Timber Valuation

[BRCJR]

I am trying to gain a better understanding of valuing land when a timber cruise is involved.
I had read a book about land values, to include harvestable timber tracts, and searched the internet for publications.
I don't quite understand, if much at all, how you get from the "as is" to the "subject to" the selective harvest or clear-cut value with the value of the cruise interjected into the equation (problem to be solved).
This post is in hopes Terrell, or others with this type of experience, will expand on the process as it relates to the value of the cruise.
I sure would appreciate some educated comments about valuing this type of property.

 

[Bartow]

Hello BRCR

I suggest you take the timber seminar from American Society of Farm Managers and Rural Appraisers.

 

[Zephyr999]

It sounds like a before and after analysis. Land sales with cruise complete compared to land sales with timber not taken out yet. IF the problem to be solved is contributory value of land with/without cruise.

IF the problem to solve is the value of the trees themselves then different story as species and diameter matter. I believe that's the basis of the Timber seminar from ASFMRA.

 

[Sid Holderly]

Local hardwood buyers will not look at anything within 5 to 10 feet of a fence or former fence (afraid of debris, waste, nails, fence, roofing inside trees. If you have actual harvest-able timber there are several timber appraisal specialists in Indiana, so I assume they also exist in your area. Doing one yourself will take a substantial amount of time to learn. If it is Walnut planted for harvest Purdue has some resources, but dated. Wooded non-timberland has a recreational value for hunters and many are rented in this area. AS far as the term "cruise" I have never heard of it used in relation to a timber assessment.

Since I am in a flat land area with scattered wooded land responses from those in major timber areas should have bettor sources.

 

[TerryRohrer]

This is a rather extensive topic, with relevant conversation highly dependent on the subject. If you are looking for something most relevant to a particular appraisal problem, it would probably serve you better to narrow the focus to the general ballpark you are playing in. For example, the size of the tract is relevant. In my area, there are no timber tracts that would attract companies that grow or harvest timber in the Northwest or Southeast. It is simply too expensive for them to operate on a micro-scale. But even in those areas where timber growth can be reliably predicted, adjoining 50 acre and 5,000 acre tracts are in different worlds as far as valuations are concerned.

 

[Elliott]

Its just like being a Wheat farmer, except it takes 20+years to grow the crop and you get to worry about weather, pests, taxation, and environmentalist, except you wear a tin loggers hat so limbs might not kill you.

Most states have a Small Woodland association. If you want to learn about the subject or find sales I'd contact someone who's a member. In residential work, I'd always make it clear that I was not including the valuation of emblements and always recommend a 'timber cruise.' I grew up in a county where half the kids I went to school with had fathers who 'worked in the woods,' as did mine and so did both my grandfathers. And the last thing my father would let me become was a Forester.

 

[KHS445]

Is the timber going to be chipped, cut into pulp bolts, used for lumber or are there some veneer logs? Will the property be clear cur or select cut? Wood value has gone crazy lately and even most foresters are surprised by some of the bids they are getting.

i recently completed a divorce appraisal on a house and 40 acres, with a landlocked 40 behind it and a standup 80 to the west of the house. This was a second home and the woods had been managed for the last 30+ years, with select cutting every 5 years or so. I worked with both sides and ended up recommending that I give them two values, one with the property remaining wooded but allowing for a select cut and one if the land was clear cut. I then recommended that they have a forester come in and cruise the property and bid out a select cut and also a clear cut. Based on the husbands desire they decided to use my wooded valuation for divorce,purposes and then have a select cut completed and split the net proceeds 50/50.

They ended up cutting just the landlocked 40 and only harvesting trees 10” or larger. I was in the property a few weeks ago and unless you really knew the property and noticed the ground level stumps you would never knew it had been cut. They ended up splitting $140,000 as they found a number of maple and cheery veneer quality trees and some good lumber trees. Only the tops and a few junk trees were chipped.

 

[Terrel L. Shields]

A timberland appraisal in Arkansas requires a Forester with appraisal credentials. But the appraiser has to deal with the value of the bare comparable land plus the stumpage.

 

[Meandering]

DCNR is the government department you want to contact.
In your state:

Find a Forester

When to Consult a Forester Forest management is a long-term endeavor, primarily because trees can take a long time to grow to maturity. So, the results of good management, as well as poor management practices, will have long lasting effects on the health and value of the forest. This is why it...

dof.virginia.gov

Note that from time to time the state DCNR may have no logging in effect for certain areas, or certain species of trees.

However, In Virginia, public sector foresters cannot do timber inventory or appraisal, or sell timber on private lands. Therefore, VDOF foresters cannot assess or discuss timber values. Some service are provided to the landowner at a cost.

Services Provided by a Private Consulting Forester​

You may also consider hiring a private consulting forester to assist you with your forestland. Private sector foresters can provide professional forestry advice and service on a variety of forest management activities, such as:

• Preparing management plans.
• Perform timber inventory.
• Conducting timber sales.
• Planting new seedlings.

These private consulting forester services are provided to the landowner at a cost. A private consulting forester will be able to estimate the value of the trees, understand market conditions and the land’s accessibility, and help the landowner find a reputable logging contractor to buy the trees.


But they have information available from the website, and classes, and you could seek classes through a local community college through their ecology department.

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[BRCJR]

Hello BRCR

I suggest you take the timber seminar from American Society of Farm Managers and Rural Appraisers.

Thanks. I will look into this.