OUTDOOR CORNER: SELLING TIMBER THE RIGHT WAY

Selling timber can be a rewarding experience for some forest land owners while a traumatic experience for others. Landowners who do a thorough job of planning and marketing are usually satisfied with a timber harvest; those who did not prepare for a timber sale are likely to be dissatisfied. Many people receive a fraction of their timber's true value because they do not know what they have or do not know how to sell it. This article presents guidelines to assist individuals in selling timber from their woodlands.

Define Your Objectives

A successful timber harvest begins with identifying your objectives. This can best be done with a written Forest Management Plan that identifies your objectives, steps to achieving them, and times when they will be conducted. The plan should also identify the type of harvest to be conducted and steps to be taken for reforestation after the harvest.

You need to tell the log buyer exactly what you expect from the timber sale. This is best done through provisions written into a timber sale contract. For example, if one of your objectives is maintaining water quality, a provision in the contract should state that Best Management Practices (BMPs) will be followed during road building, stream crossing, and harvesting. For a list of voluntary BMPs, contact a Missouri Department of Conservation (MDC) forester.

Why Sell Timber

Other than simply for financial gain, timber harvesting is a tool for accomplishing objectives that you may have identified in your forest management plan. Such objectives may include:

- Improving the overall health and vigor of the forest

- Promoting seedling regeneration

- Creating wildlife habitat

- Reducing the density of the forest (if overcrowded)

- Establishing planting areas

- Creating vistas and trails

-Developing certain types of recreational activities

- Salvaging damaged trees

Steps in Selling Timber

When selling timber these steps should be followed:

- Know what you have to sell

- Determine what your timber is worth

- Determine what method you will use to sell your timber

- Determine a method of payment

- Advertise your sale

- Develop a written contract with the buyer

- Supervise and inspect the harvest

- Practice good forestry

Know What You Have to Sell

Settle any boundary disputes with your neighbors before you sell any timber. Clearly mark the trees to be harvested so the logger can easily see them. Mark each tree with a spot of paint about chest high. A second spot of paint should be placed at the ground line.

After selecting the trees to be harvested, estimate the wood volume or the number of products that will be cut by species. Timber volumes are estimated by measuring individual trees. For more details read the University Extension guide "How to Measure Trees and Logs," which is available from the county Extension Service agent.

Determine What Your Timber is Worth

The price paid for standing trees before they are harvested (called stumpage) has no set value. Your timber is worth whatever you and the buyer agree to. Many factors influence the price of standing trees. These include:

- Tree species. Wood from some species is more valuable than wood from other species.

- Tree size. Large trees will have more volume and clear wood than smaller trees.

- Tree quality. Trees with fewer defects (e.g., branch scars, decay, imbedded wire) have higher quality, more valuable wood.

- Volume of sale. Large volume sales will bring a higher per unit price than small volume sales.

- Distance to the mill. The closer a woodlot is to the mill, the lower the hauling costs.

- Site accessibility. The ease with which the forest land can be reached affects costs.

- Logging difficulty. Steepness of terrain and soil moisture conditions affect the equipment that can be used and speed of harvesting.

- Market conditions. Poor markets mean lower timber prices. Buyers often pay more for logs when their inventories are low to ensure continued mill operation.

Determine a Selling Method

Selecting the appropriate selling method for marketing your timber is the key to having a successful timber sale. The two methods commonly used in Missouri are sealed bid and negotiation.

The sealed bid sale is recommended most often for private woodland owners. This process informs potential buyers about the timber sale. These buyers are allowed a length of time (usually 4 to 6 weeks) to inspect the sale and submit bids. Bids are then opened at a specified time and place, and the successful buyer is selected. If no bids meet your minimum requirements, you have the right to refuse all bids.

A negotiated sale involves face-to-face negotiations between the seller and a single buyer.

A negotiated sale, however, may be the best method if:

- You have a small amount of timber or poor quality timber to sell.

- Markets for the species and products for sale are so poor that few buyers would be

interested.

- You want to work with a particular buyer that you know and trust.

- You are marketing certain specialty products.

Advertising Your Sale

There are several steps to follow in preparing a timber sale notice. You must have accurate, reliable information and you need to send it to as many prospective bidders as possible.

An up-to-date Log Buyers List is available from a MDC forester. A timber sale notice should include the basic information that will later become part of the timber sale contract.

Timber Sale Contract

The purpose of a timber sale contract is to protect the interests of buyer and seller and must be signed by both parties. You should meet with the logger or buyer to discuss the items to be included in the contract; this will reduce the possibility of misunderstandings.

Supervise the Timber Harvest

Once timber harvesting begins, visit the area frequently. When you visit the site make sure that logging meets the terms of the contract. Questions that arise should be discussed with the logger. Unless you discover a flagrant violation of the contract, a simple suggestion to the logger in charge of the operation will usually solve the problem. After the harvest is completed and all provisions of the contract have been fulfilled, write a letter releasing the buyer from the contract and return the performance deposit.

Practice Good Forestry

Improper logging practices can have adverse effects on water quality, wildlife and forest regeneration. To ensure that you are satisfied with the end result of the timber harvest, it is important that good forestry practices are applied during and after the logging operation.

Following BMPs and having a reforestation plan are two important considerations for harvesting timber on your property.

Sources of Forestry Advice

Landowners who have little experience in forestry should contract a forester to assist in managing their woodlands. There are private and public foresters available to help you with your management plan.

The Missouri Department of Conservation can help private landowners become good stewards of their forest land by providing technical forestry assistance. A forester can provide a variety of services to help you meet your land management goals. These services are free-of-charge and will be as in-depth as you need, depending on your commitment to the long-term management of your forest lands. A forester can answer your questions over the telephone or may provide on-site assistance. A free packet and video on how to sell your timber are available from a MDC forester and describes the services offered.

-- Joe Garvey is a district forester for the Missouri Department of Conservation.