This package contains essential legal documents for purchasing timber. The documents in this package are State Specific and include the following:
1. Timber Deed
2. Timber Purchase Agreement - Cash Advance
3. Timber Purchase Agreement - Pay as Cut
Alabama Timber Purchase Forms Package
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FAQ
Depending on the type of trees and the market when the timber is sold, you could earn $500 to $2000 per acre (at $1500, you would be looking at $60 per year in income if you were to annualize it over 25 years).
Stumpage value= conversion surplus margin for profit and risk charges.
The value of this tree would be $195.00 for an average of $866.00 per thousand board feet. A fourteen inch Red Oak with a grade 3 rating would be worth $12.00 for an average price per thousand board feet of $265.00.
The average stumpage price is $300/MBF, or $1,800 per acre total value.
In logging contracts, payment is most often based on either dollars per unit or a percentage of the value of the wood. Historically, loggers have worked on a percentage basis, and 50 percent of the value of the wood was standard operating proce- dure.
Stumpage is the price a private firm pays for the right to harvest timber from a given land base. It is paid to the current owner of the land. Historically, the price was determined on a basis of the number of trees harvested, or per stump.
To estimate the value of your timber, take the volume, divided by 1,000, and multiply it by the price quoted in your states standing timber stumpage report.
Stumpage is the price a private firm pays for the right to harvest timber from a given land base. It is paid to the current owner of the land.A given stumpage rate, measured in $/volume, is then applied to the amount of timber to be harvested. The firm will then pay this price to the landowner.
As a guide timber harvesting costs are commonly between $20 and $40 per cubic metre depending on the type of machinery used, the type of the logs and the site conditions. Harvesting costs are generally lower for large plantations of large diameter logs on easy accessible country.