With the current price of lumber rising, are any of you seeing more than normal clearcut action your leases? We’ve had more done in last 2 months than any period in last 5 years.
Its like the stock market; when its time to sell....you sell! Thats all that matters to timber companie$.With the current price of lumber rising, are any of you seeing more than normal clearcut action your leases? We’ve had more done in last 2 months than any period in last 5 years.
True, unless you are a timber company that is cutting their own trees and sawing those trees and selling the lumber. The timber companies that grow their own trees aren't buying timber, they are harvesting a crop (trees) and processing them into lumber to sell.Lumber prices may be at record highs but timber prices sure aren’t.
This summarize it alllumber prices have yet to get down to timber owners and probably wont. Got some "old family land" in timber. Got lots of cousins with forestry degrees from UAM They have a sawmill and throw a BBQ event in December that a fair bit of forestry folks come to. Timber into lumber is about the least liquid commodity there is. I decide I want to cut some trees, thin a stand. Its October, I call my family forester. He comes out and does his thing. by Dec / Jan he's decided which ones to cut and marked them. We get together in Jan /Feb and put out our bid solicitation. Timber companies look them over, maybe send one of their foresters out to look at the place. We get bids and open them in April, decide who to sell to and in May sign contracts. They have 18 months to do the cutting. You had better stipulate they dont cut and haul when its too wet if it rains in the summer. They should cut in the summer but you give them more time cause who knows what the weather will do. They want to stack up logs in their yard all summer and be able to run the sawmill all winter. Timber prices are dirt cheap and have been since 2007 ( werent that good then) My point.......The only folks who were in position to take advantage of the boom are the big timber companies who had lots of thinning they needed to do anyway. I ask my cousins / family forester if prices will get better for us and they all say that we have a huge over stock and its going to take quite some time to work that down. A figure I'm always hearing is that Arkansas grows 5 million board feet more per year than gets cut. Add Alabama , Georgia ect to that figure. A lot of areas do not have local sawmills anymore so add that to the mix. Still I have my fingers crossed that it'll get better. In the meantime I am glad that lots of forest industry folks are doing well these days.