Consideration for Selling Timber Thom Kinney ACF Multi Resource Management, Inc.
Type of Timber Sales Diameter Limit Cut Diameter Limit Cut Share Sales Share Sales Marked Sealed Bid Sales Marked Sealed Bid Sales
Diameter Limit Sales Benefits Benefits No Brainer No Brainer Sounds logical Sounds logical Pitfalls Pitfalls Lack of Competition Lack of Competition Ambiguous Information Ambiguous Information Reduces Forest Productivity Reduces Forest Productivity Seller Lacks Info – Often disappointed outcome Seller Lacks Info – Often disappointed outcome
Share Sale Benefits Benefits Possible on Small or Low Valued Sales Possible on Small or Low Valued Sales Work with Specific Buyer/Logger Work with Specific Buyer/Logger Pitfalls Pitfalls Cut Before Landowner is Paid Cut Before Landowner is Paid May Encourage Poor Utilization May Encourage Poor Utilization Lack of Competition Lack of Competition Limited Control Limited Control Seller Receives Less on High Value Timber Seller Receives Less on High Value Timber Saler Lacks Information Saler Lacks Information
Marked Sealed Bid Sale Benefits Benefits Trees Marked & Measured Trees Marked & Measured Competition & Comparable Bidding Competition & Comparable Bidding Retain Option to Reject Bids Retain Option to Reject Bids Seller Paid Before Trees are Cut Seller Paid Before Trees are Cut Seller is Informed & in Control Seller is Informed & in Control Pitfalls Pitfalls Some Preparation Costs Some Preparation Costs
What Determines Sale Value Forest Characteristics Forest Characteristics Species Species Quality Quality Size & Volume Size & Volume
What Determines Sale Value Forest Characteristics Forest Characteristics Location & Topography Location & Topography Logging Conditions (Steep vs Flat) Logging Conditions (Steep vs Flat) Access & Yarding Access & Yarding Proximity to Markets Proximity to Markets County Restrictions County Restrictions
What Determines Sale Value Forest Characteristics Forest Characteristics Location & Topography Location & Topography Marketing Marketing Advertising Advertising Timing Timing Payment Method (terms or lump sum) Payment Method (terms or lump sum) Contract Performance Clauses Contract Performance Clauses
ADVERTISING YOUR SALE WHAT are you selling... WHAT are you selling... WHEN are you selling... WHEN are you selling... HOW are you selling... HOW are you selling... WHERE is it located... WHERE is it located... WHO to invite... WHO to invite... CONTACT for additional info... CONTACT for additional info... CONTRACT PROVISIONS & REMARKS CONTRACT PROVISIONS & REMARKS
TIPS TO GET GOOD LOGGING Have Forester Mark Trees Have Forester Mark Trees Put Performance Clauses in Contract Put Performance Clauses in Contract Have a Pre-Logging Conference Have a Pre-Logging Conference Give Logger Room to Work Give Logger Room to Work Monitor the Logging Job Monitor the Logging Job Compliment When Good is Done Compliment When Good is Done Be a Smart Seller Be a Smart Seller Understand acceptable & unacceptable logging Understand acceptable & unacceptable logging
Suggested Marketing Steps Define harvest objectives Define harvest objectives Mark timber to meet objectives Mark timber to meet objectives Prepare sale prospectus & contract Prepare sale prospectus & contract Send prospectus to potential buyers Send prospectus to potential buyers Conduct bid opening & award sale Conduct bid opening & award sale Enter into timber sale contract Enter into timber sale contract Put some sale income back for TSI Put some sale income back for TSI Monitor logging progress Monitor logging progress