Maximizing Profit from Timber Harvesting Sales

In the heart of the Buckeye State, many private woodland owners are discovering a lucrative source of income from their woodlands by properly marketing timber. This guide provides essential steps for Ohio woodland owners to make the most of their forest resources.

The Ohio State University Extension offers free consulting services in forest management and timber marking for private woodland owners. Additionally, the Ohio Department of Natural Resources (ODNR) Division of Forestry provides assistance in selecting trees that should be harvested and related timber stand improvement practices.

When considering selling timber, various reasons may arise. These can include following a forest management plan, using the woodland as a source of income, salvaging damaged trees, or converting the land for other purposes. It is crucial to remember that harvesting your own timber may increase profits but should only be undertaken by someone with experience due to the risks involved.

To determine what to sell, the landowner must decide which trees or areas in the woodland are to be cut and then determine for each species the number of trees and/or volume of wood or amount of products to be sold. Trees selected to be cut should be clearly marked for easy identification.

When it comes to selling timber, it is recommended to contact several potential buyers to receive the highest value. There are two primary methods of timber sales: a lump-sum sale and a sale-by-unit (also called sale-by-price or sale-by-scale). In a lump-sum sale, a single payment is made to the seller for the trees designated for sale, while in a sale-by-unit, the seller is paid for each unit of product cut (e.g., board foot, cord, post, pole, etc.).

It is important to visit the area frequently during the timber harvest to ensure that the harvest is proceeding according to the terms of the contract and to discuss questions that might arise. Upon completion of the timber harvest, the landowner should write a letter releasing the buyer from the contract and return the performance bond if one has been posted.

A written contract between the buyer and the seller is essential when selling timber to reduce misunderstandings and disagreements. Properly marketing timber usually will dramatically increase returns, and it is important to contact as many buyers as possible to receive the highest offer.

Studies have shown that private forest landowners who sell timber with the assistance of a professional forester receive more money for their timber, cut fewer trees, have more residual volume and economic value left in the forest, and are more satisfied with the whole experience.

For those who wish to sell their timber but lack the necessary expertise, several consulting foresters can provide marketing services from timber volume and value estimation to sale closure for a fee. It is also recommended to take time to find out what you have to sell and choose the appropriate marketing method for substantially more income.

By following these steps, Ohio's private woodland owners can maximise their income from their woodlands while ensuring the health and longevity of their forests.