|
Wood is a valuable resource, being a useful, self-sustaining material used in construction materials (lumber, plywood),
paper (cardboard, office paper), and cellulosic-chemicals (film, food additives). Significant economic returns
are possible, depending on the wood quality, density, condition of the sale area, and type of sale.
Timber is divided into several commodities based on species, size, and stem quality. Local markets vary significantly,
but typically include the following categories (ranked from least valuable to most valuable):
Mulchwood — low grade cypress/pine/hardwoods chipped and sold for mulch or biofuel
Pulpwood — low grade pine or low-medium grade hardwoods converted to paper products or cellulosicchemicals
Chip-n-saw — reasonably straight pine timber sawn into small diameter lumber
Sawtimber — large, straight cypress/pine/hardwoods sawn into larger lumber products
Peeler / Veneer — large, straight pine/hardwoods “peeled” for plywood and paneling
Poles — exceptionally straight pine timber used in utility poles and piers
Sales are usually either lump sum (bidders are invited to submit a total price for the
wood harvested) or per-unit (also called pay-as-cut, bidders submit a price for each
ton of wood removed), with per-unit generally yielding higher gross revenue but
incurring more monitoring costs. Prices are dependent on site specific variables,
including location relative to lumber mills, accessibility from public roads or good
quality private roads, operability in wet weather, and tract size (generally, the larger
the better). Contracts are generally for a year, with shorter contracts, or contracts
with numerous specifications and restrictions, bringing lower bids.
ESI Capabilities
ESI staff are actively involved in timber sales in coastal North Carolina, South Carolina, coastal Georgia, and northeast
and central Florida. We have developed relationships with reputable timber buyers and logging operations, and
are abreast of local market conditions. Given ESI’s capabilities in the fields of wetlands and listed species, our staff
are especially experienced in managing sales associated with permitted impacts/mitigation and development issues.
Value to Clients
Timber sales are especially appropriate to clients in the following circumstances:
Improving the ecological condition of property by reducing tree densities (including wetland/upland enhancement, and enhancement of habitat for wildlife including listed species, per regulatory permits)
During site-clearing, when clearing costs can be offset For commercially-sized harvests (as defined by the conditions described above), ESI typically charges 8-10% of the
gross timber revenue. Smaller sales, and sales which will require significant coordination and monitoring, may be
bid at a flat fee. |
