Trees as Loan Collateral: Valuation Methodology for Smallholder Teak Plantations

This brief reviews a teak tree valuation methodology that attempts to ameliorate the risks inherent to borrowers and banks as well to ensure that community forestry principles and aims to improve livelihoods and capabilities are adaptable to existing social and economic pressures. The valuation method was created in tandem with the implementation of a smallholder forestry project in Bokeo, Lao PDR. The project was implemented by RECOFTC in conjunction with the Lao Provincial Organisation for Forestry and Agriculture (PAFO) and the Lao Department of Agriculture and Forestry.