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New Mexico Forest Products Timber Sale Contract

New Mexico Forest Products Timber Sale Contract

Name: New Mexico Forest Products Timber Sale Contract
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.86 (440 reviews)

Category:

New Mexico Contracts - Forestry

State:

New Mexico

Control #:

NM-E4003

Format:

Instant download

Description

This is a contract whereby the buyer agrees to purchase all timber as designated for removal by the seller. Seller will also grant the buyer the right of ingress and egress to remove the timber from seller's land.

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FAQ

The Timber Harvesting Plan (THP) is the environmental review documents submitted by landowners to CAL FIRE outlining what timber he or she wants to harvest, how it will be harvested, and the steps that will be taken to prevent damage to the environment.

It's generally much easier to sell trees in a woodlot harvest, where many trees are sold and harvested at the same time. To cut down your tree, a timber buyer must bring in laborers, a log truck, skidder, loader, and other equipment. The buyer must cut the logs and haul them to the mill to sell.

The two basic ways to sell timber are either as stumpage (standing timber) or as logs or other finished products. Each way has its pros and cons. Log sales involve harvesting and processing your own timber and then selling the finished products that come from it: veneer, sawtimber, pulpwood, etc.

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).

To calculate the proportionate value of each timber product, divide the appraised value of the product by the total appraised valued of the property. To calculate the original cost basis of each product, multiply its proportionate value, the decimal, by the total acquisition price.

The seller will receive the total payment before the timber is cut. In a per-unit sale the seller and buyer negotiate a price per unit of timber harvested. This type of sale results in the seller receiving payment as the timber is cut.

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.

New Mexico Forest Products Timber Sale Contract

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What is a timber harvest plan?

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How do you calculate basis for timber sales?

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