Question: What Does Stumpage Price Mean?

How much does an acre of land cost 2020?

The United States farm real estate value, a measurement of the value of all land and buildings on farms, averaged $3,160 per acre for 2020, no change from 2019.

The United States cropland value averaged $4,100 per acre, no change from the previous year..

Is forestry a good investment?

Forestry is one of the most secure commodities in today’s markets – tangible, safe and growing even in the worst financial climates. It’s part of the perfect investment portfolio blend.

Can I get money for my trees?

It’s generally much easier to sell trees in a woodlot harvest, where many trees are sold and harvested at the same time. … Small operators have less overhead and make their money finding single living or dead high-value trees, then sawing the lumber to specifications attractive to woodworkers and turners.

How much is a truckload of timber worth?

An average trailer load of softwood logs would be around $1,900. Hardwood pulp would be around a thousand. High grade hardwood logs would be much higher….How much is a truckload of logs worth?Species & ProductRecent RangeHardwood Mat Logs$225.00 to $300.00 per MBFMisc. Hardwood Pulpwood$8.00 to $20.00 per ton2 more rows•Mar 9, 2020

How is stumpage value calculated?

Stumpage value method. A simplified net present value method where the value of the stock is obtained by multiplying the current volume of standing timber by its stumpage price, assuming the rate of discount is equal to the natural growth rate. Value of standing timber = Area * price per m³ * Quantity of timber.

How much money can you get for timber per acre?

The average stumpage price is $300/MBF, or $1,800 per acre total value.

How much does it cost to clear 1 acre of wooded land?

Average Cost to Clear 1 Acre Wooded Lot You will pay between $500 and $2,000 per acre for lightly wooded lots, and between $3,000 and $5,600 per acre for heavily forested land. For a single tree clearing cost, you can expect to pay an average of $700.

How do you calculate the value of standing timber?

To estimate the value of your timber, take the volume, divided by 1,000, and multiply it by the price quoted in your states standing timber stumpage report.

What trees are worth the most money?

10 Most Profitable Trees To GrowInstant shade trees. Landscapers and homeowners often want larger, more mature trees to provide “instant shade” in a year or two, and are willing to pay much higher prices for those trees. … Flowering dogwood. … Thornless locust. … Heritage fruit trees. … Hybrid chestnut. … Black walnut. … Bonsai trees. … Willow.More items…•Mar 7, 2020

How much is a ton of timber worth?

The statewide average mixed hardwood saw- timber price was $34.42 per ton, up 11% from last period and also up 11% from the price a year ago. The statewide average hardwood pulpwood price was $12.77 per ton, up 12% from last pe- riod and up 11% from the price a year ago.

How much do loggers pay landowners?

Logging costs are usually 14 cents to 15 cents, averaging around 15 cents per board foot. Logging costs vary by terrain, size and number of trees per acre, and hauling distance from the mill. Therefore, a 60 cent per board foot log delivered should make the landowner 45 cents per bd.

How do I calculate the value of a tree?

The formula is: Tree Value = Base Value x Cross-sectional Area x Species Class x Condition Class x Location Class Base Value is the dollar amount assigned to 1 square inch of a tree’s trunk cross-sectional area and is typically based on the cost of the largest available replacement plant of the same species.

Can you make money clearing land?

There are several methods to making money by clearing land. Land owners and saw mills are just two entities that are willing to pay for the results of this process. … Take advantage of government subsidies that pay land owners for not growing crops.

What is the price of pine logs?

Appalachian Hardwood Sawtimber Pricing by SpeciesSpeciesPrice – $MBFMisc.$125.00Tie/Low Grade/Pallet$125.00White Pine$70.00Yellow Pine$55.0016 more rows

What does stumpage fee mean?

Timber dues, Crown charges (stumpage fees) and other fees associated with timber dispositions are collected by the province to ensure that Albertans receive fair compensation for the use of publicly-owned forest resources. The timber dues rates applied are based on the current market prices of forest products.

How much will loggers pay for trees?

The value of this tree would be $195.00 for an average of $866.00 per thousand board feet. A fourteen inch Red Oak with a grade 3 rating would be worth $12.00 for an average price per thousand board feet of $265.00.

How much money can you make off timber?

Depending on the type of trees and the market when the timber is sold, you could earn $500 to $2000 per acre (at $1500, you would be looking at $60 per year in income if you were to annualize it over 25 years).

Do loggers make good money?

Typical Logging Worker Salary They earned a median $21.46 per hour or $44,650 per year as of May 2019, according to the Bureau of Labor Statistics. The median salary is the midpoint, so half of fallers earned more than this amount. Fallers are among the highest-paid logger jobs.