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Trees and Money
There are a number of factors that influence the value of trees and woodlands.
According to a fairly recent Forest Service Bulletin approximately 72% of Benzie County is forested. So there are
a lot of trees and woodlands out there in Benzie; and those trees and woodlands are worth a lot of money.
The landowners own the trees and woodlands, and will likely want to receive the highest value for them. Selling
standing trees in a woodlot, usually called "stumpage", is not easy because there is a limited market
for standing trees. It takes a lot of work to fell the trees, move them around, and produce the logs that are usable
to the different wood markets.
The mills, whether making lumber or paper, are the destination of the logs, and will likely want to pay the least
they can to secure their raw material. The lower the price they pay the higher their profit might be. Many mills
have their own staff of timber buyers, or procurement foresters, to make sure the mills have the raw materials
they need at the lowest cost. Additionally mills can have loggers on staff to carry out the harvesting their timber
buyers arrange.
The forestry consultants usually work for the landowner directly, and act in the landowner's best interest. The
consultant can help form management plans, mark trees, and perhaps most importantly regarding trees and money,
arrange and administer a sealed bid timber sale for the landowner. Selling stumpage using such a bid process ensures
the landowner gets the highest prices. Consultants usually receive a percentage of the timber sale proceeds for
their services, and research shows that even after paying the consultant, the landowner will make more money using
the bid process. Typically in a bid process, the consultant will advertise the sale to all the possible timber
buyers they know, so the buyers will bid against each other and drive the price up.
If you sell stumpage without using a bid process then you just might be giving your money away. The Benzie Conservation
District is here to help you manage your land, please call 882-4391 with questions you have, or stop in and see
us in downtown Beulah.
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