If a mill offers to pay you $500 per thousand for red oak grade logs. ). Often, the larger the sale, the higher the price per unit of wood that can be offered. Volume per acre harvested Higher volumes improve production, thus encourage higher timber bids Solicit sealed bids, especially on fine-quality trees. It is a habit of wood companies to buy their preferred wood from areas that are closest to their sawmills. A pinestraw raking schedule of every 2-3 years can generate $100-$200 of income per acre. Fourth, what a timber buyer will pay for your trees depends on the conditions of the site in which they are growing, which affects how expensive it is to remove them and haul them to a mill. Going by this, the grower or buyer would get $10 less per cubic meter of logs per 100 km. For this, we turn to The Ohio State University’s Stumpage Price Report. For instance, saw timber that has a DHB of 18” will be more expensive than saw timber of 12” DHB. This shows the importance of staying updated with trends and how they affect the price of timber. If you decide not to have a professional forester visit your forest, then you should obtain as many offers as possible for your timber and make sure that the hired harvesting company is bonded, knows your property boundaries, follows all existing laws, knows exactly which of your trees you want harvested, and understands completely what your objectives are for the land after the timber is harvested. All of those things can affect how much wood can be removed and the operational costs of harvesting. Third, the value of timber depends heavily on how much timber is sold in one timber … The Return on this investment can be: $4,000.00 +/- Per Acre Location is one of the major determinants of timber prices. Price per thousand board feet > multiply reported price by 8.75 . In some cases, they would have to pay higher stumpage prices, since they are incurring fewer expenses on delivery. The average stumpage price is $300/MBF or $1,800 per acre in total. It's a no-brainer, and I speak from personal experience having sold over a thousand acres of standing timber in North Carolina. When there is a high demand, but low supply, prices of timber would naturally go up. It gets better if the timberland is close to the mills and the roads they travel on are in good condition.eval(ez_write_tag([[250,250],'treecutpros_com-leader-2','ezslot_10',127,'0','0'])); Tree Size and Quality: This is one of the major price-determining factors as far as timber is concerned. Buyers of timber will always need to conduct a survey of your woods before they can make an offer. Often, landowners who sold their timber based on the price regret their decision. If they have their truck (or trucks), then all they would have to contend with is the cost of fuel for the truck to and fro. For example, there has been a huge demand shift for tissue products, as well as construction work during the past 4 months, and this created a good opportunity to sell timber from young pine stands. Usually, wood companies will ensure the haulage truck is filled, since this would mean the use of fewer trucks, or making fewer back and forth trips. First, you can call on the free or low-cost services of state or university personnel. Age: 35-40 Final harvest – Total Clear-Cut and start a new stand Financial Return = $2,500.00 +/- Per Acre. This means there is a significant size difference between the trees removed during thinning, and the trees removed during clear cuts. This method of operation is pretty expensive, although it guarantees that a facility can get a sufficient amount of wood to produce at their preferred level. 5-7” diameter at breast height (DBH) is pulpwood, 8-11” is chip-n-saw, while 12” and above are saw timber. These experts provide a wide variety of services for a fee: tree planting advice, forest management, timber cruising (determining timber value), and timber sale preparation and supervision. Management costs per acre range from $5 to $45, so you’re sure to make your money … For instance, the lumber derived from large pine logs have more demand in an area that has many sawmills than smaller logs that are ground to small bits for paper production or wood chips. If these benefits are important to you, you may want to consider managing your fores… Beyond that, you might be able to make $5 to $20 per year for hunting or grazing leases, $2 or $3 a year in other non-timber … One acre of hemp can yield around 700 pounds of grain (which can be turned into 22 gallons of oil) or 5,300 pounds of straw which can be turned into fiber. Competition – Ultimately, timber markets are driven by competition. On the other hand, low inventory can cause wood manufacturers to explore the open market. Extension Forestry personnel are typically located at your local Land-Grant university in the Forestry Department. The tree type can also be a factor. These include furniture, fencing, roofing, amongst others. Quality is some important it is often the leading factor in how timber prices per acre are determined from buyers. The log size and per-ton value of a tree go hand-in-hand. It can be more costly per … Saw pine wood can differ by as high as $20 per ton. You can achieve accuracy by taking the average and then adjusting it by incorporating a number of other factors (unique site features, the date of each sale, the average volume of timber per acre, etc. Sure. However, you can get a good idea of the range of