Before
making a decision about selling your timber, follow some
of the tips the Georgia Forestry Commission offers.
There are
basically three ways of marketing timber, per-unit,
lump-sum and negotiation. Each has advantages and
disadvantages. However, a lump-sum sale is usually the
best way for a landowner to avoid headaches, retain
control of the harvest and be sure they are being paid
for the timber.
A per-unit,
or pay-as-you-cut sales is usually the easiest to make. A
buyer agrees to pay a given price for each product. As
the timber is cut and hauled to the mill, the buyer
receives a ticket for the delivered wood and pays the
landowner accordingly.
Timber is
not cruised, so the buyer pays nothing up front. For the
landowner, there are several problems with this method of
sale.
The
landowner can never be certain he has been paid for all
the wood that he has left on the property. Only the best
trees may be cut, leave the landowner with lower value
trees that may be impossible to resell.
Wasted wood
that may be left on the tract is the landowner's loss.
And with this type of sale, it is difficult to compare
bids. One buyer may offer higher-per-unit prices than
another. And finally, a per-unit sale gives the landowner
little control over the sale.
With a
lump-sum sale, the buyer pays the landowner the full
price for his timber before the harvest begins. This
method of sale has a great advantage in that the a
landowner knows exactly what he is getting for his
timber.
It is
simple to compare bids, dollar against dollar. This
method gives the landowner a great deal of control over
the harvest.
If a logger
violates his contract, the landowner can halt the sale
until the problem is corrected. The buyer has paid for
the timber before the harvest, and must be allowed to cut
the timber if he is to recover his investment and make a
profit. He can only do so by abiding by his contract with
the landowner.
Disadvantages
would apply especially for small sales. Buyers usually
must cruise the timber in order to make their bids, and a
small sale may not be worth the trouble.
Small
operations may not be able to pay up front for timber and
may not bid on a lump-sum basis.
Negotiated
sales are usually made when a factor other than money is
important, such as when a landowner wants timber
harvested in a particular manner.
For a given
landowner, any of these methods may be best for his
situation. For free advice and assistance with selling
timber, contact the Georgia Forestry Commission at
770-254-7218.






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