Woodland Security
Timber Sale and Harvesting Issues
Remarks with the Alabama Forest Landowner’s Association
25 May 2006
Tom Kazee
Top Ten Things the Non-Industrial Forest Landowner Should Keep in Mind Prior to,
During and After a Timber Sale
- Educate Yourself.
- Through associations, periodicals,
seminars, tours and consultants.
- Know what species and products you own.
- Understand stand densities (cords, tons, MBF per acre).
- Understand
market conditions and market variables.
- Develop your own forest
management strategy.
- Aesthetics, wildlife, recreation, and income are
all important factors.
- 2. Get professional, unbiased help. An
uninvited timber buyer is not unbiased.
- Free Help – County Rangers, prospective
buyers
- Paid Help – consulting foresters; meet
with more than one
- Insure there is a good appraisal prior to
any sale agreement. Know what you own. Watch, inspect and ask lots of
questions during this process. Insure there is good quality control and good
precision. Know what you own BEFORE YOU SELL IT.
- Insure there is AGGRESSIVE MARKETING.
Selling to the first guy that makes an offer does not qualify. All or at
least several prospective buyers should have an opportunity to inspect and
make an offer.
- If your agent handles negotiations on your
behalf, YOU should speak with unsuccessful prospects. Trust and verify. Make
sure you have a good understanding of market conditions.
- MAKE NO VERBAL AGREEMENTS. MAKE NO IMPLIED
AGREEMENTS. Your attorney must inspect any timber sale contract prior to any
agreement. Get insurance certificates for general liability and workman’s
compensation insurance that are current for the person doing the work.
- YOU observe bid openings if you conduct a
bid sale. The INTEGRITY of the bid opening is critical to a fair sale.
Insure the bid opening is fair, unbiased and public. Bidders should be
invited to witness the opening, even though most will not attend.
- Pay as Cut Contracts must have some device
to prompt the commencement of harvesting. If there is no advance or deposit,
the buyer might never cut your timber. This is particularly true when market
conditions change and he has to cut your timber at a loss.
- Sale boundaries must be painted prior to
harvesting. Flagging might be okay, but not if you sell timber adjacent to a
merchantable stand with no physical boundary (road or stream).
- For pay as cut sales: Load tags and load
reports are essential. They need not be expensive or elaborate. You can make
your own load tags from index cards and use a legal pad for a load report.
Each load must be assigned a unique number when the trailer is loaded. Each
loaded trailer must be recorded in writing before the trailer moves. No
loaded trailer should move one inch without being properly documented. Spray
paint your serial number on the flank of each load. Attach your index card
to the scale ticket. Reconcile shipments with receipts. Requirements for
load reports should be in your pay as cut sale contract.
- A regular, thorough inspection of harvesting
activities must occur. For non-industrial landowners, I would recommend no
less than twice each week. Four times a week would be better. You or your
professional, trusted agent: someone who knows what they are looking at.
Inspect for:
- All contract specifications.
- The integrity of sale boundaries.
- BMP compliance.
- Merchandising – poor merchandising can
cost you more than theft.
- Load reports and trip tickets.
- Production – If they ship two loads a
day or twenty, you must know what to expect at the end of each pay
period.
- For pay as cut sales: insure payments are
timely. If they get behind, shut down the logging. They will catch up the
payments.
- Be sensitive to warning signs: Lavish
lifestyle, hostile and aggressive, contract violations, other forms of
corruption, sloppy paperwork, loading trailers at night, high turnover of
truck drivers and crew. These should cause a prudent person to be more
careful.
- Compare pre-harvest appraisal to actual
results. Deviations should be explainable. A good professional cruise should
be within 10% of the actual.
- Protect the entire business. Reforestation
and road maintenance payments, hunting lease income, land and timber between
harvest: All these are subject to theft or fraud. Be alert regarding your
personal safety.
Tom Kazee
Biographical Information
Phone: (904) 504-9489
Email:
woodlandsecurity@bellsouth.net