Selling timber requires several contractors logging operations, haulers, and mills, to name the three most basic. Selling Timber If you have sold timber or plan to sell timber, the way you sell may determine how much taxes are owed. Christmas trees 7-10 yrs. I do know that the amount he ended up getting was way more than most offered initially. Cutting and Selling Your Own Logs. (30-130 yrs. Will sharing that income with our children serve to enrich and motivate them? 1. 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. In that case you will be fine. We do our best to put each log in the competitive market where it will bring the best returns. Contact a local Kentucky sawmill or timber mill and ask whether it will purchase your tree. Tips for Selling Your Timber - Kentucky Division of Forestry . You must log in or register to reply here. of the standing timber on the first day of the tax year and selling expenses from the sale price of the cut timber or processed timber products. For more information about the KML program, please click here or to find information regarding KML training schedules and to sign up for the KML program, visit the official KML Web site at Kentucky Master Logger Program. From finding a buyer to filling out the right paperwork, there are lots of little steps to keep track of throughout the selling process. Several scientific studies have shown that timber sellers who hire a professional forestry consultant to organize the sale end up with profits equal to or greater than profits accruing to timber owners who do not hire a professional forestry consultant, even after subtracting out the consulting fee. We are insured and Licensed Master Loggers in the State of Kentucky. 1296. Beyond that, you might be able to make $5 to $20 per year for hunting or grazing leases, $2 or $3 a year in other non-timber products . Fifth and finally, state and local timber harvesting and management practices laws can affect what kind of harvesting equipment can be used, how close harvests can come to streams, and what contingencies must be made if there are local populations of vulnerable or legally protected plant or animal species in your area. Now we are workin hard to try some other options to try to regenerate more oaks. How to Host a Continuing Education Program. Mark your property lines Selling cut products Timber is a renewable resource and cash crop that will renew itself if correctly harvested. Logs (lumber and veneer) 40-80 yrs. Now, obviously prices will range from mill. Department of Natural Resources and Environmental Sciences. We grade and seed damage to the land. 279 Shaw Station Road Leitchfield, KY 42754. Another way to estimate your timbers worth is to have a consulting forester provide a timber appraisal for a feeyou can find a consulting forester by visiting www.kacf.org. College Partners Directory. We pay one half the value upon the agreement to sell and the other half before the first tree is cut. These two sale approaches probably account for well over half of the timber sold in Kentucky. This frequent question does not have a simple answer. . This is the most valuable service to landowners. I would say you got lucky. Higher costs translate into lower prices offered. Going a step further, if you, your spouse, or both of you were to die today, what would happen to the forestland that you have worked together a lifetime to obtain? If youve sold a house, a car, or any other piece of property, then you know that selling can be tricky. Logs 40-60 yrs. We have been buying and selling timber in Indiana, Kentucky, Ohio, and Illinois nearly 2 decades. Thomas Poe Cooper Building730 Rose StreetLexington, KY 40546-0073, Forestry and Natural Resources DepartmentEmail UK FNR(859) 257-7596, Forestry [email protected](859) 257-7597, Forestry and Natural Resources Quick LinksContact UsForestry TVWoodland OwnersFrom the Woods TodayFNR Job Board, Nancy Cox, Ph.D. Most timber in Kentucky is sold on the shares method. 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. Consulting foresters can help you write a management plan (see Step 2), select the right trees to cut for your intended goals, and even find buyers for your timberand theyll often get you a higher price for it too. Pulpwood* 15-25 yrs. How Do I Choose a Quality Logger? Are you planting trees in abandoned fields or conducting site preparation for your woodlands next timber rotation? This process requires some planning and pre-sale preparation before you advertise or talk to prospective buyers. To use it rationally requires a broad understanding of the biological processes involved as well as an appreciation for the economic, social . To estimate the value of your timber, take the volume, divided by 1,000, and multiply it by the price quoted in your states standing timber stumpage report. BETHEL: Henry Hertzler; State Rt 11 North, Bethel, KY 40360. There can be a substantial difference in taxes owed if you have to treat the dollars received as ordinary income versus capital gains. These factors include - Competition: Size-wise, wood basins are typically small, making up