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To exercise the opportunity for mutual cancellation, the purchaser must submit a request in writing for each timber sale contract the purchaser seeks to cancel. The written request must be received by the BLM within 60 days of the purchaser's receipt of the BLM's letter.
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Profit margins for the supplier average 3 to 5.5 percent. In general, a profit margin reflects the amount of value added to the product during processing and the amount of risk associated with the endeavor. While loggers do not technically add value to the timber they process and deliver, they do turn trees into logs.
There are three major groups of timber harvest practices; clearcutting, shelterwood and selection systems.
A timber deed is a document that gives a timber company the right to cut the timber off of a specific piece of property. Usually they last anywhere from 1 to 3 years.
With a stumpage sale, the buyer takes ownership of the timber from the landowner when the trees are harvested. Stumpage rates are proposed by the buyer (typically a logging contractor, forester, or mill) and stumpage paid to the landowner in exchange for the right to harvest their timber.
The seller will receive the total payment before the timber is cut. In a per-unit sale the seller and buyer negotiate a price per unit of timber harvested. This type of sale results in the seller receiving payment as the timber is cut.
A typical timber sale contract usually contains the following: a description of the timber to be sold (estimated volume, number of trees and species), which timber will and will not be cut, the selling price (either lump sum or unit price), terms of payment, the location and boundaries of the sale, and time allowed to