A written forest management plan describes your woods, your goals for their management and development over time, and the steps you need to take to reach those goals. There are many reasons why a landowner might choose to sell timber. Have you taken steps to minimize death taxes? Our Membership Our members are valued for their leadership, expertise, and public-trust commitment to managing and conserving public and private forests across the country. Then you will want to know about the IRS Timber Tax Form T available for download from the Internal Revenue Service at http://www.irs.gov/pub/irs-pdf/ft.pdf. In an effort to give you an idea of the sale process, let me describe it to you. The appropriate method to use depends on the quality of the forest and the specific objectives of the landowner. In an effort to give you an idea of the sale process, let me describe it to you. All contract stipulations should be available in the timber sale request for bid so all buyers are bidding on a level playing field. The Kentucky Division of Forestry maintains a quarterly delivered log price report called Kentuckys Growing Gold which can be located herethen look under the Subject: Forest Industry and Resource Utilization Information for the latest Growing Gold. The Southern Research Station is one of seven units that make up the U.S. Forest Service Research and Development organization the most extensive natural resources research organization in the world. Most loggers are honorable people, but trust me, a few bad apples can spoil the whole bunch. Landowners also need to be familiar with the requirements of the Kentucky Forest Conservation Act and environmental regulations related to forestry operations. Clearcutting involves cutting all of the trees in a particular area, whereas selective cutting involves cutting individual trees throughout the stand. Logs (lumber and veneer) 40-80 yrs. . How much is my timber worth? Philanthropy & Alumni Logs (handle stock, lumber) 40-70 yrs. Click here for the 2022 Tax Tips for Forest Landowners. All the bids are then opened on the day of the sale. High-quality hickory logs are certainly on-par with red oak speciessome instances more . Most of ours is maple beech due to the same type of cutting several times. Pulpwood* and posts 15-30 yrs. black cherry) are worth more than others (i.e. Research / We are a reputable company that will take care of your woodlands as if we were taking care of our own. Mark your property lines 2022 Nature's Choice, LLC | Amish Business. Tri-State Timber is a leading producer of veneer and high quality logs. As a result: (1) landowners often lose income because they sell timber without adequate information, and (2) millions of acres of forestland lack ongoing management. I do not charge for our initial meeting. . Therefore, the value of a stand of trees becomes whatever is agreeable between the buyer and seller. All of those things can affect how much wood can be removed and the operational costs of harvesting. Searching cheap houses for sale in Kentucky has never been easier on PropertyShark! The job of the forester or timber buyer ends only after a final inspection of the tract to make sure that the obligations set forth in the contract have been met and that the landowner is satisfied with the results. Performing this action will revert the following features to their default settings: Hooray! However, any seller-oriented contract stipulation will usually add costs to the buyer and reduce the selling price of the timber. S123 Ag Science North There can be a substantial difference in taxes owed if you have to treat the dollars received as ordinary income versus capital gains. The time to think about a timber sale is years in advance of the actual timber sale. Posts 20-30 yrs. Further, by obtaining the services of a professional, paid or unpaid, you can ensure that the land and forest remaining after the harvest is more productive in the long run. There are several steps you should follow before selling your timber. Are you sure you want to delete your template? Most of the woodlands in Kentucky have experienced timber harvesting at some point and many have been harvested multiple times, yet the relative area of woodlands in Kentucky has increased over 3 percent in the last 70 years. Flooring and cabinet manufacturing is likely the reason for this steady demand. Price per acre of hunting land in Kentucky averages $1,600. There can be a substantial difference in taxes owed if you have to treat the dollars received as ordinary income versus capital gains. They say if you have big walnut trees that are straight with not a lot of limbs you can get a lot of money for them, ship them to China for veneer. Select cutting of larger trees enables the rapid growth of younger trees, thus enhancing the long term value of the woods. Our methods minimize harvesting damage to your property, and enhance the environment for wildlife. Tri-State Timber harvests timber for restoring the USS Constitution, Tri-State Buying Timber from State Timber Sales. Create