the timber did not sell by bids. there was little interest among local buyers
in bidding, probably because they were not accustomed to timber cruises,
estimates and bid sales. it is more common in the area for timber buyers to
simply approach a landowner and make an offer based on a guess by the buyer as
to an amount that they are sure will make them a profit.
the few bids received were too low and were rejected. i approached a team of
local loggers with whom i had done business in the past. when they expressed
interest in a logging job, i gave them three choices. they could pay me
$57,000 for the standing timber, i would pay them $150.00 per mbf for logging
and hauling the timber to local buyers within a 50 mile radius, or i would pay
them 30% of the sales price of the logs for logging and hauling. they chose
the 30% option. they logged the area from february to july.
the logs were yarded near the sale area and buyers were asked to bid on the
logs. they were sold to a total of five different local sawmills. the totals
were:
timber sales bd. ft dollars $/mbf
169,970 81,611.95 480
my cruise estimate 160,000 80,000 500
@ 150/mbf 25,496 logging
@ 30% 24,484 logging
@ $57,000 24,612 logging
70% 57,128 stumpage
589 trees 298 bd. ft. per tree $138.56 per tree
then we estimated that we had only cut over about 32 acres so i marked trees
on an additional 8 acres or so and the loggers logged that at a price of $150
per mbf:
timber sales bd. ft dollars $/mbf
subtotal 28,551 12,103.49 424
totals 198,341 93,715.44 472
150/mbf logging 4,282.65
stumpage 7,820.84
40 acres
695 trees
198,341 board feet
$93,715 total
$64,949 stumpage
17.4 trees /acre
4,958 bd. ft./acre
285 bd.ft./tree
$472 per mbf total
$327 per mbf stumpage
$135 per tree total
$93.45 per tree stumpage
$1,624/acre stumpage
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these are estimates of the results of the clear cut harvest above: (when this timber harvest took place log prices were about 10% lower than the previous harvest four years before.) 40 acres 2000 trees 320,000 board feet $96,000 total $68,000 stumpage 50 trees /acre 8,000 bd. ft./acre 160 bd.ft./tree $300 per mbf total $212 per mbf stumpage $48 per tree total $34 per tree stumpage $1,700/acre stumpage
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