8/25/2014
White Pine Log and Lumber Yields
“Walking the financial fine line of White Pine”
Objectives for Presentation
• A review of log and lumber yields from Huntington
and Pack Forests
• Discuss the economic implications of these yields
using:
– Log residual
– Lumber residual
René Germain, Professor
SUNY ESF
August 19, 2014
• Discuss management implications of results
Methods – Project Area
• Two experimental forests on SUNY ESF
properties in the Adirondacks:
– Huntington Wildlife Forest in Newcomb
– Charles Lathrop Pack Demonstration Forest in
Warrensburg
Methods:
Huntington Timber Sale (research plots)
20R
40R
Total
Stems Marked
154
76
230
• Huntington Forest is considered a high quality
site.
• Pack Forest is a traditional white pine site with
sandy soils.
Methods:
Pack Forest Timber Sale (research plots)
Stems Marked
Volume
20R
200
39,145
40R
92
15,180
Total
292
54,325
Volume
112,722
38,501
151,223
657bdft/stem
4.5 logs/stem
The Harvest
186bdft/stem
2 logs/stem
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8/25/2014
Northern Logger – “Poster Child”
Northern Logger – “Poster Child”
October 2012
June 2013
Northern Logger – “Poster Child”
Huntington Log Mill Tally
Grade
# of logs
Volume
%
1 or better
189
41,860
28
2
623
86490
58
3 or lower
197
20,820
14
Total
1009
149,179
148bdft/log
August 2014
Timber Sale vs. Log Tally
151,223bdft versus 149,179bdft
Pack Log Mill Tally
Grade
1 or better
2
Total
Orphan Logs
# of logs
23
485
605
Volume
3,335
42,290
45,625
%
7
93
75bdft/log
Red Rot
Phellinus pini
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8/25/2014
Methods – Sawmill Yield Study
Timber Sale vs. Log Tally
54,325bdft versus 45,625bdft
Grade
1 or better
2
# of logs
23
485
Volume
3,335
42,290
%
6
78
3 or lower*
Total
97
605
8,700
54,325
16
• 211 logs from Huntington and 66 logs from Pack
were followed through the Ward Lumber sawmill
• Graduate student, Sarah Ficken, recorded the grade
and dimension of each board that was processed in
the mill.
• Sub-sample of butt logs were processed separately.
Red Rot
*low grade simulated: actual log tally was 45,625 with no low grade logs
Since 20% of "research stems" were cull or low grade, 20% of total stem count (292)
was assumed to be low grade (58 stems) which equates to about 97 low grade logs
representing approximately 8,700 bdft
Select
$1300/MBF
• allows pin knots
(approximately 1⁄2”)
• limits the total
number of pin knots
to one knot per
surface foot.
Premium
• sound and tight knots ranging
from 2” red knots and 3⁄4 ” black
knots on a 4” board to 3 3⁄4 ” red
knots and 1 1⁄2 ” black knots on
a 12” or wider board.
• black knots of maximum size are
limited to one in pieces 6’
through 9’ and two in 10’ and
longer or equivalent smaller.
• 12” board allows one knot hole
up to 1” in diameter and
proportionately smaller knot
holes for narrower widths.
Log study at Ward Lumber Company
Finish
$1000/MBF
• small, sound and tight knots
ranging from 1 1⁄4 ” red
knots and 5⁄8” black knots
on a 4” board to 2 1⁄2 ” red
knots and 7⁄8” black knots
on a 12” or wider board.
• knot holes in the face are not
allowed.
$900/MBF
Standard
$700/MBF
• knots of any quality, in sizes
ranging from 2 3⁄8” red knots
and 1 3⁄4” black knots in a 4”
board, to 6” red knots and 4”
black knots in a 12” board.
• knot holes must be no larger than
1⁄4 the width to a maximum of
2”.
• unsound wood is combined from
both faces; If advanced decay is
at the maximum allowed of 10%
(no more than 1% on the best
face) no other decay is allowed
on the piece.
• the grade also permits worm
holes.
