Dr. David MerckerUniversity of TennesseeExtension Forester

The best depiction of many landowners attempting to sell their own timber is . . .

You don’t make money growing trees. You make money selling them.

Chronological Steps1. Seek the advice of a professional forester2. Clearly establish goals3. Select and mark trees to sell4. Know what is being sold5. Have an estimate of crop value6. Advertise and solicit sealed bids7. Prepare a contract8. Get paid up front9. Monitor the logging

Seek the advice of a professional forester... and perhaps several . . .

Local County Extension Office and the TDA Forestry Division maintain a list of both public and private foresters

Types of Professional Foresters

1. State Area Forester Employed by the Tennessee Div. of Forestry Initial contact person Provide general forest management info and advice on

harvest feasibility Responsible for landowner assistance programs Forest protection (fire/insects etc)

Types of Professional Foresters (cont’)

2. Private Consulting Forester Self-employed Offer services for a fee or commission Remain independent of any business which may cause

a conflict Acts as a liaison between landowner and industry Generally offer services in: timber marketing, appraisal,

inventory, management planning, timber stand improvement, tree planting

Should follow ethical standards as establishedby the Association of Consulting Foresters (ACF)

Types of Professional Foresters (cont’)

3. Industrial Forester Employed by a wood processing industry generally for

the purpose of procuring timber or timberland Involved in the management of industry or privately

owned forests to accomplish the above purpose

Establish Your Goals

Income Investment Wildlife Aesthetics Recreation Water/Soil Protection

Summarized in a Forest

Stewardship Plan

Select and Mark Trees to Sell

Trees for harvest should be marked with a band using highly visible tree marking paint

Also mark them at the stump

Don’t High-grade your Forest

High-grading = harvesting that removes the most valuable trees, leaving a stand composed of undesirables of low value

Examples of those not to leave include:

“Wolf” trees, remnants of previous mismanagement or of pastured woodlots

Crooked/deformed trees

Both forks should have been harvested.

This forest was

high-graded

Lightening struck trees

Harvest Tree

Crop Tree

and undesirable, lower value, “weed trees” too, such as sweetgum

Hackberry

American elm

and Honey locust.

Also, avoid “diameter-limit-cutting”

Removal of all merchantable trees above a specified diameter Ex. 16” +

18” +

This is a form of high-grading because it removes the fastest growing trees.

Harvest Methods for Tennessee Hardwood Forests1. Clearcut - good for regenerating poor or mature

stands

2. Single Tree Selection -Light harvest that protectsaesthetics but favors shadetolerant trees.

Harvest Methods for Tennessee Hardwood Forests3. Group Selection - pockets of small clearcuts, leaving

other areas alone; creates smalleven-aged stands within anuneven aged forest.

4. Single Tree Selection Combined with Group Selection –A reasonable compromise gaining benefits of clearcutswhile still salvaging and improving the stand.

Year 0Year 1

Year 5

BeforeAfter

Other farm crops are not sold on guesswork -neither should trees.

Forester should measure the volume (board feet or tons)

Provide a summary of volume by species

Know What You are Selling

Inventory Your Timber

Using a Biltmore Stick, a forester can measure the diameter and # of logs to estimate the board foot volume that is being sold.

A summary broken down by species should be prepared which is sent out to prospective timber buyers…

* = 420 BF estimated to be veneer

SpeciesNo. ofTrees

VolumeBoard Feet

(Doyle Rule)

Averageper Tree

Red Oak 126 40,320 320Hickory 210 36,120 172Yellow Poplar 83 35,790 431Beech 135 22,410 166White Oak 71 20,365* 287Soft Maple 40 8,800 220Sycamore 22 4,310 196Sweetgum 29 4,200 145Black Cherry 7 1,435 205Elm 6 470 78Total 729 174,220 239

Inventory Your Timber cont’

Have an estimate of crop value beforeselling

Sources:1. Your forester’s comparable sales2. Tennessee Forest Products Bulletin (Division of

