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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

What is a stumpage sale?

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.

How is stumpage pricing calculated?

Stumpage value= conversion surplus margin for profit and risk charges.

Can you make money selling timber?

Depending on current timber prices, you could make some money. If this is the only reason youre thinking about cutting timber (but arent excited about removing your park-like trees), there are other options that dont involve cutting. In fact, you can make a healthy side income without cutting your trees at all.

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