Finally, a good experience with timber sale
dvank at michweb.net
Tue Mar 9 22:52:29 EST 1999
Oh boy. I'll reserve most of my thoughts for the consultants here that are
sure to post. One question: Did you have a forester establish your timber
basis when you came into the property -- or at least before you sold
timber? Doing so would have prevented Uncle Sam from taxing your timber
revenue until you've profitted above and beyond what the trees were worth
when you received the land (and other related timber activity costs such as
land surveying, etc.). Similar to capital gains on stocks, you need only
pay taxes on the "capital gains" of your timber investment. Its still not
too late to salvage some of this, but acquire a forester that is working for
YOU first and foremost, not the timber buyer.
I am glad, however that you like the results, but again looks can be
deceiving -- even high grades can initially look "pretty".
Guys??? -guys being a unisexual term.
> Last year I sold some timber to a company in Covington,Ga. and I was not
> very pleased with the the way they left my place looking. It looked like
> their skidders were driven by a bunch of blind monkeys.
> Recently I needed to sell some timber on small (40 acre) tract to cover
> some unexpected medical expenses. I sent out about 10 letters to timber
> buyers in my area, 2 came out to look at it and made offers. The first
> offer was way low, the second was a good offer but for some reason they
> got hesitant and decided to back out of the deal. At the time I thought
> maybe they had made a mistake and over bid but they just didn't want to
> say so.
> It was just as well because I ended up selling it to Canal Wood Corp.
> and I was extremely pleased with there work. I sold it to them by the
> ton and it ended up bringing more money than either of the two earlier
> bidders. Eddie Cardell, the manager from their Forsyth,GA office was out
> here everyday making sure everything was done right and checking in with
> me. I spent a lot of time with him walking the woods and asking
> questions about forestry practices, log grading, getting advice on
> future improvement of my timber and just learning all I could about the
> timber business ( I'm new at this, my wife and I inherited the land from
> her grandfather a couple of years ago).
> I was also very impressed by the guy they had operating their cutter, I
> had asked them to thin the pine and take gum, poplar and other
> palletwood trees but to leave all the oaks and hickories ( I lease the
> land to hunters and wanted to leave lots of deer and turkey food). I
> watched the cutter operator(Albert) working everyday and he really has a
> talent for running that giant machine. Instead of bumbling around like a
> bull in a china shop as I've seen some do, he cut nice neat paths into
> each area and then worked off the sides of the path to cut,and tried to
> keep the skidders just on the main path to minimize the damage they
> I was so pleased with they way that tract ended up looking that I
> decided to have Eddie look at our main tract which is about 115 acres.
> This was the tract that had been partially butchered by the other guys
> last year. I ended up letting them thin that as well, and was very
> pleased by the money I got on it as well as how it looked. Our land had
> not really been managed properly by my wifes grandfather , but now I
> feel like it's in good shape to grow some better quality pine .
> I was a little hesitant to sell by the ton, because I know that you can
> get taken that way, but I was at home most of the time so I kept my own
> tally of the truckloads going out and they matched up with the scale
> tickets I was receiving.
> So I guess my advice to others is don't make money the only
> consideration, find a buyer who is willing to take the time to
> understand what you want to do with your land, who takes pride in there
> work and who is willing to share their knowledge in order to make you a
> better timber grower.
> Mike and Lorri Robinson
> Monticello, GA
> Scratchbottom Shires: http://www.geocities.com/Yosemite/Forest/4242/
> The Robinson Homestead: http://www.geocities.com/Heartland/Pointe/1915/
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