Forestry) – (615) 837-5431http://www.state.tn.us/agriculture/forestry/marketing.html

3. Hardwood Market Report – (901) 767-9126

Understand Price Reporting

1. Stumpage Price Value of tree while it is still standing Value “to the landowner” Does not include costs of

logging/hauling and milling

2. Delivered Log Price Value of logs delivered to the mill gate Includes cost of the trees plus logging/hauling costs

3. Lumber Price Value of sawn lumber at mill Most widely reported $ per 1000 board feet

ValueLower

Higher

Assume tree: 22” diameter at breast height having two 16’ logs= 280 board feet

How much is a tree worth? . . . depends

Takes 40 elm to equal 1 white oak

veneer

Tree = $Elm 8.00

Grade #2 Poplar 22.00#1 Poplar 58.00

Grade #2 Hickory 14.00#1 Hickory 22.00

Grade #3 White oak 28.00#2 White oak 76.00#1 White oak 246.00

Grade #3 Red oak 28.00#2 Red oak 59.00#1 Red oak 115.00

White Oak Veneer 318.00

Assume Tree with 280 Board Feet(22” diameter and two 16 foot logs)

So How Much is that Tree Worth?!

#1 Common Lumber Prices ($/mbf)

Ref: Hardwood Market Report

0

200

400

600

800

1000

1200

1400

Red Oak

White Oak

Poplar

Black Walnut

Price per1000 Bd. Ft.

Date

#1 Common Lumber Prices ($/mbf)

Ref: Hardwood Market Report

0

200

400

600

800

1000

1200

1400

1600

Black Cherry

Hard Maple

Price per1000 Bd. Ft.

Date

#1 Common Lumber Prices ($/mbf)

Ref: Hardwood Market Report

0

200

400

600

800

1000

1200

1400

1600

Black Cherry

Hard Maple

Red Oak

White Oak

Poplar

Black Walnut

Price per1000 Bd. Ft.

Date

Factors Affecting Stumpage PriceFactor AffectTimber Size Big trees bring big bucksTimber Quality Prime grade trees are rareVolume per acre The more the betterTract Access Good vehicle access helpsTract Size Economy of scaleSoil Conditions Well drained soils are welcomedMethod of Sale Sealed bid assures competitionHarvesting System Clearcuts increase productionReputation of Landowner Will encourage cooperationMarket Conditions Can varyLocation Short hauls to the mill increases $

Not all tracts of timber are created equal!

Advertise and Solicit Sealed Bids

Send sale notices to:1. Master Loggers – see Tennessee Forestry

Association website2. Timber Buyers/Brokers3. Sawmill Operators4. Pulpwood Mills5. Veneer Buyers

Key is – Get Wide Exposure

http://fwf.ag.utk/extension/forestry.html

Prepare a Contract

Exceptions: Lower value sale of

pulpwood or an improvement harvest with many poor quality trees

Tax implications

Get Paid up Front . . . in most cases

Check for compliance with sale conditions

Follow Best Management Practices (BMPs)

Monitor the Logging

Conclusion

The opportunity to sell timber does not occur very often. Landowners are encouraged to follow these steps to both maximize income and minimize damage to timber stands.

For peace of mind, be patient and do it right. Looking back someday and wishing the above procedure had been followed, would be a heavy burden with which to live.

Regional Forest Area Changes- The Last Decade (1999 – 2009)

USFS 2010

Annual Removals – percent of standing wood volume

.

.

USFS 2010

USFS 2010

Chrystal ball gazing . . . . . 8 points to consider

1. Wood-to-energy markets (biomass and biofuel)2. Headed down the path of government subsidies3. Forest management plans will be required4. Forest Certification for hardwood products

will likely continue to gain market share5. Professional forestry help will become harder to find6. Visual impacts of logging will become law7. Exotic invasive plants will become problematic8. Harvesting unique habitats will become more restrictive

Thank you.

“The small landowners are the chosen people”

- Theodore Roosevelt