possible values for your standing timber. Loblolly Pole Wood. sold for over $1000 per MBF in the Upper Peninsula. – to convert price per ton to: Price per cord > multiply reported price by 2.68. A large, top quality black cherry, for example, would command a significant price premium as a veneer log, while limby and crooked sweetgum might be priced as pulpwood. While timber can add significant value to a property, unfortunately, it’s not as easy to quantify as tillable land income. The amount of lumber being transported can determine the weight-load the truck has to carry. The twenty year cut will only average 1,500 bd ft/acre of merchantable timber, and have a stumpage value of approximately $210.00/acre ($140.00/1,000 bd ft). Financial Return = $250.00 +/- Per Acre Age: 23-25 2nd time thinning – remove lesser trees and allow for a full saw-timber stand Financial Return = $1,250.00 +/- Per Acre. Increasing timber … "Timber buyers routinely purchase tracts of five acres or less." This means that the systems of harvesting and transporting timber must be based around the determining factors on a local scale. Often, the larger the sale, the higher the price per unit of wood that can be offered. This … If you know of a useful site or resource that we have not listed here, or if any of … Landowners can improve stand quality and reallocate stand growth by using appropriate silvicultural practices such as intermediate thinnings, timber-stand i… Next you will need to do … It also meant that wood buying companies had to get their timber from elsewhere, and this would increase the cost of transporting the timber from the new source to the sawmill. In contrast I … In very recent times, there have been inconsistencies in the demand for timber, all thanks to the COVID-19 pandemic. Start with the $500 and figure in the profit margin you need. and "What's the best way to sell my trees?" Previous Timber … Several scientific studies have shown that timber sellers who hire a professional forestry consultant to organize the sale end up with profits equal to or greater than profits accruing to timber owners who do not hire a professional forestry consultant, even after subtracting out the consulting fee. When it comes to determining a value of the question "how much does timber sell for per acre" there are a number of things to be considered. Third, the value of timber depends heavily on how much timber is sold in one timber sale and what kind of harvesting is done. Bruce Thompson, author of “Black Walnut For Profit,” estimates a mature stand of black walnut trees can bring about $100,000 per acre in timber value alone. Often, a harvest design intentionally creates wildlife habitat and enhances biodiversity and, if done properly, will increase long-term timber value. Our free timber price information page also now includes links to sample timber contracts for the most viewed states. Below we talk about how to answer these questions. Case studies show existing pine stands can earn an average of about $100 to $150 per acre per year. Similarly, property management costs can range from $5 per acre to as high as $25 per acre or more. These unforeseen weather events include flooding, wildfires, droughts, and hurricanes. How much do loggers pay for trees? There was about 75% severe damage and 95% catastrophic damage done. What this means is that tracts that have large volumes and acreage will most likely get price premiums. Red oak prices have increased again after declining from 1999 to 2002, but have not reached the highs $600/MBF of mid 1998. Accordingly, a timberland investment may cost as much as $45 per acre per year to maintain. In 2018, Hurricane Michael directly affected more than 3.5 million acres of timberland. Active forest management can address forest health problems and increase growth rates driven by species composition or forest-stocking conditions. When there’s … What this means is that prices can vary significantly within areas with proximity.eval(ez_write_tag([[580,400],'treecutpros_com-banner-1','ezslot_4',124,'0','0'])); Inventory: Sustaining the right level of inventory, is important, as far as facility production management is concerned. This survey is often called a timber cruise and involves a series of measurements of individual trees, as well as an assessment of factors that will influence the price of your timber. Those who own timberlands in the southern parts of America concentrate on producing larger pine logs. First, even though statewide or regional prices can provide a taste of the level and trends of prices, what your timber is worth is somewhat dependent on local market conditions. Determine what your goals are for your forestbefore making a decision to remove timber. If a mill can only get the product it needs in Region A, you can bet they’re not going to build a mill or buy wood in Region B. timber and log price information on the web, National Association of State Foresters website, Cooperative State Research, Education, and Extension Service, Michigan State University's Forestry Extension. Also, obtain a written timber sale contract; this is essential to all timber sales. What Is My Timber Worth, and How Do I Sell It? This is for at least five possible reasons. They may also weigh heavier too, depending on the number of trees loaded. The value of your timber per acre can actually range anywhere from zero to even thousands … Since you may not be able to realize the income from timer for a … If a tract contains $2,000 per acre in timber and the timber is appreciating in value at 10%, this is a gross annual return of $200 per acre. The intangible benefits of a forest, for hiking, biking, hunting or aesthetics, can be more valuable than the price tag that a buyer puts on the trees. 