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Virginia Forest Products Timber Sale Contract

Printable Timber Contract

Name: Virginia Forest Products Timber Sale Contract
Brand: US Legal Forms
Price: 59.00 USD
Rating: 4.65 (483 reviews)

Category:

Virginia Contracts - Forestry

State:

Virginia

Control #:

VA-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

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.

The seller should have a professional forester develop a management plan and determine if it is ready to harvest. Generally, a private consulting forester should review (cruise) the timber and handle the timber sale. The seller should get a written contract.

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

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).

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.

Step 1: Get helP. Step 2: Get a plaN. Step 3: Get to know your timber. Step 4: Set your limits. Step 5: Find your buyers. Step 6: Start selling. Step 7: Put it in writing. Step 8: Check in on harvest day.

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.

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.

Printable Timber Contract

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