Or how to determine what kind of income timberland can produce?

We have been thinking about buying some.

This is just something to consider, I wouldn't know the values. I have a good friend in Washington State that logged for years and made a good living until it was decided to protect the Spotted Owl and shut down everything. So what ever you buy, be sure there are no protected critters there.

Black walnut trees now have a disease, thousand cankers disease, which limits shipping of the harvested trees.


https://thousandcankers.com/

Location.
Type timber.
Access.
Restrictions.

And likely more that affects income.



The best bet might be in contacting current owner of the land and see if they have that information, if you already have something your considering.

Or contact "harvesting" companies to give you a WAG, if you know the general area(s) your considering.
That may or may not be a "risk" of them or someone they "provide a tip" on the land, stepping in front of you if it is specific parcel(s).

I asked the agent if they had an estimate of the timber value - years ago, timberland listings in SC all had timber value in the description/age etc.

Unless you have family land, inside knowledge or great industry/geography/trend awareness I'd recommend you consider investing in an ETF or similar vehicle. That will allow you to rely on folks who ostensibly have a clue on the subject and diversify your risk over picking one small plot of land to gamble on. No matter how large a plat may be to you, it's not to any environmental or economic factors that might affect it.

OTOH if you are willing to "gamble" on this perhaps an individual purchase has enough upside to offset the risk.

I have a BIL who owns 4,000 acres and, while it has done ok in terms of occasional harvest, the ups, downs and disease would have made this a huge money loser if not for it being 3rd generation family land.

CUT - an example in ETF world

Another; WOOD (gosh these folks are witty)

Peripheral to all of this, if you like many believe we are on the cusp of a recession, now may not be the best time no matter the vehicle.

Prices can vary wildly enough that I would not consider it a viable investment on its own.

That said, if you want land for recreational purposes, the timber on it can provide some income. How much depends on a volatile market.

I have a small tract of planted pines that are due for a first thinning (they are 18 years old) and it is basically impossible to get anyone out to cut them right now due to market pressures.

If you want to understand values, especially of southern pine, there are some resources out there on the internet and you can track recent prices per ton. You’d have to convert to tons per acre on a normal stand. You can also consult with your state forestry commission. In Georgia they are pretty helpful. Lastly, you can consult with a private timber broker to get some ideas of values.

quote:

Originally posted by 41:
Black walnut trees now have a disease, thousand cankers disease....

Geesh I didn't know about walnut, are we going to have any native tree species left?

this is probably not what you want. But I own timberland and harvest for income.
Basic steps.
Hire a license forester to inventory the land, trees, species, age, amounts etc. And then develop a harvest plan that meets the requirements of where the land is located. That will probably require marking of trees or areas, but this may vary by State I assume.
Engage (or discuss) with a harvester the potential yield from the land designated for harvest and the current market prices. Lumber is a commodity and prices fluctuate all the time and local circumstance also matter since transportation costs are a significant issue. That will give you some sense of the initial yield.
Then engage a tax attorney as the tax law in this area is unique to the forestry business and may/may not yield you significant tax advantages going forward.
That will get you a good shot at an initial yield. I have never tried to forecast the future income as its way beyond my capabilities and a decade or more away. But I would assume there are people who could, but I don't have any reason to hire them.
hope that helps in some small way.

I know my uncle Paul signed up with a company from Chicago.

( Easy money,he said cash sale he said)

They marked 26 prime oak and walnut. He signed off and approved.

They cut down 44 trees to get the 26 out.
And took 12 of them also.
No they did not pay him for them


And left a mess that took him three years to clean up.

He was fit to be tied.

This message has been edited. Last edited by: bendable,

Ok I have to admit when I first saw the title I was thinking of the work boot company

With that said my wife and I own a little over three acers of land in Tennessee that we bought back in 2006.
We were told that it was originally owned by a timber company in town. At the time it did not look as if it had been harvested in years even though there was an old over grown logging road to the top of the property.

We were told by the time we were ready to build (when we retire in a few more years) it would be ready for harvest and we could more than likely recoup the purchase price of the land or more with the harvest. At the time we were told we could get as much as $1000 per tree but I am not sure how true this was back then or even now.

The one thing was, we did not buy the land as an investment in the timber we bought it as a piece of property to retire to so any money from logging is a bonus for us.

At the time we were told all we had to do was contact the local timber company in town, they would remove the trees and we would be payed for each tree removed, this was almost 20 years ago so I am not sure if this is still true anymore.

Like I said above we bought this property to retire to. If we can make a little money from it by logging it so we can build on it it is just a bonus for us.

I won't claim any expertise.

I recently entered the process to harvest timber from a woodlot I own. I used a timber broker who marked, inventoried and marketed the timber through an auction process. The bid opening was Friday and apparently this is a good time to sell timber.

Based on the wide range of bids offered, I would never, ever trust anything a single buyer told me. The delta between the lowest and highest bid was over 300%

There are some not so nice people in the timber business.

ETA: What hrcjon said is solid gold. This gentleman knows his stuff.

Timberland can be a great investment if you know what you're getting into. From my experience, the value really depends on factors like the type of timber and how mature it is. Timber prices can vary, so it’s worth checking local market rates. Harvesting timber can bring in income, but you'll also need to factor in maintenance costs and potential tax benefits. If you're serious, I’d suggest talking to a forestry expert or a real estate agent who knows timberland well—they can give you a clearer idea based on your specific situation.

SC is known for pine much of the time, likely lower value than more desirable hardwoods.

Most any seller should have an idea of timber value if anything is close to harvest. Like most things, ‘on the hoof’, or sitting in a wood yard takes a little effort.