Basics of a Timber Sale

Timber is usually a long term investment and many landowners may perform a final harvest of a particular tract only once or twice in their lifetime. For this reason, it is important for the landowner to be knowledgeable about the timber sale process so they can get fair price for their timber when it is time to harvest.

STEPS TO A TIMBER SALE

1. Use a forest management plan.  Management plans describe necessary steps that need to be taken in order to reach your goals.  A plan can be as simple as just listing the acreage and trees on a property with intentions to grow the trees for a specified amount of time, how and when to sell the trees, and how to replant the harvested area.  

2. Get help from a professional forester.  Sure, it will cost a small fee to hire a professional to help with the timber sale, but landowners that hire a forester usually get higher prices for their timber sales.  Foresters can also answer your questions and provide necessary services such as contract negotiations.

3. Perform a timber inventory.  A consulting forester can estimate the quality and maturity of your trees.  The forester will perform a timber cruise in order to determine timber volume and estimate timber value.  

4. Decide what is best for your timber.  Based on the timber inventory, the forester will recommend the best type of harvest and sales method.  Discuss the best time to sell the timber or maybe decide to wait for more favorable market conditions.  Discuss harvesting methods and how and if they will help achieve your goals and objectives.  

5. Mark the boundaries of the prospective sale area.  Flagging or paint is used to mark the sale boundaries.  This will ensure that only the timber on your property is included in the sale.  If there are disagreements with neighbors about property lines, then you may need to hire a surveyor to identify the property boundaries.

6. Advertise the timber sale.  Send out a bid invitation with the timber sale information to prospective buyers to solicit bids.  This is where it is especially beneficial to have the help of a professional forester.  Foresters specialize in advertising timber sales and will send invitations to specific buyers in the area of the timber sale.  Most buyers will perform their own timber inventory of the property and estimate a value.  Once again, this is where a forester is beneficial so they can show the property to the buyers or answer any questions about the sale.  Bids are sealed and will be opened on the day of the sale.  

7. Close on the sale and sign a contract.  Once the winning bidder has been determined, the next step is to mutually agree on and sign a written contract with the buyer.  Your forester will provide the contract and the contract will protect you as a landowner, will specify what is to be harvested and how it is to be harvested, payment method, logging practices, and in what condition the land should be after harvest.

8. Oversee the harvest.  Inspect the harvest area periodically during the harvest to ensure that the logger is following the directions of the contract and that the logger is performing satisfactorily.  

9. Perform final inspection.  Inspect the harvest area after all logging is complete to verify that the logger performed a satisfactory job and that no recourse is required.  If the job is satisfactory, release the logger from further obligations and close the contract.

10. Resume normal forestry activities.  Develop a plan to replant the harvested site and begin a new rotation.