VMD inventory data carries enough information for an owner to build a first-pass standing-timber value without an intermediary. This article walks through the G×H×f formula and where its limits lie.
What G×H×f represents
Forest assessors in Latvia typically estimate standing timber volume from three values: stand basal area G, mean dominant height H, and a species-specific form factor f. Combined with the compartment area A, those give a first-pass gross volume via V = G × H × f × A, where G is in m²/ha, H is in metres, f is a species-dependent coefficient, and A is the compartment area in hectares.
This is not a full forestry valuation model and it does not replace a professional appraisal before a transaction. For establishing the first value range and comparing multiple parcels, however, it works well — and every input is already present in the public VMD inventory.
One caveat to remember: the formula produces a gross standing-timber value, not a land price. Final transaction pricing is additionally shaped by assortment mix, access, restrictions, market demand, and how current the inventory data is.
A worked example with real numbers
Take a concrete compartment: G = 24 m²/ha, H = 22 m, pine (f = 0.45), area A = 8.5 ha. The volume calculation is a straight multiplication: 24 × 22 × 0.45 × 8.5 = 2,019 m³ of standing timber across the whole compartment.
The average market price for mid-grade pine in Latvia in the 2025/2026 season is around €55/m³. Multiplying through gives a gross timber value of 2,019 × €55 = €111,045.
That figure is not the eventual transaction price. Logging costs (€15–25/m³) come out of it, and the residual land value is treated separately. A realistic transaction range for this compartment would be €65,000–85,000 depending on access and assortment quality.
Form factors by species
The form factor captures how tightly the actual stem fills the theoretical G×H cylinder. Typical values used in Latvian inventory work:
- Pine — 0.45
- Spruce — 0.45
- Birch — 0.42
- Alder — 0.40
- Oak, willow — 0.45
- Other broadleaves — 0.40–0.42
Where the formula stops
A volume estimate is not yet a sale price. Before any transaction, four situations are worth checking — each can make a single number misleading.
The first is an outdated inventory. If the VMD record is more than 10 years old, the stand has grown in the meantime, and the actual volume can be 20–40% higher than the register shows. The second is a mixed stand. The formula performs better on monocultures; in a mixed forest, the cleaner approach is to calculate each dominant species separately and sum the results rather than apply an averaged form factor.
The third situation involves management restrictions. Inside a micro-reserve or protected zone, the formal volume on paper may exist but is not legally available for harvest, so it should not enter the sale price. The fourth is old inventory data combined with proximity to a protected feature — there it pays to consult a forester or run a fresh on-site walkthrough before quoting a number.
For a real decision it therefore makes sense to compute not one number but three scenarios — conservative, base, and upside. The range immediately shows where a buyer is most likely to push the negotiation.