The purpose of this procurement is to secure a supplier for the provision of Tree Crop Asset Valuation Services over 3 consecutive summers 2023/24, 2024/25 and 2025/26.

The successful supplier will undertake a valuation of the tree crop assets of ForestrySA’s (FSA) Mt Lofty Range plantations, at 30 June each year.

Utilizing forest description, cost and price data, and harvest plans provided by FSA. A forest inspection would be appropriate during this valuation.

The valuation will be in accordance with recognized standards and methodologies. The “income” and “comparable sales” approaches have been used previously with the latter recognizing Implied Discount Rates demonstrated by wider evidence. Through this device, both approaches to valuation involve a Discounted Cash Flow methodology which is based on the same set of projected cashflows.

ForestrySA requires the valuation of the Mt Lofty tree crops as if they occupy the land beneath them at no cost, whether the charges are actual or notional.

The intended use of this valuation is to track the asset value of the plantations for financial reporting purposes.