Purchasing Info

The timber industry begins with the landowner. There are three basic types of timberland owners: non-industrial private, industrial, and government. Non-industrial private landowners are primarily individual entities that own both the land and the timber. They normally sell their timber directly to a single logger or sawmill. Standing timber is usually purchased in one of three ways: 1) Outright purchase of the land and related timber, 2) purchase for a set total amount or lump sum for a specific tract of timber or, 3) Purchase at a specified rate (percentage) or per unit (net mbf) of timber actually cut and delivered. An example of a specified rate would be that a logger would take 40% of the net value of the logs delivered to a given mill. The logger covers the cost of harvesting and transportation of the logs to the mill. Sometimes the landowner is guaranteed a price per net mbf (per unit). This is called stumpage. Again, the logger covers the cost of harvesting and trucking.
Payment to the land owner is based on a scale ticket from the sawmill showing the grade, species, and actual volume of timber harvested. The scale ticket provides a verification of actual timber removed. Many mills will pay the landowner, the logger and in some instances the trucking firm. This service is called a split payment.

Timber Tomorrow focuses on working with the timber owner’s wishes. We have purchased timber, timber land and provided harvesting at both percentages and stumpage rates.

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