Timber Sale Agreements

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Commonly Asked Questions about Timber Sale Agreements

How do timber sales work?

Lump-sum sales are the simplest way to sell timber. Typically, the sale is put up for bid and each potential buyer submits an offer for the designated timber. Lump-sum sales require buyers to have accurate volume estimates by species and product type to establish their bid.

What is timber bidding?

With a lump-sum sale, bidders give you a total price based on the volume of timber that is to be harvested. This price is then paid to you by the winning bidder as one sum. The designated trees are sold to the buyer with that price payment.

What is a timber payment?

The Timber Yield Tax is a property tax paid by timber owners when they harvest trees, or timber. The California Department of Tax and Fee Administration (CDTFA) administers and collects the Timber Yield Tax, which, after state administrative costs, is allocated to the counties where the timber was harvested.

How to sell timber in Ohio?

Timber buyers in Ohio may work for a mill or work independently. They will pay for your standing timber and will enter into a contract with you when you decide to sell. A forester will be able to advertise your timber sale to multiple buyers and can help you select the right buyer for your woods.

What is timber in real estate?

Related Definitions Timberland Property means tangible real property that has as its primary use the bona fide production of trees for the primary purpose of producing timber for commercial uses.

Is selling timber profitable?

Selling timber directly to a sawmill can be very profitablethe exact amount of profit per acre depending on factors such as the quality and quantity of the timber, the current market conditions, and the terms of the sale agreement.