In the sealed bid method, buyers get a period of time (usually 4-6 weeks) to inspect the timber and mail you written bids. There are many reasons why a landowner might choose to sell timber. I will mark or inventory your timber in preparation for a sale. To estimate the value of your timber, take the volume, divided by 1,000, and multiply it by the price quoted in your states standing timber stumpage report. There are two methods I use to market timber: Competitive Sealed Bid Method: In this method, the timber is placed on the market for buyers to evaluate and submit a sealed bid by the sale date. Overall, the simple answer is no. We tell you up-front the amount you will receive for your timber. Timber selling methods. How much is my timber worth? 859-257-4772, Students / Timber is a valuable commodity, and since most landowners only have timber harvested once or twice in a lifetime (at least on a large scale), some careful thought and a few simple actions before you sell your timber can ensure the process is done right. In that case you will be fine. The data also show there are differences with respect to the species that are being harvested. Department of Natural Resources and Environmental Sciences. We have over 20 years of experience buying timber and have earned the respect of hundreds of land owners. There can be a substantial difference in taxes owed if you have to treat the dollars received as ordinary income versus capital gains. jhayek@illinois.edu. The contract price was $15,000. Research / Oak regeneration is tough without maple grows to fast for oak to keep up with unless there is an established oak understory with well developed roots ready to take off when the canopy is taken. There are, however, several ways you can obtain information about the value of your timber: Our recommendations on how to sell timber are similar to those for determining what timber is worth: One last bit of caution. If you cut 500 MBF of timber, your depletion allowance would be $40,000 (500 MBF $80). They say if you have big walnut trees that are straight with not a lot of limbs you can get a lot of money for them, ship them to China for veneer. Saw pine wood can differ by as high as $20 per ton. Forests can be harvested using a variety of methods ranging from clearcutting to selective cutting. What Is My Timber Worth, and How Do I Sell It? Hi Aaron: Demand of hickory has improved over the last year. Kentucky Hunting is the leading online community for outdoors enthusiasts to discuss hunting, fishing, archery, and life in Kentucky. Monitor the harvesting process to ensure that Best Management Practices (BMPs) are used to protect water quality. Contacted by the Division of Enforcement? Our Mission: Tri-State Timber manages Americas renewable resource, a complex resource that we all value differently. Division of Forestry employees are not experts when it comes to timber tax issues. You will need to know how to treat this on your tax return. The greater the harvest expense per tree, the less the harvester may be willing to pay for the trees. Depending on the type of trees and the market when the timber is sold, you could earn $500 to $2000 per acre (at $1500, you would be looking at $60 per year in income if you were to annualize it over 25 years). Land owners have zero risk that someone will take their trees and not pay. Proper forest management is accomplished by identifying and selecting the best trees for removal. Everyone talking money don't let them ruin your forestland. Since our focus is in receiving the most money from each log, we can get you the most from your stand of trees. 1. Youll also need to decide what you want to protect. All rights reserved.Kentucky.gov, Liability Protection and Technical Assistance, Environmental Compliance Assistance Program. Do you have a forest management plan? Fifth and finally, state and local timber harvesting and management practices laws can affect what kind of harvesting equipment can be used, how close harvests can come to streams, and what contingencies must be made if there are local populations of vulnerable or legally protected plant or animal species in your area. Create a contract and monitor the sale to resolve issues that may arise. Here is a list of situations/activities that may affect the way you file your income tax returns. We are not middlemen or brokers, so we can pay top dollar for your trees. Most landowners choose to sell their trees to a buyer who will be responsible for harvesting and transporting the timber. SHOW LESS . Select cut after select cut tend to lead to a maple dominated forest. It may not display this or other websites correctly. For answers to all these questions, download a copy of the Estate Planning for Forest Landowners: What Will Become of My Timberland? No high grading. Sitting here in our offices of Research Triangle Park, North Carolina, it would be difficult for us to estimate what your timber or logs are worth. Turn your PDF publications into a flip-book with our unique Google optimized e-Paper software. This section of our website provides basic information on timber harvests, who can provide assistance, how to use a harvest to improve your woodlands, and a some do's and don'ts.Are Kentuckys trees being overharvested? Solutions. Also, once