What are trees (lumber) worth?

[Ole_Hickory]

</font><font color="blue" class="small">( <font color="blue"> Get a forester that works for YOU to come out and give you a price. DONT ask a logging company. Don't even think about that as an option. Get a forester. </font> )</font>

You are absolutely right !!!

If it is determined he has good marketable timber,he should consider taking bids on the timber as well.

 

[r0GuE]

Wow thanks for all these posts. Like anything, it looks like I've got a lot to learn.

 

[rozett]

I agree with Dan. Get a forester not a timber cutter.

We did a major timber harvest last year. I hired a licensed forester to write a Forest Management Plan ($600 but reimbursed 50% from state) and then manage the harvest. He marked every tree that was cut, managed the timber cutter to track process and exactly what was trucked out, and handled all of the paperwork with the cutter and the state. His fee was 10% of the gross take. So his pay is based on how well he tracks the cutter. He even brought in a wildlife biologist from UMaine to advise us on what to do in the deer wintering yard in my northwest corner. Most foresters will walk your property and give you a ballpark on what the value of the timber is.

 

[dmccarty]

Rogue,

I don't think I gave enough info. Other peoples posts are jogging my memory....

I hired a Forester. I talked to a couple people and went with a man my father in law had used. This guy had to travel a good two hours to get to my place but he did it. His cut on all of this was 10%. I might have gotten a lower percentage depending on the value but since at least I had a reference on this guy and he had to travel I was ok with 10%.

What did the 10% buy me? Well he, his son, and a hired hand came out and cruised the land. They marked each marketable tree at the stump and at chest high on the tree. The provided me with a list of how many 1000 board feet I had per tree diameter and species. This inventory was then mailed out to something like 30-40 timber buyers. We had a closed bid sale on the property based on the inventory. Strange to have this much money based around on the back of a pick up truck! /forums/images/graemlins/grin.gif

He also UNMARKED some trees on some parts of the property we decided to keep untouched.

He also watched over the timber operation when it occured. In NC it standard to give the loggers up to two years to timber the trees. If they don't take the trees in two years the trees are yours even though they already paid you the money.

Your Department of Forestry should be able to give advice on all of this as well. They should have standard contracts. In NC there is a "book" of standard logging practices. Mentioning this "book" in the contract locks the logger into certain things.

Lets talk taxes. Timber taxes are as clear as mud. There is a book on the Internet written by a couple professors who helped write the timber tax code. They did this back in the 40s. /forums/images/graemlins/grin.gif
The NC Extension Office has classes on Timber Taxes. You might want to see if you state has them as well.

Taxes, at least the way I understand Timber Taxes, is calculated on the difference in the value of the trees at the date of sale minus the value of the trees when you bought them. I'm sure you did a timber cruise when you bought the land right?
/forums/images/graemlins/grin.gif Your Forester can determine what your basis is years after the fact if they have to since there are standard practices to determine the growth of the trees over time.

If you bought the trees recently you don't have much to worry about.

I got lucky and managed to time the market in our favor. I THINK we got about $400 per 1000 board feet for both oak and pine.

Later,
Dan McCarty

 

[MadReferee]

I did not use a forrester or any other third party. I marked which trees I wanted cut since it was pretty obvious which ones had to go. Why pay 10% ($2000 in my case) for something I could do myself. In fact, my town's forest agent will do it for free if asked.

Also, in New Hampshire, the timber tax is paid on the value of the timber when it is cut. The towns use the state averages for the type of wood to calculate the tax. It is up to you, the landowner, to dispute their numbers. I know, because I did.

The timber harvesting permit, which list the amount of timber to be cut by species, is only good for one year.

As always, your state's mileage may vary.