What is My Timber Worth?

September 12, 2017

Understanding Timber Value in Pennsylvania

So to answer the question, What is My Timber Worth?, well it depends. Clearly many attributes go into understanding timber value in Pennsylvania. The most important factors are acreage, location, quality, and species composition.

​The most common question many Pennsylvania consulting foresters receive is "What is my timber worth?". The question is often more complex than most forest landowners realize. Timber value in Pennsylvania is based on these five attributes.

Timber Value is What Someone is Willing to Pay

​First, timber is much like baseball cards or more broadly any commodity with a value to someone else. Local and statewide timber market reports can provide an idea of the level and trends of prices, however, the question what is my timber worth is based mainly on the demand which drives what someone is willing to pay. Current timber market prices can provide an estimate but each timber buyer is going to put their own value on your timber. For instance, if your timber grows near a mill with stable demand for lumber, your timber will be worth more.

Composition of the Timber You Are Selling

Second, a timber stand's value is dependent on the composition within it. The species, sizes, and qualities of the trees growing on a tract of land all impact the value you would receive from a future timber sale. In Pennsylvania, black cherry is the most valuable species on a board foot basis. Also, sawtimber (those trees greater than 12 inches in diameter) is more valuable than pulpwood (those tree less than 12 inches in diameter). Finally, quality attributes like defects and straightness all determine how much (or less) you may get for your trees. Quality is so important it is often the leading factor in how timber prices per acre are determined from buyers.

Size of Timber Sale

Third, the value of timber depends heavily on how much timber is sold in one timber sale. This is both the number of trees planned to be harvested and the amount of acreage set to be harvested. Typically, the larger the sale the higher price per unit of wood. With transportation and operation costs at some of their highest is recent years, many timber buyers in PA are reluctant to purchase or offer a premium for timber sales in Pennsylvania of only a few acres. Small properties often have a hard time selling timber or at best, receive a very low price for the trees they are selling.

Site Conditions of the Timber Sale

Fourth, what a timber buyer will pay for your trees depends on the site where the timber is to be harvested. It is expensive to harvest trees and that expense grows, and affects the end stumpage price, where operational costs are high. Variables such as distance from the stand to the nearest road, slope, soil wetness, and whether temporary bridges need to be built across streams all add to operational costs to timber buyers in PA. Timber prices per acre can vary greatly from property to property simply based on different site conditions.

Laws and Regulations

Fifth and finally, state and local timber harvesting laws can affect what kind of harvesting equipment can be used, how close harvests can come to streams, and what contingencies must be made if there are local populations of vulnerable or legally protected plant or animal species in your area. Some local municipalities have strict laws governing timber activities. Permits can be expensive and the approval process can be time intensive to a point where the return from the timber just doesn't make sense. Mainly these impact how much and in what ways wood can be harvested on a site. This then goes back to the third point above where reduced trees and limited area reduce the value of a timber sale.

So to answer the question, What is My Timber Worth?, well it depends. Clearly many attributes go into understanding timber value in Pennsylvania. If you are thinking about selling your timber in Pennsylvania, it is best to discuss your options and get a solid estimate on the timber value on your property to ensure the most value from your resource investment. Consult local foresters and natural resource managers if you are considering selling timber on your property.