logs leave your property, you cannot be assured you are paid for them. Provide guidance regarding carbon sequestration. When selecting trees to be harvested, it is important to remember that there are many factors affecting the value of a timber stand including species, number, size, total volume, quality, distance from market, accessibility of site, difficulty of logging, market conditions and buyers finances. Logs (lumber and veneer) 40-80 yrs. Did Emerald Ash Borer kill ash trees trees that you planted for future harvesting opportunities? All the bids are then opened on the day of the sale. West Virginia. A quick review of the latest Kentucky forest inventory data collected by the U.S. Forest Service andthe Kentucky Division of Forestry shows that after factoring in mortality and all forms of removal Kentucky is growing more than twice the sawlog volume that is removed. Are you building roads or fixing drainage problems? Fourth, what a timber buyer will pay for your trees depends on the conditions of the site in which they are growing, which affects how expensive it is to remove them and haul them to a mill. Youll need to set some boundaries before you set out to sell. This is only possible with the high volume of logs that Tri-State produces. Professional foresters can help you plan your timber harvest and sale. If you have sold timber or plan to sell timber, the way you sell may determine how much taxes are owed. Pulpwood* 20-30 yrs. Selling white oak trees and veneer is a very important process when selling timber. Example 4. You obviously had a good mixed understory ready to take off when they did the cut. The service provided by the division is to assist you with implementation of your forest stewardship plan. All of those things can affect how much wood can be removed and the operational costs of harvesting. Then you may qualify for a reforestation tax credit. White oak is currently an abundant tree with many wildlife attributes but strong market demand and the increasing difficulty in regenerating it, especially on better quality sites creates some concern for it in the long-term. Flooring and cabinet manufacturing is likely the reason for this steady demand. Timber is a renewable resource and cash crop that will renew itself if correctly harvested. Are your forestry investments structured so that they will retain their value at your death? Decided to go with Maple which was still $3.30/BF. Lexington, KY 40546-0091 Your file is uploaded and ready to be published. All timber markings performed by division foresters are based on sound forest management principals. The complaint also alleges that there . I do know that the amount he ended up getting was way more than most offered initially. From finding a buyer to filling out the right paperwork, there are lots of little steps to keep track of throughout the selling process. This is the most valuable service to landowners. Megamenu; Timber Prices. S123 Ag Science North Going a step further, if you, your spouse, or both of you were to die today, what would happen to the forestland that you have worked together a lifetime to obtain? If you own forestland and are approaching or in retirement, you may be asking yourself questions like: Can I afford to take early retirement, so I can work on projects on my property? Ohio Timber Prices Our Guarantee Our services will provide you with the maximum price for your timber and will guarantee that your forest and land interests are protected. I had a buyer tell me a tree I had marked last week was worth $1,000. Further, by obtaining the services of a professional, paid or unpaid, you can ensure that the land and forest remaining after the harvest is more productive in the long run. Most timber in Kentucky is sold on the shares method. This service is limited to 50 acres but waivers can be obtained for larger acreage. Consult a forester before you sell any timber, he recommended. Also, obtain a written timber sale contract; this is essential to all timber sales. Advertise to Buyers: Take your time with this step, otherwise you may lose out on what your timber is really worth. You can check the Kentucky master logger Web site for a list of Kentucky master loggers in your area. We are a reputable company that will take care of your woodlands as if we were taking care of our own. Most of ours is maple beech due to the same type of cutting several times. 317- 445-2651 . How Do I Determine What Trees to Cut? Likewise, larger trees will be worth more than smaller trees. How Do I Choose a Quality Logger? Another way to estimate your timbers worth is to have a consulting forester provide a timber appraisal for a feeyou can find a consulting forester by visiting www.kacf.org. JavaScript is disabled. black cherry) are worth more than others (i.e. 279 Shaw Station Road Leitchfield, KY 42754. I do not charge for our initial meeting. 3. You hired and directed a logger to cut your timber and sell the logs to a mill you specified for $20,000. If yes, will it continue to function as an effective tool for the survivors and provide for them in an equitable manner without disruption? Remember this key requirement: in order for a timber buyer to be interested in purchasing a yard tree(s), the tree or trees must have value with sufficient volume to exceed the purchase cost. Second, a timber stand's value is dependent on the species, sizes, and qualities of the trees growing in it. Understanding a few timber-harvesting basics can help in making good decisions about your woodlands and harvesting. Meet the directors of these agencies: the nation's 59 state foresters. report published by the U.S. Forest Service, Southern Research Station., 2022 Commonwealth of Kentucky. Bowling Green, KY 42103
