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Often_ landowners by sdaferv


									Stumpage, Log and Lumber Prices                                       Common Forest Product Measures
                                                                      Board foot (fbm) – one board foot measures 12

O    ften, landowners          stumpage prices vs.                    in. x 12 in. x 1 in.
     will see pricing          stumpage prices, log
                                                                      Thousand board feet (mfbm) – is a common
information for forest         prices vs. log prices, etc.
                                                                      measure used to describe the unit price for
products from different        Even then, there are a
                                                                      sawlogs. For example, a logger may be offered
sources and they will try      number of elements that
                                                                      $650 mfbm for maple logs delivered to the mill.
to use this information        will affect these prices.
as a comparison to what                                               Tonne – one tonne is equal to 1,000 kilograms.
                               The following information
they have in their woodlot.                                           This is a common measure used to describe the
                               will assist you in trying
These values are often                                                unit price paid for pulpwood. It is important to
                               to sort out some of the
expressed as stumpage                                                 note that tree species have different densities, and
                               terms used in selling and
prices, mill gate prices for                                          their mass to volume relationships will differ. For
                               measuring forest products
logs or a price for rough                                             example, 1 cord of maple weighs 2,695 kg; poplar
                               and the factors that will
sawn lumber.                                                          weighs 2,203 kg and white pine weighs 2,050 kg.
                               influence prices.
Confusion will often arise                                            Cord – one cord measures 4 ft. x 4 ft. x 8 ft.
when a landowner tries
                               Stumpage Price
                                                                      Face cord – the most common face cord
to compare the price of        Stumpage prices are the
                                                                      dimension measures 16 in. x 4 ft. x 8 ft. (3 face
one type of product to         fees paid by a logger to the
                                                                      cords equals 1 cord).
another (e.g., stumpage        landowner for the right to
price vs. mill gate prices     harvest standing timber.
for logs). Adding to the       The price paid (stumpage
confusion are the different    fee) is generally based on
units of measure being         the local market value and
used in quoting the price      volume of the trees, as
(e.g., board feet, cords and   they stand uncut in your
tonnes). Also, prices for      woodlot.                               Professional Timber & Log Merchants For Over 10 Years
most forest products will
vary from one region to        Standing timber is                            Money Does Grow On Trees
another, even within some      generally sold by volume
                                                                         Responsible timber harvesting can improve the
smaller localized markets,     (measured in board feet
                                                                          health of and conserve your forest for future
and across the province.       or cords) or by weight
                                                                         generations and still provide you with excellent
                               (tonne). For example, logs
Trying to compare
                                                                                      monetary incentives.
                               are measured in board
stumpage prices to             feet and the price quoted
mill gate prices for logs                                                 We are committed to sustainable forest
                               is expressed in units of a
or lumber prices is at         thousand board feet (i.e.,
                                                                                  harvesting practices.
best extremely difficult       $350 per mfbm). In some
– if not impossible. The       cases, small logs (e.g., the             For a no charge evaluation of your bush property
best approach to avoid         first thinning of plantations)           call Deb at 800-481-5647 or 705-788-3783
confusion is to compare        or low value products (e.g.,                       or visit
“apples to apples”…                                                              Email:
                                            Continued next page ...

                                                                                 OWA - Dedicated to the Wise Use of Ontario’s Private Forests 9
... Stumpage continued

                                                           Shared value     •   species to be            harvesting operations. For
                                                           sale – the           harvested;               example, some of these
                                                           landowner is                                  costs would include felling
                                                                            • volume per acre or
                                                           paid based                                    (cutting the tree down),
                                                                                 total harvest volume;
                                                           on an agreed-                                 skidding (extracting the
                                                           upon split of    • percentage of logs and
                                                                                                         log from the woodlot to a
                                                           the income            pulpwood;
                                                                                                         landing), bucking (cutting
                                                           received         • log quality;               the tree into logs) and
Log landing filled with sawlogs ready to be trucked         (mill gate       • average diameter of        hauling (transporting the
to the mill.                                               prices) from          trees to be harvested; log from the woodlot to the
                                                           the various                                   mill). This is in addition
                                                                            • distance to the mill;
pulpwood) are measured                       products harvested.                                         to the costs associated
by weight and the price                                                     • time of year;              with operating a business,
                                             More information on these
quoted is expressed in                                                      • ease of access (i.e.,      such as workman’s
                                             methods of payment and
tonnes.                                                                          logging terrain, road   compensation, liability
                                             about selling standing
                                                                                 construction, proximity insurance, etc.
Payment to the landowner timber can be found in
                                                                                 to public roads, etc.);
can be made in several                       A Landowner’s Guide to                                      As with stumpage prices,
ways – a lump sum                            Selling Standing Timber.       • landowner’s needs or       mill gate prices for logs are
payment, payment by                          The guide is available              special requirements;   generally based on volume
scale, or payment based                      free of charge to OWA               and                     or by weight. Some of the
on a shared value basis.                     members ($5.00 for non-        • current market trends. factors influencing mill gate
Here is a quick look at                      members) by calling 1-888-                                  prices include species,
these three forms of                         791-1103, ext. #221.           All these contributing       quality (grade), local
payment:                                                                    factors will dictate how     supply and demand and
                                             One thing that every           much stumpage a logger       wholesale/retail lumber
Lump sum bid sale                            landowner should keep          will offer you for your      markets.
– the landowners is                          in mind is that no two         standing timber.
offered one price for all                    woodlots are alike!                                          Lumber Price
products (veneer, logs, and Stumpage values will vary                       Mill Gate Price
firewood) harvested from                     across the province and                                      Lumber prices are the
                                                                            The mill gate price is        amount a mill sells
his woodlot. The volume                      can vary within your local
                                                                            the amount a logger or        its product for in the
and payment is based on a area. This is because
                                                                            landowner would receive       marketplace (wholesale
volume estimate.                             there are a number of
                                                                            from the mill owner for       or retail). The prices
                                             elements that will influence
Scaled volume sale                                                          forest products (e.g.,        will reflect the cost of
                                             what a logger will pay for
– the landowner is paid                                                     logs, pulp, etc.) delivered   purchasing raw material
                                             standing timber. Some
based on an agreed-upon                                                     to the mill. The mill gate    (stumpage, logging
                                             of the factors that will
price (e.g., per thousand                                                   price will be higher than     costs, transportation,
                                             influence stumpage prices
board feet or per tonne)                                                    the stumpage price            etc.) and production
                                             for a given timber harvest
according to a scaled                                                       because it must take          costs (milling, drying,
volume after harvest.                                                       into consideration the        planing, etc.). Prices
                                                                            costs associated with the
10 OWA - Dedicated to the Wise Use of Ontario’s Private Forests
                                                              Non-Fibre Values: Broken Networks
                                                              with Garlic By Frederick W. Schueler

