I do not charge for our initial meeting. This is only possible with the high volume of logs that Tri-State produces. Youll need to set some boundaries before you set out to sell. Logs (lumber and veneer) 40-60 yrs. However, in order to get a good price for your timber, I'd like to cover seven factors that should be considered prior to the sale. It may not display this or other websites correctly. I can get you the name of the guy my buddy went with in Mercer Co if you want. Monitor the harvesting process to ensure that Best Management Practices (BMPs) are used to protect water quality. Are you building roads or fixing drainage problems? best). We are also well positioned to serve . Selling timber is not simple, and there are many potential ways in which a landowner working without professional forestry expertise can be taken advantage of. This may not mean that all bonded buyers are reputable but it gives you a good starting point. Of the 821 million board feet harvested in 2015, more than 50 percent of the volume came fromoaks with white oak accounting for 16 percent of the total volume har-vested in Kentucky. Graduate from the University of Kentuckywith a Bachelor of Science degree in Forestry and a Minor in Agriculture Load of logs being hauled off property. Mark your property lines $8.00. Prices based on woods run of timber. Whatever the reason for harvesting, a professional forester can help you plan a harvest that will suit your objectives and maximize your income. Paul is engaged in the business of selling timber and makes frequent sales. An Official Website of the Commonwealth of Kentucky, Selling timber is something that most woodland owners do infrequently; and therefore, they are not familiar with how to claim the income or deductions when filing income tax forms. Decided to go with Maple which was still $3.30/BF. Sellers should also beware of timber buyers who offer to buy all of the trees above a certain diameter. No high grading. You had owned the timber for more than 1 year before the sale. Price per acre of hunting land in Kentucky averages $1,600. For instance, you may be interested in clearing the land for development, preserving wildlife or managing growth. A good timber contract can go a long ways to ensure that . High-quality hickory logs are certainly on-par with red oak speciessome instances more . For answers to all these questions, download a copy of the Estate Planning for Forest Landowners: What Will Become of My Timberland? Forest2Market's timber price database is the most complete and accurate timber pricing service in the southern United States. Have you and a neighbor traded some woodlands for better management opportunities? However, a closer look at the data shows that higher quality trees are much more likely to be harvested than lower quality trees. Selling timber. This comes down to species, size, and quality. Performing this action will revert the following features to their default settings: Hooray! Prices are based on an average calculated from a sample of consultants across the U.S., and only intended to provide an estimate of trends and current prices. In the shares method, you will not know what your timber is worth until the last log is sold. There are several steps you should follow before selling your timber. There can be a substantial difference in taxes owed if you have to treat the dollars received as ordinary income versus capital gains. I would say you got lucky. Foresters are able to look at the overall species composition and determine what type of harvest is needed and the forests potential for regeneration. If you have sold timber or plan to sell timber, the way you sell may determine how much taxes are owed. Also, once logs leave your property, you cannot be assured you are paid for them. Overly mature, older trees will die of old age, diminishing the value of the forest. 1296. For any landowner or logging company looking to sell trees or logs, Tri-State Timber can provide the service you need. Below is a table listing commonly planted tree species and the average time required to produce various products from each on a favorable site. That's a rare, veneer white oak growing in excellent soil. Contact a local Kentucky sawmill or timber mill and ask whether it will purchase your tree. His adjusted basis for depletion in the timber sold is $5,000 and he owned the timber for more than one year. The data also show there are differences with respect to the species that are being harvested. There are many steps to take and things to learn for successfully cutting and selling your own logs. All rights reserved. Written notification to adjacent property owners within seven days of starting the harvest. If yes, will it continue to function as an effective tool for the survivors and provide for them in an equitable manner without disruption? We are insured and Licensed Master Loggers in the State of Kentucky. Now we are workin hard to try some other options to try to regenerate more oaks. Size vs Maturity - Sometimes the size of a tree is a good indicator of its maturity, but not always. Logs (lumber and veneer) 40-80 yrs. Then you may qualify for a reforestation tax credit. Here is a list of situations/activities that may affect the way you file your income tax returns. We help landowners responsibly maximize the monetary values when they sell timber, yet still keep in mind the intrinsic values unique to each landowner. Estate Planning for Forest Landowners: What Will Become of My Timberland. Landowners choose to conduct timber sales for a variety of reasons. 