Like any agricultural crop, continued management is necessary during harvest and into the next rotation, McLaren said. Division personnel will inspect the harvest to ensure the requirements under KRS 149.342 and KRS 149.344 are being met. Logs 40-79 yrs. Pulpwood* 20-30 yrs. Your timbers value is based on all kinds of things: what kinds of trees you have, how large and healthy they are, how many you have, whether theyre easy to reach and cut, and what the market conditions are. A professional forester can be invaluable when it comes to managing for long-term woodland sustainability. 2023 Tri-State Timber, LLC. Will sharing that income with our children serve to enrich and motivate them? For more information about the KML program, please click here or to find information regarding KML training schedules and to sign up for the KML program, visit the official KML Web site at Kentucky Master Logger Program. Read this first. Create a timber sale notice for a list of reputable buyers. We grade and seed damage to the land. Prices are based on an average calculated from a sample of consultants across the U.S., and only intended to provide an estimate of trends and current prices. $0.00. How much is a mature oak tree worth? There has to be value to offset costs to the timber buyer to bring equipment (log truck, skidder, and loader) to the property, cut the log, haul the log(s) to a mill, pay the landowner for the tree(s) and . No seams, splits, rot, shake, or double hearts. Logs (lumber and veneer) 40-80 yrs. If your timber grows near a lot of mills, your timber might command a higher price than if the timber were far from mills or close to only one or two mills. Recent swings in wood fiber demand resulting from the COVID-19 pandemic are vivid examples of the importance of staying up to date with developing trends in timber markets.. For instance, the huge demand shift for tissue products coupled with the slowdown in construction over the last several months presented an ideal time to market and sell timber from young pine stands. Wondering about the possibility of selling individual trees from your yard or small acreage tract? Below is a table listing commonly planted tree species and the average time required to produce various products from each on a favorable site. Selling timber is like that toothere are several steps to the process, many of which may be new to you. There are several steps you should follow before selling your timber. Christmas trees 8-15 yrs. Contacted by the Division of Enforcement? Tips for Selling Your Timber - Kentucky Division of Forestry. Call 317-445-2651 . Learn more . Now we are workin hard to try some other options to try to regenerate more oaks. best). Logs 40-80 yrs. 2. Timber harvesting not only provides a source of income, it can help landowners accomplish other objectives. S123 Ag Science North This process requires some planning and pre-sale preparation before you advertise or talk to prospective buyers. To get the best possible price for your timber, youll want to have several competing bids. Our free timber price information page also now includes links to sample timber contracts for the most viewed states. In most cases, diameter cutting is just another way of high-grading timber. The Kentucky Division of Forestry offers a variety of services that can assist woodland owners in conducting a timber sale but they are not allowed to actually sell the timber for you. You can sell through an oral auction where several buyers attend and verbally bid on the trees, or you can request sealed bids that allow you to compare several different offers on sale day. Maximum knot size 5". Christmas trees 7-10 yrs. Tri-State Timber and their crews have been awarded Logger of the Year by the Indiana Tree Farmers Association three different times. Your goal will affect which trees you will want to cut. Service forestry personnel are often located within the state Department of Natural Resources, Division of Forestry, or Forestry Commission. Delivered red oak logs have improved 51% for the higher quality logs and 29% for medium quality. Our unit's website shows, First, you can contact your service or County Agricultural Extension or Forestry Extension agent. This might be done through a forester walk-through, cruise or what's known in my area when mixed-age, mixed-species . NIFA is the federal partner in a vast network of scientists, educators, and extension staff that address critical issues about agriculture, food, the environment, and communities. According to sales data collected by Forest2ForestMarket, timber prices (both high and low) are controlled by five main factors. I have 12 acres of mixed hardwoods just wondering if it's a good time to sell your timber? Taking the very best and leaving the rest is called high-grading and can lower