Wednesday, October 27, 1999 |
Now
is the time to ponder your timber-cutting options As fall approaches, so do thoughts of selling timber. Many landowners in Fayette County will be contacted by timber buyers about selling their trees. Before making a decision about selling your timber, follow some of the tips the Georgia Forestry Commission offers. There are basically three ways of marketing timber, per-unit, lump-sum and negotiation. Each has advantages and disadvantages. However, a lump-sum sale is usually the best way for a landowner to avoid headaches, retain control of the harvest and be sure they are being paid for the timber. A per-unit, or pay-as-you-cut sales is usually the easiest to make. A buyer agrees to pay a given price for each product. As the timber is cut and hauled to the mill, the buyer receives a ticket for the delivered wood and pays the landowner accordingly. Timber is not cruised, so the buyer pays nothing up front. For the landowner, there are several problems with this method of sale. The landowner can never be certain he has been paid for all the wood that he has left on the property. Only the best trees may be cut, leave the landowner with lower value trees that may be impossible to resell. Wasted wood that may be left on the tract is the landowner's loss. And with this type of sale, it is difficult to compare bids. One buyer may offer higher-per-unit prices than another. And finally, a per-unit sale gives the landowner little control over the sale. With a lump-sum sale, the buyer pays the landowner the full price for his timber before the harvest begins. This method of sale has a great advantage in that the a landowner knows exactly what he is getting for his timber. It is simple to compare bids, dollar against dollar. This method gives the landowner a great deal of control over the harvest. If a logger violates his contract, the landowner can halt the sale until the problem is corrected. The buyer has paid for the timber before the harvest, and must be allowed to cut the timber if he is to recover his investment and make a profit. He can only do so by abiding by his contract with the landowner. Disadvantages would apply especially for small sales. Buyers usually must cruise the timber in order to make their bids, and a small sale may not be worth the trouble. Small operations may not be able to pay up front for timber and may not bid on a lump-sum basis. Negotiated sales are usually made when a factor other than money is important, such as when a landowner wants timber harvested in a particular manner. For a given landowner, any of these methods may be best for his situation. For free advice and assistance with selling timber, contact the Georgia Forestry Commission at 770-254-7218. |