Different Ways to Profit From Timber
As Florida timberland for sale grows in size and volume, it becomes more and more valuable. As the trees mature, the use of the wood will evolve along with its value.
Selling Stumpage Versus Logs
There are two different ways to sell timber. The first is stumpage (standing timber) and the second way is as logs or other finished products.
When you sell stumpage from your timberland for sale in Florida, it means to sell only the standing timber, and leave the harvesting and processing to your buyer. In most cases, private woodland owners choose to sell their timber as stumpage. The two types of stumpage sales are, lump sum or sale by unit (or sale by scale).
Lump sum means that you’re paid in advance in a single payment for all your timber trees to be cut before any harvesting begins. The payments will be based on an estimate of the timber volume that’s available on your property, not the actual volume harvested.
Sale by Unit
Sale by unit is where the buyer pays you for just the trees that are cut. This means that harvested timber must be measured by you or your forester, making it more difficult to administer than a lump sum.
Log sales typically involve harvesting and processing your own timber, and selling the finished products that come from it, such as sawtimber, pulpwood, or veneer. To do this, you must arrange for your own logging, by either cutting the trees yourself or hiring a logger, and for the timber’s hauling and handling. This method will increase your profits, because it’s less costly and timely for the buyer. However, it comes with it’s own risks. Logging is dangerous work and requires expensive equipment. Additionally, any mistakes made in cutting or handling timber can destroy its value.
Different Uses for Timber
If you plan on using the timber for paper production, we recommend buying a property with timber trees that are smaller in diameter, about eight inches or less. These trees are considered pulpwood, and are used for paper production. These trees also yield lower returns than trees with a larger diameter.
Furniture and Flooring
If your goal is to use the timber trees for products, such as furniture, flooring, or plywood, we suggest buying a property that has a large volume of trees that are 12 inches in diameter. These trees are high-value saw timber.