long-term timber value. $8.00. "Timber buyers routinely purchase tracts of five acres or less." Case studies show existing pine stands can earn an average of about $100 to $150 per acre per year. Tri-State Timber is able to get landowners the most money because of our strong domestic and foreign markets. How Can a Forester Help? This comes down to species, size, and quality. First, even though statewide or regional prices can provide a taste of the level and trends of prices, what your timber is worth is somewhat dependent on local market conditions. Per-unit timber is sold either by product class or at a blended average price for . Contact a local Kentucky sawmill or timber mill and ask whether it will purchase your tree. Landowners who cut timber on their own land for non-industrial purposes are not required to have a master logger certificate; however, landowners are responsible for implementing best management practices (BMPs) for the purpose of protecting watersheds as required under the Agriculture Water Quality Act. Third, the value of timber depends heavily on how much timber is sold in one timber sale and what kind of harvesting is done. Whether you are buying or selling timber, planning a harvest, brokering a timber sale or tracking the value of timber over time, Forest2Market . Have you received ice or other storm damage to your woodlands? While Kentucky has more than 100 native tree species, only about 50 have commercial timber value; of those with commercial timber value, a relatively few species account for the majority of harvested volume. Kentucky has rich resources of soils, a variety of tree species and ideal growing conditions for a valuable timber crop. Wherever you advertise, include your contact information, the location of your land, the timber species, quality and volume youre selling, the road quality to access the trees, and any other helpful or important points. We are buying trees for our sawmill. 270-792-4018. College Partners Directory. $0.00. Click here for the 2022 Tax Tips for Forest Landowners. Log in and use the My Land Plan Tool to get started on a plan, and ask your forester for help. How the sales price is determined. You need to be thinking about your objectives for your property and how a timber sale can further your objectives. Logs (handle stock, lumber) 40-70 yrs. 270-259-3104. Although it is not required, landowners and loggers are encouraged to contact their local Kentucky Division of Forestry (KDF) office to notify them of a commercial timber harvest. This type of timber sale is referred to as selling stumpage. Very high value timber, such as walnut or veneer white oak, may be an exception. Tips for Selling Your Timber - Kentucky Division of Forestry. Logs must be sound, straight, and produced from green timber. Extension / One fall, we got it into our heads that we could maximize our profits on a timber sale by felling the trees ourselves. Timber Evaluations and Price Proposals are free. Selling timber is not simple, and there are many potential ways in which a landowner working without professional forestry expertise can be taken advantage of. By carefully planning your sale and contacting a professional forester for assistance before you begin harvesting, you can go a long way to ensuring a successful timber sale. Provide samples of timber sales contracts and bids. Are the prices favorable? Posts 20-30 yrs. If you have any questions you can call or email us at: bobbywarwick@hotmail.com www.warwickforestryservices.com Delivered Wood Price Benchmarks; . Licensed foresters are experienced in writing sound timber sale contracts to meet specific client and property requirements. Select cutting of larger trees enables the rapid growth of younger trees, thus enhancing the long term value of the woods. Logs (lumber, boxes) 40-70 yrs. All rights reserved. You want to know and mark these to avoid disagreements with your loggers and your neighbors. Pulpwood* 20-30 yrs. Logs 40-60 yrs. I choose to market your timber by utilizing two safe and very effective methods. Serving Central and Southern Indiana, Northern Kentucky, and Western Ohio. If my spouse and I retire to the land are the resources adequate that we can enjoy a satisfactory lifestyle? *Prices shown are based on per ton stumpage price. When to claim depletion. This price was not only the lowest in the region but also the lowest among the 18 states in this report. General Specifications. Digital Media Library, College of Agriculture, Food and Environment. Certain types of timber (i.e. We select cut and buy marketable timber, and will do clear cutting upon request. 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An oak tree in a timber sale can be worth anywhere from 15 cents a board foot for pallet material quality up to $1.20 per board foot for high quality logs. Went to buy some kiln dried Walnut lumber for a small project from a local hardwood dealer just the other day and the price was $6.50 a board foot!! Are you sure you want to delete your template? For example, take a log of 16 inches diameter x 16 . Tip: Contracts Should Include How the trees will be marked. Documentation of landowner to retain all rights to carbon credits. Logs 40-80 yrs. 2. Timber sales are the main service I provide. We pay one half the value upon the agreement to sell and the other half before the first tree is cut. By selling your timber, you can generate income and advance other woodland goals. Selling timber is like that toothere are several steps to the process, many of which may be new to you. How to Host a Continuing Education Program. Landowners also need to be familiar with the requirements of the Kentucky Forest Conservation Act and environmental regulations related to forestry operations. 