Definition of terms and acronyms
Clearfell
Harvesting a tree crop by removing all merchantable wood from the site.
Clearwood
Wood which is free of knots and other defects. In Radiata pine this is grown on the butt log, being the pruned part of each tree (bottom 5+ metres approx). Knot-free Radiata pine is highly sought after and therefore the most valuable portion of each tree as the wood is used for decorative, furnishing and [...]
Cost of Timber
Cost of Timber is a technical area of New Zealand Tax law relating to deductions for certain forestry expenditure. The main purpose of section DP 11 of the Income Tax Act 2007 is to allow a deduction for certain forestry expenditure that might not otherwise be deductible. A vendor is entitled to deduct the ‘cost [...]
Crop Trees
Trees left standing following a thinning operation.
De minimis
When a forestry investor sells shares in an Ordinary Partnership or Limited Partnership, section HG 5 of the Income Tax Act 2007 taxes the sale proceeds from the treecrop, but allows a $50,000 safe harbour threshold per partnership in any 12-month period under which this taxation treatment does not apply. The $50,000 safe harbour is called [...]
Deed of Assignment and Power of Attorney
The name of the document approved by the General Partner under which the Assignor (e.g. seller) transfers to the Assignee (e.g. buyer) ownership in the Assignor’s Limited Partnership shares. A limited Power of Attorney is granted to Trustee Executors Limited (the Supervisor) by the limited partners for administrative or procedural matters in maintaining the Limited [...]
Deed of Partnership
Applies to an historic investment structure used by Forest Enterprises, the ordinary partnership. The name of the governing document setting out the terms and conditions of the operation of a partnership to which an investor is a party.
Deed of Scheme Management
Following the registration under the Financial Markets Conduct Act 2013 of our 49 public issue Managed Investment Schemes, the Deed of Scheme Management is now the pre-eminent governing document in respect of these investments, and incorporates all the elements required under the Act.
Diameter Breast Height (DBH)
Diameter Breast Height is used to describe a tree diameter taken at a standard height of 1.4 metres above ground level.
Direct Forestry Investment
Investing in forestry by directly owning trees and land. Direct forestry investments normally focus on one block of land, and comprise a group of investors who collectively own the land and trees according to their shareholding. A crop of trees is planted, tended and eventually harvested from the block of land by a manager on [...]