INFORMATION FOR SELLERS

I might include a list of simple things one can do to improve the appearance of a property without spending a lot of money. For example:

BEFORE YOU SELL YOUR TIMBER

Years of growth are accumulated in a mature timber stand. The annual income from all those years is frequently marketed in a single transaction. Too much is at stake to sell timber without having accurate knowledge of products, volume, and value and without knowing how to establish the next crop for continued production.

Selling timber can be complicated. Trees are usually harvested by someone other than the seller, so their ultimate value to the landowner (also called stumpage value) is reduced by harvesting as well as transportation costs. Logging costs vary from tract to tract, and even vary depending on the type of logging system used.

Also the size, quality, and species of timber are highly variable. Specialized knowledge is required to identify tree species and to estimate volume and value within utilization standards accepted by local markets. Actual product volumes cannot be determined until the logs are processed (usually after the sale). Therefore, the volume of standing timber must be estimated using one of several "log rules" applied throughout the state.

There are no daily market price reports for stumpage, nor are there any government support prices. Both demand and price for many timber products fluctuate widely. Add to this the fact that many timber sales are once- or twice-in-a-lifetime occurrences. Learning from experience can be very expensive!

This Woodland Owner Note includes sections on questions to ask before you sell your timber, how timber is measured, factors affecting timber stumpage prices, steps to marketing timber, timber taxes, and a sample invitation to bid on timber. By asking the right questions at the right time, by approaching the subject in a businesslike fashion, and by getting appropriate assistance, you can make your next (or first) timber sale both a pleasant and a profitable experience.

Before You Sell Your Timber...

Here are some questions you should ask:

What trees should I sell?
How soon must I market them?
Are property and cutting boundaries well marked?
What is the timber volume? (By which log rule?)
What is the growth rate?
What is the fair market value of my timber?
What is the current timber market price trend?
Are the trees financially mature?
Who and where are the appropriate timber buyers?
What sale method should I use?
How will the income be taxed?
How should I reforest harvested areas?
How can I get advice from a professional?