Timber Buyers Fueling the Timber Industry

Author: Barbara Lacy

Timber is a cash crop for most states in the United States and this is true as well in many European countries. With timber being a good source of income, many landowners are into the timber business and timber buyers are getting into the act as well.



Timber buyers and the landowners as the main players in the industry



Timber buyers and the landowners are just two of the many stakeholders in the timber industry. There are a number of players in the timber industry market but among these many stakeholders, the landowners and the timber buyers are considered as two of the major players. And the timber buyers and the landowners are entities that have a say on the movement and the direction of the timber industry.



In the industry of timber, the landowners and the timber buyers directly interact with one another. In the year-round activities of the timber industry, the timber buyers and the landowners will regularly get in touch with one another in order to affect the sales and to promote the production of the timber.



Role of the timber buyers in the industry



As everyone knows, the landowner is an important stakeholder in the industry as he is the one who plants and cultivates the trees that become the timber. The timber buyers on the other hand are the entities that buy the timber form the forest landowner. Timber buyers usually work for the saw mills, the veneer mills or these timber buyers work for the logger. In most cases, these timber prices are considered as the first contacts the landowners have with the forest products industry.




Not everyone can become timber buyers though since there are some countries and states in the US that require the timber buyers to be registered before they can get to participate in the industry. For example in the state of Indiana, the timber buyers in the state should be licensed through the Indiana Department of Natural Resources Division of Forestry before that they buy the timber products within the state. These timber buyers are paid by the logger, the landowner, sawmill or the veneer mill and the main job of these timber buyers is to buy the timber as needed by these mills. And as observed by insiders and outsiders, the timber buyers will come as good buyers or bad buyers too. These buyers buy the timber in one of two ways.



Two ways on how timber buyers buy their timber



Here are two methods on how timber buyers buy their timber in the market:


· In the first method, these timber buyers work with the landowner in order to select and mark the trees that will be removed and the buyers and the landowner then talks for the price of these timbers.


· In the second method, the buyers will submit the sealed bid sale, and a third party marks the trees for sale. For example the consultant or the district forester who works for the landowner will be the one that will select and mark the trees for sale. The forester then arranges the bid sale.



After this step, there are a few more steps that often involve the landowners, timber buyers and other stakeholders. It is important to understand these many steps and the standing prices of the timber to have a grasp of timber market, and sites like http://standingtimberprices.weebly.com/ can be a good friend when it comes to these data and information.

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 By: Barbara Lacy

The time when you actually sell the timber will have a say on how much profit you can get at the end of the day. And the time that you decide to unload the timber in your property will have a say on your business’ overall financial plans, the cost of regeneration and other objectives of the business. You never sell something when the business and the price is down, and this is the reason why most businessmen out there wait for that right time before they can unload their goods and make a profit from it. This is true as well in the timber industry; at times it pays to wait for the right and the profitable standing timber prices before actually deciding on the sale.

Standing timber prices will guide the direction of the business

The standing timber prices will have a say on the direction of the business enterprise and the profitability of the business. Simply put there are a lot of things at stake when the entrepreneur fails to take the standing timber prices into consideration. In fact just the wrong move and the failure to take into account the standing timber prices can spell the difference between bankruptcy of the business and business profitability. The standing timber prices known in the market are also known as the stumpage. Stumpages refer to standing timber prices after the logging and trucking expenses have been taken into account. Standing timber prices are the prices netted by the landowner and standing timber prices or the stumpages may be expressed in dollars/volume basis. These prices are important and it is suggested that the landowner should have an idea regarding some of the factors that can affect the standing timber prices.

Factors that may affect standing timber prices

In general, some factors that can affect the standing timber prices include the species, the size, the quality and the value of the timber.

• Specie of the timber. There are some species of trees that are considered to be more valuable than others. These trees will have a desirable color, grain and texture. Black Walnut is an example of valuable specie of timber. Other noteworthy species include the Black Cherry, White Ash, White Oak and Red Oak.

• Size. The size of the timber will have a say on the standing timber prices. Remember that the value of the tree is proportional to its size. It follows that a large tree will have more wood per inch of diameter if compared to the smaller trees.

• Quality of tree. A timber that is of high quality is a timber that measures at least 18 inch in diameter, straight and the timber is tall.

• Value. The value of one tree is related to the combination of the three related factors-the specie, size and its quality.

Ask the services or pros in taking advantage of the standing timber prices

Research is one key here in knowing the standing timber prices, since it takes a specialized knowledge to know the specie of the tree in question. Demand will also have a say on standing timber prices. Since there are a lot of factors that affect standing timber prices, it is important to get help and data from thirty party sites like http://standingtimberprices.weebly.com/ and to ask guidance to from professional foresters when it comes to standing timber prices and ways on how to handle the sale properly. Article Source: ABC Article Directory

A comprehensive discussion on all aspects of forest ownership including standing timber prices a discussion forum, and much more. Sponsored by timber companies across the U.S. that specializes in sustainable forestry visit standingtimberprices.weebly.com.