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8/25/2014
$500/MBF
White Pine Lumber Grades
• allows large characteristics in
any combination as long as the
full length of the board is
useable.
• sound and unsound knots, shake,
checks, pitch, pitch pockets, hit
or miss dressing, pith, stain,
warp, knot holes, bark and pitch,
seams, wane, skip, and worm
holes are allowable.
• any characteristics which
seriously weaken the piece for
reasonable handling will not be
permitted.
Results – Grade Recovery
$1300
Finish
$1000
Premium
$900
Standard
$700
Industrial
$500
23%
7%
32%
36%
2%
16” DBH*
(28%)
62%
(2%)
(9%)
(28%)
(33%)
25%
20%
32%
22%
1%
(25%)
77%
(8%)
(6%)
(33%)
Pack
22” DBH*
Select:
Finish:
Premium:
Standard:
Industrial:
(28%)
*grade 1 stems
Highlighting the Butt Logs
Grade Recovery (Gove 1984)
• 20 sawmills in VT 1973 – 1983
11 butt logs at Huntington (pruned)
16” DBH
Grade
Percentage
Select
80
Finish
1
(25%)
Premium
4
(2%)
(8%)
Standard
11
Industrial
4
(9%)
(28%)
(33%)
Anecdotal from NH – 5% select, 30-40% premium
(6%)
(33%)
(28%)
Pack
(28%)
Huntington
47%
Select
• 9 sites across NY (Pack), NH & Maine
• Expected the Huntington Forest site to yield a much
higher percentage of quality lumber, because of the higher
site index and better quality stems
• Equally surprising, as well as disappointing, was the high
percentage of standard and industrial grade lumber from
both sites.
4%
10%
33%
45%
8%
Wholesale Price/MBF
Grade Recovery (Brisbin and Sonderman 1971)
• The two harvest sites yielded surprisingly similar lumber grade
recoveries.
Huntington
Pack
Select:
28%
25%
Finish:
2%
39%
8%
39%
Premium:
9%
6%
Standard:
28%
33%
Industrial:
33%
28%
Select:
Finish:
Premium:
Standard:
Industrial:
Grade
Huntington
Industrial
10 butt logs at Pack (not pruned)
Grade
Percentage
Select
41
Finish
7
Premium
2
Standard
29
Industrial
21
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8/25/2014
Why prune butt log?
Huntington Butt Logs
As a tree grows, lateral branches die
• These branches cause knots in the
stem
• Clean wood overlays the branch
stubs
• The branches were smaller when
the tree was young, and also have
more clear wood over the branch
stubs
• This results in the best lumber
generally being cut from lower on
the stem
Huntington Butt Logs
Huntington Butt Logs
Huntington Forest – Average Stem
Butt logs are important, but you
cannot disregard upper logs.
They may be the key to
economic viability.
Total Board
Feet
657
Butt
230bf
Log2
171bf
Butt Vol. Dist.
Select
Finish
182bf
2bf
$236.16
$ 2.30
Upper Vol. Dist.
Select
Finish
90bf
13bf
$116.58
$ 12.81
Total Value
Log3
131bf
Log4
92bf
Log5
33bf
230bf
Premium
9bf
Standard
25bf
Industrial
11bf
$ 8.28
$ 17.71
$ 5.75
427bf
Premium
43bf
Standard
128bf
Industrial
154bf
$ 38.43
$ 89.68
$ 76.87
$604.57
Butt $
$270.19
45%
Upper $
$334.38
55%
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8/25/2014
Pack Forest – Average Stem
Total Board
Feet
186
Butt
112bf
Log2
74bf
Butt Vol. Dist.
Select
Finish
46bf
8bf
Back to our overall yields:
Total Value $163.94
A 60% yield of standard and industrial lumber
is not economically viable for sawmills
112bf
Premium
2bf
Standard
32bf
Industrial
24bf
$ 2.02
$ 22.74
$ 11.76
74
Premium
6bf
Standard
25bf
Industrial
22bf
$ 5.36
$ 17.71
$ 10.79
112bf
Butt$
$ 59.70
$ 7.84
Upper Vol. Dist.
