The harvest of timber is something
that most landowners only do once or twice in a lifetime. Whether or not
the experience is a positive one will depend upon whether or not you use
professional forestry assistance. Below are some common questions and
misconceptions of forest landowners:
Leaving my
woodlands alone is the best for wildlife and tree growth!
FALSE! Not necessarily!
Leaving your
woodlands alone may not produce optimal wildlife habitat. Most forms
of wildlife require varied types and ages of vegetation for food
and shelter. In an unmanaged forest, overcrowding often retards
tree growth, makes forests more susceptible to disease and insect
damage, and reduces the diversity of wildlife habitats. Selective
thinning provides more growing space and nutrients for desirable
trees, which, in turn, reduces the stress and improves forest health.
Other management techniques can be used to create needed wildlife
habitat diversity. Why harvest forest products? The planting and
harvest of trees is not only a way to receive some income from your
property, but is also a major opportunity to improve wildlife habitat,
access for recreation, and other forest benefits. However, this
requires careful planning and objectives.
Managing my
woodlands takes a lot of money and time! FALSE!
Improving your woodlands
can actually increase your income while maintaining the environmental
integrity of the landscape. Careful selection of your firewood or
timber can increase the value of your woodland for wildlife, timber
resources, recreation and other forest benefits, while providing
income. These harvest assets can be used to build roads, improve
wildlife habitats, or implement other practices that would not be
otherwise affordable. Improving your woodlands does not need to
take much of your time either. State foresters and wildlife biologists,
as well as private consulting foresters, are available to help you
develop and implement a forest stewardship plan. These professionals
can assist you in enlisting the services of reputable logging operators
to implement the plan. In this way, you can achieve your financial
goals and enhance your woodlands.
Careful management
is a good idea, but my woodlands are too small! FALSE!
Woodland areas
of any size can be managed to improve wildlife habitat and tree
growth. Through careful management, even small parcels of land can
be maintained as scenic areas and also provide favorable conditions
for wildlife. In many cases, owners of adjacent property can work
together to improve management and reach shared goals.
Why
Harvest Forest Products?
Natural events
such as damage by gypsy moth, storm damage, and other factors provide
an opportunity to harvest forest products and receive some revenue that
would otherwise be lost.
The thinning of
a forest that is crowded will allow the remaining trees to grow faster
in diameter.
Some forest types
such Virginia pine are short-lived and will decline if not harvested.
Harvests can create
needed types of wildlife habitat on the property.
Harvesting can
provide income for special life needs such as a child's education, retirement,
start of a business or other needs.
Common Timber
Sale Terms
Board Foot
- Lumber cut from logs that is 12" x 12" x 1".
Thousand Board
Feet (MBF) - The unit of volume used in timber sales and inventory
work.
DBH - Diameter
at breast height which is 4.5 feet off the ground.
Stump diameter
- This is the diameter at about 6 inches from the ground. A stump
diameter of 14 inches would be equal to about 12 inches DBH.
Stumpage Value
- Value of the timber uncut "on the stump." Price the landowner
receives.
Highgrading
- A poor forestry practice where the best trees are removed and the
poorer quality ones are left.
Diameter
limit cutting - A poor forestry practice where all trees above
a certain diameter are cut and the smaller ones are left. The
rationale is that the smaller trees will make up the new forest,
but these trees are usually the same age as the ones that were
cut and grow poorly after harvest. Trees to harvest should be
selected on their individual characteristics. For more information
link to "Just Say NO to
Highgrading" which appeared in the Fall, 1998 issue of
Branching Out: Maryland's Forest Stewardship Educator.
Common concerns
about timber harvesting expressed by landowners
It is unsightly!
This can be minimized by having a sales contract that requires
tree tops be cut close to the ground and using firewood or pulp
markets to clean up slash left from the harvest of larger trees.
The forest
is damaged forever! Using a licensed consultant forester to administer
the sale and market the trees will usually take care of this problem.
Avoid harvesting methods such as diameter-limit cutting that cut trees
based on diameter rather than their individual attributes.
The trees left
will be damaged! Again, a licensed consultant forester will work with
the logging contractor to deal with this problem.
