Expected Timber Value?

[jeremych]

Hi, I have a question I'm hoping someone can help be with.

I'm looking to buy 100 acres of land in West Virginia and was wonder what the minimum value of the timber would be? I know that is a very broad question with lots of variables and almost impossible to answer. My question is really what should I expect the base value per acre of the timber to be on a piece of land that has trees that are 30 or 40 years old? If we ignore the different types of trees and strictly were to clear cut a 30 - 40 year old 100 acre forest for pulpwood, I would think there should be a ballpark range of the value of the timber i.e. 30 years X average growth a year X pulpwood prices = $xxx per acre. I know getting a forester out there to evaluate the timber is the best way to go. I'm just trying to get a rough idea of what may or may not be a good deal before even getting the forester involved.

Thanks for the help!

Jeremy

 

[northmanlogging]

From what I've been hearing, pulp is nearly worthless on the east coast, break even for the logger at best

Not much better here on the west coast

 

[slowp]

You don't base value on growth unless you are trying to predict the future value. That would be hard to do because markets are fluctuating. You estimate the size of trees, normally by taking a sample. The more samples the more accurate you'll be. You then do whatever you need to figure out total volume and you've got an estimate. I would recommend doing local research--talk to mills and log buyers, then hire a timber cruiser. I'm rusty on timber cruising but Madhatte knows his stuff.

Some other topics to ponder. Are you familiar with any Forest Practice Rules that must be followed? Do you know what kind of equipment is suitable to work on that land? What kind of permits do you need? Some areas require you to have a harvest plan. You'd find out this by talking to a state or county forester.

And then....you could read up on the topic. There should be lots of papers online covering timber cruising. Books too.

 

[esean]

The timber value on the stump may be absolutely nothing, depending on local markets. The key question is: why are you interested in the land in the first place?

 

[Jhenderson]

Probably because like a lot of folks he thinks he’s gonna pay for the land with the timber. He doesn’t realize he’s about 75 years too late.

 

[EchoRomeoCharlie]

Minimum? $0.