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

     

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.