Stumpage Price Report

Maryland and Delaware

Stumpage Price Report

Report 2002-No. 2 May-August 2002

The stumpage price report is a cooperative effort among Maryland Cooperative Extension, Maryland Department of Agriculture, Maryland Department of Natural Resources-Forest Service, Delaware Forest Service, Maryland Tree Farmers and forest landowners. It is consolidated and distributed every four months by the University of Maryland, Wye Research and Education Center, P.O. Box 169, Queenstown, MD 21658. Their phone number is 410-827-8056.

The prices contained in this publication are collected from consulting and state agency foresters in four price-reporting areas throughout Maryland and Delaware. Reporting is voluntary, so this is not a complete record of sale activity in Maryland and Delaware. Prices are intended to serve ONLY AS A GUIDE for the marketing of standing timber. The actual value of a specific stand of timber may be influenced by the following factors:

1. Timber quality	10. Type of logging equipment
2. Volume to be cut per acre	11. Percentage of timber species in the area
3. Logging terrain	12. End product
4. Market demand	13. Landowner requirements
5. Distance to market	14. Landowner knowledge of market value
6. Season of year	15. Property taxes
7. Distance to public roads	16. Performance bond requirements
8. Labor costs	17. Insurance costs
9. Size of the average tree to be cut	18. Size of harvest

What is stumpage?

Stumpage refers to the price that a landowner receives for standing trees.

Why four different regions?

The four regions described in this report reflect unique forest product markets in Maryland and Delaware. For example, the quality and quantity of black cherry and oaks produced in the Western Region usually surpasses that of the other three regions. Loblolly pine is a timber species that is found mostly on the Eastern Shore and Southern Region. It is important to note that counties may reflect the trends of the regions they border. Regions include: Eastern Shore (ES) = Kent-Worchester Counties, MD and Sussex-Kent Counties, DE; Southern (S) = Anne Arundel/Prince George's – St. Mary's Counties, MD; Central (C) = Cecil-Carroll/Montgomery Counties, MD and New Castle County, DE; Western (W) = Frederick-Garrett Counties, MD.

What are the different products mentioned in the report?

The majority of the prices reported are for sawtimber and veneer products. Sawtimber trees are typically above 12 inches in diameter at breast height (DBH; 4.5 feet from the ground) and have at least one 8-foot log that can be harvested. Sawtimber trees are used for boards, railroad ties, and other products. Veneer quality timber is typically of larger diameter, comes from the bottom log of the tree, and has no branches or imperfections. Poles are used for telephone poles, piling, and related products. Fuelwood refers to timber sold for firewood. Fuelwood includes poorer quality trees, dead trees, and tree tops. Pulpwood trees are used to produce paper products. Biomass includes trees that are burned for power generation.

What do the prices mean?

Dramatic fluctuations are common in timber markets and past reports may not accurately reflect the latest market conditions. Many factors can influence the price of timber on a given tract of land (see list on first page). For example, the range of prices for one species may vary from $50-$350 per thousand board feet. This wide range might exist because the lower value reflects poor-quality timber; whereas, the higher value reflects high-quality timber that could be used for veneer products.

How are the prices reported?

The stumpage prices for each species and/or product category include three pieces of information: 1) the number of reported sales; 2) the average of all reported values; and 3) the range of values from lowest to highest. Poles, fuelwood, pulpwood, and biomass are special products that are sold by the linear foot, cord, or the ton. All other prices are reported as the dollars per thousand board feet of timber ($/MBF). One board foot is 12 inches x 12 inches x 1 inch. The number of board feet in each tree depends on its diameter, number of logs, and defects. A thousand board feet of timber may be made up of a few large trees or many small trees. The scale used to determine board feet in standing trees is the International ¼ inch scale, which provides the most accurate measure of board feet. Stumpage prices reported in a Doyle log scale, another common rule, tend to underestimate the volume of timber and must be adjusted to be compatible with the International ¼ inch scale.

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 who assists the landowner with determining which trees should be harvested and helps the landowner work with the logger; and 3) the logger who carries out the actual harvesting of the trees.

Maryland - Delaware Stumpage Price Survey Results

May-August 2002

The table below summarizes reported prices paid for standing timber during May-August 2002. Prices for sawtimber are in $/MBF (1000 board feet) International ¼ inch scale. Pulpwood and fuelwood are reported in $/cord or $/100 lbs, biomass in $/ton. The Range shows the high and low prices reported. Reporting is voluntary and this is not a complete record of sale activity in Maryland and Delaware.

Total responses: 20 Total sales: 25 Total sales in acres: >1623

	Eastern Shore			Southern			Central			Western
Species/Product	#	Avg.	Range	#	Avg.	Range	#	Avg.	Range	#	Avg.	Range
Red Oak	0	--	--	2	340	280-400	0	--	--	1	385	385
White Oak	0	--	--	1	100	100	0	--	--	0	--	--
Mixed Oaks	1	160	160	1	200	200	0	--	--	1	200	200
Oak/mixed Hdwd (high quality)	0	--	--	0	--	--	0	--	--	1	364	364
Ash	0	--	--	0	--	--	0	--	--	0	--	--
Cherry	0	--	--	0	--	--	0	--	--	1	385	385
Sugar maple	0	--	--	0	--	--	0	--	--	0	--	--
Tulip poplar	1	160	160	3	241	200-264	0	--	--	0	--	--
Mixed Hdwd* (low quality)	2	55	50-60	4	73	40-100	0	--	--	0	--	--
Other Hdwd (Oak/mixed Hdwd medium quality)	--	--	--	2	191	159-223	1	263	263	--	--	--
Loblolly pine	8	208	150-325	5	131	110-163	0	--	--	0	--	--
Virginia Pine	0	--	--	2	103	80-125	0	--	--	0	--	--
White Pine	0	--	--	0	--	--	1	70	70	0	--	--
Other sfwd	0	--	--	0	--	--	0	--	--	0	--	--
Poles, hdwd ($/linear ft)	0	--	--	0	--	--	0	--	--	0	--	--
Poles, sfwd ($/linear ft)	0	--	--	0	--	--	0	--	--	0	--	--
Fuelwood ($/cord)	0	--	--	0	--	--	0	--	--	0	--	--
Pulpwood ($/cord)	4	6.75	6.00-7.00	1	18.00	18.00	1	5.00	5.00	1	5.00	5.00
Biomass ($/ton)	0	--	--	0	--	--	0	--	--	0	--	--
Values in $/thousand board feet ($/MBF) *Mixed low quality hardwood (pallet type materials). On some sales, a single price may be paid.

Summary of Sale Characteristics

May-August 2002

Size	# sales	% of sales	Type	# sales	% of sales	Reported by	# reporting	% reporting
<50 MBF	9	36	Lump sum	18	72	Consulting forester	5	56
51-100 MBF	3	12	Mill-tally	6	24	Public lands foresters	2	22
> 100 MBF	12	48	No data	1	4	Industrial foresters	2	22
Unknown	1	4				Independent	0	0