a timber sale notice for a list of reputable buyers. Where the property boundaries are located. For a better experience, please enable JavaScript in your browser before proceeding. Marketing timber is difficult when your knowledge of the resource is limited. An Official Website of the Commonwealth of Kentucky, Selling timber is something that most woodland owners do infrequently; and therefore, they are not familiar with how to claim the income or deductions when filing income tax forms. You can sell through an oral auction where several buyers attend and verbally bid on the trees, or you can request sealed bids that allow you to compare several different offers on sale day. Research / Our methods minimize harvesting damage to your property, and enhance the environment for wildlife. best). First, you can call on the free or low-cost services of state or university personnel. An oak tree in a timber sale can be worth anywhere from 15 cents a board foot for pallet material quality up to $1.20 per board foot for high quality logs. S123 Ag Science North Certain types of timber (i.e. . They love a "select" cut which they take all the good and leave all the bad. In the sealed bid method, buyers get a period of time (usually 4-6 weeks) to inspect the timber and mail you written bids. Independent forestry consultants often have a wide network of contractors in order to custom-tailor service for each landowner. If you cut 500 MBF of timber, your depletion allowance would be $40,000 (500 MBF $80). You had owned the timber for more than 1 year before the sale. Selling Timber If you have sold timber or plan to sell timber, the way you sell may determine how much taxes are owed. LOG LENGTH: 8'8" & 17'6". All rights reserved. I prefer to sell timber on commission, however, for it to be economical for me to sell your trees that way requires a minimum of around 50,000 board feet. Alternatively, you can visit the website of the. Prices are based on an average calculated from a sample of consultants across the U.S., and only intended to provide an estimate of trends and current prices. In most cases, diameter cutting is just another way of high-grading timber. If you decide not to have a professional forester visit your forest, then you should obtain as many offers as possible for your timber and make sure that the hired harvesting company is bonded, knows your property boundaries, follows all existing laws, knows exactly which of your trees you want harvested, and understands completely what your objectives are for the land after the timber is harvested. The goal of KFCA is to protect water quality by requiring loggers to use appropriate BMPs. It can be more costly per unit of wood removed to cut only a few, selected trees, rather than cut most or all trees in the stand. He would buy standing timber. NIFA is the federal partner in a vast network of scientists, educators, and extension staff that address critical issues about agriculture, food, the environment, and communities. We offer the lowest consulting fees without compromising the quality of our timber sales services. Timber values may fluctuate wildly based on the species being harvested, their quality, their volume per acre and per tree, the distance to markets, logging difficulty level, time of year, contract restrictions, as well as current market conditions. A large, top quality black cherry, for example, would command a significant price premium as a veneer log, while limby and crooked sweetgum might be priced as pulpwood. In the shares method, the logger cuts the trees and takes them to area mills and pays you a percent of what they receive. This section of our website provides basic information on timber harvests, who can provide assistance, how to use a harvest to improve your woodlands, and a some do's and don'ts.Are Kentuckys trees being overharvested? Chris Demers and Alan Long. Christmas trees 8-15 yrs. There has to be value to offset costs to the timber buyer to bring equipment (log truck, skidder, and loader) to the property, cut the log, haul the log(s) to a mill, pay the landowner for the tree(s) and . Will timber, land or both have to be sold to pay family administrative expenses and estate taxes? Youll need to set some boundaries before you set out to sell. The complaint also alleges that there . CRAB ORCHARD: Ottenheim Country Store; 5920 KY HWY 643, Crab Orchard, KY 40489. Do you want them to use existing roads or build new ones? If you are selling stumpage or logs, it is important to recognize the differences in volume associated with the different log rules. Partnerships are integral to NIFA's mission. However, a closer look at the data shows that higher quality trees are much more likely to be harvested than lower quality trees. 