Select
Finish
15bf
7bf
$ 19.34
$ 6.70
$104.05
63%
74bf
Upper$
$ 59.89
37%
The margins are too narrow!
A WP Timber Sale with 100MBF
Lumber Residual Method
Lumber
Volumes
$
$ 82,600.00
Select
Finish
Premium
28000
2000
9000
28000
33000
28%
2%
9%
28%
33%
36,400 $ 2,000 $
Standard Industrial
Stumpage
Timber Sale Adm.
Logging
Log Transport
Milling
Marketing & Overhead
8,100 $ 19,600 $ 16,500 $
Costs/MBF
115
10
140
50
500
100
82,600
$11,500
$1,000
$14,000
$5,000
$50,000
$10,000
$ (8,900.00)
Lumber Residual Method
The 40% Premium Solution
$ 82,600.00
Stumpage
Timber Sale Adm.
Logging
Log Transport
Milling
Marketing & Overhead
Costs/MBF
115
10
140
50
500
100
$11,500
$1,000
$14,000
$5,000
$50,000
$10,000
$ (8,900.00)
Costs
$915/MBF
Revenue
$826/MBF
Total
Board Feet
100,000
Lumber Volumes
Select
Finish
28000
2000
28%
2%
Premium Standard Industrial
40000
15000
15000
40%
15%
15%
$ 36,400 $ 2,000 $ 36,000 $ 10,500 $ 7,500
$ 92,400
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8/25/2014
Great to increase Select and
Finish lumber yield
The 40% Premium Solution
$ 92,400
Costs/MBF
115
11500
Timber Sale Adm.
Logging
Log Transport
Milling
10
140
50
500
1000
14000
5000
50000
Marketing & Overhead
100
10000
Costs
$915/MBF
$ 900
Revenue
$924/MBF
Stumpage
But more realistic to focus on
Premium lumber yield
Same Story with Log Residual
Same Story with Log Residual
$ 26,430
Log Volumes
Select/#1
($320/MBF)
100,000 bdft
Stumpage
#2 ($270/MBF) #3 ($150/MBF)
Timber Sale Adm.
Logging
Log Transport
28000
58000
14000
28%
58%
14%
$ 8,960.00
$ 15,370.00
$ 2,100.00
Costs/MBF
115
11500
10
140
50
1000
14000
5000
$ (5,070)
$ 26,430
If average costs are about $315/MBF
then you need to market “Select”
quality logs that fetch $320/MBF
Costs
$315/MBF
Revenue
$264/MBF
Hey Hey, My My
Out of the Red and into the Black
The kind of logs that yield
Select, Finish and Premium
lumber
How do we get into the black?
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8/25/2014
Management Implications
• Pruning is Prudent!
• Pruning of white pine crop trees pays off later
in the rotation, yielding high quality lumber in
the butt log.
• Prune when tree is about 35 feet in height –
usually 4-8 inches DBH
• Critical that pruning scars heal quickly to
avoid entrance wound for red rot
Management Implications
• Monitor red rot (Phellinus pini) during thinning entries and
consider reducing rotation age if red rot is a problem.
• A rotation age of approximately 100 years on high quality
sites will yield impressive tree specimens and volumes per
acre – similar to the Huntington Forest site; however, stems
averaging 24-inch diameter-breast-height and over 100 feet
in height may not be in synch with sawmill markets.
Consequently, stumpage prices will not compensate the
landowner for “big wood”.
• Unless there is a market for big timbers for exposed beams,
sawmills prefer logs that average 16 – 18 inches on the small
end. A 60 – 80 year rotation can serve this market demand
and improve financial returns for the landowner.
Management Implications
• To avoid grade-reducing black knots in the upper
logs, crown thinning entries should maintain
higher live crown ratios
• This strategy will promote more red knots, thus
more premium grade lumber.
More on silviculture in our next
presentation and in the field
Thank You for your Attention!
During the field
component we will have
the opportunity to discuss
white pine crown ratios.
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