A Landowner's Guide to Selling Standing Timber - the Ontario ...

A LANDOWNER’S GUIDE TO SELLING STANDING TIMBERFigure #1: Green Lumber Prices for Hard MapleUnselected FAS Grade — Northern Region(January 1975-2001)$2,000Figure #1 shows the increase in timbervalues over the last 25 years.SECTION 2Value (U.S. $)Forest Growth(board feet/acre/year)$1,500$1,000$500$01975 1980 1985 1990 1995 2000260240220200180160Heavy Cut(too many trees cut)Year© 2001 Hardwood Market ReportPrices are in U.S. funds per thousand board feet, based on standard N.H.L.A. grading rules.Landowners should use the information provided for gauging market trends only; local priceswill vary within the region. Please contact sawmills in your local area for more informationabout local prices.Figure #2: Managing to Maximize Growthand Financial ReturnsManaged Forest(optimal density)Light Cut(too few trees cut)It is based on historical prices takenfrom the Hardwood Market Report(Memphis, Tennessee) as of January 1,for a 25-year period (1975–2001) forhard maple (unselected first and secondgrade – FAS) green lumber, northernregion. Prices ranged from a low of$325 in 1975 to a high of $1,680 in2001. All prices are on per thousandboard feet basis and in U.S. dollars.To optimize the long-term financialreturn to a landowner, a woodlot shouldbe managed to maximize the growth oftrees, which can be used to producehigh quality lumber (sawlogs).Figure #2 illustrates that a toleranthardwood woodlot in eastern Ontariocan be managed to produce anadditional 60 board feet per acre peryear by removing low quality trees(thinning) and retaining an optimalnumber of sawlog quality trees. Overa period of 20 years, a 100-acrewoodlot could realize an additional120,000 board feet of lumber throughgood management.7