1. These tips are all about how to sell timber. This frequent question does not have a simple answer. We grade and seed damage to the land. These two sale approaches probably account for well over half of the timber sold in Kentucky. Logs must be sound, straight, and produced from green timber. Tip: Landowners Should Always Identify objectives for their woodlands and research current market conditions. Pulpwood* 30-50 yrs. Tips for Selling Your Timber - Kentucky Division of Forestry. However, in order to get a good price for your timber, I'd like to cover seven factors that should be considered prior to the sale. Once youve chosen the winning bid, you will need to have a written, signed contract that describes what you and the buyer have agreed to, what everyones responsibilities are, and how payment will be made. This mix of 10 x 20 black oak, white oak and post oak trees from a homebuilding site would sell for about $75-$100 each, delivered to a local sawmill. Each timber sale is unique, so provisions of each contract may vary. Poles and pilings 40-50 yrs. Logs (lumber and veneer) 40-60 yrs. Sell your timber by bids. Third, you can get a rough idea of the level and trends of timber prices by examining the prices for timber in your state or surrounding states. You also need adequate time to manage for the trees that will later occupy the site ensuring that the future forest that will take the place of the harvested timber is of the right species mix, size, and vigor so that it is as productive and healthy as possible. Lexington, KY 40546-0091 When selecting trees to be harvested, it is important to remember that there are many factors affecting the value of a timber stand including species, number, size, total volume, quality, distance from market, accessibility of site, difficulty of logging, market conditions and buyers finances. 317- 445-2651 . Having a plan can help you decide the details of your harvestwhere, how, which trees, etc.and your steps after the timber sale. Use a reliable logging firm. Below we talk about how to answer these questions. Kraig Moore, ACF The forest is a complex natural system. Professional foresters can help you plan your timber harvest and sale. Overly mature, older trees will die of old age, diminishing the value of the forest. Although it is not required, landowners and loggers are encouraged to contact their local Kentucky Division of Forestry (KDF) office to notify them of a commercial timber harvest. The Kentucky Division of Forestry offers a variety of services that can assist woodland owners in conducting a timber sale but they are not allowed to actually sell the timber for you. One way to locate these foresters is by visiting the. Division of Forestry employees are not experts when it comes to timber tax issues. By carefully planning your sale and contacting a professional forester for assistance before you begin harvesting, you can go a long way to ensuring a successful timber sale. A large, top quality black cherry, for example, would command a significant price premium as a veneer log, while limby and crooked sweetgum might be priced as pulpwood. In fact, timber cutting is one of the most important management tools for a forester. Often the buyer will remove only the most marketable trees, leaving a stand of less valuable trees in poor condition. Likewise, larger trees will be worth more than smaller trees. If you would like to sell us your timber or custom cut logs and need more information about the purchasing and procurement processes, please give us a call at 270-963-1110 to speak with a Frank Miller procurement specialist today. Logs 40-60 yrs. Field staff assist landowners through technical assistance and management planning to support conservation and sustainable forestry practices. SHOW LESS . I have 12 acres of mixed hardwoods just wondering if it's a good time to sell your timber? There are, however, several ways you can obtain information about the value of your timber: Our recommendations on how to sell timber are similar to those for determining what timber is worth: One last bit of caution. Sitting here in our offices of Research Triangle Park, North Carolina, it would be difficult for us to estimate what your timber or logs are worth. Size vs Maturity - Sometimes the size of a tree is a good indicator of its maturity, but not always. If your timber grows near a lot of mills, your timber might command a higher price than if the timber were far from mills or close to only one or two mills. -. Now, obviously prices will range from mill. Pulpwood* 20-30 yrs. You obviously had a good mixed understory ready to take off when they did the cut. I choose to market your timber by utilizing two safe and very effective methods. Map your land with the MyLandPlan Tool even before you begin planning your next harvest. All timber markings performed by division foresters are based on sound forest management principals. $8.00. When to claim depletion. Each landowners logs are sold with many other logs and are graded into very particular grades for specific markets. I had a buyer tell me a tree I had marked last week was worth $1,000. DIAMETER: 9" Minimum 30" maximum on Butt End. Proper forest management is accomplished by identifying and selecting the best trees for removal. HOME; About Us; Iowa has a bonded timber buyer's law that requires anyone that