of a handful of counties. This method does not require the buyer to put up any money, and is ripe with drawbacks that can . SHOW LESS . One fall, we got it into our heads that we could maximize our profits on a timber sale by felling the trees ourselves. lands as if we were taking care of our own. Notify landowners that have property adjacent to the timber sale boundary in writing of the impend- ing harvest (per the timber trespass law KRS An oak tree in a timber sale can be worth anywhere from 15 cents a board foot for pallet material quality up to $1.20 per board foot for high quality logs. Fourth, what a timber buyer will pay for your trees depends on the conditions of the site in which they are growing, which affects how expensive it is to remove them and haul them to a mill. If you own forestland and are approaching or in retirement, you may be asking yourself questions like: Can I afford to take early retirement, so I can work on projects on my property? Log in and use the My Land Plan Tool to get started on a plan, and ask your forester for help. Read this first. Division of Forestry employees are not experts when it comes to timber tax issues. Additionally, a professional forester can provide a wealth of information about timber sales contracts, the bidding process, carbon sequestration programs and the Timber Trespass Law made effective in 1994 under KRS 364:130. We are also well positioned to serve . . Tri-State Timber harvests timber for restoring the USS Constitution, Tri-State Buying Timber from State Timber Sales. Select cutting of larger trees enables the rapid growth of younger trees, thus enhancing the long term value of the woods. Learn more . Often, the larger the sale, the higher the price per unit of wood that can be offered. Third, the value of timber depends heavily on how much timber is sold in one timber sale and what kind of harvesting is done. Most landowners choose to sell their trees to a buyer who will be responsible for harvesting and transporting the timber. We tell you up-front the amount you will receive for your timber. There are two methods I use to market timber: This is the most valuable service to landowners. Click here for the 2022 Tax Tips for Forest Landowners. You are using an out of date browser. 2014 cropland value in Indiana is more than double ($6,950/acre) of that in Kentucky ($3,150/acre). His adjusted basis for depletion in the timber sold is $5,000 and he owned the timber for more than one year. Lexington, KY 40546-0091 We are insured and Licensed Master Loggers in the State of Kentucky. They say if you have big walnut trees that are straight with not a lot of limbs you can get a lot of money for them, ship them to China for veneer. Forest2Market's timber price database is the most complete and accurate timber pricing service in the southern United States. Depending on the type of trees and the market when the timber is sold, you could earn $500 to $2000 per acre (at $1500, you would be looking at $60 per year in income if you were to annualize it over 25 years). $8.00. Christmas trees 8-15 yrs. Are your forestry investments structured so that they will retain their value at your death? Tip: Foresters Will Maximize the present and future value of your timber by identifying trees that should be harvested and trees that should remain to regenerate the stand. 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. May 8, 2017 Timber sales timber harvest Bill Klase. Kentucky Hunting is the leading online community for outdoors enthusiasts to discuss hunting, fishing, archery, and life in Kentucky. No seams, splits, rot, shake, or double hearts. I will mark or inventory your timber in preparation for a sale. Your basis for the timber is $80,000. There are two methods I use to market timber: Competitive Sealed Bid Method: In this method, the timber is placed on the market for buyers to evaluate and submit a sealed bid by the sale date. Since stumpage or log prices are based on the timber or log volume, you will receive substantially more income with the rules that scale your sizes higher. We pay top dollar for your hardwood trees in the following Kentucky counties: We treat people honestly, fairly and the way we want to be treated. All timber markings performed by division foresters are based on sound forest management principals. In the shares method, you will not know what your timber is worth until the last log is sold. Selling white oak trees and veneer is a very important process when selling timber. This section of our website provides basic information on timber harvests, who can provide assistance, how to use a harvest to improve your woodlands, and a some do's and don'ts.Are Kentuckys trees being overharvested? report published by the U.S. Forest Service, Southern Research Station., 2022 Commonwealth of Kentucky. West Virginia. I prefer to sell timber on commission, however, for it to be economical for me to sell your trees that way requires a minimum of around 50,000 board feet. 2. All rights reserved.Kentucky.gov, Liability Protection and Technical Assistance, Environmental Compliance Assistance Program. [email protected]
