Forest Management Planning for Marketing Forest Products Generating Value From Your Woodlands Lyle Almond Forest Stewardship Educator Wye Research and Education Center 410-827-8056 x125 lalmond@umd.edu Forest Management Planning for Marketing Forest Products • Implementing wildlife habitat and timber management prescriptions • The role of timber harvesters and foresters in timber management • Harvesting options, especially for low-value products • The attributes of a good logging job • The basic do’s and don’t’s of forest product marketing • The importance of sensibly written contracts Implementing wildlife habitat and timber management prescriptions • What are your objectives for the woodland you own or manage? • Commodity production (economic): timber, pulp, wood chips, firewood, etc. • Public values (social): recreation, aesthetics, water quality, carbon sequestration, etc. • Environmental management (ecological): wildlife habitat, soil protection, etc. • Whatever your goals, an active, timely, and well-planned program of forest stand management is critical to ensure that you have a healthy and productive forest Implementing wildlife habitat and timber management prescriptions • What is a PRESCRIPTION? • a site-specific plan describing the nature and extent of the silvicultural activities that will occur on a free-growing stand to facilitate the achievement of, among others, social, economic, and environmental objectives. Implementing wildlife habitat and timber management prescriptions • Stand thinning is essential • Replicates the processes of natural selection and disturbance ecology • Favors the development of superior trees by eliminating suppressed, diseased, or co-dominant trees that compete for limited resources Implementing wildlife habitat and timber management prescriptions • Stand thinning is essential • The reduction in stem numbers allows crown expansion to accelerate biomass production by increasing photosynthesis Implementing wildlife habitat and timber management prescriptions • Diameter growth increases with crown release Implementing wildlife habitat and timber management prescriptions • Harvesting should be part of a written forest stewardship plan • STEP ONE: Develop a forest stewardship plan • Private consulting forester • MD DNR county forester: develops forest stewardship plans, but will not administer a commercial timber sale • Coached planning through UM Extension: develop and write the basic framework for a forest management plan in the online General Forestry Course The role of timber harvesters and foresters in timber management • Whether or not you go through the General Forestry course, you should hire a professional agent who represents your interests to guide you through the process of selling timber. • STEP TWO: Interview, select, and enter into a contract with a consulting forester The role of timber harvesters and foresters in timber management The role of timber harvesters and foresters in timber management Timber sale triangle Results Logger Forester Volume to be harvested 200 MBF 200 MBF Average log price achieved from marketing logs $680/MBF $700/MBF Gross Revenue $136,000 $140,000 40% $140/MBF + 10% Total Logging & Management Cost $54,400 $42,000 Owners Net Revenue $81,600 $98,000 Preparation of Timber Harvest Plan NO YES Reforestation service provided NO YES Spraying service provided NO YES Tax preparation NO YES Independent log accounting NO YES Owners additionally insured on Loggers liability policy NO YES Logging performance bond held by independent party for owners NO YES Professional forester available for future management questions NO YES Total Logging & Management % The role of timber harvesters and foresters in timber management • DNR County Forester: writes your forest stewardship plan • Stewardship plan development (subsidized): • • • • • • Acres <5 5-25 26-50 51-100 101-500 >501 Cost $100 $200 $225 $250 $275 $300 The role of timber harvesters and foresters in timber management • Entering into the contract • Stewardship plan • Services • • • • • • • Measuring timber Marking timber for sale Soliciting bids Collecting money Planning roads and landings Inspecting job site Assessing damages • Fees • • • • Marking of timber Sales Compliance inspections Hourly rate The role of timber harvesters and foresters in timber management Private forestry consultant fees • 10-15% of sale • Per diem • Hourly Enter into contract • Stewardship plan • Services • Measuring and marking trees • Marketing timber • Soliciting bids • Collecting money • Planning roads and landings • Inspecting job site compliance • Assessing damage The role of timber harvesters and foresters in timber management • Selecting a private forestry consultant: • word of mouth: talk to friends and neighbors • interview potential