CHAPTER 10

What is "stumpage" in forest economics?

• Cost of tree planting

• Value of timber after processing

• Value of standing trees before harvesting

• Government tax on logging

Why is stumpage assessment important?

• To determine soil quality

• To estimate the market value of standing timber for trading and compensation

• To monitor illegal logging

• To regulate replanting programs

Which forest reserve class in Sabah is designated for timber supply and trade?

• Class I - Protection Forest

• Class II - Commercial Forest

• Class VI - Virgin Jungle Reserve

• Class VII - Wildlife Reserve

What field method is used to estimate timber volume in a forest?

• Soil sampling

• Tree coring

• Timber cruise

• Aerial mapping

Which of the following is not a main parameter used during a timber cruise?

• Tree species

• Height

• Leaf color

• Diameter at Breast Height (DBH)

Immature timber is defined as:

• Wood that has been partially processed

• Timber harvested for pulp only

• Timber that is not yet marketable or tradable

• Timber grown on private land only

Which formula is used to estimate immature timber value?

• Vi = Vo - Vc - La

• S = R - C - K

• N = H - K - M

• q = m / hs

Which method is best for assessing stumpage value in active commercial timber markets?

• Investment Method

• Cost Method

• Direct Comparison Method

• Profit Ratio Method

What is the basic formula for the Overturn Method?

• N = H - K - M

• Vi = Vo - Vc - La

• S = R - C - K

• Vp = Vi + Vb

The Profit Ratio Method calculates stumpage value by:

• Averaging market prices

• Estimating soil fertility

• Subtracting wood transition costs and profit margins from log price

• Comparing tendered sales