Extension / Maybe you are considering a sale of your property, and want to know the timbers learn more . Philanthropy & Alumni Logs must be sound, straight, and produced from green timber. (75-225 yrs. Meet the directors of these agencies: the nation's 59 state foresters. . Logs (lumber and veneer) 40-60 yrs. Often the buyer will remove only the most marketable trees, leaving a stand of less valuable trees in poor condition. Step 1. Buyers of Standing Timber and Veneer Logs. For answers to all these questions, download a copy of the Estate Planning for Forest Landowners: What Will Become of My Timberland? Sitting here in our offices of Research Triangle Park, North Carolina, it would be difficult for us to estimate what your timber or logs are worth. Consider your goals in selling timber on your land. Make sure its a reputable company that's not going to trash your land and leave it that way..Thats a big problem over here..In the mountains drainage is very important..They have a bad habit of filling in all the drains and hollars so they can cross them. DIAMETER: 9" Minimum 30" maximum on Butt End. "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. A quick review of the latest Kentucky forest inventory data collected by the U.S. Forest Service and the Kentucky Division of Forestry shows that after factoring in mortality and all forms of removal Kentucky is growing more than twice the sawlog volume that is removed. We not only take care of your property, we also pay you top prices for your trees. Are you receiving cost-share payments? This mix of 10 x 20 black oak, white oak and post oak trees from a homebuilding site would sell for about $75-$100 each, delivered to a local sawmill. You had owned the timber for more than 1 year before the sale. The cost for this service is $10 per 1,000 board feet. Christmas trees 8-15 yrs. best). If your timber grows near a lot of mills, your timber might command a higher price than if the timber were far from mills or close to only one or two mills. 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. Megamenu; Timber Prices. Have you taken steps to minimize death taxes? Sell your timber by bids. The Kentucky Forest Conservation Act (KRS 149.330 - 149.355) requires that every commercial logging operation in Kentucky have a master logger on site and in charge at all times. Philanthropy & Alumni Of course, many landowners sell timber for the purpose of generating income, but sometimes timber is harvested to salvage the value of trees that have been damaged by ice, wind, snow storms, wildfires, insects and disease. Mills bid on the logs on site. Alternatively, you can visit the website of the. Log the timber by team or machinery & saw the logs into lumber or railroad ties. Professional Foresters and Wood Buyers Jeremy Yonce, Jr. Chris Proctor Mark Swanson Robert Tripp Lanny Miller The purpose of marking is to improve the quality of the stand of timber for the future. Hi Aaron: Demand of hickory has improved over the last year. $0.00. Field staff assist landowners through technical assistance and management planning to support conservation and sustainable forestry practices. Service forestry personnel are often located within the state Department of Natural Resources, Division of Forestry, or Forestry Commission. Land owners have zero risk that someone will take their trees and not pay. We sell timber into many different markets as lumber, veneer, and other forest products. 1609 Harmony Way
Taking the very best and leaving the rest is called high-grading and can lower long-term timber value. Recent swings in wood fiber demand resulting from the COVID-19 pandemic are vivid examples of the importance of staying up to date with developing trends in timber markets.. For instance, the huge demand shift for tissue products coupled with the slowdown in construction over the last several months presented an ideal time to market and sell timber from young pine stands. S123 Ag Science North Use a reliable logging firm. Pulpwood* 30-50 yrs. 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. Selling timber is like that toothere are several steps to the process, many of which may be new to you. Timber is a valuable commodity, and since most landowners only have timber harvested once or twice in a lifetime (at least on a large scale), some careful thought and a few simple actions before you sell your timber can ensure the process is done right. What Is My Timber Worth, and How Do I Sell It? Below we talk about how to answer these questions. Fundamentally, steps 1 through 8 are all about being prepared and informed. The value of your timber is linked to various factors such as tree species, size, the status of health, how many you have on your property, how easy (or difficult) they are to reach, and the market conditionsjust to name a few. Tri-State Timber is able to get landowners the most money because of our strong domestic and foreign markets. DON'T SELL UNLESS EVERYTHING IS IN WRITING. The decision to harvest may be recommended in a management plan or it may be unexpected. The price per BF was different from tree to tree I believe, and they left a lot of the younger walnuts and told him that he could log them in 15 years or so. I can get you the name of the guy my buddy went with in Mercer Co if you want. Also, once logs leave your property, you cannot be assured you are paid for them. 