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Incorporating genetics into forest valuation models – IRRPLAN
The project aims to recognise the contribution of improved genetics in plantations at the time of establishment by estimating expected future values of key physical traits on a site and stand specific basis. Tree improvement programs have been successful in breeding trees with enhanced physical traits being growth, form, wood properties and health attributes. Forest growers are deploying these genetically improved trees in the re-establishment programs of pines and eucalypts, but the added value is not usually recognised in forest valuation models until inventory measurements are done up to ten years after establishment. By not accounting for the expected increases in yield and product quality, the projected return on investment is potentially underestimated. Recognising the marginal increase in value due to the deployment of improved genetics in young stands is critical for investors to make informed decisions about likely returns and alternative land uses. The increase in value to be estimated by the grower requires stand specific estimates of improved physical traits while accounting for genotype by environment interactions.
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