Timberland Selling Procedures
- Landowner Consultation
- Initial Site Visit
- Harvest Recommendations
- Timber Marking & Inventory
- Design and Layout Sale
- Timber Volume & Value Estimation
- Bid Prospectus Development
- Bid Opening
- Contract Development & Preparation
- Receive Payment for Timber
- Collect Insurance Certificates
- Collect Performance Bond
- Logging Inspections
- Close Sale
Objectives and Preliminary Planning
The sale of timber is certainly a milestone for any timberland owner. Years of planning and patiently waiting suddenly culminate in a process that, if handled correctly, can help the landowner meet any one or more of a variety of goals (i.e. income from the sale of forest products, enhancement of wildlife habitat, development of recreational trails, etc.), and if handled poorly, can set these same objectives back many years.
There’s a lot at stake when a tract of timber is harvested – and landowners don’t often have the time or expertise to ensure that their best interests are being realized. That’s where FORECON, Inc. can help.
It is of utmost importance to us that the landowner’s desires become the cornerstone of any timber harvesting project we undertake. We make our harvesting recommendations based on these desires after a site inspection is made of the subject timber resource.
Preparing the Sale
Once the owner approves a harvesting plan designed to meet a variety of goals that the landowner may have, our foresters and forest technicians cruise and mark the trees to be harvested. While they are on the property, they identify the best possible locations for major skid roads and log landings, and plan for any other circumstance that may affect the timber harvesting operation. Besides marking the timber that will be harvested and sold, they also mark the timber sale boundaries so that the timber harvesters can easily identify the area where the trees to be harvested are located.
After the timber marking and cruising is done, the data collected in the field is processed and stand and stock tables are developed. These tables show, by species, the estimated number of trees and board foot volumes for all the trees that are marked for sale.
Based on this information and the general consensus of the foresters and forest technicians of the quality of the subject timber resource, we estimate the market value of the timber being offered for sale. This is shared only with the owner, and is used as a target for the bid sale. At this point a detailed timber sale prospectus is developed. This prospectus includes the terms of the particular timber sale, general sale conditions, time frame of the contract, and insurance (worker’s compensation and general liability) certificates showing that the purchaser’s policies are currently in place and that they have the proper liability coverages. It also includes a detailed list of the estimated board foot volumes of each timber species marked, a bid form, and a bid opening date and time.
Bidders are invited to bid by mail, by facsimile, by telephone, or in-person. We are strong proponents of selling timber through a competitive bid process. It has shown, time and time again, that it is truly the most efficient and effective way to get the highest price for your timber.
Marketing the Timber
Bid prospectuses are mailed to upwards of fifty qualified buyers (primarily sawmills and independent loggers) and they are invited to visit the property to inspect the marked timber. Bids are opened at a specified date and time and are immediately shared with the seller. We then develop the timber sale contract between our client (seller) and the buyer and, at the time the buyer signs them, we collect payment in full for our client.
No timber is harvested before our client is paid for the timber being sold.
Timber Sale Administration
Before any timber is harvested, we collect a performance bond from the buyer (either cash or an actual surety bond) and deposit it in escrow; this is returned to the buyer only after it has been determined that all of the contract specifications have been adhered to, and that the logging operation is cleaned up in accordance with Best Management Practices (i.e. skid roads are smoothed and water-barred, log landings are cleaned up, all downed trees and tree tops are pulled back onto the subject property if they had fallen over the boundary line, only trees marked for sale were harvested, etc.)
We pay very careful attention to make sure that all environmental regulations and requirements are followed, and routinely complete and file stream crossing permits and erosion and sedimentation control plans with the governing local and state authorities when applicable.
FORECON, Inc. will provide you with the professional forestry services you need to ensure that you get the highest possible return on the sale of your timber, while making certain that the harvesting is done in an environmentally sound and responsible manner. Call on us and use our expertise to your advantage!