Carignan Forestry Consultants

Deciding when and how to sell their trees is perhaps the most important decision faced by forestland owners. Making a poorly informed decision at this point can wipe out years of careful planning.

The first rule of selling timber is simple: Know what you're selling before you sell it. CFC recommends measuring each and every sawtimber tree, one at a time, whenever the sawtimber volume exceeds 2,000 board feet per acre (2.0 MBF/ac). Lower value pulpwood may be estimated by sampling. A 100% measurement of the sawtimber allows the seller to know precisely what he is offering for sale and, most importantly, yields a higher price by removing uncertainty in the minds of prospective buyers.

The second rule of selling timber is equally simple: Advertise the sale as widely as possible. CFC advertises sales on a 75-mile radius from the tract, which in most areas will include over 100 timber buyers. The prospectus includes a summary of the products being offered, a tract map, a locator map, and lists the terms of the sale.

The third rule: Accept only sealed bids on a lump sum, cash-in-advance basis. Set a firm bid date and reserve the right to reject any or all bids. This puts all suitors on an equal footing. Results of the bid opening should be provided to all bidders. If a sale is consummated, the seller should have the sale contract prepared or reviewed by his agent.

We are often asked, "Is now a good time to sell my timber?" Our answer is, if your timber is healthy, fully stocked, and growing vigorously, then you can afford to wait for a peak in the timber market. On the other hand, if your objective is to convert a poorly performing capital asset (which includes the vast majority of timber tracts in the South) into an asset that competes against other investments, then the only "bad" time is time spent in delay.