Silvicultural economic modeling details the operations performed for the establishment and maintenance of the plantation by means of the development of a database with tables that systematize the name of the operations, performance (labor/hour, hour/machine, amount of inputs) and the corresponding prices. By crossing this information, it is possible to obtain the cost of each operation. Subsequently, operations are described in a timeline, allowing to obtain the cost for each year of the planned horizon.
Silvicultural economic modeling is also concerned with obtaining production curves for the species and cultures that make up the system, in units such as m³/ha, box/ha, @/ha, etc. The expected yields refer both to timber and non-timber products. Obtaining production curves for native species is a challenge that requires efforts to aggregate the information available, which is the result of research conducted in universities/institutions, practical knowledge of specialized consultants and bibliographic references.
The cornerstone of the financial analysis of each model is based on quite detailed silvicultural economic modeling. These data are integrated into the same framework, the end result of which will allow knowing the cost of production and the productivity of each model over the years. Its comparison to other financial indicators (such as cost of capital, penalty, carbon sale, etc.) will result in relevant information for investors and farmers, such as return on investment rate, which directly impacts on risk analysis and investment and credit decisions.
The goal is to identify the best model for each situation.