Still the best way to sell timber
Now, more than ever, it is imperative that we maximize our returns on investment. We have seen both the best and the worst of this statement as it relates to our timber, with some of the best timber prices historically paid pre-2008, and some of the worst post-2008 (relatively speaking). But, much has changed since the crash of 2008. Well-managed forests have grown in volume and quality. Investments in pre-commercial activities like timber stand improvement pay dividends into the future. The general economy has gotten stronger and the timber/lumber economies have strengthened.
We have seen a steady increase in demand for stumpage sales throughout all of 2013, continuing into 2014. With that increase in activity has come an increase in prices paid for timber sales conducted through the competitive bidding process. Bidding continues to provide the best exposure to the largest available market which results in the best prices being paid to you on that particular bid date.
It is our job to mark, cruise and appraise the timber being sold. The sale package is prepared indicating to the potential bidder the circumstances and/or costs associated with the sale. Pipeline and streams crossings are defined; landowner imposed conditions on the sale are defined; activities that need to be performed to meet local, State and Federal regulations are defined. We define the conditions under which the sale will be operated, and this makes the job of the timber buyer easier. They simply need to look at the timber, the job specifications, and provide their best price for your timber under those conditions of sale.
We have been providing consulting services to both landowners and industry for 60 years now, and timber companies know what to expect from a FORECON, Inc. managed timber sale. Our reputation for fair and honest dealing with both landowners and industry brings bids to the table. The results below speak for themselves.
We will showcase two (2) sales that were marketed through the prospectus-and-bid process recently:
Sale 1 Profile:
This timber was sold in January of 2014. It contained approximately 127,515 boardfeet (Doyle Log Rule) of timber, with about 34% of the volume in white ash, 27% in red maple, 16% in hard maple, and 13% in black cherry. The sale was sold on a “lump sum” basis. We recieved eight bids, ranging from a low of $40,372 to a high bid of $72,600.