Spring 2009

Volume 18 No. 1

Choosing a �Team� to Harvest Your Woods

Tips on selecting a logger

By C. Sam Bond

Your forest land is a considerable financial investment as well as a source of personal enjoyment. Making the decision to harvest some of your timber warrants the same careful attention as any other business transaction. If you choose to hire a logger directly, or through a forester, consider the following points.

First of all, understand that the timber harvest is a big part of the execution of your management objectives. In order to achieve the management objectives of your forest land, those objectives should be well defined and communicated to anyone who will be involved in activities in your forest.

As �head coach� to your woods, you need to make sure that the team you choose (the loggers) have a full understanding of what the goals of the harvest are. It is important that you select a team of players that have the skill and desire to properly execute your game plan. For example, say, one of your harvest objectives is to release future crop trees by removing adjacent competing trees. To execute this step properly, the competing trees need to be felled in a manner so that the felled tree does not damage the future crop tree. Additionally, the felled tree should be removed (skidded) to the log yard without damaging those same crop trees. Proper execution of this procedure requires no small amount of skill and understanding in felling and skidding techniques. One way to choose a logger that can supply the necessary skills and training for a proper harvest is to check for references.

Check references

� Talk with landowners who have recently had a timber harvest

� Request the logger provide a list of satisfied landowners

� Consider visiting a site that the logger has previously harvested

Insurance/Liability

In the litigious world we live in today, about the only thing more prolific than lawyers are the invasive plants found in our forests. Herbicides may be the answer for the invasives and liability insurance can protect you and your assets during a harvest. Timber harvesting is an inherently dangerous occupation and this fact requires that a seller make sure that he or she is protected against liabilities that may be incurred by the logger during the harvest operation. Request copies of certificates of insurance. These may include:

� General Liability and Completed Operations

� Auto liability for log truckers

� Workers� Compensation: only required if the logger has employees

Negotiating Prices

It is rare when someone sells something that he or she doesn�t entertain second thoughts about whether they got the best price possible. This �seller�s remorse� can be avoided if the seller undertakes due diligence in researching the value of what they are selling.

Unlike items found in a department store, standing trees do not come with an attached price tag. Essentially, trees are worth what can be made from them minus the costs of harvesting, transportation and profit for the logging operator. Actual standing timber values for a specific stand of timber are influenced by many factors including, but not limited to: accessibility, timber quality, road distances, market demand, sale volume, species, contract requirements, etc., A good place to start in researching timber values is to:

� check published sources, i.e. The Woodland Steward�s Indiana Consulting Forester�s Stumpage Price Report or the Indiana Forest Products Price Report and Trend Analysis which are both available at www.inwoodlands.org

� Call local mills directly for the most up-to-date market prices. � Remember delivered prices offered by the mill are significantly higher than stumpage prices, which reflect the price of your timber �on the stump.�

Lastly, when comparing offers, make sure you evaluate offers made for the same trees. Since no two trees are valued at the same price, comparing the price offered per tree is not a true comparison unless the same trees are being negotiated. The tree paint industry has a solution for making sure the same trees are being offered for sale to prospective buyers.

Written Contract

A written contract or Timber Sale Agreement will protect the interests of all parties involved. This contract must contain the who, what, where and when of the transaction. A good timber contract also contains requirements of the buyer to contact the owner when operations will commence, when they are about to end, locations of log yards/landings, haul roads, and restrictions on harvesting due to poor (wet) soil conditions. Templates for such contracts are available through the local District Forester or by a web search of �Standing Timber Sale Contract.�

Specific restrictions in a contract need to be reviewed by potential buyers so that the buyer fully understands any restrictions and if need be adjust their offer to accommodate any increased production costs. Normal harvest requirements will not change the value of standing timber.

Finally, be cautious of high pressure sales tactics. (Trees are dying, markets are collapsing; my equipment is leaving and will never be back) And Never! grant permission to harvest your timber over the phone. Loggers have a big investment in both their equipment and their business and want to build a file of satisfied customers by following good business practices. With some effort, a landowner can find a reputable logger who can satisfy their harvest needs.

Certification and Training Reflects Logger Commitment

In Indiana, all buyers of standing timber and their agents are required to be licensed with the Indiana Department of Natural Resource�s Division of Forestry. The Indiana Timber Buyer Licensing Law (I.C. 25-36.5) was developed with support of the forest products industry. The license must be renewed annually and a card issued showing that the buyer is properly licensed. The law also requires that Licensed Timber Buyers be bonded. The bond could be used to pay the timber grower for timber purchased by the buyer, but not paid for, and for timber wrongfully cut and not paid for. Landowners should make sure that any timber buyer they deal with is appropriately licensed.

Loggers who participate in specialized training are showing the desire to do the best harvesting work possible. These individuals commit time to learn proper procedures and techniques in �hands on� training opportunities. These training sessions are provided by the Indiana Forest Industry Council with assistance from the Division of Forestry and Purdue University and include classes on timber felling, skidding,

harvest layout, Best Management Practices and the Sustainable Forest Initiative procedures. Landowners should ask loggers to show evidence of such specialized training as a sign that the logger is committed to the profession of logging and good stewardship of the land.

Long Term Commitment

The proper management of timber is a long journey that never ends. Both the effort and the rewards can be great. Like anything else, you get back what you put in and if you do it right, with interest. Having a bad timber harvest can reduce the economic productivity of your woods for decades and have negative impacts on recreational use of the property, water quality and the scenic beauty of the property. To minimize the long-term impact of a harvest on your property take the time to select a good logger or forester to assist in the management of your woods.

Parts of this article were adopted from the University of New Hampshire Cooperative Extension publication, �Selecting a Professional Logger.� http://extension.unh.edu/Forestry/prolog.htm.  C. Sam Bond is a Certified Forester and President of the Indiana Forest Industry Council.

 

 Home