Illinois Timber Sale Contract
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FAQ
In it and would fetch about $500 dollars delivered to a sawmill. The top log in the pile and the second log up in the tree has about 200 bf. in it and would be worth about $175. Most high-dollar logs are veneer-quality logs.
The total volume of the tree would be 225 board feet. 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.
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.
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).
For these reasons, it's not uncommon for a tree grower to net $40,000 to $60,000 per acre every year producing high quality trees that are healthy and bring premium prices in the marketplace.
The average stumpage price is $300/MBF, or $1,800 per acre total value.
The term "timber sale" is used to refer to any significant harvest of wood products involving an exchange of monies. Timber sales may involve sales of trees used to make lumber (sawtimber), fuelwood, whole tree chips, pulp, or any combination of these products.
Even though selling a tree in your yard is not an easy thing to do, it is not impossible.Consult a tree identification book to identify the tree or check with your county forester. You will have a better chance of selling if it is a valuable species in your area. It is also good to have more than one tree.
Timber has been one of the most consistent investments over time, and a great hedge against inflation. According to value investor Jeremy Grantham, it's risen 3% more than inflation for more than 90 years. Timberland has also beaten the stock market over the long run, and with less volatility.
