The Australian Farm Forestry Financial Model
University Queensland, Marine and Tropical Science Research Facility, Care Pty Ltd, August 2009 - John Herbon, Nick Emtage, Steve Harrison, David Thompson
The Australian Farm Forestry Financial Model (AFFFM) has been developed as a tool for the financial appraisal of farm forestry investments.
It is a whole-farm financial model developed in modules using Visual Basics as the programming language, and provides estimates of key financial criteria including net present value, land expectation value and internal rate of return.
It also provides details of the effects of forestry options on cash flows and the business cash position.
This paper outlines the scope of the AFFFM including its structure, assumptions, input parameters and key variables. The pager also reports the process by which the model was validated through replication of previous studies, the development of case studies and testing by undergraduate students.