AgEBB-MU CAFNR Extension

Green Horizons

Volume 20, Number 3
September 2016

Forestry Industry

The Bid Box

By HANK STELZER | MU Forestry Extension

In this installment of The Bid Box, we highlight a timber sale out at the University of Missouri's Dairy Farm near the I-70 Midway exit, Missouri.

Boone County

77 forested acres
162,100 bd. ft. (Doyle Scale)
96,200 white oak
16,700 black walnut
15,600 northern red oak
9,500 black oak
8,500 other red oak
7,000 hickory
8,500 mixed species (ash, sycamore, cottonwood, basswood, cherry, maple)

Forester valued the sale at $75,000
NINE bids received
$78,600
$63,000
$62,370
$51,000
$50,900
$48,625
$46,251
$45,200
$34,750

Landowner took the high bid. It is interesting to note that the high bidder was the farthest from the sale!
Return: $1,021 per acre

Harvesting Tip: Communication is the key when selling timber. When soliciting bids for your timber, make sure you work with your forester to include your expectations in the bid notice. This tells the logger you care about your land and you will be an active seller. It also helps ensure successful execution of a timber sale contract between you and the logger. In this case, the Director of Natural Resources for MU's outlying farms stipulated these expectations:

1. Directional felling must be used to protect the trees that are to be released to grow.
2. The buyer is expected to follow and apply Best Management Practices for Harvesting.
3. Tree tops are not to be left in any of the intermittent streams within the harvest area.
4. Log decks and landings should be cleared of any tops, limbs, and butt-offs when the harvest is complete.
5. Log trucks must use the edges of the pastures when transporting logs from the log deck/landing area.
6. In order to access county roads, the buyer may have to install a temporary culvert where the log trail meets the county road.
7. The buyer may have to install waterbars on steep ground.
8. The buyer is expected to clean up all trash created from the harvest activity.
9. The buyer is expected to remove all tops and logging debris from the field pastures when harvest is complete.

It is okay to list several expectations. But, keep in mind that some expectations may affect the logger's bid.

The above items, as well as others, for you to consider in a timber sale contract can be found in the MU Forestry Extension Guide, G5057 - Basic Elements of a Timber Sale Contract. And, if you have never sold timber before, check out MU Guide, G5051 - Selling Timber: What the Landowner Needs to Know. Lastly, Guide, G5056 - Managing Your Timber Sale Tax, will show you a professional forester and your accountant can reduce your tax liability. Until next time, stay safe and enjoy your woodland!