2. Like any agricultural crop, continued management is necessary during harvest and into the next rotation, McLaren said. "Timber buyers routinely purchase tracts of five acres or less." Case studies show existing pine stands can earn an average of about $100 to $150 per acre per year. For any landowner or logging company looking to sell trees or logs, Tri-State Timber can provide the service you need. The cost for this service is $10per 1,000 board feet. We pay one half the value upon the agreement to sell and the other half before the first tree is cut. Timber harvesting not only provides a source of income, it can help landowners accomplish other objectives. Marketing timber involves selling forest products in a competitive market to get the best return on your investment or to meet other objectives. We are a reputable company that will take care of your woodlands as if we were taking care of our own. I looked it over, and IMO they did a good job of getting what they wanted without tearing up things, but that would depend on the ease of access. This method requires the buyer to pay you a share (often 50%) of the money they receive from selling your timber. . Logs must be sound, straight, and produced from green timber. Logs (lumber and veneer) 40-60 yrs. Logs (lumber, boxes) 40-70 yrs. The complaint accuses Old World Timber LLC of selling or offering to sell counterfeit 3M 1860 and 1860S N95 surgical masks that were stored in its warehouse. Most of the woodlands in Kentucky have experienced timber harvesting at some point and many have been harvested multiple times, yet the relative area of woodlands in Kentucky has increased over 3 percent in the last 70 years. 1. Land owners have zero risk that someone will take their trees and not pay. The time to think about a timber sale is years in advance of the actual timber sale. This contract will spell out the details of the timber sale. Youll also need to decide what you want to protect. Are the prices favorable? Extension Specialist, Forestry. Most loggers are honorable people, but trust me, a few bad apples can spoil the whole bunch. Lexington, KY 40546-0091 If you would like to host a KML Continuing Education Program in your area, please contact the KML office at 859.257.6230 or 1.800.859.6006 and we will be happy to assist you with the necessary forms and submittals. Posts 25-35 yrs. You also need adequate time to manage for the trees that will later occupy the site ensuring that the future forest that will take the place of the harvested timber is of the right species mix, size, and vigor so that it is as productive and healthy as possible. "That doesn't mean you plant the trees and get $100 to $150 a year -- landowners must properly manage the timber, thinning a few times over the 35-year lifespan. We offer a real hands on approach to buying timber. If you experienced significant timber loss due to storms, drought or other environmental conditions, please consult a tax expert. These two sale approaches probably account for well over half of the timber sold in Kentucky. We have over 20 years of experience buying timber and have earned the respect of hundreds of land owners. Contacted by the Division of Enforcement? Often, the larger the sale, the higher the price per unit of wood that can be offered. How Do I Determine What Trees to Cut? In the shares method, the logger cuts the trees and takes them to area mills and pays you a percent of what they receive. pertaining to the timber sale and the protection of property in the contract. If my spouse and I retire to the land are the resources adequate that we can enjoy a satisfactory lifestyle? If you are selling stumpage or logs, it is important to recognize the differences in volume associated with the different log rules. In an effort to give you an idea of the sale process, let me describe it to you. You are using an out of date browser. Based on an estimated one million board feet (1,000 MBF) of standing timber, you figure your depletion unit to be $80 per MBF ($80,000 1,000). The percent you receive is dependent on what you are selling, but commonly you will receive 50-60% of the timber value. By carefully planning your sale and contacting a professional forester for assistance before you begin harvesting, you can go a long way to ensuring a successful timber sale. You can sell through an oral auction where several buyers attend and verbally bid on the trees, or you can request sealed bids that allow you to compare several different offers on sale day. JavaScript is disabled. The Virginia Department of Forestry monitors the health, composition, and inventory of Virginia's public and private forests to inform land management practices. One way to locate these foresters is by visiting the. Contacted by the Division of Enforcement? Logs 40-60 yrs. Are your forestry investments structured so that they will retain their value at your death? From finding a buyer to filling out the right paperwork, there are lots of little steps to keep track of throughout the selling process. How the payment is to be made. Timber is a renewable resource and cash crop that will renew itself if correctly harvested. My father-in-law bought timber for years. All timber markings performed by division foresters are based on sound forest management principals. . You must log in or register to reply here. Timber is sold either "per-unit" or "lump sum." A per-unit sale is one in which the buyer and the seller negotiate a price per unit of harvested wood, and the buyer pays for the timber after it is cut and the volume is determined. Planning for forest Landowners: what will Become of my Timberland steps you follow!, older trees will die of old age, diminishing the value of Estate! 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