What is a good splitting price?

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monsterbuck07

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What would be a good percentage split with a logger? We have talked to a few people and they are saying 50 - 50...does this sound right? What would be a reasonable offer to make?
 
You may only get 60/40 if the Logger is not able to take all the choice wood. If you leave them the decision on what to cut you can probably negotiate 50/50. Then it all depends on your timber age and quality.Also whether you are select or clear cutting and the size of the tract.
 
50/50 is the standard. If you ask for extra considerations (extra road-work, clean-up, etc.), that may drop you down to 40%.
 
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Not positive how the process works, but my brother hired a timber consultant first. They will grade your timber and negotiate and shop your timber to the highest bidder. They work on percentage(maybe 10%) so its in their best interest to get the highest price. If you just deal straight with a logger, your taking their word on the value. It's in their best interest to low-ball you. jmo
 
bowfire said:
Not positive how the process works, but my brother hired a timber consultant first. They will grade your timber and negotiate and shop your timber to the highest bidder. They work on percentage(maybe 10%) so its in their best interest to get the highest price. If you just deal straight with a logger, your taking their word on the value. It's in their best interest to low-ball you. jmo

sealed bid is always the best, and if its real good timber you can usually get the consultant to lower his percentage
 
We are splitting 50/50 with our loggers. When they are done, they are going to come back and fix our roads, make the clearings flat and cleared out good for food plots, and clean everything up. I just want them to do as much as they possibly can. They have about 30 acres left to go. We will probably have to have them come back at the end of deer season to finish up some of the cuts.
 
Does anyone have a logging company they would recommend in Lawrence County? Other close County? I am pushing my parents to cut while the prices are high...any help or advice that could help me make them pull the trigger would be great! Thanks for the previous responses!
 
I think if you have a really good stand of timber, and prices at the mill are strong, you will get a better price from a well marketed sealed bid.

However if you have a lot of pulp and low grade logs, or if prices are fluctating severely, you may do better selling by the load at specified rate.

We sold a bunch of pulp and low grade logs, with a limited amount of high quality logs on a pay as cut basis. However we arranged the contract through an agent of Georgia Specific. We had a contract with the logger, and GP had a seperate contract with the logger. All of our stuff went to GP mills, and our checks came directly from GP, so we didn't have to worry about getting shorted from the logger.

And the state forester came out and marked the trees for free. This was in VA. No high grading for sure, all the trash got cut.
 
I often check at the local mills what the logs actually sold for (from a logger working under sealed bid). I've NEVER seen anyone get close to what the timber actually sold for at the mill. Generally, no more than 30-35%.
 
So, hypothetically speaking, if I wanted to have them come to my small completely undeveloped 30 acres and clear cut 3 or 4 acres, would they laugh in my face? Really don't know, and I'm curious.
 
gmckinney626 said:
So, hypothetically speaking, if I wanted to have them come to my small completely undeveloped 30 acres and clear cut 3 or 4 acres, would they laugh in my face? Really don't know, and I'm curious.

Depends on whats on that 3 or 4 acres. If it's junk wood probably nobody would be interested. If it's a good mix with 5+ loads to the acre, you might find a small crew to do it when they would otherwise have down time. If it's real good lumber you can probably find somebody. Why not let them cut 8-10 acres? That seems to be the minimum to generate real interest most places.
 
gmckinney626 said:
So, hypothetically speaking, if I wanted to have them come to my small completely undeveloped 30 acres and clear cut 3 or 4 acres, would they laugh in my face? Really don't know, and I'm curious.

Sealed bid? It wouldn't be considered. Individual logger? Depends on the quality of the timber. The could make money off 3 to 4 acres of high-quality wood.
 
Monsterbuck, Call Calvin Bryant @Lawrence Co. Extension, 931-762-5506, for some logger references..also there is a timber association that deals with loggers all the time (Southern Middle Tennessee Forestry Association)
 
BSK said:
Chaneylake said:
BSK said:
Chaneylake said:
BSK said:
Chaneylake said:
sealed bid is always the best...

I disagree, but a sealed bid certainly keeps you from getting ripped off.

I was refering to price alone

You WON'T get the best price with a sealed bid.

in our area we have

How do you know?


I was taught by my Grandfather and my Dad, I/we have seen and done it all, logging, sawmill, selling finished product, selling and buying standing timber. in our area the bogus loggers will not even bid on our timber, they will not get close to the top bidder, we cruise/count and mark each tree that is to be cut.
 
That's great for someone who knows timber. But how does that help the person who knows nothing about timber?
 
BSK said:
That's great for someone who knows timber. But how does that help the person who knows nothing about timber?

word of mouth and reputation of the logger's in our area has worked well for many years, I have seen timber cruisers turn sour, one guy got blackballed in the early 80's, it got to where no one would even bid on the timber he was selling. there is still one logger in the area that will always cut across the property lines and will also cut trees that are not marked for cutting
 

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