The roads will
be ruined! During the harvest process roads and log landings
can be rutted and muddy, but most consultant foresters will require
a performance bond from the logging contractor that is returned
only after all the road are properly graded and seeded. Forestry
Best Management Practices apply as well that all logging contractors
must follow.
Forest Harvest
Perception
Many landowners
are sold a vision by some buyers where just a few trees are removed.
Unfortunately,
poor harvesting choices result in a forest that loses wildlife and other
forest values for generations. The use of diameter-limit cutting where
trees over a certain diameter are cut fails to select trees on their
individual attributes.
Principles for
Marketing Forest Products
Harvesting should
be part of a written forest stewardship plan.
A successful timber
harvest should include three people: the landowner, the professional
forester, and the logger.
Get payment in
full before any trees are cut.
Get all agreements
in writing. No handshakes!
Methods of Marketing
Forest Products
Direct Marketing
- Selling directly to a logging contractor.
Indirect Marketing
- A consultant forester acts as your agent in the sale. Most landowners
lack the knowledge or experience to market their timber, administer
the sale, deal with loggers, and handle the many permit issues.
Types of Foresters
Maryland is one of
the few states in this region that requires licensing to be considered
a Maryland Professional Forester. The forester has a number and stamp.
To be licensed the forester must have a 4-year forestry degree, experience,
and acquire 8 continuing education credits every two years.
Public Forester
- County-based forester who works for the state. Develops forest stewardship
plans but will not handle commercial timber sales. Use the link to contact the Maryland Department of Natural Resources Forest Service office in your county.
Consultant
Forester - Independent forester hired by you, who works
as your agent representing your interests. Works on commission
or fee basis. Offers a broad range of services related to marketing
timber, developing forest stewardship plans, and other services.
Since this person represents your interests and is paid on commission,
it is important that you feel comfortable with their decisions
on your behalf. Interview a few consultants (click
here for examples) or get references from other forest landowners
before you make a decision.
Industrial
Forester - Forester who works for a particular mill and
represents the interests of that mill.
Benefits
of Using A Professional Consultant Forester
Better Job
Environmentally - A contract is used to assure protection of the
resources. The forester checks regularly on the harvesting to protect
your interests.
Individual
Trees are Marked - Trees in the sale area are marked and tallied
by type, size and product. This is the basis of the bid notice sent
to potential buyers in the area. You know what will be cut before the
harvest and you can better visualize what it will look like.
More Income
- Stumpage is sold on a competitive bid process. Sealed bids are solicited
by interested buyers and you and the consultant forester can select
the one you want. The offers for the same trees will vary widely depending
on the timber markets in the area and the needs of different buyers.
Sale Methods
- The method of sale can affect how the forest is harvested. Remember
get all agreements in writing, no handshakes! Most timber sale contracts
allow the buyer 1-2 years to harvest the timber. There are tax implications
depending on the type of sale. The landowner should check with a timber
tax accountant or the forester regarding this issue.
Lump Sum Sale
- The logger and owner agree on price for total sale, based on marked
timber volume and value. The owner gets money before timber is cut.
In many cases, a portion of the agreed upon price is paid at the time
of the contract signing, and the remainder at the time of the start
of the harvest.
Sell by Unit -
Buyer offers a price per unit - so much per thousand board feet - measured
at the landing or mill. This requires a trust that the logger will take
all wood to the mill.
Percentage Basis
- Provides seller with 30 - 60% of the profit from sale to the mill.
Least desirable.
The Timber Sale
Process
Develop a forest
stewardship plan
From landowner
references and personal interviews, select a consultant forester who
represents your interests.
Get a contract
or a letter of agreement from the consultant. A written agreement will
help avoid misunderstandings and make clear what is expected. Each agreement
should fit the landowner's needs and be mutually acceptable. Some of
the things to consider in your contract with a consulting forester:
Location
and description of the property
Description
of services to be performed
Time frame
in which services are to be performed
Form in which
the information, advice and reports will be provided
Ownership
of data such as timber inventory, survey notes, computations and
analyses
Responsibility
for determining and marking property or project boundaries
Assurances
that the forester (or the company) will meet all legal requirements
for the work to be performed and that workmen's compensation, liability
protection, and other labor and safety laws are met for persons
working on your property
Contract
performance and quality standards, including penalties for failure
to meet contract specifications. In the case of timber harvests,
include the frequency of inspections or other supervisory duties
Amount you
agree to pay (typically agree to 10-15% commission on gross timber
revenues) and the schedule for payment.
