How To Sell Timber

Timber sales are often once-in-a-lifetime transactions; they should be accomplished through contracts and sealed bids, with the input of a reputable professional forester.

Learn the facts about “Selective Cutting” and “Timber Theft”

Introduction

• The seller should have a professional forester develop a management plan and determine if it is ready to harvest.
• Generally, a private consulting forester should review (“cruise”) the timber and handle the timber sale.
• The seller should get a written contract. Learn more about timber sale contracts.
• Provide for compliance with Virginia's Forestry Laws.

Selling Methods

Methods of selling timber generally fall in one of three categories:

1. Negotiation with a buyer for a fixed price for all the timber on a given acreage;
2. Acceptance of a logger's offer to cut timber “on shares” per unit of volume cut. The logger pays the landowner a portion of the value received for logs delivered to a sawmill or pulpwood yard, frequently in a range of 40-60%;
3. Holding a sealed bid sale utilizing the competitive bidding process after advertising the timber to be sold and showing it to prospective bidders.

Methods 1 and 2 often work well for landowners familiar with timber markets and marketing and who have a general idea of the quality of timber they wish to sell. Method 3 normally generates top dollar for landowners due to competition among buyers who have the greatest need for the timber and the best markets.

Forestry Services - Public and Private

Selling timber can be a complicated process, and most landowners sell timber only once or twice in a lifetime. Before deciding to sell, contacting a professional forester is a good idea, particularly for landowners who are unfamiliar with the process.

The Virginia Department of Forestry provides:

• A Forest Stewardship Management Plan, for advice on what to sell and when to sell, and to reflect landowner's goals for growing a new crop of timber after the harvest. The Department can provide a “Stand Plan” for management of just one unit on your property.

Private Consulting Foresters will provide:

• Pre-harvest plans to determine where to put haul roads, log loading decks, and how to handle water to protect against erosion and stream pollution.
• Valuable fee-based services for landowners including planning and conducting timber sales and monitoring the subsequent logging operation.

Consultant foresters may be retained to provide the following services:

• Boundary line location and boundary marking.
• Timber appraisal to provide an inventory of the species, size, quantity and quality of standing timber within the sale area. This is very important information. Without it the landowner has no basis for determining a fair price for the timber.
• Implement the logging plan in terms of haul road and log deck construction and stream crossings. A good road system is a capital improvement with long term benefits for management, recreation and fire control.
• Prepare the timber sale contract and act as the landowner's agent in conducting the sale and overseeing the harvesting operation.

Retaining a consultant forester generally ensures the highest return possible for the timber.

View a list private consulting foresters.

Last modified: Thursday, 23-Feb-2012 09:45:34 EST