5 Factors That Affect Timber Stumpage Prices
by Clayton James
When it comes to acquiring timber and selling timber, it is important to understand what impacts the price of timber. Understanding these factors will help you know when to buy and sell timber.
Factor #1: Species of Timber
One of the one important factors is the type of timber that you are trying to sell or buy. Certain types of timber are more common, easy to grow and easy to obtain. The easier the timber is to obtain and the more plentiful that type of timber is, generally the less money you will get for the timber. The harder the timber is to obtain and grow, and the rarer it is, the most you will get paid for the timber.
Factor #2: Quality & Size of Timber
Next, the size and quality of the timber will impact its prices. Trees that don't have knots or branches can be used to make higher quality products. Thin timber or timber with a lot of knots cannot be used to make the same high-quality products. The overall quality and size of the timber matters when it comes to the price of the timber.
Factor #3: Volume of Timber
Next, the overall volume of the timber is important as well. If the amount of timber is small, it may not be able to be logged in a manner that is profitable. Generally, for timber to be profitable, a large acreage or volume needs to be gathered at the same time.
Factor #4: Location of the Timber
Where the timber is located plays a huge role into how profitable the timber is. For example, if you have to build roads to access the timber, that may not be as profitable as timber that already has built access roads. Or if the logs have to be transported hundreds of miles verses fifty miles to the timber mill to be processed. The harder the timber is to access, the less profitable it will be to sell.
Factor #5: Product Type
Finally, the end product impacts the value as well. What can be made from the wood directly impacts the value of the wood.
When it comes to prices that impact timber, there are a variety of different factors that impact the selling and purchasing price of timber, such as the specific of time, the quality of the timber, as well as the volume and location of the timber. Selling timber is a complicated process, so if you want to sell timber, you may want to work with an expert in the field. For more information, contact companies like Liese Lumber Co Inc.
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