5 Major Factors That Affect The Price Of Timber, Type of lumber, the volume of lumber & weight, 9 Best Tree Identification Apps: Free & Paid Options, How To Find Wood Chipping Services Near Me, Timber Mills & Companies That Buy Trees For Lumber. Alternatively, you can visit the website of the. Some high quality areas may lease smaller properties out for a relatively high price per acre (e.g., 80 acres at $30-40/acre), while lower quality areas may lease larger properties for less (e.g., 1,000 acres at $5-10/acre). This of course depends on whether the timber is situated in a very competitive (or semi-competitive) area. Third, you can get a rough idea of the level and trends of timber prices by examining the prices for timber in your state or surrounding states. For example, if a farmer with a 100-hectare farm (250 acres) was able to sequester 2 metric tons of carbon per hectare and sell the credits for $15 each (100 hectare Á— 2 tons Á— $15), they would net $3,000. Even as regular weather changes can affect timber harvesting and supply, there are unforeseen weather events that wood buyers have to take into account. Many variables come into play when determining the price of timber per acre. Large tracts say 200+ acres allow loggers to increase their weekly production since they can haul more loads per trip. wood companies to buy their preferred wood. Competition: Size-wise, wood basins are typically small and they are made up of a handful of counties. The question is – how much does timber sell for per acre? If a mill offers to pay you $500 per thousand for red oak grade logs. Wondering about the possibility of selling individual trees from your yard or small acreage tract? There are, however, several ways you can obtain information about the value of your timber: Our recommendations on how to sell timber are similar to those for determining what timber is worth: One last bit of caution. When wood companies find themselves paying a premium for wood, the loggers who provide the wood can pay better stumpage prices to those who own the land. Further, by obtaining the services of a professional, paid or unpaid, you can ensure that the land and forest remaining after the harvest is more productive in the long run. The season, proximity, and other factors that affect the demand for timber all play a vital role. Timber harvesting is an integral part of forest management. Tract Size: One of the major expenses loggers will have to deal with is the cost of transporting equipment from one track to the other. Hardwood – to convert price per ton to: Price per cord > multiply reported price by 2.90. During the raining seasons, loggers will be forced to concentrate their production efforts to wet weather tracts.eval(ez_write_tag([[468,60],'treecutpros_com-leader-1','ezslot_1',112,'0','0'])); In this season, timber-buying facilities would have to pay higher for timber if they are to keep up with their inventory levels. Besides cleaning out the air and providing food, trees are also a source of wood. In some states, you can contact your state service forester, who might work for the state Department of Natural Resources, Division of Forestry, or Forestry Commission. Third, the value of timber depends heavily on how much timber is sold in one timber sale and what kind of harvesting is done. Now that you have all this information, you can determine what you can pay for standing timber. Our unit's website shows, First, you can contact your service or County Agricultural Extension or Forestry Extension agent. The greater the harvest expense per tree, the less the harvester may be willing to pay for the trees. What Can Influence Current Timber Prices? Maybe not more than 3 years apart in age.eval(ez_write_tag([[336,280],'treecutpros_com-box-4','ezslot_0',123,'0','0'])); Even-aged plantation pine stands usually pass through 1-2 commercial thinnings and final harvest. Timber value per acre can be between $500 and $5,000, but this depends on the growth of the trees themselves. Keep reading, as I’ll be providing you with the relevant estimates. Start with the $500 and figure in the profit margin you … Many harvesters will cut up the wood into manageable pieces so they can fit more into the truck, hence, fewer trips.eval(ez_write_tag([[250,250],'treecutpros_com-large-mobile-banner-1','ezslot_7',129,'0','0'])); There is a great variation among factors around the southern parts of America. There is a lot of applications timber can be used for. To get a clear idea of how much timber is worth per acre, you need to first have a proper understanding of the market forces (demand and supply), and see how that can influence the price of timber. Size of Timber Sale. Standing Timber Prices: How Much Does It Sell For? Third, the value of timber depends heavily on how much timber is sold in one timber sale and what kind of harvesting is done. Using this model, thinnings usually remove smaller trees that are younger and clear-cuts remove the rest of the larger trees at older ages. Thinning Timber Can Earn $350 Per Acre and Increases Annual Harvests by 25%. This can be done by calculating the height and diameter of 10 