The process of appraising timber sales begins with assessing the value of the trees that are going to be sold. For example, they will be able to measure the timber, determine how much of the tree will actually be usable, and provide a value for the lumber based upon the species. Appraisers are typically sent out into the forest before harvest. They are also very common where there have been fires and trees need to be harvested for their timber before they begin to rot. Their information is going to be used directly with the timber buyers, individuals or companies that will purchase the trees so that they can be converted into lumber.
Once the timber appraisers have done their job, the buyers will assess the information. They will then make offers and counter offers on how much they are willing to pay. They will use different factors including the species of the trees, the going rate for lumber, and the quality of the timber that is about to be harvested.
Timber management companies can be individual businesses, those that are employed by landowners that are caring for the trees. This is not for environmental reasons in most cases. It’s all about the amount of money that they can generate by selling the timber. By managing the forests properly, they can increase their overall value plus prevent the outbreak of fires that can destroy these profitable resources.
Timber management teams will always present some type of plan. This will involve regular harvesting, controlled burns, and an assortment of other practices designed to prevent the premature destruction of the trees that will be converted into lumber. Part of that management plan will also be the effect of how harvesting the timber can adversely affect waterways and streams in the area.
Streamside management represents understanding how chemicals, nutrients, and even sediment can affect waterways. In many areas throughout forests there are streams that are going to provide water for both plants and wildlife. The quality of the streams can have a direct effect on the ecological and economic value of these areas of the forest. Barriers are often put up to prevent pollutants, plus there will be buffer areas where harvesting will not be done.
Back in the 1970s and excise tax was developed which was referred to as a forest tax. Legislation was proposed that excluded property taxation on timber that was on a person’s property. This was beneficial, specifically for those that were not thinking about harvesting the trees. However, if they decided to profit from the trees by selling the timber, they would pay a 5% excise tax.
Another economic concept related to the harvesting of timber is the timber exemption certificates for sales tax. This is a tax that is exempted for those that are purchasing certain items that can aid in the development of trees that will be harvested. This is also going to apply to agricultural products, but in the case of timber management plans, specifically pertains to the trees.
Most timber management plans are designed for sustainability. They are equally concerned about the environmental consequences of this type of harvesting. If a management plant is done properly for the sale of timber, they can manage these areas for what could be decades and still extract millions of dollars in revenue by managing the forests in a proper manner.
A timber sale is where two parties are involved, specifically a buyer and seller for the trees that are being harvested. Timber harvests are quite common around the world. They will require negotiators, those that will create the documentation, and finally an assortment of professionals that will evaluate the total value of the lumber that is going to be harvested.
When timber is finally harvested, it is done so looking at certain parameters. This would include the size of the trees, how old they are, and the different species that can be harvested. These harvests are part of the transactional process between owners of the land that have the trees and those that would be the buyers.
When you sell timber, it can be a very lengthy process. There are many timber sales that are held up in litigation for many years. Part of the problem has to do with environmental regulations. Although they are designed to protect the environment, they can also prevent the proper management and harvesting of certain regions where timber can be harvested for a profit. Until the litigations are over, the sale of the timber will be in limbo. This can be problematic for people that are purchasing trees in areas where there was a substantial burn. This means that they must take care of this as soon as possible or they run the risk of having a substantial loss because of the timber that will no longer be marketable.
There is some concern about what is called a pine plantation. The valuation of these plantations is based upon what is called the stump its price. Over the last several years, there has been a steady decrease in the overall price per ton. In fact, the cost of pine trees, including sugar pines and ponderosa pines, are not as valuable as they once were. However, as the economy continues to improve, it is possible that the value of these plantations may begin to rise.