timber offering

Don Staples dstaples at livingston.net
Sun Oct 26 13:08:20 EST 1997


Joseph Zorzin wrote:
> 
> ForestFair wrote:
> >
> > >Don Harris wrote:
> > >
> > >> Are the bids to be received sealed?  Then posted on the web? I would say the
> >   best offer would be $80,000, give or take a log or two.<<
> >

Much deleted.


"Fascinating", Spock, on many occaisions.

Forestmeister, we have the same style and technique on sales.  The only
difference I see is that my sales are to large companies, usually, that
pay up front, with clauses in the contract that cover the bond amount. 
Bonding not a big thing in Texas except on Federal sales. You know, a
Texan thing, our word is or bond, particularly when it is backed up with
a kick ass contract. 

Anyway, an example here would be in a sale this past Thursday.  200,000
feet of pine, for in excess of $90,000.  In Texas we will sell either by
Title or contract, if by title we end up with Title Insurance for the
buyer, with contract a Title opinion.  When the title is run, and the
contract or deed approved by all parties, we make an up front payment of
all monies.  Usually a year on the sale for cutting.  We have
environmental clauses, penalties, etc, language in all titles or
contracts. Notice clause in contract or deed says buyer gives us 24
hours notice prior to move on, and same on completion.  This gives me a
chance to schedule my activity on the property during the harvest.

Same here with the loggers, most know me well enough to depend on my
word and work.  Most recognize that I am a middle man, keeping both
sides honest and happy.  Many of the disputes that arise in logging down
here are settled through arbitration, with we foresters on a panel
hammering out a settlement.

After completion of the logging I will go back in and recruise the
property, looking for residual stand damage, and bill or charge in
accordance.  Normally there are levels of damage that cannot be
accredited to poor logging, dropping a 6 ton 120 foot pine is going to
have some impact on residual stand, so there is a hunt and find, back
and forth, type of judgement call on damages.  Skidders cause the most
damage, along with poor logging, but TExas has a certified logging
program, run from the Logging Council of the TExas Forestry Association,
that has drug the loggers kicking and screaming into the 20'th century,
just in time for the 21st.  And, in fact, the certification process has
hurt the consultants in that for what ever reason the land owners view a
certified logger as more more inportant than a certified forester.  Go
figure.  But our sales still bring in better dollars than offered by
certified loggers, even after our cut is deducted.  If the loggers go
into combination with a forester, they still stay low, in that that type
of forester (procurment) isn't certified in Texas, and the cost of a
logger and forester exceeds that of just we plain consultants.  

Gate wood price on pine in Texas is $75.00 ton, give or take.  My last
sale brought $60 a ton, logging and hauling will cost $20.00 a ton, so I
got my landowner $5.00 a ton more that the best logger can offer,
acctually more like $8 to $10 per ton on most loggers, so my bill doen't
hurt the landowner.  Small loggers reaping the benefits of small land
owners currently offer $30.00 a ton, so the income for a landowner that
uses a consultant will be doubled, less consulting fees.  Good deal for
them.

Next weeks sale will be in excess of 300,000 feet, much better grade and
size of pine, and should bring in a 40% increase in sales value, the
companies depending on a long term contract to compensate for the
increase in there cost, against the steady rise of timber in this part
of the world.


During these up turns in price structure is when we southern foresters
benefit our land owners the most, keeping up with the market, and the
players.  Something the loggers use to their advantage to increase their
own income.

Had a logger tell me he was only getting $40.00 a ton at the mill for
his wood on a sale that I prospected out at $55.00 a ton for stumpage. 
We had a nice discussion of him finding a better mill or better lie. 
Ended up he hired me to cruise a tract for him up country.  

Gee, I love my work!
> 
> --
> http://forestmeister.com
> "The ONLY forester's web page in the otherwise sophisticated state of
> Massachusetts".

-- 
Don Staples

My Ego Stroke:  http://www.livingston.net/dstaples/



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