Selling Timber in Pennsylvania

July 19, 2017

Preparing for a Timber Sale

Selling timber is not a small task for any landowner. There are costs, revenues, regulations, and environmental issues all at play when deciding to sell and market your timber resources.

​Selling timber is not a small task for any landowner. There are costs, revenues, regulations and environmental issues all at play when deciding to sell and market your timber resources. Environmentally a timber sale is complex. It is also something that has financial complexity. These two factors alone make it worth consulting a professional when you are preparing for a timber sale.

As a landowner, you first should consult an expert in the field of forestry. County Extension Offices and State Forestry Agencies offer resources and guidance at low to no cost, but are limited in terms of actually implementing a timber sale for you. Private consultants often charge a percentage fee based on the gross sale price of the timber to conduct a timber harvest. Percentage commissions range from 6-15% depending on the amount of work involved.

Timber Sale Preparation

Implementing an actual timber sale in Pennsylvania starts with determining your objectives. The property's objectives drive the decisions on what type, quality and quantity of trees are to be harvested. Sale and property boundaries need to be established based on objectives and environmental impact such as seasonal streams and access restrictions. Trees should be clearly marked on two sides and at the stump so logging operators can visually see which trees are to be harvested or which trees should be reserved. Preparation for the sale is done by analyzing the timber planned for harvest and compiling statistics on number of trees and volume by species and forest product (sawtimber vs. pulpwood).

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The Consulting Forester

Timber is a resource, and depending on your property a potentially valuable one. Every timber sale should be competitively bid to multiple companies in order to receive the most value possible. A professional Pennsylvania consulting forester and County Service Foresters have lists of local logging companies that are in the business of buying standing timber. The chosen logger (and their company) should be insured, follow worker protection and safety laws and be able to provide references of past successful work. Each sale should have a clear and comprehensive contract the outlines the parties involved, their responsibilities and actual sale guidelines such as time-frame, payment schedules, environmental restrictions, liability and access. Contracts should be developed by a Professional Forester or Lawyer to ensure you as a landowner are protected from liability and that your resource is protected from unethical business practices. Depending on the sale, a performance bond may be required to ensure roads are maintained and retired correctly upon successful completion.

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Timber Management Laws

​A number of Federal laws impact timber harvesting in Pennsylvania, particularly when the harvest evolves sensitive environmental areas such as waterways and habitats involving species of special concern. Determining the impact of these laws and if any may be applicable are important first steps that can save you time and money in the long-term or potential stop your timber sale upfront depending on the return on investment. Increasingly, local governments are implementing timber harvest laws and ordinances. These laws are not necessarily publicized and can take quite of bit of digging to uncover. Check local laws regarding timber harvesting before you being the process of selling timber. Some municipalities have laws that make it difficult and sometimes costly to actually sell timber.

Timber Administration

​The challenging part of selling timber is the assessment and marketing piece described above. As the sale commences, the site should be visited periodically to ensure the contract is being implemented as developed. Access roads should be maintained in accordance with environmental laws and harvesting should be monitored to make sure local and state-level best management practices are being implemented. Trees harvested should be checked to make sure the correct trees are being cut and not cut. Closing the sale involves a final site walk through to check trees, logging impacts and contract requirements have all been completed in a satisfactory manner. Any discrepancies such as wrong trees cut or poorly retired haul roads should be addressed before any return of performance bonds and final contract closure.

Selling timber in Pennsylvania is not simple, and there are many potential ways in which a landowner working without professional forestry's expertise can be taken advantage of. Several scientific studies have shown that timber sellers who hire a professional forestry consultant to organize the sale end up with profits greater than profits accruing to timber owners who do not hire a professional forestry consultant, even after subtracting out the consulting fee. Further, by obtaining the services of a professional, paid or unpaid, you can ensure that the land and forest remaining after the harvest is more productive, sustainable and financially stable for future generations.