This is a contract whereby the buyer agrees to purchase all timber as designated for removal by the seller. Seller will also grant the buyer the right of ingress and egress to remove the timber from seller's land.
Utah Timber Sale Contract
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FAQ
Timber has been one of the most consistent investments over time, and a great hedge against inflation. According to value investor Jeremy Grantham, it's risen 3% more than inflation for more than 90 years. Timberland has also beaten the stock market over the long run, and with less volatility.
In it and would fetch about $500 dollars delivered to a sawmill. The top log in the pile and the second log up in the tree has about 200 bf. in it and would be worth about $175. Most high-dollar logs are veneer-quality logs.
The term "timber sale" is used to refer to any significant harvest of wood products involving an exchange of monies. Timber sales may involve sales of trees used to make lumber (sawtimber), fuelwood, whole tree chips, pulp, or any combination of these products.
For these reasons, it's not uncommon for a tree grower to net $40,000 to $60,000 per acre every year producing high quality trees that are healthy and bring premium prices in the marketplace.
Lessee agrees to delineate on the ground or on trees by paint marks or ribbons, the limitations of ground surface to be disturbed by surface operations and to give notice to Lessor at least 90 days in advance of any such operations which will require the removal of any timber or would result in damage thereto so as to
Logging companies rarely have the specialized equipment, not to mention proper insurances, to remove trees from an Urban setting. But even if they did, the cost associated with hauling equipment to a location and removing the bulk of an entire tree including its top is usually far greater than the value of the tree.
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.
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).
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.