Forestry
Marketing Your Timber for Top Dollar
Factors affecting value
• Wood Products
• Tree Measurements
• A Sample Plot
• Sources of Help !
Got a big tree? It might be worth $2, $20, or $200 sold where
it stands! Timbered acres can be worth a lot of money - sometimes more than
cropland. How much money depends upon what you have and what buyers want. This
fact sheet briefly describes how trees used for wood products are valued and
measured.
Bottomland hardwood stands, which are often treated as
nothing more than drainage areas between fields, can provide significant income
opportunities for landowners. Management of a hardwood stand can increase
earnings from timber sales by 100% or more. Many landowners wait until a time of
need or crisis -- such as college education, health care emergency, retirement
supplement -- to think about making money from their bottomland hardwood stands.
By then, they have missed the opportunity to optimize their returns from their
woodlots. No one would consider not managing their FARM lands for top
returns. Why should wood lands be any different?
Because many landowners only go to their woodlot
"accounts" for cash once or twice a lifetime, they don't learn the
basics for woodland management. Professional foresters can provide management
guidance, and their services often pay for themselves many times over --
possibly every 10 years instead of every 50 years.
Trees sold for wood products are purchased as some form of
volume. Tons, cords, cunits and thousand-board-feet are common measurements used
to buy and sell trees. Trees can be worth a lot of money. Several factors affect
the value of your trees. These factors include current markets, the kind of
trees, their quality and size. Generally, trees that are large enough for
sawtimber are more valuable than trees large enough for pulpwood.
Current Market:Current market demand is generally
based on housing trends, new home starts and the paper market. High demand for
products generally results in higher prices paid for trees.
Distance to Market:It is less expensive to drive 30
miles than it is 60 miles, so trees nearer the market could receive higher value
than those further from the market. Buyers generally work within a 90 mile
radius of their mill but often go further when market prices are high.
Kind of Tree:The value placed on certain trees
varies by your location within the state. Pine trees are a top dollar producer
in the southern half of Arkansas. Hardwood tree values depend upon the kind of
tree and its quality. In general, white and southern red oaks have higher
sawtimber values than post oaks.
Quality:High quality trees are straight tall trees
with few branches on the lower portion of the tree. Defects and bends in the
truck can reduce the value of the tree.
Size: Generally bigger trees, because of increased
volume and higher use value, earn more money for the landowner. For example, a
tree that is 16 inches in diameter is usually worth more than a tree that is 6
inches in diameter. A 40 inch diameter tree would have an even higher value -
unless it's hollow and then it would be valuable as a wildlife tree. Height is
also important such that a tree that is 50 feet tall is worth more than a tree
that is 15 feet tall.
Wood Products
Sawtimber and Veneer size trees: Hardwood trees 14
inches in diameter at dbh (4.5' above the ground) and with 16' before the tree
has multiple branches can be used as sawtimber or veneer. Pine trees sold for
sawtimber or veneer can be somewhat smaller in diameter (10 inches at dbh) and
still be sawn as sawtimber. Veneer are trees that can be cut to make plywood or
wide flat pieces of wood. (High value products).
Cants or ties: If a tree is sawtimber size, but is
lower in quality, it can be cut for lower valued sawtimber products such as
crossties or wood pallets.
Pulpwood size trees: Pulpwood trees are any
commercial tree species that does not have the size or quality to make other
wood products. This includes large trees with defects or multiple branches
eliminating sawtimber possibilities and trees too small to be cut for sawtimber.
Pulpwood trees have to be at least 5 inches dbh and do not bring as much money
to the landowner as sawtimber size trees.
How does one determine the volume in a tree?
Tree Measurements
Two measurements are needed to calculate tree volume. The
first measurement is diameter at breast height (dbh) which is the diameter of
the tree at 4.5' above the ground. Lots of tools are available for diameter
measurements including the biltmore stick and diameter tape.
The second measurement is merchantable height. This is the
location where the tree will be cut-off at the top. Again, several tools are
available including the biltmore stick and clinometer.
The following example will demonstrate a simplified approach
to estimating tree volume and value. (Market prices are estimates and not
necessarily reflective of current prices.)
From the example;
Merchantable height. 32 feet or two 16 foot logs
Diameter at Breast Height (DBH). DBH 18".
Several calculations can be used to determine the volume of
the tree but for this simple example, we read the volume off of the table on the
side of our Biltmore Stick.
thus the tree has 164 board feet of timber or 0.164
thousand board feet.
At $250/thousand board feet, this tree is worth $41.00.
It is not economically feasible to measure every tree on ones
property. A timber cruise a series of plots, often 1/10th acre in size randomly
taken on the forest property, is used to estimate the volume and value of trees.
The trees within the plot boundary are measured for volume.
A Sample Plot
8 pulpwood trees (.4 cords) $4.80
2 misc. hardwood (166 board feet)$14.94
2 red oak trees ( 440 board feet) $132.00
3 white oak trees (352 board feet) $88.00
15 Trees on 10th acre plot - Total Value $239.74
The plot has a value of $239.74. This equates to $2,397.40
per acre. [1/10th acre data times 10]
If the owner had 40 acres like the example, the total value
would be $95,896.00. [$2,397.40 times 40]
Your land and trees will be different from this example, but
it does have value. Find out what your trees are worth BEFORE YOU SELL THEM!
Sources of Help!
Arkansas Forestry Commission
Little Rock, AR
(501) 296-1940
or AFC county forester in your area. Find list of forest
consultants, county offices, and vendor on-line at the A F C web site.
County Conservation District - phone under US government listings --
USDA Natural Resources Conservation Service or call N R C S office in Little Rock, AR at (501) 682-2915
Forestry Consultants - check local phone directory or call the A F C for references or call the
Arkansas Forestry Association
at (501) 374-2441 in Little Rock, AR or toll free at 1-888-698-7337.
University of Arkansas at
Monticello
School of Forest Resources
Monticello, AR
(870) 460-1052
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