Green Horizons

To sell or not to sell - that is the question

By Jeremy Wilson | Consulting Forester

Key questions to ask before signing that contract:
Are my trees ready to sell?
How do I market my timber?
Whom should I contact as my forester?
How much is my timber worth?
What should I expect my woods to look like after a sale?

While landowners may have heard that our timber markets are at record high levels, it is still wise to use discretion when marketing timber. Those who enjoy growing and managing timber know that in order to fully maximize timber's potential, management decisions must be viewed long-term. Many decisions are made not for ourselves, but for future generations and for future benefits of our forests. That is why it is wise to not get too excited about selling timber during good markets or too depressed during bad markets. Market value is only one of many factors to consider when making the decision to sell timber. While now is a good time to sell, especially white oak and walnut, it should not be done at the expense of the future health and productivity of our woods. If a landowner is considering a sale, here are a few key questions to ask before signing that contract:

1. Are my trees ready to sell?

This is a question that should be answered by a professional forester who evaluates the landowner's woods. Factors such as soil, timber health, regeneration, stocking level and size, all figure into the equation of whether or not timber is ready to harvest. As a broad generalization, most of our upland sites in Missouri will grow goodtimber up to 20 - 24 inches DBH (diameter at breast height - 4.5 feet above ground). On our best sites, such as on bottom ground and in theriver hills, that diameter will increase to around 30 inches. Most trees reach both physiological and economic maturity by the time they reach the above size classes. If the landowner's best trees are only 16-18 inches DBH on a good site, it is probably not a good idea to sell, even in a good market.

2. How do I market my timber?

There are two basic options that most landowners have for selling timber in Missouri. Currently, the most common option (approach) is to enter into an agreement with a logging company to sell on shares. Generally, this is a 50/50 or 60/40 split between the landowner and the buyer. While there have been numerous sales successfully transacted in this manner by good, reputable buyers, this method lends itself to uncertainty and the possibility of the landowner being taken advantage of by a few dishonest buyers. Most landowners have probably heard more horror stories than success stories. The second option is to use the services of a professional forester. This is the best, from the perspective of the landowner and the long-term, wellbeing of the forest. A good forester will assist through the entire process of a sale. Usually, he/she will paint mark, measure and tally all trees determined to be ready for sale. Once that step is completed, the forester can assist with either bidding out the sale or contracting a good logger. While the sale is ongoing, the forester can monitor progress and act as a facilitator to ensure the process goes smoothly.

3. Whom should I contact as my forester?

Again, the landowner has two basic options. The first is to hire a private consulting forester, who are located throughout the state and offer their services for a fee (contact information can be found at the MCFA website: http//www.missouriforesters.com). Consulting foresters offer a full range of services including: paint marking of trees; value assessment; harvest monitoring; reports for tax savings; etc. The second option is to contact a Missouri Department of Conservation (MDC) forester (see contact article in this issue of GH). MDC foresters are also distributed throughout the state and can assist with a timber sale at no charge. All are well-trained professionals; however, due to work-load time constraints, MDC foresters may be restricted in the timely services they can offer.

4. How much is my timber worth?

The answer is dependent on a number of variables including type, condition, location, etc. The only way to get an accurate estimate of value is to have an appraisal prior to selling. Personally speaking, the sales I administer as a consulting forester, range between a couple hundred to several thousand dollars per acre. The average is around $500-$600 per acre. To arrive at this value, 10-20 trees per acre are usually marked to sell, depending on a number of factors.

5. What should I expect my woods to look like after a sale?

"Beauty is in the eyes of the beholder." Obviously, when a tree is cut that is 60-100 feet tall and weighs several thousand pounds, it will cause some damage when it falls. When you multiply this by the number of trees per acre to be cut, a landowner's woods will look different after a harvest. What should be considered is that trees are a renewable resource and that every time a tree is cut, an opportunity is created for surrounding trees and regeneration to fill that void and perpetuate a new healthy forest. The landowner should attempt to look past the site disturbance and see the new saplings and wildlife habitat that have been created, along with the small trees that have been released to grow, as a result of the harvest. The flush of new growth and diversity created following a harvest is beautiful, because I know that through the harvest, I have helped sustain or create a healthy, vigorous forest.

If landowners are actively managing their woods, they are silviculturalists. And, they must realize that there is no single way to accomplish their management goals and objectives. Forest Management is based on science but its application, is an absolute art. An analogy for woodland owners is that of growing a garden. Like with a garden, the landowner is growing and managing a population of plants to harvest at maturity. However, unlike vegetable gardening, forest management deals in years, not days. Both are similar though in that the results of ones' work are readily visible during the rotation (growth period) and at harvest. As a fellow tree "gardener", I hope that all landowners derive the same satisfaction and enjoyment out of working the woods as I have. Always remember that if assistance is needed, a professional forester is only a phone call/email away.

MU Guides online for your perusal

An MU guide entitled "Basic Elements of a Timber Sale Contract", created with input from MDC, MCFA, MFPA and the Master Loggers, can be found at: http://extension.missouri.edu/p/G5057. This guide, in association with G5051, Selling Timber: What the Landowner Needs to Know (http://extension.missouri.edu/p/G5051); G5056, Managing Your Timber Sale Tax (http://extension.missouri.edu/p/G5056); and G5055, Determining Timber Cost Basis (http://extension.missouri.edu/p/g5055) presents a nice informational packet for forest landowners.