The IPD Forestry Index is calculated from a sample of private sector coniferous plantations of predominantly Sitka spruce in mainland Britain.

The Index is derived from a series of annual valuations and cash flows, but in order to reflect the long-term nature of forestry investment the series is presented on a three-year annualised basis. The year-onyear returns and Index values are shown on the back of this publication, but analysis is now based principally on the annualised results. These demonstrate more clearly the long-term returns available to investors.