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Pine plantation- wood prices

Posted on 1/25/16 at 4:29 pm
Posted by dcw7g
Member since Dec 2003
1957 posts
Posted on 1/25/16 at 4:29 pm
Any of you guys familiar with prices for pine in southern Mississippi? I've got a recreational property with a decent amount of planted pine that needs thinning. I've got a reputable logger offering $7 per ton of pulpwood and $20 per ton of "chip and saw". I know nothing about the pine market, though my neighbor there used these guys for those prices. Seem reasonable?
Posted by wickowick
Head of Island
Member since Dec 2006
45793 posts
Posted on 1/25/16 at 4:30 pm to
How much land?
Posted by dat yat
Chef Pass
Member since Jun 2011
4299 posts
Posted on 1/25/16 at 4:41 pm to
Those were the same prices I got a little over a year ago on a 2nd thinning. I have not followed the market since; glad they're the same so I don't have to kick myself for not waiting.
Posted by gsvar2004
Member since Nov 2007
7951 posts
Posted on 1/25/16 at 4:46 pm to
We just got a little more than that this past summer. I think it was 8 and 24. But my FIL is very Jewish.
Posted by Hammertime
Will trade dowsing rod for titties
Member since Jan 2012
43030 posts
Posted on 1/25/16 at 5:06 pm to
So many variables involved in valuing a property, but them getting $9-10 at the mill for pulpwood and a little more than double that for chip and saw is normal.

Main variables are property, access, and distance to mills
This post was edited on 1/25/16 at 5:10 pm
Posted by No Colors
Sandbar
Member since Sep 2010
10318 posts
Posted on 1/25/16 at 5:07 pm to
quote:

$7 per ton of pulpwood and $20 per ton of "chip and saw"

That is about right for pulpwood. It depends on where you are. SE MS pulpwood going to GP at Leaf River can usually do better than $7. Expect about $8-12 depending on how far of a haul.

If you have to haul to GP at Monticello, then $7-8 seems more in line.

Those CNS prices seem high. A lot of it depends on your definition of CNS. In most markets, 5-7" top is CNS. And 8" top is qualified as "sawtimber" or "small sawtimber" And 10" top is "sawtimber" or "plylog". But in Mississippi, a lot of wood dealers call an 8" top log "large Chip N Saw".

For instance, in South Carolina 6" top material is CNS and 7" top and above is Sawtimber and brings $30 per ton.

I sold some 8" top material last year for $18 that went to Weyco at McComb and another batch for $18 that went to Rex at Brookhaven. So, $20 is an increase over what I was getting last year. I would consider that a good price. (A few years ago it was $14).
This post was edited on 1/25/16 at 5:09 pm
Posted by tenfoe
Member since Jun 2011
6839 posts
Posted on 1/25/16 at 7:36 pm to
Get another bid or two. What's it gonna hurt?

Posted by dcw7g
Member since Dec 2003
1957 posts
Posted on 1/25/16 at 7:45 pm to
Thanks for all the information! I feel better about those prices. They are thinning about 50 acrees of mine, and just did similar for my neighbor. That's how this came up all of a sudden, he got them out for his place and suggested I talk to them. I've got another 100 or so acres we'll get to later that needs a lot more work. One question, I'm not sure what those "top" measurements mean. When this logger explained it to me, a tree would be good for CNS when it was 12-14" diameter at chest height. That's supposed to be the goal for the trees they're leaving.
This post was edited on 1/25/16 at 7:48 pm
Posted by No Colors
Sandbar
Member since Sep 2010
10318 posts
Posted on 1/25/16 at 7:58 pm to
Most of the time it is sorted by its diameter at the "ring knot". This is the first collection of live limbs --usually 2-4 -- coming from essentially one spot up on the tree. This is where the usuable lumber ends. So, your logger will cut the tree off about 1' below the ring knot. It's diameter at this point is its "top size".

This determines what category it falls into from a size standpoint. Medium CNS, sawtimber, etc.

A tree 12-14" diameter at chest height (DBH) isn't Chip N Saw. That's sawtimber. A tree with 14" DBH will have a 16-17" butt, and it's top will usually be 9-11" at a merchantable height of 38-45 feet. This tree will weigh very close to one ton.

