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Top Reasons You Need to Know Standing Timber Prices
01/22/2009 - By Admin
The time when you actually sell the timber will have a say on how much profit you can get at the end of the day. And the time that you decide to unload the timber in your property will have a say on your business overall financial plans, the cost of regeneration and other objectives of the business. You never sell something when the business and the price is down, and this is the reason why most businessmen out there wait for that right time before they can unload their goods and make a profit from it. This is true as well in the timber industry; at times it pays to wait for the right and the profitable standing timber prices before actually deciding on the sale.
Standing timber prices will guide the direction of the business
The standing timber prices will have a say on the direction of the business enterprise and the profitability of the business. Simply put there are a lot of things at stake when the entrepreneur fails to take the standing timber prices into consideration. In fact just the wrong move and the failure to take into account the standing timber prices can spell the difference between bankruptcy of the business and business profitability. The standing timber prices known in the market are also known as the stumpage. Stumpages refer to standing timber prices after the logging and trucking expenses have been taken into account. Standing timber prices are the prices netted by the landowner and standing timber prices or the stumpages may be expressed in dollars/volume basis. These prices are important and it is suggested that the landowner should have an idea regarding some of the factors that can affect the standing timber prices.
Factors that may affect standing timber prices
In general, some factors that can affect the standing timber prices include the species, the size, the quality and the value of the timber.
- Specie of the timber. There are some species of trees that are considered to be more valuable than others. These trees will have a desirable color, grain and texture. Black Walnut is an example of valuable specie of timber. Other noteworthy species include the Black Cherry, White Ash, White Oak and Red Oak.
- Size. The size of the timber will have a say on the standing timber prices. Remember that the value of the tree is proportional to its size. It follows that a large tree will have more wood per inch of diameter if compared to the smaller trees.
- Quality of tree. A timber that is of high quality is a timber that measures at least 18 inch in diameter, straight and the timber is tall.
- Value. The value of one tree is related to the combination of the three related factors-the specie, size and its quality.
Ask the services or pros in taking advantage of the standing timber prices
Research is one key here in knowing the standing timber prices, since it takes a specialized knowledge to know the specie of the tree in question. Demand will also have a say on standing timber prices. Since there are a lot of factors that affect standing timber prices, it is important to get help and data from thirty party sites like http://standingtimberprices.weebly.com/ and to ask guidance to from professional foresters when it comes to standing timber prices and ways on how to handle the sale properly.