Consultant will
mark and tally trees to be harvested.
Solicit bids
from potential buyers.
Select logger,
develop contract, and preferably get money before harvesting takes place.
If you are planning to sell timber, you will need a timber sale contract
between yourself and the timber buyer. View
a sample timber contract. The contract should cover the terms of
the harvest, including:
Location
of the timber being sold
Time period
in which cutting can be done and when the contract expires
Species and
volume of timber being sold
Purchase
price and payment procedures
Utilization
requirements such as stump height, log lengths, cutting to a minimum
top diameter
How cut products
will be measured if the sale is not based on a lump sum payment
Damages to
be paid for improper cutting or damage to property
Performance
bonds or escrow accounts, if any
Type or size
of equipment to be used and how cut products will be moved out of
the woods
Location
of logging roads, skid trails and log landing areas
Erosion control
precautions or site restoration requirements Riparian area or stream
crossing concerns
Weather
related limitations
Disposal
of solid waste, trash, waste oil or other debris generated by the
logger
Disposal
or reduction of logging slash (limbs and tree tops)
Compliance
with cutting notice laws or other logging ordinances
Supervision
of the sale, including authority to halt logging if contract provisions
are being violated
Liability
and Worker's Compensation insurance
Final inspection
to assure contract compliance
Other issues
of concern to the buyer or seller
Consultant administers
sale by working with logger.
Final site inspection
and return of performance deposit
Common Mistakes
Made By Landowners!
Harvesting timber
too small or waiting too long. By having a forest stewardship plan prior
to any harvesting decision, you can know what the opportunities are and
the impact of those decisions.
What to
Avoid!
Diameter Limit
Cutting! This means trees are cut based on size, not on their ability
to grow after harvesting. This type of harvest will usually limit the
health and productivity of the next forest.
Selling Timber
with NO Contract! If you have no contract, your interests are not
protected.
Being Paid
as the Timber is Cut! Use lump-sum sales where you get all your
money up front, and an acceptable contract, before any timber is cut.
Erosion and
Sediment Control Problems! The landowner has final responsibility.
Violations can result in stiff fines.
Maryland has
a Stumpage Price Report that provides information on prices paid to landowners
for standing trees (stumpage). The first report was for October - December
1999, the second for January - April 2000. The project calls for a report
every 4 months until December 2002.
The prices contained
in this publication are collected from consulting and state agency foresters
in four price-reporting areas throughout Maryland and Delaware, and are
intended to serve ONLY AS A GUIDE in the marketing of standing timber.
The actual value of a specific stand of timber may be influenced by the
following factors.
Timber quality
Volume to be cut
Logging terrain
Market demand
Distance to mill
Season of the
year
Size of average
tree
Type of logging
equipment
Landowner requirements
Landowner’s knowledge
of market
Size of harvest
area
Where to
get help?
The sale of timber
products should include three people: 1) the forest landowner selling
the timber; 2) a licensed professional forester to assist the landowner
in determining which trees should be harvested and working with the logger;
and 3) the logger who carries out the actual harvesting of the trees.
A list of
licensed professional foresters is available on the web or by
calling your state forester or Maryland Department of Natural Resources
Forest Service at 410-260-8531. Those in Delaware can call the Delaware
Forest Service at 302-739-4811. Maryland Cooperative Extension also
provides educational publications
and workshops
that can be of great value to forest landowners considering a timber
harvest. For more information write or call the Wye Research and
Education Center, P.O. Box 169, Queenstown, MD 21658 / 410-827-8056
or Western Maryland Research and Education Center, 18330 Keedysville
Road, Keedysville, MD 21756 / 301-432-2767.
Penn State Cooperative
Extension also provides a stumpage
price report that is available online and would be of value to counties
that border Pennsylvania.
Written by: Jonathan
Kays, Regional Extension Specialist-Natural Resources
Maryland Cooperative Extension
18330 Keedysville Rd
Keedysville, MD 21756
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