Now is the time to ponder your timber-cutting options

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Now is the time to ponder your timber-cutting options

Business
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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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