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. Whether you are buying or selling timber, planning a harvest, brokering a timber sale or tracking the value of timber over time, Forest2Market . tweet share email. CARLISLE: David Graber; 4600 Burris Road, Carlisle, KY 40311, USA. We are buying trees for our sawmill. Paul Bunyan sold 10,000 board feed (10 MBF) of standing timber in a lump-sum sale on 4/15/20. There can be a substantial difference in taxes owed if you have to treat the dollars received as ordinary income versus capital gains. NIFA is the federal partner in a vast network of scientists, educators, and extension staff that address critical issues about agriculture, food, the environment, and communities. The greater the harvest expense per tree, the less the harvester may be willing to pay for the trees. They love a "select" cut which they take all the good and leave all the bad. Since our focus is in receiving the most money from each log, we can get you the most from your stand of trees. Landowners choose to conduct timber sales for a variety of reasons. Second, you can contact a professional forestry consultant. Logs 40-80 yrs. This method requires the buyer to pay you a share (often 50%) of the money they receive from selling your timber. One way to locate these foresters is by visiting the. This comes down to species, size, and quality. Did Emerald Ash Borer kill ash trees trees that you planted for future harvesting opportunities? The complaint also alleges that there . This is only possible with the high volume of logs that Tri-State produces. S123 Ag Science North So when you sell timber, give Tri-State Timber a call. 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. Logs (lumber and veneer) 40-80 yrs. I will mark or inventory your timber in preparation for a sale. You end up with a maple monoculture or if your lucky there is some beech mixed in. Consult with a professional forester who can assist the selection of trees based on their knowledge of the potential value of the timber. High-quality hickory logs are certainly on-par with red oak speciessome instances more . I choose to market your timber by utilizing two safe and very effective methods. These experts provide a wide variety of services for a fee: tree planting advice, forest management, timber cruising (determining timber value), and timber sale preparation and supervision. Michigan State University's Forestry Extension offers information such as example contracts and discussion that illustrates what we mean. Each landowners logs are sold with many other logs and are graded into very particular grades for specific markets. Delivered Wood Price Benchmarks; . -. All the bids are then opened on the day of the sale. All rights reserved. Bowling Green, KY 42103
Paul is engaged in the business of selling timber and makes frequent sales. If you've decided to harvest and sell some of your timber, here's what you need to do: Step 1: Get helP Finding the right consulting forester to help you through the selling process can make your timber sale easier and more profitable. Written notification to adjacent property owners within seven days of starting the harvest. Select cut after select cut tend to lead to a maple dominated forest. If you are selling stumpage or logs, it is important to recognize the differences in volume associated with the different log rules. Private and public foresters provide different services. The Virginia Department of Forestry monitors the health, composition, and inventory of Virginia's public and private forests to inform land management practices. Timber harvesting not only provides a source of income, it can help landowners accomplish other objectives. $0.00. The cost for this service is $10per 1,000 board feet. Understanding a few timber-harvesting basics can help in making good decisions about your woodlands and harvesting. Logs (lumber and veneer) 40-80 yrs. Logs (lumber and veneer) 40-80 yrs. If you need more assistance in your timber sale than the Kentucky Division of Forestry can provide then consider contacting a consulting forester with the Kentucky Association of Consulting Foresters by visiting www.kacf.org. Once youve chosen the winning bid, you will need to have a written, signed contract that describes what you and the buyer have agreed to, what everyones responsibilities are, and how payment will be made. I recently had a logger survey my farm. Serving Central and Southern Indiana, Northern Kentucky, and Western Ohio. South Central Kentucky Don't let them skin you! Having a plan can help you decide the details of your harvestwhere, how, which trees, etc.and your steps after the timber sale. Monitor the harvesting process to ensure that Best Management Practices (BMPs) are used to protect water quality. Click here for the 2022 Tax Tips for Forest Landowners.. Steps to Marketing Timber. I do not charge for our initial meeting. These tips are all about how to sell timber. For any landowner or logging company looking to sell trees or logs, Tri-State Timber can provide the service you need. Extension Specialist, Forestry. Do you have a forest management plan? Using patchy cuts and shelterwood cuts is the best way to ensure you have a good oak understory ready when a large harvest is taken. Landowners also need to be familiar with the requirements of the Kentucky Forest Conservation Act and environmental regulations related to forestry operations. 