consultants on the phone about: • • • • • • • your forest stewardship objectives their cost of services ask about their prior experience look for accreditation through SAF or ACF make sure they’re licensed in Maryland as a registered forester ask for references: talk to other customers arrange to go to one of their prior job sites to inspect the work that was done The role of timber harvesters and foresters in timber management • Selecting a private forestry consultant: • arrange for one or more of these foresters to visit you on your property and make your selection based on: • • • • • How well the consulting forester understands your goals How well the consulting forester can fulfill your goals Charges a reasonable price for services Has good references Has a personality compatible with yours • sign a written contract with the forester regarding the services and fees and communicate with him/her regularly • The forester will become a partner in the stewardship of your land The role of timber harvesters and foresters in timber management • Private forestry consultant: • Qualifications • Maryland Professional Forester Licensing • • • • Forestry degree 2 years experience 8 CFE credits every 2 years 5 references • Certified Forester (SAF) • • • • Accredited forestry degree or equivalent 5 years experience Comprehensive exam 20 CFE credits every year Harvesting options: choose a management system Harvesting options: choose a management system Harvesting options: choose a management system Harvesting options: choose a management system Harvesting options: choose a management system Harvesting options: choose a management system Harvesting options: choose a management system Harvesting options: Stumpage value: the price paid to the landowner for the standing trees • Species: black cherry (BC), northern red oak (NRO), etc. • Type of Product: fuelwood? pulpwood? sawtimber? veneer? • Size: average diameter, uniformity • Grade: % clear of defects • Volume: MBF or tons • Access to roads: how close is your forest to main haul routes? • Proximity to markets: how close is your forest to mills? • Market demand at the time: $/MBF or $/ton at time of harvest West Virginia Timber Market Report Harvesting options: Species Relative value Black cherry Extremely high Black walnut Very high Red oak Very high White Ash Very high White Oak High Yellow-poplar Medium-High Loblolly pine Medium White pine Medium Virginia pine Low Harvesting options: Product Diameter (inches) Sapling 1 - 4.9 Poletimber 5 - 10.9 Small Sawtimber 11 - 14.9 MediumSawtimber 15 - 17.9 Large Sawtimber > 18 Veneer > 18 The attributes of a good logging job • Your forestry consultant has met with the logger on-site before any timber was cut to make sure the logging contractor understands • Where roads are to be located • What trees are to be harvested • What harvesting techniques are to be used • Your forestry consultant visits the site on a regular basis during the harvest to make sure there are no major problems The attributes of a good logging job • Best management practices (BMPs) are employed in all aspects of harvesting to reduce sediment and nutrient run-off into streams and wetlands 1. Haul roads & skid trails construction and maintenance 2. Stream crossing structures and placement 3. Streamside management zones (SMZs) buffer management 4. Landings and log decks placement and management 5. Soil stabilization control mechanisms A waterbar was installed to route water off of the road bed and into the ditch to prevent delivery of sediment to nearby streams. The attributes of a good logging job • Above all, regardless of how well your consulting forester handles your timber sale, it is ultimately the landowner who is held responsible for ensuring that harvesting complies with forest practice regulations • the logger’s performance bond is held as insurance against any violations • Best management practices (BMPs) can be found at: www.dnr.state.md.us/forests After the harvest, roads should be graded and seeded to prevent post-harvest erosion and sedimentation of stream. The attributes of a good logging job: aesthetics The attributes of a good logging job: advance regeneration • Whatever type of harvest you choose, the regeneration potential of the future forest is the most important consideration. The importance of sensibly written contracts The importance of sensibly written contracts Summary • Sell timber when it will best accomplish your goals, never because someone made you an offer • Harvesting should be part of a written forest stewardship plan. • Carefully select a professional forester. • Get payment in full before any trees are cut, if possible. • Get all agreements in writing Lyle Almond Forest Stewardship Educator Wye Research and Education Center 410-827-8056 x125 lalmond@umd.edu