Using LiDAR module to determine tree diameter

Has anybody used GM to determine diameter of trees? A tree farm near me has a LiDAR dataset and they are trying to determine how many trees they have that are greater than 48" in diameter. My thought was to generate a ground surface from the LiDAR, then offset the surface 5' (where the breast height measurement is taken) and use that as a cutting plane to then determine the number of trees that fit into the >48" category. Can GM auto-create closed polygons and then run a query on those polygons?
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