That is a perfect tree for a modern chipper canter sawmill (Chip N Saw mill). It's actually on the large size for that market. Typically, at a second thinning, those are the trees you want to leave, not cut. Unless they have a defect or something.

When you do a second thinning, you are hoping to leave 110-140 trees to the acre. This is your terminal crop. When you harvest these at age 30-40 you want as many of them to make ply logs, or grade logs as possible. Even in a bad market, you can expect to get $30-35 per ton for the best logs at the terminal harvest.

10-15 years ago, that price was $40-45. But it may be a while before we see those prices again. In real, inflation adjusted terms, they may never reach those levels.
Posted by I B Freeman
Member since Oct 2009
27843 posts
Posted on 1/25/16 at 8:36 pm to
Ask the buyer up front to give you scale tickets as he hauls it. Best to actually verify the number of loads he hauls too.
Posted by greenfin
Member since Dec 2015
123 posts
Posted on 1/25/16 at 8:38 pm to
Let me ask a question and my apology if it is out of place and cynical.

What is to prevent some truck loads of timber getting rerouted to another mill and the landowner never even knows about it? (and gets completely cut out of the proceeds of the rerouted load)

Does this kind of stuff go on much?
Posted by SonofDye
Jawga
Member since Jan 2015
1709 posts
Posted on 1/25/16 at 9:01 pm to
It happens but most decent business men aren't gonna risk years and jail and losing everything they own over a few loads of wood.
Posted by Hammertime
Will trade dowsing rod for titties
Member since Jan 2012
43030 posts
Posted on 1/25/16 at 9:10 pm to
On two high production jobs, we paid a guy to sit at the gate and count trucks, but we had two and three loggers working. That was at the request of the landowner though.

To answer your question, nothing
Posted by geauxskeet
Member since Oct 2009
526 posts
Posted on 1/25/16 at 10:23 pm to
about normal for what we pay in NW LA and we mostly do first and second thinnings Like others said a lot of variables, including land. If we can cut in winter we will pay more than flatwoods. We probably already have more summer tracts bought than we will be able to get to. As far as rerouted loads, there are some unscrupulous companies out there, but just not worth it. You should get a copy of the loader log with times, the load tickets, and a stumpage report, all will cross reference each other. Every load we bring into the mill has to be tied to a tract and the mills will randomly verify. We have had landowners sit and count loads, hey its their property... Just use someone with a good reputation and get it in writing before they start.
Posted by Spankum
Miss-sippi
Member since Jan 2007
55970 posts
Posted on 1/25/16 at 11:11 pm to
fascinating info in this thread...thanks to everyone who posted...
Posted by dcw7g
Member since Dec 2003
1957 posts
Posted on 1/25/16 at 11:25 pm to
Ditto. Thanks for the info.
Posted by AthensTiger
Athens, GA
Member since Jul 2008
2977 posts
Posted on 1/26/16 at 4:59 am to
Upvotes for N C, hammer and geauxskeet. They know what they are talking about. $7 pine pw seems low southwide but I guess that is the market in S. MS.
Posted by VaBamaMan
North AL
Member since Apr 2013
7649 posts
Posted on 1/26/16 at 5:19 am to
This thread has reminded me I need to talk to my grand father more about his work before his days are through. He was on the service side of paper and lumber mills until he retired only a few years ago. Alzheimer's is stealing his memory away right now bit by bit though.

Most wood and work related stuff is stuck in there though. Ater being in the industry since 1959 or so, it's hard to route out I guess.

Any of you old timers? Remember Soderham's? Might be spelling that wrong. Huge outfit until the 70s/ early 80s.
Posted by Perrydawg
Middle Ga Area
Member since Jan 2014
4769 posts
Posted on 1/26/16 at 6:43 am to
Leaf River should pay you more per load because of the type of product they are making versus brown paper that is being made at GP Monticello. Usually the coated liner board brings a higher price than brown liner board.
Posted by lsufan112001
sportsmans paradise
Member since Oct 2006
10691 posts
Posted on 1/26/16 at 6:46 am to
good job Colors, very informative.
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