Sustained Management

If sustained timber management for maximum economic return is your goal, then applying the right management techniques at the right time is vital. Timber harvests should fall within the framework of sustained yields controlled by a long-range forest management plan. A professional forester can be utilized to help you develop your plan based on your site characteristics and the timber market in your area. An accountant should be used to ensure that you get to keep as much of the harvest income as possible. There are many different timber related tax structures that can be used to help you lessen the hurt from Uncle Sam.

Timber growth depends greatly on the kind of soil the trees are growing in. On average soils, the growth potential of a well-managed pine stand is 300 to 400 board feet per acre per year, or a value of $90 to $120 per acre per year. Poor soils would grow about half this volume while good soils will almost double this value. Intensive Pine Management can also increase the value per acre per year by improving microsite conditions and increasing wood production from 1.5 to 4 or 5 cords per acre per year.

Timber value relates directly to tree size. Small timber is used for pulpwood and large logs are used for sawlogs and veneer logs. A well-stocked pine stand that has about 60 - 70 trees per acre, and an average diameter of 12 to 14" (25 years of age) can easily have 5,000 or more board feet per acre. With a stumpage price for standing timber valued at $300 per thousand board feet (MBF), the stand is valued at about $1,500 per acre.

For maximum economic gain, you have two factors pushing you to grow larger trees.

1. Larger trees can produce more valuable products and the unit value is much greater.

   EXAMPLE: It takes about three and one-half cords of pulpwood to equal the volume in 1,000 board feet of sawlogs, at $22 per cord and $300 per MBF you are comparing $77 (pulpwood) to $300 (sawlogs)

2. For every 1" increase in diameter, the volume of wood increases substantially.

   EXAMPLE: It would take ten-10"DBH logs to equal the volume of only one 20"DBH log!

Timber products have always been a sound investment and the economic future looks good as well. High quality hardwoods and pine sawlogs have been increasing in value for the past 100 years. Projections are for the timber supply to fall short of demand which means increasing revenue for the timberland owner. With demand outreaching supply and Government restrictions on logging public lands, investment returns should be great for the next 40 years.