Prices will be derived from the market place through
interaction between costumers and producers over the
demand and supply of goods and services.
• The appropriate market price shall be determined using
actual survey/canvass on FOB market price within the
nearby area.
• For species banned, market equivalent is used in the
estimation.