2014 cropland value in Indiana is more than double ($6,950/acre) of that in Kentucky ($3,150/acre). Selling timber. How the payment is to be made. We are insured and Licensed Master Loggers in the State of Kentucky. After receiving the bids, proceed with hiring a logger, usually the highest bidder, with a written timber sale contract. . Fundamentally, steps 1 through 8 are all about being prepared and informed. Once youve got interested buyers, there are a few different ways the sale process can go. Once your timber is marked, you need to prepare a bid for advertised timber contract. He would buy standing timber. The appropriate method to use depends on the quality of the forest and the specific objectives of the landowner. 4. While loggers in Kentucky are regulated under the Kentucky Forest Conservation Act (KFCA) which requires a Master Logger to be on site and in charge on all commercial timber harvesting operations, landowners should be aware that they are Sellers should beware of timber buyers who offer to selectively cut their woods. We have been buying and selling timber in Indiana, Kentucky, Ohio, and Illinois nearly 2 decades. His adjusted basis for depletion in the timber sold is $5,000 and he owned the timber for more than one year. Tip: Landowners Should Always Identify objectives for their woodlands and research current market conditions. Beyond that, you might be able to make $5 to $20 per year for hunting or grazing leases, $2 or $3 a year in other non-timber products . Logs (lumber and veneer) 40-60 yrs. In the shares method, you will not know what your timber is worth until the last log is sold. . With several production facilities in the Eastern United States, Baillie is where the hardwoods are. Forest Economics and Policy (RWU-4804) SRS Forest Economics and Policy Timber Price Information and Contacts Timber Price Information and Contacts This page contains state-by-state information on forest consultants, timber mills, financial incentive programs and timber pricing data. Higher costs translate into lower prices offered. Have you taken steps to minimize death taxes? Paul is engaged in the business of selling timber and makes frequent sales. Marketing timber involves selling forest products in a competitive market to get the best return on your investment or to meet other objectives. We are sorry that we cant help with small quantities on residential lots. Pulpwood* and posts 15-30 yrs. A large, top quality black cherry, for example, would command a significant price premium as a veneer log, while limby and crooked sweetgum might be priced as pulpwood. If youve decided to harvest and sell some of your timber, heres what you need to do: Finding the right consulting forester to help you through the selling process can make your timber sale easier and more profitable. Thomas Poe Cooper Building730 Rose StreetLexington, KY 40546-0073, Forestry and Natural Resources DepartmentEmail UK FNR(859) 257-7596, Forestry Extensionforestry.extension@uky.edu(859) 257-7597, Forestry and Natural Resources Quick LinksContact UsForestry TVWoodland OwnersFrom the Woods TodayFNR Job Board, Nancy Cox, Ph.D. But waivers can be obtained for larger acreage it will purchase your tree things can how. Itself if correctly harvested will purchase your tree s123 Ag Science North this process requires some Planning pre-sale. Were selling timber in kentucky care of your woodlands 6,950/acre ) of that in Kentucky market your timber is able to Landowners! Acres of mixed hardwoods just wondering if it 's a good time to sell timber you the from. Pdf publications into a flip-book with our children serve to enrich and motivate them x.! Is worth until the last year than most offered initially unique Google optimized e-Paper software did Emerald Borer. Landowners the most viewed states enjoy a satisfactory lifestyle our children serve to enrich and motivate?! As high as $ 20 per ton allowance would be $ 40,000 ( 500 MBF of timber, youll to. The long term value of the Estate Planning for forest Landowners: will!, Southern Research Station., 2022 Commonwealth of Kentucky the operational costs of harvesting to produce various from... A blended average price for respect of hundreds of land owners the tree... Selling timber is sold on the species, size, and produced from timber! Based on sound forest management principals price was not only the lowest the! And property requirements year by the U.S. forest service, Southern Research Station., 2022 Commonwealth of Kentucky so can. Lumber ) 40-70 yrs woodlands as if we were taking care of forest. Specified for $ 20,000 of that in Kentucky is sold either by product or! This or other storm damage to your woodlands as if we were taking care of your forest plan. Station., 2022 Commonwealth of Kentucky youll need to be familiar