are generally expressed        oranges” is good advice          n the 5th of May, as          yards, and the older native
in thousand board feet         to heed when comparing           I patrolled the north         woods along the stream.
(mfbm) for either green or     various prices of forest   slope of the Chatsworth
                                                                                              This spring, I have been
kiln dried lumber and will     products. It is important to
                                                          Ravine, at the Lawrence
                                                                                              surveying chorus frogs
vary according to market       closely examine the source Park School Complex,
                                                                                              (Pseudacris triseriata),
trends, species and by         of the pricing information in Toronto, seeking the
                                                                                              a nocturnal pursuit
lumber grade (i.e., FAS, No.   you are reviewing to ensureintroduced snail Arianta
                                                                                              that left plenty of time
1C, or No. 2A). For more       that you are comparing     arbustorum, I was appalled
                                                                                              to wander during the
information on lumber          similar information that   by the bareness of the silty
                                                                                              days. Everywhere that I
grades, you may want to        is applicable to your      soil, and the dominance
                                                                                              journeyed – from Windsor
read the article “Hardwood     situation.                 of garlic mustard (Alliaria
                                                                                              to Skunks Misery to
Lumber Grades - An                                        petiolata), green and
                            As discussed, there are a                                         Collingwood to Beaverton
Introduction“ posted in the                               tender, and just breaking
                            number of factors that will                                       to Ottawa to Morrisburg -
Library on the OWA web                                    into tiny while blooms.
                            influence the stumpage,                                           - there was garlic mustard.
site at <www.ont-woodlot-                                 There were no native
                            log and lumber prices.                                            The soft rounded mounds>.                                               spring-flowering herbs.
                            Prices will vary because                                          of green foliage with little
                                                          Only the bright golden eyes
The S&W Report              of the processing costs                                           balls of white flowers
                                                          of common dandelions
provides members with       (e.g., standing timber to                                         seem to easily displace
                                                          (Taraxacum officinale) were
a condensed look at the     log; log to lumber; lumber                                        the native forest floor
                                                          conspicuous among the
current and historical      into marketplace) and                                             vegetation. Where it hasn’t
                                                          mats of fallen green flowers
prices of hardwood lumber the various elements
                                                          of Norway maples (Acer                                Continued next page ...
for a few key species (by   specific to each individual
                                                          platanoides). I checked
grade). The comparative     woodlot (e.g., species to
                                                          my revulsion at these alien
prices cover the northern   be harvested, volume, ease
                                                          plants, realizing that they
United States and eastern of access, local markets,
                                                          weren’t alien to the object
Canada and allow the        etc.). With this in mind,
                                                          of my search, but were
reader to track historical  the prices that you are
                                                          rather creating a European
trends by comparing the     reviewing should be used
                                                          ambiance in which a
current price to those from as a guide (to look at local,
                                                          European snail might
different intervals over    regional and provincial
                                                          thrive. I wasn’t focused on
a two-year period. This     market trends) and not
                                                          trees. This spring’s leaves
information is provided to  necessarily as a direct
                                                          were just opening, and last
the OWA courtesy of the     indication of the value of
                                                          year’s fallen leaves had
Hardwood Market Report. the timber in your woodlot.
                                                          been eaten up by (alien)
Summary                                                   earthworms, but I felt a
                                                          growing unease at my
There are sound reasons                                   inability to recognize many
why the old proverb                                       of the small trees filling
comparing “apples to                                      in the slope below the              Recent research has shown that garlic
apples and not apples to                                  planted trees of the fenced
                                                                                              mustard can impact the growth of some
                                                                                              tolerant hardwood seedlings.

                                                                       OWA - Dedicated to the Wise Use of Ontario’s Private Forests 11

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