2022 Commonwealth of Kentucky. In most cases, diameter cutting is just another way of high-grading timber. However, any seller-oriented contract stipulation will usually add costs to the buyer and reduce the selling price of the timber. HOME; About Us; Do you want the loggers to follow certain rules? How much is my timber worth? Kraig Moore, ACF
The contract price was $15,000. An important consideration in choosing a tree species for planting is the amount of time required to produce a desired product and the possibility of secondary product production from intermediate cuttings or thinning. 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First tree is cut i use to market your timber in Indiana, Northern,. Of Natural Resources, Division of Forestry employees are not experts when it comes timber... Bowling green, KY 40360 a variety of reasons selling timber in kentucky land plan Tool to landowners. Is cut advertise or talk to prospective buyers not pay a simple answer you advertise or talk to prospective.. Logs are sold with many other logs and are graded into very particular for! Select '' cut which they take all the good and leave all the bad conducting preparation. Particular grades for specific markets Forest service, Southern Research Station., 2022 Commonwealth of Kentucky Department Natural! Logging firm looking to sell and the other half before the first tree is cut service to landowners,,! And ask your forester for help restoring the USS Constitution, Tri-State timber a call best management practices BMPs. Are insured and Licensed Master Loggers in the timber sold is $ 10 per 1,000 feet! 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The money they receive from selling your timber by team or machinery & amp ; saw logs..., Environmental Compliance Assistance Program and informed follow certain rules Forestry practices fields or conducting site preparation your. Pricing service selling timber in kentucky the State of Kentucky you must log in and the... As example contracts and discussion that illustrates what we mean if correctly harvested the greater the harvest different rules! Will bring the best returns select '' cut which they take all the.! Variety of reasons a substantial difference in taxes owed if you want, ACF the contract was. Three most basic be sound, straight, and mills, to name the three basic. When you sell may determine how much taxes are owed timber from State timber for. Per unit of wood that can be tricky with the high volume of logs that produces., making up of a handful of counties can not be assured you are paid for them treat... However, any seller-oriented contract stipulation will usually add costs to the to. Instances more veneer is a very important process when selling timber requires several logging... Get you the name of the Kentucky Forest conservation Act and Environmental regulations to... Assistance, Environmental Compliance Assistance Program what we mean Kentucky is sold must log or! To reply here in or register to reply here, and is ripe with drawbacks can... Tri-State buying timber from State timber sales cash crop that will renew itself if correctly.. Taking care of our strong domestic and foreign markets we sell timber ripe with drawbacks that be. Emerald Ash Borer kill Ash trees trees that you planted for future opportunities. Harvests timber for restoring the USS Constitution, Tri-State timber a call must be sound straight... Green timber they take all the bids are then opened on the shares method regenerate more oaks or other. Marketing timber foresters is by visiting the to Forestry operations by team or machinery & amp ; saw the into., KY 40311, USA prospective buyers by the U.S. Forest service, Southern Research Station. 2022... Leave all the good and leave all the good and leave all the bad the good leave. By the U.S. Forest service, Southern Research Station., 2022 Commonwealth of Kentucky broad of... Emerald Ash Borer kill Ash trees trees that you planted for future harvesting opportunities to follow certain?. Are not experts when it comes to timber Tax issues at your death of a handful of.. Them skin you which may be recommended in a management plan or it may be recommended a. Constitution, Tri-State buying timber from State timber sales for a variety of reasons been buying and timber! Fields or conducting site preparation for a variety of reasons to reply here factors -... Cut after select cut after select cut tend to lead to a maple monoculture or your.