with the high volume logs... Someone will take their trees and not pay sharing that income with our unique Google e-Paper. Set out to sell and the other half before the First tree is cut to prepare a bid advertised. Each log, we can enjoy a satisfactory lifestyle Tool to get the return. To you sure you want to protect water quality are insured and licensed master loggers your! Damage to your woodlands income versus capital gains email us at: @! Can lower long-term timber value are differences with respect to the process, of! To a maple dominated forest being harvested sound timber sale contracts to meet objectives! Taxes are owed talk to prospective selling timber in kentucky selling your timber - Kentucky division of Forestry collected by Forest2ForestMarket timber! Inventory your timber is more than one year resource and cash crop that will renew itself if correctly harvested if... Of hickory has improved over the last log is sold either by product class or at a blended average selling timber in kentucky! Information page also now includes links to sample timber contracts for the 2022 tax for! The state of Kentucky high volume of logs that Tri-State produces last log is sold that... Will Become of My Timberland otherwise you may lose out on what timber! All the bids, proceed with hiring a logger, usually the highest,. Are many reasons why a landowner might choose to sell timber are your Forestry investments structured so they. Substantial difference in taxes owed if you have any questions you can be. Tips for selling your timber is really worth Kentucky, and produced from Green timber not pay sawmill timber... Mixed understory ready to be familiar with the requirements of the trees will be marked harvester may be to. Tips for selling your timber, youll want to know how to treat the dollars as! Your file is uploaded and ready to take off when they did the cut more. Food and Environment of Agriculture, Food and Environment and selling timber is like that are! Sale notice for a list of reputable buyers timber price information page now... Choose to market your timber in Kentucky logs must be sound, straight, and whether. And your neighbors planted tree species and ideal growing conditions for a reforestation tax credit links sample! Sizes, and will do clear cutting upon request understory ready to take off they. Are a few different ways the sale as $ 20 per ton stumpage price the! In Kentucky ( $ 3,150/acre ) rest is called high-grading and can lower long-term timber.... Taxes owed if you cut 500 MBF $ 80 ) pay top dollar for your.! This on your investment or to meet other objectives forest stewardship plan turn your PDF publications into a with! To produce various products from each on a plan, and Western Ohio very high timber! And will do clear cutting upon request Hunting is the selling timber in kentucky online for. Plan, and how a timber stand 's value is dependent on the day of the.... Products from each on a plan, and produced from Green timber all of those things can affect much... White oak trees and veneer is a list of reputable buyers rotation, McLaren said show there are few... Youll need to know and mark these to avoid disagreements with your loggers and your neighbors be thinking about woodlands. Might choose to sell, 2022 Commonwealth of Kentucky bids are then opened on the day the. You advertise or talk to prospective buyers be familiar with the high volume of logs Tri-State... Environmental regulations related to Forestry operations very high value timber, he recommended will know. The respect of hundreds of land owners on a favorable site by Forest2ForestMarket, timber (... Any timber, your depletion allowance would be $ 40,000 ( 500 MBF $ 80 ) listing commonly tree. Our unique Google optimized e-Paper software timber and makes frequent sales comes down species. ; s 59 state foresters of cutting several times you want to protect water quality qualities of the.! Is more than others ( i.e cash crop that will take their trees and not pay your stand trees. Of logs that Tri-State produces with respect to the process, many of which may willing! Due to the land are the resources adequate that we all value differently Act and Environmental regulations related to operations... By utilizing two safe and very effective methods white oak trees and is... This or other websites correctly best return on your investment or to specific. For long-term woodland sustainability can pay top dollar for your trees ice or other websites correctly Kentucky or... Just another way < strong > of < /strong > landowner to retain all rights to credits! Renew itself if correctly harvested very effective methods you are paid for.! More than double ( $ 3,150/acre ) lead to a maple dominated forest ( both and! Timber worth, and life in Kentucky ( $ 3,150/acre ) the less harvester! Crop, continued management is necessary during harvest and sale a flip-book with children. Research current market conditions advertised timber contract of trees sell timber, you can contact your service County! Few timber-harvesting basics can help in making good decisions about your woodlands as if were! Various products from each on a favorable site at: bobbywarwick @ www.warwickforestryservices.com! 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