Maximizing Returns

We at Green Timber are constantly monitoring all of the factors that impact timber markets and are able to provide you with guidance as to how and when to conduct a timber sale that will benefit you both from a financial and forest health/productivity standpoint. 

When selling timber from your property you want to ensure that you are maximizing your returns. We have no obligations to any specific logger or sawmill, allowing us to sell your timber on the open market and maximize its value. Because we take a commission on the value of the timber sale, getting you the best price for your timber is in our best interest. This is not the case when you work directly with a logger or sawmill. Additionally, our closed seal bidding process ensures that the loggers providing a bid on the timber are bidding competitive rates. 

Timber Sale Bidding

Calculated timber volumes are advertised in a timber sale bid prospectus for each individual timber sale. The prospectus will detail all aspects of the timber sale that could influence the bid such as timber volumes separated by species and product, harvesting instructions, seasonal harvest restrictions, required road improvement and maintenance, the payment structure, and the bid due date. The bid prospectus is also accompanied by maps depicting the general location of the property and the specific harvest areas, access routes, and landing areas.

Once completed the bid prospectus is then circulated to a list of potential bidders that are given the opportunity to provide a closed seal bid. Closed seal bids benefit landowners, as competing loggers will not be able to see the price of the other offers, effectively forcing them to bid the maximum amount that allows them to make acceptable profits from the sale. The fees associated with our services are typically more than absorbed by the difference in bid price from the high to low bidder. Having a reputable consultant conduct a well-organized closed seal bid for your timber sale is the best way to maximize the value of the timber you are selling. 

Lump-Sum vs Scaled Sales

There two common methods for selling timber, they are lump sum sales and scale sales. For simplicity, these two sale methods are summarized below.

Lump-Sum

  • Timber is sold “as is” with a fixed price based on cruise data
  • Higher initial sampling intensity
  • Lower long-term time commitment
  • Logger has paid for all cruised merchantable timber, utilization will not affect price paid to the landowner.

Scale

  • Timber value is estimated, and final price depends on the logger’s bid per timber product and timber volume delivered to the mill
  • Lower initial sampling intensity
  • Higher long-term time commitment
  • Logger may not effectively utilize all merchantable timber, could affect the price paid to the landowner.

Results

A Green Timber forester will determine which sale method is best suited for each individual timber sale based on the size of the sale, the current timber markets, the type of timber products that will be harvested, and the difficulty of the logging operation.

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