The forestry financial model is a comprehensive financial model in Excel that allows the calculation of the financial viability (IRR, NPV, ROI multiple) for multi-stage forestry plantation projects, such as tree plantations, timberland investments, or any other forestry project.

The Excel financial model can derive cash flow forecasts for both simple single-site tree plantation projects, which are planted in one year, and more complex cash flow forecasts for forestry projects with different plantation and harvest years for up to 25 sites. The model outputs all its key metrics on a consolidated basis as well as per each single tree plantation (up to 25).

Forestry projects, such as teak farms, require long-term cash flow forecasts as the trees can take up to 25 years (or, for some species, even longer) to grow till the produced wood volume can be maximized. This comprehensive model allows for forecasting cash flows for tree farms planted up to 25 consecutive years, which reflects one full tree-growing cycle for a teak wood.

The highlights of the financial model are the following:

Inputs:
- Forestry strategy assumptions: years of commercial thinnings, trees, and wood volume (m3) extracted
- Cost assumptions for the purchase of land, care-taking, maintenance, and G&A costs over the project lifetime
- G&A costs can be allocated automatically as per the relative size of the hectares under management
- Forecasted wood price
- Inflation assumptions for prices and costs
- Up to 25 different tree plantations with different sizes (hectares), planting years, and harvest years
Model output:
- Key metrics such as Project IRR, Funding required, Net Present Value (NPV), NPV per hectare, Return on Investment (ROI) multiple
- Summary figures such as forecasted total revenues, cost, taxes, and profit in absolute terms (e.g. USD) and on a relative basis (e.g. USD per hectare)
- The NPV calculation can be adjusted to reflect NPV values for the timberland investment over time
All key metrics are outputted both on a consolidated basis as well as on a per-plantation basis.

The model, e.g., can be used for teak plantations or similar forestry projects that require forecasting extracted wood harvest volumes and wood prices over a long period of time. Please note, you can specify the area label on the assumption sheet, e.g., if you prefer to plan in Hectares (HA) or in Acres (AC). The model will automatically update all area unit labels.

This is a comprehensive financial model available as an Excel file. A PDF Demo version is available for a closer look at what exactly is included in the financial model. The latest model version is 7.0.

Filetype: .xlsx (Microsoft Excel)

Screenshots of the comprehensive forestry financial model are provided below.

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