Land values are opportunity costs, moving from farming to forestry might affect the capital value of land. However, recent market insight suggests the capital value of woodland and agricultural land are moving closer to parity. Forestry is improving as an asset class with capital values increasing as a result. Any potential changes in capital values of land from conversion of farmland to woodland can be factored in using other economic appraisal tools such as cost-benefit analysis (see guidance note 5).