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Message
Advice needed in timberland/ forestry management
Posted on 11/8/12 at 1:58 pm
Posted on 11/8/12 at 1:58 pm
I am in the process of negotiating a purchase of some rural timberland. It is a 40acre tract planted in pines 15 years ago. 1st thinning was done last year but only 2/3 was thinned (stopped due to rain). It is typical bottomland soil and decent timber I believe.
I am wondering how much value the remaining 1/3 has if thinned or clear cut after purchase. What could a landowner expect to recieve on a per acre basis?
Also, I have read that the timber will need the next cut at about 21 years. What kind of value does this cutting provide on average per acre?
When will the timber reach max value? 35 years?
I am just looking for some general guidelines and appreciate any help.
TIA
I am wondering how much value the remaining 1/3 has if thinned or clear cut after purchase. What could a landowner expect to recieve on a per acre basis?
Also, I have read that the timber will need the next cut at about 21 years. What kind of value does this cutting provide on average per acre?
When will the timber reach max value? 35 years?
I am just looking for some general guidelines and appreciate any help.
TIA
3
Posted on 11/8/12 at 3:23 pm to nogoodjr
quote:did they clearcut 2/3 of it or thin 2/3 of it? because removing 2/3 of the timber is a little more than thinning. you typically thin 2 or 3 times before you clearcut.
I am in the process of negotiating a purchase of some rural timberland. It is a 40acre tract planted in pines 15 years ago. 1st thinning was done last year but only 2/3 was thinned (stopped due to rain).
the market will dictate when it has reached max value. it used to be at 25-35 years, but that was when saw logs were worth something. the last time i checked, chipping saw was worth just as much as logs.
quote:i could not tell you this without cruising the timber.
What could a landowner expect to recieve on a per acre basis?
Posted on 11/8/12 at 3:41 pm to nogoodjr
Too long, see last line first.
I'm not in the timber business, but five years ago I bought a 40 acre tract of 14yo pulpwood much like you're doing. Mine was un-thinned and the loggers got a little over 1000 tons off the planted 30 acres at $7/ton so I got a little over $7K the first year. I'm still waiting on the next thinning.
Your remaining third (13-14 acres?) would probably get just a few thousand on a first thinning; but not many cutters will get excited about thinning a site that small.
The proceeds from a mid-rotation cut depend on growth, the timber class (pulp and CNS vs small logs and poles) and market prices at the time. I but I was told to expect about 15-30K. Your bottomland should have better growth rates than my place in sandy hills.
Best bet is to get a forester visit the site and help you plan it out.
I'm not in the timber business, but five years ago I bought a 40 acre tract of 14yo pulpwood much like you're doing. Mine was un-thinned and the loggers got a little over 1000 tons off the planted 30 acres at $7/ton so I got a little over $7K the first year. I'm still waiting on the next thinning.
Your remaining third (13-14 acres?) would probably get just a few thousand on a first thinning; but not many cutters will get excited about thinning a site that small.
The proceeds from a mid-rotation cut depend on growth, the timber class (pulp and CNS vs small logs and poles) and market prices at the time. I but I was told to expect about 15-30K. Your bottomland should have better growth rates than my place in sandy hills.
Best bet is to get a forester visit the site and help you plan it out.
Posted on 11/8/12 at 5:21 pm to dat yat
I guess I was unclear. They thinned 2/3 of the 40 acre tract (say 26 acres). It was appropriately thinned not 2/3 of the tract clear cut. The remaining acres are untouched 15 year old pine. I am trying to figure an appropriate value for the land. I was thinking the remaining timber if thinned might bring 3500- 5000. Also considered clear cutting the remaining third to increase cash return and clear some of the land for food plots and to grow some thick bedding area.
Thanks to both who responded. Very helpful.
Thanks to both who responded. Very helpful.
Posted on 11/8/12 at 5:24 pm to nogoodjr
The recommendation to talk to a forester is the best one. They know the markets and harvesting options in the local area. And if you do buy the land, hire a consultant forester to plan the management, to prepare and supervise logging contracts, do some prescribed burning, etc.
Posted on 11/9/12 at 1:32 pm to hawkster
You're gonna have a pretty hard time getting a logger to come out to thin 13 acres. It is more of a PITA than anything to bring all of the equipment and whatnot there. Fuel costs are high. Pulpwood isn't really worth shite($8.50/ton depending on lcoation). They would be losing money.
Was it first thinning? Age? Timber companies clearcut between 17-25yrs now. It is about yield/age. They can thin once or twice in that period, but normally twice.
Only reason to get someone to mess with it is if there are a bunch of poles in there(VERY straight, defect free trees). Those are the high-dollar trees that you want tall.
Was it first thinning? Age? Timber companies clearcut between 17-25yrs now. It is about yield/age. They can thin once or twice in that period, but normally twice.
Only reason to get someone to mess with it is if there are a bunch of poles in there(VERY straight, defect free trees). Those are the high-dollar trees that you want tall.
Posted on 11/9/12 at 3:17 pm to hawkster
quote:completely agree, but it is imperative that you get one that comes recommended. there are a few unscrupulous characters in the forestry game
The recommendation to talk to a forester is the best one.
Posted on 11/9/12 at 4:10 pm to Flair Chops
quote:
there are a few unscrupulous characters in the forestry game
Quite a few. One source for information is the Association of Consulting Foresters
There are some good consultants who are not members, but with an ACF forester, you can be pretty sure that you're hiring a qualified pro who is working for your best interest (which will result in his best interest as well).
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