Current Timber Prices

[tdelorme]

We are doing some select cutting and are close to signing a contract with a local outfit here in East Texas.  This fellow has a good reputation, even his banker speaks well of him.  Now, the prices he is quoting are by the ton and a little bit confusing to me.  Please, before I sign this contract (Tuesday moring 7-31-07) can anyone give me some feedback on the fairness of these prices.

Pine & Hardwood Pulp- $12 ton

Pine Logs- $30 ton

Grade Pine- $45 ton

Hardwood Tie Logs- $20 ton

Grade Hardwood- $27 ton

There is going to be quite a bit of Grade Hardwood and that price seems low to me.

Each load is declared to the checker when it leaves the property and the truck number and weight ticket furnished at every Monday payout.   
Thanks,  Ted DeLorme

[Ron Wenrich]

I can't reply to whether its a fair price or not, but here is a link to the Texas Forest Service:

http://texasforestservice.tamu.edu/main/default.aspx?dept=sustain

They also have a bi-monthly report for prices and trends.  Here's where to find the latest edition:

http://texasforestservice.tamu.edu/main/article.aspx?id=148

These reports give averages.  Each logger has different markets, so prices will vary.  Also, some logging jobs have more expenses involved, such as road building, hauling and permits.  That may cause prices to vary.

[sawhead]

Is this for just working his timber ? because thats probably not out of line for just working it.

[Rocky_Ranger]

That's what I thought too, not a bad price for this market.  My only concern would be the differences in grade pine as opposed to the pine logs in general.  Why not come up with two prices - logs and pulp, based on minimum size.  One price would even be better.  The weight scale will give you quantity but a subjective guess on the sorts might tend loads to the "cheaper" stumpage values.

[Warren]

Not to high jack the thread.  I read thru the second link in Ron's post re: Texas Forest Service Price Trends.  Near the end of the article, it gave a list of their conversion factors.  It listed 80 cubic feet of Hardwood as being equal to one cord.    Around here, I was always told that one cord of wood was equal to 128 cubic feet (4ft high by 4 ft wide by 8 ft long). 
What am I missing ?

Warren

[Rocky_Ranger]

A jar half empty or half full, you are correct that 128 cubic feet is a cord but that is stacked wood.  Tinkering with the volume formulas is where 80 cu ft comes from.  Thats all (solid) wood with no bark or air spaces between the sticks that you get in a 128 cut ft/cord.

[tdelorme]

Thanks for the help.  Ron, I had checked the TFS price tracker but the latest info is from April,  before the rain set in, and I have heard the mills are all short of timber.  And, that may be bad information and I need to call around tomorrow.  This is the first time we have sold any timber off the place since we bought the property ten years ago.  I have no problem with the logger making a profit, I just don't want to look back and think how stupid I was for not looking around.  Interesting thing when looking at the TFS price checker history, the timber around here has just about doubled in the last year so I think we'll do the deal now and have time to clean up and replant this fall.