buys timber to be bonded. For instance, you may be interested in clearing the land for development, preserving wildlife or managing growth. Do you have a forest management plan? Your forester can make an accurate inventory of your treessort of like an appraisal of your homeso you can know your timbers value before you try to sell it. Tip: Contracts Should Include How the trees will be marked. If you have sold timber or plan to sell timber, the way you sell may determine how much taxes are owed. Dean While Kentucky has more than 100 native tree species, only about 50 have commercial timber value; of those with commercial timber value, a relatively few species account for the majority of harvested volume. Selling cut products Digital Media Library, Timber Harvesting as a Woodland Management Tool, College of Agriculture, Food and Environment. Understanding a few timber-harvesting basics can help in making good decisions about your woodlands and harvesting. I recently had a logger survey my farm. You may choose to have a forester with the Division of Forestry assist you or you may hire a consulting forester. Landowners who cut timber on their own land for non-industrial purposes are not required to have a master logger certificate; however, landowners are responsible for implementing best management practices (BMPs) for the purpose of protecting watersheds as required under the Agriculture Water Quality Act. It may be advisable to obtain legal counsel when preparing a contract. Based on an estimated one million board feet (1,000 MBF) of standing timber, you figure your depletion unit to be $80 per MBF ($80,000 1,000). Are the prices favorable? Most timber in Kentucky is sold on the shares method. Pulpwood* 20-30 yrs. Christmas trees 7-10 yrs. Advise landowners about timber trespass laws. Logs 40-79 yrs. We are not middlemen or brokers, so we can pay top dollar for your trees. Foresters are able to look at the overall species composition and determine what type of harvest is needed and the forests potential for regeneration. Logs (boxes, crates, lumber, veneer) 30-50 yrs. Why Sell Timber? You can check the Kentucky master logger Web site for a list of Kentucky master loggers in your area. Selling timber is like that toothere are several steps to the process, many of which may be new to you. Whatever the reason for harvesting, a professional forester can help you plan a harvest that will suit your objectives and maximize your income. Overall, the simple answer is no. Create a contract and monitor the sale to resolve issues that may arise. This is the most valuable service to landowners. Step 1. Credit:Credit:STIHL Photo Contest submission by Wayne Phillips, The Difference Between a Forester and a Logger, Tips for Planning a Successful Timber Sale. Selling timber is like that toothere are several steps to the process, many of which may be new to you. Beyond that, you might be able to make $5 to $20 per year for hunting or grazing leases, $2 or $3 a year in other non-timber products . We not only take care of your property, we also pay you top prices for your trees. Participants must attend and participate in all three days of the program to be designated as a Kentucky master logger. jhayek@illinois.edu. Consider both price and quality when selecting a logger. For any landowner or logging company looking to sell trees or logs, Tri-State Timber can provide the service you need. Additionally, we . We are a reputable company that will take care of your woodlands as if we were taking care of our own. Are there special places in your woods that you dont want disturbed? Timber is a valuable commodity, and since most landowners only have timber harvested once or twice in a lifetime (at least on a large scale), some careful thought and a few simple actions before you sell your timber can ensure the process is done right. Oak regeneration is tough without maple grows to fast for oak to keep up with unless there is an established oak understory with well developed roots ready to take off when the canopy is taken. Whether you are buying or selling timber, planning a harvest, brokering a timber sale or tracking the value of timber over time, Forest2Market . Cruse Hardwoods buy and sell standing timber, and offer a logging company, tree sales, forest management, and land sales in Indiana, Ohio, Kentucky, Illinois, and Missourri. The percent you receive is dependent on what you are selling, but commonly you will receive 50-60% of the timber value. . I can get you the name of the guy my buddy went with in Mercer Co if you want. Before you begin planning your next harvest USS Constitution, tri-state Buying timber from State timber services. Reputable buyers lumber, veneer ) 30-50 yrs Division foresters are based on sound forest management principals sale,. That toothere are several steps to the process, many of which may interested! Ky HWY 643, crab ORCHARD: Ottenheim Country Store ; 5920 HWY! Enables the rapid growth of younger trees, thus enhancing the long value! 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