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Going rate for timbering land

Posted on 1/23/18 at 9:20 pm
Posted by ellishughtiger
70118
Member since Jul 2004
21182 posts
Posted on 1/23/18 at 9:20 pm
90 acres on the north shore that’s overgrown with trees and brush. I’m assuming mainly pine. No one has lived here since 2002 and as we know of has never been timbered. The land is between Stafford and Old Military rd in Covington.
Posted by jimbeam
University of LSU
Member since Oct 2011
75703 posts
Posted on 1/23/18 at 9:21 pm to
Ask on the OB
Posted by Jizzy08
Member since Aug 2008
12438 posts
Posted on 1/23/18 at 9:21 pm to
Tree fiddy
Posted by ksayetiger
Centenary Gents
Member since Jul 2007
70472 posts
Posted on 1/23/18 at 9:24 pm to
You need an estimate from a pro


Stepdad had 250 acres that he wanted to sell. Full of beetles and fungus. Or some crap like that. Guy said he would light it on fire for free.


Buddy of mine had 50ish acres of pine, was driving a new suv with truck nuts the next week.
Posted by TheArrogantCorndog
Highland Rd
Member since Sep 2009
16040 posts
Posted on 1/23/18 at 9:24 pm to
Clear it out
Turn into subdivision
Sell lots
????
Retire
Posted by real turf fan
East Tennessee
Member since Dec 2016
12231 posts
Posted on 1/23/18 at 10:34 pm to
Contact your county extension agent for the name of a professional who will come out, walk the property, and give you an estimate. Also get references for him and talk to them. Some will leave property a mess, others do a responsible job.

Then you may want to figure the income into your tax planning. Currently long term capitol gains apply, make sure the ownership is long enough to avoid short term capitol gains.
Posted by JakeTheTiger
Biloxi, MS
Member since Jul 2005
3154 posts
Posted on 1/24/18 at 4:44 am to
My family has property right by that. Grew up going out there all the time.

I'm fairly certain you can call to get the timber company to come walk the property and give you an estimate.
Posted by tenfoe
Member since Jun 2011
6983 posts
Posted on 1/24/18 at 4:58 am to
St Tammany Parish is a pain in the arse for loggers. Good luck finding one that will do it.
Posted by soccerfüt
Location: A Series of Tubes
Member since May 2013
76202 posts
Posted on 1/24/18 at 5:01 am to
Be prepared to be low-balled.

Doesn’t sound like the area was planted or husbanded so the yield per acre will be low.

Sorry, I used to have a name but he retired and has since passed away.

Probably good value to the land itself. Are you going to sell or develop it?

Good luck, I’ll ask about later today.
Posted by fishfighter
RIP
Member since Apr 2008
40026 posts
Posted on 1/24/18 at 5:02 am to
Pine timber is not bring in much last I hear. Hell, even hard wood is way down. I'm due for a select cut, but not at the prices I was quoted.
Posted by ksayetiger
Centenary Gents
Member since Jul 2007
70472 posts
Posted on 1/24/18 at 5:10 am to
quote:

Clear it out 
Turn into subdivision 
Sell lots 
???? 
Retire



My dad did this with 4 subdivisions in shreveport/bossier

The ?????? = shitloads of time and work. Paid off for him, but it was "more work than he ever imagined" when he began the projects. It was supposed to be a side, fun, adventure. Ended up being his main job for several years.
Posted by LSURoss
Dragon Believer
Member since Dec 2007
16841 posts
Posted on 1/24/18 at 5:11 am to
I'd love to come walk around. I'd take some hardwoods off your hands for milling.
Posted by GREENHEAD22
Member since Nov 2009
21041 posts
Posted on 1/24/18 at 5:16 am to
If its not off a state road good luck. I from OM, gave up on buying land in STT because of cost, taxes, and the absolute nightmare it is to get land cleared/timbered.

And please for the love of God, do not develop it.
This post was edited on 1/24/18 at 6:10 am
Posted by Screaming Viking
Member since Jul 2013
5790 posts
Posted on 1/24/18 at 7:40 am to
regarding the subdivision idea:

it really has to do with the price point you WANT to get for the lots vs what the surrounding area will ALLOW you to get for them.

