Estimating Standing Tree Value Timber Appraisal

Valuing Your Standing Timber 1,2,3…

A Comprehensive Guide to Estimating Standing Tree Value

Estimating standing tree value can be complex. It varies based on several factors. Not all trees are equal. Some are straight, while others are crooked. Hidden defects can make standing timber appraisal challenging.For example , not all trees are equal; some are straight, while others are crooked, and hidden defects can make standing timber appraisal challenging.For this reason, within a given species, there is often a wide range of values.

Key Factors in Estimating Standing Tree Value

Since timber is sold by board foot (144 cubic inches), the total board footage harvested is crucial for value estimation. The more volume you have that is mature and ready for harvest, the higher the sale price will be.

The Species in Your Woods

After volume, species composition is the second biggest factor influencing the overall value of a standing timber stand. Is that tree Black Walnut? White Oak? Red Oak? While prices change over time due to market trends, the highest value timber in the Ohio, Indiana and Northern Appalachian region is consistently Black Walnut, followed by White Oak. Other valuable species’ include Hard Maple, Hickory, Tulip Poplar, Oak species included in the white/ red families such as Black Oak and Chinkapin Oak, as well as other regional hardwoods. In general hardwoods tend to be more valuable than softwoods though this is not because they are necessarily actually more dense.

Estimating Standing Tree Value: A Guide to Grades

The species composition of your woods is going to depend mostly on where in the world you are. Tree varieties grow along latitudinal lines. Our region produces some of the best hardwood timber globally. Mature woods here hold significant real value.

Appalachian Hardwood ID Guide

Need help identifying tree species? Check the gallery below for infographics covering common hardwoods from Ohio, Indiana, and Northern Appalachia. You may also consider investing in a paperback field guide, readily available for under $10 at your local bookstore.

Timber Pricing

After listing harvest-ready trees and estimating board footage for each species, you’re ready to calculate. This is where it gets tricky. Trees of different grades have widely varying prices. However , this is where the process gets a bit complicated, since trees of different grades command widely varying prices.

When assessing standing trees, foresters must consider hidden defects like hollows or mineral stains, which often reduce timber value significantly.

Understanding Timber Grades and Calculating Harvest Value

However, you can get a good idea of the range of possible values for your standing timber. For this, we turn to The Ohio State University’s Stumpage Price Report. This annual publication lists mean, median, and range prices by region for common hardwood species; universities and state agencies publish similar reports.

When you review this sheet, you’ll notice that grades are listed along the left column. Prices are categorized by species into prime logs, number 1 common, number 2 common, and blocking, with combined averages provided.Different log uses explain why some are highly valuable for lumber, while others are only good enough for firewood.

Prime grade logs mostly yield FAS lumber, the highest grade, which is ideal for furniture and cabinets. Truly exceptional logs may even become veneer. In contrast, number 2 common logs typically turn into railroad ties and pallets. This significant difference in potential uses explains why some logs are highly valuable, while others are better suited for firewood than lumber.

Estimating Timber Value A Guide to Grades

If you’re woods has been responsibly timbered in the past, and some time has passed since it was last harvested, you likely have a high number of harvestable timber.

The main factor assigning the different grades is the number and size lower limbs on the standing tree. The longer a tree trunk grows without limbs or limb scars, the higher its potential grade and overall value becomes.A tree without limbs for the first 16 feet will likely produce two 8 foot prime logs. Further up the tree will be number 1 and number 2 common. Each tree yields different log grades, with quality typically declining higher up the trunk as it approaches the canopy.

If your woods were responsibly harvested and enough time has passed, you likely have harvestable timber—average values give realistic estimates. Alternatively, use the mean “All Grades” figure from the table, which is more reliable for larger forests. Both options will be used in examples below.

Timber Valuation: An Example

The numbers in the timber pricing report are per 1,000 board feet.Divide the estimated board feet for each species by 1,000, then multiply by the price from the report.

Let’s say your mature White Oak stand equals 10,000 board feet. To estimate its value, multiply the mean price for no. 1 common White Oak by 10. The mean price was $425 in Spring 2012 and $482 in Fall. Divide 10,000 board feet by 1,000 to get 10.So you’re White Oak is likely worth about $4,250. Using the second strategy from above, multiply 10 by the “All Grades” mean value of $567. This equals $5,670. Repeat this process for each species. You’ll then have a ballpark estimate of your timber’s worth.

As you can see, coming up with an exact dollar amount for a tree is difficult. Though part of the proper stewardship of a forest involves continual assessment of the health and maturity of the trees, for non-professionals with large stands of timber the task can be daunting.

Timber Consultations

Timber Works explains every step of both the assessment and the logging processes along the way. We make timber harvesting recommendations that consider the unique characteristics of your woods, and address the input and concerns from you, the land owner, above all others.

We never pressure customers to sign contracts prematurely and we never include ambiguous language about the scope and details of a harvest in the agreements we do makeTimber Works addresses your questions and concerns fully and honestly.

Call or email us today for a hassle free assessment of your standing timber! Click here for more information about logging and timber buying from the professionals at Timber Works.

Review

1. Estimate the volume and individual species’ footage in your timber stand.
2. If you can wrap your arms around a particular tree (excluding professional athletes) it might not be quite ready to harvest, though this depends in part on species and other conditions.
3. The more mature trees you have, the more likely it is that your timber is ready for harvest.
4. To estimate the value of your timber, take the volume, divided by 1,000, and multiply it by the price quoted in your states standing timber stumpage report.