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With a stumpage sale, the buyer takes ownership of the timber from the landowner when the trees are harvested. Stumpage rates are proposed by the buyer (typically a logging contractor, forester, or mill) and stumpage paid to the landowner in exchange for the right to harvest their timber.
What is a logging contract?
A typical shares contract would involve a logger cutting the timber and selling the logs. The buyer of the logs would then write one check to the logger and another to the landowner. The proceeds from the sale are split between the landowner and the logger at an agreed upon rate prior to the sale.
What does a timber contract look like?
A typical timber sale contract usually contains the following: a description of the timber to be sold (estimated volume, number of trees and species), which timber will and will not be cut, the selling price (either lump sum or unit price), terms of payment, the location and boundaries of the sale, and time allowed to
How do you calculate stumpage?
Stumpage value= conversion surplus margin for profit and risk charges.
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A stumpage rate is the price a company must pay to the landowner in order to harvest timber from a certain area. This price was initially set based on the number of trees harvested (price per stump). Today, the price is determined based on quantity units, such as cubic meters, board feet or tons.
What is the most common type of logging?
Clearcutting. Many large-scale logging companies use the clearcutting method to harvest timber. The clearcutting system removes all the trees in a designated area (typically a woodlot). The reason many logging companies practice clearcutting is simply because its fast and cheap.
What is a stumpage contract?
With a stumpage sale, the buyer takes ownership of the timber from the landowner when the trees are harvested. Stumpage rates are proposed by the buyer (typically a logging contractor, forester, or mill) and stumpage paid to the landowner in exchange for the right to harvest their timber.
What is a stumpage contract?
With a stumpage sale, the buyer takes ownership of the timber from the landowner when the trees are harvested. Stumpage rates are proposed by the buyer (typically a logging contractor, forester, or mill) and stumpage paid to the landowner in exchange for the right to harvest their timber.
What is a contract log?
Contract Log means a log of contracts, maintained by the Contract Administrator which is designed to prevent duplication of contract numbers. This log constitutes the departments contract inventory.
Related links
SS-FOR-17/FR130: Steps to Marketing Timber
Marketing timber involves selling forest products in a competitive market to get the best return on your investment or to meet other objectives.
Contact a local Florida Forest Service county forester to find out about items to include in a timber sale contract. Preparing a contract encourages forethought
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