trees and dividing the total by 10. Often, the larger the sale, the higher the price per unit of wood that can be offered. On the other hand, the fifty year cut will average … This is a win/win situation for both the loggers and the owner of the land. I’ve seen 20 acre tracts that have more volume on them than a 50 acre parcel. Service forestry personnel are often located within the state Department of Natural Resources, Division of Forestry, or Forestry Commission. Your email address will not be published. Depending on the practice, that income might accrue yearly, or it might be a one-shot opportunity. Landowners who received professional forestry assistance before harvesting timber averaged 23 percent more income per acre, received a 64 percent higher price per board foot, and had … If your timber grows near a lot of mills, your timber might command a higher price than if the timber were far from mills or close to only one or two mills. Season & Weather: When the weather is unfavorable, say during the raining season, it would become very difficult for loggers to supply wood daily. According to sales data collected by Forest2ForestMarket, timber prices (both high and low) are controlled by 5 main factors. However, when you do decide to harvest some timber on your property, make it as attractive as possible when marketing it to ensure you get the best possible price. I hope this article on how much does timber sell for per acre has been helpful. Second, a timber stand's value is dependent on the species, sizes, and qualities of the trees growing in it. The heavier the load on the truck, the higher the wood company has to pay for transportation. If you can't find the information you are looking for on this site, please contact us, or try the various state foresters web sites.. The cost of transporting timber will vary, depending on a few factors like the type of tree, the number of trees being transported, tract Size, the distance between the harvesting site and the mill, the area, as well as the condition of the roads. All these variables play major roles in deciding what the price of timber will be per acre. That’s a tough pill to swallow for one that doesn’t understand the dynamics of thinning planted pine. Larger trees will take up more space in the haulage truck than smaller trees. One way to locate these foresters is by visiting the. You want a professional to help you navigate, and you … You may have a large number of trees and you’d like to make some money from its timber. During the dry seasons, they can supply as much wood as their capacity can handle. Depending on the type of trees and the market when the timber is sold, you could earn $500 to $2000 per acre (at $1500, you would be looking at $60 per year in income if you were to annualize it over 25 years). The pine timber stands in this area consist of timber derived from trees that are almost the same age. Timber Transportation costs are usually in the order of 10c/km/ton. Here’s an instance. Higher costs translate into lower prices offered. The result will be what you would pay per … The average stumpage price is $300/MBF or $1,800 per acre in total. Other determinants include surrounding mill types, road accessibility to the mills, the type of timber used in certain areas, and the quantity of the timber, amongst others. Such events would have a direct impact on the prices of timber to end users like furniture or fence makers. The affected timberlands experienced great losses, and this only meant that the harvesting and supply of timber would be hindered. This will give you the average height and diameter of one tree growing in the woodlot. Visitors to our timber and log price information on the web page are often looking for answers to two simple questions: "What is my timber worth?" This annual publications lists, by regions of … Loblolly Pine produces pole wood or to be more specific poles for fence and utility, the highest valued timber … Price per thousand board feet > multiply reported price by 7.5. Read this first. Now subtract your cost of harvesting at $100 per thousand bf. Keep in mind that these are average prices, and they can change depending on certain influences. Also, there is expected to be an increase in home construction over the next few months, so this is a great opportunity to market older pine saw timber. Variables such as distance from the stand to the nearest road, slope, soil wetness, and whether temporary bridges need to be built across streams all can affect operational costs of harvesters and hence what they might be willing to pay to harvest a stand of trees. Second, you can contact a professional forestry consultant. Your email address will not be published. ... You can use the average stumpage prices above to get a general idea of about how much you can get for your timber… Fifth and finally, state and local timber harvesting and management practices laws can affect what kind of harvesting equipment can be used, how close harvests can come to streams, and what contingencies must be made if there are local populations of vulnerable or legally protected plant or animal species in your area. Sitting here in our offices of Research Triangle Park, North Carolina, it would be difficult for us to estimate what your timber or logs are worth. Required fields are marked *. I've seen offers on ~100 acre stands of pine differ by upwards of $100K.
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