Timber Sales Assistance
Selling timber offers forest landowners a substantial revenue opportunity, often resulting in a life-changing amount of money. Even in situations where the primary objective is not financial in nature, timber harvest is often necessary to achieve broader forest management goals.
Given the considerable time invested in growing valuable trees, it becomes paramount to carefully consider all relevant factors when preparing to market your timber sale. Key factors to take into account include:
Defining the Sale Area: The boundaries of your timber sale must be defined for many reasons. Defining the sale area allows for early assessments related to the size of the timber sale as well as site-specific conditions that may impact the sale. Additionally, it will be important to have these boundaries marked on the ground for logging contractors.
Consideration of Appropriate Harvest Methods: Choosing the right harvest method depends on your specific forest management goals. It is essential to find a balance between the method's feasibility, financial impacts, and its broader implications for your forest's overall management objectives.
Inventory and Appraisal: Before proceeding with a timber sale, a comprehensive timber inventory and appraisal should be conducted. This assessment will help determine the volume, quality, and value of your timber, enabling you to make informed decisions about the sale. Based on the inventory and appraisal, greater insight can be had on selecting the most appropriate method of timber harvest.
Selecting the Method of Sale: In general, timber is sold via one of two methods:
Lump-Sum Sale: With a lump-sum sale, potential buyers offer a single payment upfront before any timber harvesting occurs. This method involves the buyer purchasing the rights to your timber for a specified duration. Generally, a well-marketed lump-sum sale will yield the highest value. However, it's worth noting that some timber sales might not attract potential buyers for a lump-sum purchase.
Unit Sale: Also known as a "pay as cut" sale, it involves receiving offers in the form of "per unit" prices. Payments are made in settlements, with each payment reflecting the volume harvested since the previous settlement. The agreed-upon "per unit" price determines the payment for the amount of timber cut during each settlement period. While unit sales can be appropriate for certain timber sales, it is worth noting that, in ideal circumstances, they will likely yield less value compared to lump-sum sales.
Marketing the Sale: How and who your timber is marketed to is likely the most financially consequential step in the process of selling your timber. It is crucial that appropriate steps be taken to ensure that you receive the most competitive prices available.
Sale Agreement Contract: Develop a detailed and legally binding contract for the timber sale. Include provisions related to harvest specifications, payment terms, timelines, and responsibilities of both parties. A well-drafted contract protects both you and the buyer's interests.
Ensuring Compliance During Harvest: Special provisions outlined in the contract as well as regulatory compliance should be monitored frequently during harvest operations.
It is worth noting that the steps and procedures of the sale and harvest process may vary depending on the method of timber harvest and the associated goals. Effective planning throughout the sale and harvest process can yield substantial benefits, positively influencing both your financial results and the alignment with your broader forest management goals.
Timber Sales FAQs
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While certainly not a requirement, engaging a qualified forester to help sell your timber can greatly enhance the sales process. A skilled forester brings technical expertise, industry relationships, and valuable experience to ensure your timber achieves the highest possible value.
A 2015 study by Forest2Market details the impacts of selling your timber with the help of a forester as opposed to selling it yourself. The study is linked here, and the highlights are below:
Per unit sales that involved consultants exceeded the non-consultant sale prices by no less than 11%.
Lump-sum sales involving a consultant exceeded the value of non-consultant sales by an average of 12%.
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Yes. Forester’s fees are deductible as a business expense against the value of the timber sale.
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To ensure environmental stewardship during timber harvest below are the baseline measures:
Conduct pre-harvest assessments.
Establish buffer zones around water bodies.
Use proper stream crossings.
Implement erosion control measures on forest access roads and trails.
Pause operations during inclement weather.
Conduct compliance inspections.
Undertake reforestation and site rehabilitation following harvest.
Timber harvest is subject to a variety of state and Federal regulations. However, if you have concerns that are not properly addressed by regulation, additional measures can be customized to ease your concerns.
At a minimum, timber harvest will inevitably lead to some degree of minor and short-term alterations to the landscape. Whether these changes are deliberately sought after in the short run or are merely a stepping stone toward achieving a broader, long-term objective, it remains critical for you to be well-informed about the impacts such logging activities will have.
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Clearcut Harvest: This involves the harvest of all merchantable trees, except those in protected areas, within the sale boundary. Clearcutting is legitimized as a sustainable harvest method by reforesting the area following timber harvest. Clearcutting is by far the most financially efficient method of timber harvest.
Commercial Thinning: The partial removal of trees to improve growing conditions for residual trees. There are many categories of thinning philosophy and technique, but in the southeastern United States, thinning operations usually favor the removal of the most poorly developed trees. Commercial thinning is only available once trees are large enough to attract prospective buyers, and is almost always a planned component of production pine management.
Selection Harvest: This involves the selection and removal of trees either individually or in small groups based on specified criteria. Usually, a goal of selection harvest is to promote the natural establishment of desired species in the understory following harvest. This tends to result in a forest with high diversity in age classes present, with fairly consistent closed-canopy across the forest. The residual closed-canopy nature tends to favor the establishment of tree species who are able to grow in a shaded environment. This category of harvest is a good option for landowner’s who wish to maintain a hardwood dynamic in their forest.
Even-Aged Regeneration Harvest: In this harvest method, most of the trees are harvested with scattered overstory trees left for the purpose of naturally seeding in a new, single age class of trees. This method of harvest is typically associated with the natural establishment of southern yellow pine trees.
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The method of harvest will have an impact on the sale of your timber.
As harvest criteria become more strict, the logging operations become less cost-efficient.
For all parties involved, it is important to understand that, regardless any forest management goals, scheduled timber harvest must offer an attractive opportunity for loggers and timber buyers.