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

A LANDOWNER’S GUIDE TO SELLING STANDING TIMBERSelecting a LoggersContact local mills to find out where they buy their logs.SECTION 4Before you start marketing the timber in your woodlot,take time to develop a list of reputable loggers. Here issome advice about where to start.sssSpeak to local landowners who have recently had theirwoodlot cut. Ask if they were happy with the job, andif you can inspect their woodlot.Consider joining the local chapter of a woodlotassociation – you will receive a newsletter andinformation on local workshops, and will get to knowthe people in your community who are active in theforest industry. Also, contact your local stewardshipcouncil for information.Check local newspapers, forestry, or agriculturepublications for advertisements for logging services.ssCheck to see if your municipality has a list of loggers.Consult the forest services directory available on theOntario Woodlot Association’s Web site. A listing of loggers bymunicipality can be found on this site.Sorting out the BidsTimber bids can be difficult to compare. Table #2 andTable #3 compare these types of sales:1. A lump sum bid – provides one offer for all productsharvested from the woodlot (veneer, sawlogs, fuelwood).Payment in full should be made prior to logging.Table #2: Lump Sum Sale (i.e., full payment before work begins)Advantages:i. You will know before work starts what value you will receive for themarked trees, according to the volume estimated at the time ofmarking. You can ask for full payment prior to the start of work.Disadvantages:i. The buyer assumes the risk that the volume estimated by the treemarker is accurate. Bids may be conservative, as the buyer may notwish to offer a high bid in case the volume for the higher-qualityproducts (i.e., veneer) is not present.ii.You won’t have to worry about any product leaving the propertybefore payment has been made.ii.If the veneer volume is higher than estimated, you won’t receivethe extra value.iii. This process favours operators who can demonstrate betterutilization and markets for the products (for example, can marketfuelwood as well as veneer).iii.Only practical for woodlot types where individual trees can bemarked and volume estimated prior to harvest. Difficult for poplaror cedar stands.17