Kansas Forest Products Timber Sale Contract

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.

Logging companies rarely have the specialized equipment, not to mention proper insurances, to remove trees from an Urban setting. But even if they did, the cost associated with hauling equipment to a location and removing the bulk of an entire tree including its top is usually far greater than the value of the tree.

Salaries for loggers depend on the task in which they specialize. Fallers cut down trees using mobile felling machines and powered chainsaws. They earned a median $21.46 per hour or $44,650 per year as of May 2019, according to the Bureau of Labor Statistics.

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.

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 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.

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.