If you go the inexpensive route, you will undoubtedly have a cheap contractor that will cut corners, disappear for unknown amounts of time, may not pay his bills (leading to liens), etc. You will be forced to stare over his shoulders constantly.

If you are lucky enough to pay a reputable contractor, well then, it can become a much easier/enjoyable experience.

Bottom line - you get what you pay for.
Posted by HarryBalzack
Member since Oct 2012
16369 posts
Posted on 1/24/18 at 8:34 am to
It can range from $800 to $5000 per acre depending on the type of soil and moisture (affects growth rate), condition of timber standing, cost to get land back into production, proximity to market, land's possible use for other purposes, road access, percentage of property that will be unharvestable because of SMZs, the type of trees that can be grown, distance from sale points, etc.. You need to contact a registered forrester for a consult. My family buys and harvests timberland and I can tell you to avoid a traditional real estate agent: their main interest is to jack the price to up their commission. They are usually clueless about all the other factors related to timberland.

Eta: if you get into the higher end of that range and there's not much of a harvestable stand there right now, you may not see much return on your investment for a very long time in terms of harvests.
This post was edited on 1/24/18 at 8:45 am
Posted by TigerPaul
Baton Rouge
Member since Jan 2006
2998 posts
Posted on 1/24/18 at 8:59 am to
There are very few timber companies out there that will cut less than a couple hundred of contiguous acres. The cost of bringing the property machinery and manpower to the area is cost prohibitive for small plots.

Other factors that can greatly increase cost of cutting:
- your neighbors will allow a right of way to the property but it can get tricky
- if you have any natural river, ditch or pond etc, the watershed regulations are a fricking nightmare and expensive
- you are required to replant the property after you cut it. It will only be a couple thousand for 90 acres and can have tax advantages.

All that being said, I use a company called Broadway. They are a small outfit that has been willing to cut our parcels between 75-150 acres. They are however, in Northwest Louisana. You would have to call to see if they will walk it.

They are cutting a 60 acre parcel right now for me at $2,500 per acre. 16 yr growth time Pine.
This post was edited on 1/24/18 at 9:01 am
Posted by HarryBalzack
Member since Oct 2012
16369 posts
Posted on 1/24/18 at 9:22 am to
There are still a few mom-and-pop operations around here that will cut 20 acres, but, as you note, so much of the profit is consumed by the setup costs that you aren't going to get the margins you would on a much larger tract. No one runs a chainsaw on a timber cut anymore, at least not around here. Those Tigercats are something to watch chew through through a stand!

One thing my father-in-law does when he harvests smaller tracts is check out the adjoining tracts. If someone has a 40 acre spot right next door, then he'll approach them about cutting, since that will spread out the cost of the setup and increase the profit for everyone.

Some of those SMZs can really screw you up, though. We cut a 100 acre tract of my mother's four years ago and there were about 15 acres that we simply couldn't cut because they were across a creek with no access. The cost of a bridge or crossing that didn't impeded the flow would have negated the profit. Sucks, but it's better than the old days when they cut willy-nilly and let the runoff shallow out the streams and ponds, killing the fish and creating/expanding flood zones.
Posted by Jim Rockford
Member since May 2011
106119 posts
Posted on 1/24/18 at 9:35 am to
In my neck of the woods (not the northshore) the rule of thumb is $2000/acre for raw land, throw in another thousand if it has merchantable timber. That's if there's no mineral prospects and no development potential.
Posted by Mahootney
Lovin' My German Footprint
Member since Sep 2008
12179 posts
Posted on 1/24/18 at 10:25 am to
quote:

$2000/acre for raw land, throw in another thousand if it has merchantable timber. That's
Same for me.
Posted by Chad504boy
4 posts
Member since Feb 2005
179931 posts
Posted on 1/24/18 at 10:27 am to
quote:

between Stafford and Old Military rd in Covington.

$$$$
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