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FORESTRY ON THE FARM: Getting Top Dollar for your Timber |
| Part 2 – Sources of Professional Assistance |
|
by Dylan Jenkins |
| Extension Forester - Landowner Education |
| Virginia Tech Department of Forestry |
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Professional
foresters include state foresters, private forest consultants, and
industry foresters. Each type of forester offers different services
but the best place to start is your county Virginia Department of
Forestry (VDOF) forester. The VDOF provides basic forest management
planning based on your land management objectives. The VDOF will walk
your woods and help you identify the best course of action to help you
meet your objectives. This course of action usually takes the form of
a forest management plan outlining what types of trees you have, their
condition and location, and specifies what types of activities you
should conduct to help you reach your goals. The VDOF will not mark or
appraise your timber but will direct you toward private forestry
consultants who can. Private consultants
generally work for a percentage of the proceeds from a timber sale
(averaging about 7 to 15 percent) however, some are moving toward an
hourly fee, especially when their services are not directly related to
timber sale revenue, e.g., overall management planning, stand
maintenance, and estate planning. So why not conduct the sale yourself
rather than forego that 10 percent of the timber sale proceeds? Again,
it comes back to how well you know the markets. I know of three
studies showing conclusively that, on average, landowners who use
professional assistance nearly double the income received from a
timber sale. Professional foresters know market cycles and the factors
that affect timber prices. They also know the local timber buyers and
how to conduct a timber sale that will earn you top dollar. If you
don’t know local timber markets, market cycles, factors affecting
price, and don’t have time to bird-dog the sale, do your wallet and
land a favor and hire a professional forester. The stories of
landowners finding out the true value of their timber after the timber
sale has started or been completed are too common. But landowner beware:
in the state of Virginia there is currently no registration,
licensing, or certification for professional foresters. This means
that anyone can claim to be a professional forester. The VDOF
maintains a statewide list of “private forestry service
providers.” Education, experience, professional associations, and
work regions are listed for each service provider. Look for an
individual or firm that has experience with timber sales in your
region and who has a Society of American Foresters (SAF) accredited
four year forestry degree. Also look for membership in organizations
such as the SAF, Virginia Forestry Association (or other state
forestry associations), Association of Consulting Foresters, and other
professional forestry organizations. Ask your neighbors about their
experiences. The private forest consultant is your representative and
should not have any conflicts of interest with potential wood buyers.
Most consultants will make an initial site visit for no fee and walk
your woods with you. This is a good time to ask questions about the
forester’s experience and services. A professional forester should
also be willing to give references of landowners they have worked
with. Private consultants will help you get top dollar for your timber by acting as your advocate during the timber sale process. They will administer some or all aspects of the sale which include: checking title of ownership to land and timber, establishing and marking property boundaries, and conducting an inventory of merchantable trees or timber cruise of your woodlot. When your timber has been cruised, the forester will create a harvest plan that ensures timber is harvested with minimal damage to remaining trees and soil and water quality. The harvest plan identifies the location of haul roads, skid trails, stream management zones and other sensitive areas. Wildlife, recreational, and aesthetic objectives are also integrated. Your forester will
then mark your timber, draw up a sales contract, and notify potential
buyers about your timber sale. Potential buyers will be mailed a
timber sale prospectus that generally contains a map of the sale site
and a table listing the volume of timber by species contained on the
site. Potential buyers will then be asked to mail in their sealed bid,
and are notified of the time, date, and location when all bids will be
opened. On closing day, the timber is sold, the sales contract is
signed, money is exchanged, and title to the timber passes from the
landowner to the high bidder. One of the most important services the
forest consultant provides is to monitor your forest as timber is
harvested. By using a written sales contract and monitoring the sale,
you are ensured that the logger is in compliance with all clauses of
the sales contract: specified haul roads are being used, unmarked
trees are undamaged, and soil and water quality is maintained. While
not all timber is or should be sold through this sealed bid process,
it is appropriate for many more instances than not. A sealed bid sale
encourages price competition and is the best method to identify the
buyer willing to pay the most for a tract of timber. Selling timber can be
a fairly involved process, but this is true for managing most things
of value. Start by calling your local Virginia Department of Forestry
office. You can find out who your local state forester is by calling
VDOF headquarters in Charlottesville at (804) 977-6555. Your local
VDOF forester will walk your forest with you and help you determine
the best courses of action based on your stated goals. You can also
contact me at (540) 231-6391 and ask to be added to the Virginia
Forest Landowner Update mailing list. You’ll begin receiving the
Update at no charge and be
notified of upcoming education events for forest landowners (and there
are many). In closing I want to reiterate that there is a potentially huge difference between what your timber is worth on the market and the price you actually receive for you timber. How much of that potential value you realize depends on you, specifically, how well you educate yourself on the timber sale process and the people you choose to work with. Should you go it on your own? As landowner and primary decision maker that’s your decision. The wise course of action is to thoughtfully consider what you do and do not know about forest management and selling timber. Timber is big money
– but much less so if you let the wrong people make the decisions.
Improve the amount you receive for your timber and protect the quality
of your forest during and after the harvest by working with
knowledgeable, professional foresters. Selling timber is a major
financial decision and should be a planned event. Surround yourself
with knowledgeable people and you will get top dollar for your timber.
But remember that a timber sale is only a small part of your overall
forest management plan and activities - topics we will discuss in the
next Forestry on the Farm. |