Price for ponderosa pine?

[Carpenter]

I have recently begun milling and now have to buy logs.  At this point I will also be doing the logging, and on the first tract of ground I have lined up to log, I will get the logs in exchange for some labor but I do need a fair price in order to make this work out. 
     Last fall before I bought the saw mill I priced some pine beams from a local sawyer and his price was .80/bdft.  This was for 8x10 beams.  I will be cutting beams but at the same time will get some dimensional lumber.  So, should the dimensional lumber also be worth .80/bdft?  I figured the price on 2x4s from the local lumber yard and it was right at .60/bdft.  If I could sell rough cut green lumber at .80 and would like to think that the cutting is worth .30/bdft (although I haven't ran the mill enough to actually have a good estimate for the cost of production) that would mean that logs delivered to the mill should be worth .50 of course taking waste into consideration. 
     The trees that I am going to get are 15 miles from the mill some are easy to get to and on relatively flat ground but I will have to winch some out of a canyon but I do have a winch and the capability to handle them.  The average tree that I will be going after will yield about 200 board feet. 
     What do you guys think would be a fair price based on this?  I don't want to cheat the landowner especially since I am new to the sawmill business and want to develope a good relationship with the landowners.  On the other hand I don't want to pay too much and struggle to make a profit either. 

[Kansas]

I think I would start with the Nebraska Forest Service, whoever the district forester in your area is. He will probably have some idea of what standing timber is worth in your area.

[WDH]

Top price in the Southern US for the best grade pine logs is about $35/ton on the stump maybe $40 for the prime stuff unless they are poles which are a little higher.  Average grade log are more like $25/ton.  That is low historically, but these prices are a victim of the drop in demand for construction lumber. 

[stonebroke]

I think I would start with the Nebraska Forest Service, whoever the district forester in your area is. He will probably have some idea of what standing timber is worth in your area.

There is a Nebraska Forest Service? That is like having a Nebraska Coast Guard. Just fooling with you. You probably  grow pretty nice trees, It just takes more effort.

Stonebroke

[Bobus2003]

Top price in the Southern US for the best grade pine logs is about $35/ton on the stump maybe $40 for the prime stuff unless they are poles which are a little higher.  Average grade log are more like $25/ton.  That is low historically, but these prices are a victim of the drop in demand for construction lumber. 

In Western SD we are getting $26/ton for sawlogs 6'-12' top, 12'+ tops are $32/ton but have 100+ miles trucking. And Post and Pole material 4" - 9" top is $40/ton

 

[woodtroll]

Stumpage in the black hills for our last sale was $23/mbf, the FS is getting around $5. Thanks to the bugs

[Kansas]

I think I would start with the Nebraska Forest Service, whoever the district forester in your area is. He will probably have some idea of what standing timber is worth in your area.

There is a Nebraska Forest Service? That is like having a Nebraska Coast Guard. Just fooling with you. You probably  grow pretty nice trees, It just takes more effort.

Stonebroke

I once dated a lass who belonged to the Coast Guard reserve here in Kansas. We gotta protect our oceans here yanno. We aren't all mountains.

[stonebroke]

What exactly does the Coast Guard Reserve do in Kansas? You have a lot of stuff but oceans don't come to mind.

Stonebroke

[Carpenter]

Thanks for the response guys.  I'll have to post some pictures of the piece of ground I will be logging.  Nebraska does have some trees, you just have to know where to look.  I live very close to the Niobrara river which has a lot of trees and is also considered a scenic river, which just drives up peoples property values and makes us pay more taxes.  Nebraska actually does have a forest service, I was shocked to learn this as well.  I have not had the time to talk with him yet. But I will as soon as I can. 
     

[stonebroke]

So you have one guy in the forest service? Makes sense. Do you have any national forests?



Stonebroke

[chucker]

  ?? dont they have the ginko petrifed forest ?? like hard to find!!! or was it the forest of hard rocks... ? jk.

[logloper]

  I have quite a bit of ponderosa that I would happily sell for .50 cents a foot. Around here you are doing good to get 300$ per thousand delivered to the mill. Last sale I bought(to be logged in summer of 2010) I gave around 60$ per thousand for stumpage. This would figure to about 10$ per ton stumpage. Of course, I am several hundred miles south/west of you. Keep in mind that if you buy logs at .50 cents a foot, saw them for .30 cents,and sell for .80 cents, you have no room for error or marketing or??  I figure .30 cents per foot to log and deliver, .30 cents to mill , and .20 cents to cover loss and marketing and error.
   Hey good luck, at least your going to give it a go.