How much for timber

big rockpile · #21 05/08/05, 10:53 PM

He is right I know on our property we couldn't cut any Trees until the property was paid for.Thats here in Missouri.

big rockpile

WolfWalksSoftly · #22 05/09/05, 04:16 AM

Quote:

Originally Posted by sancraft

He says that won't leave a mess. They will take down some smaller pines that I need out to clear the area for a my house and for pasture. We will walk together and mark what goes. All the stumps will be uprooted and cut and stacked for firewood. Any crooked peices that have to cut out will be cut and stacked for firewood. The limbs done the same way. Any smaller trees that have to come out for the house, firewood. The pine logs cleaned off, cut to uniform size and stacked where I want to build the coop and barn with them. All debris piled and burned. He said they'd leave it clean and do what I want. Some of the huge one I want to keep. I have tons of good sized trees that will be left too. He's really after the huge ones. He's also cleaning out around the creek which I want dug out for a pond. He's an older gentleman, I'd say about 70-80 yrs. old. Will bring the paperwork, but still likes to shakes hands on the deal. I think he'll be real honest with me.

I have never heard of anything like this before. Almost too good to be true. I live in an area where there are many saw mills....and Loggers. My Father-in-Law had some of his property logged. Not sure how much he made,but in my opinion,they raped his land..and left a huge mess with tops and damaged trees. Two years later and I am still not half way done clearing what was left. I do have firewood for the next 2 years though.
Scott

woolyfluff · #23 05/09/05, 05:53 AM

ther is one thing noone has touched onIF you donot want the land rape by machines get someone with a team of horses they do not add more poultion to the AIR and theydonot damage the round with 3-4ft deep ruts and cause damae from rainstorms just another thought

sancraft · #24 05/09/05, 06:14 AM

We shook on the deal, but he's coming with paperwork before we start. I have to have some trees cleared to build and some of them are the big trees that he wants. I don't have tons of marketable timber. It was logged about 12 yrs ago and those area re-planted with pine. I'm using the pine to build the barn and coop. I talked the man at the mill across the road. He wasn't interested in taking them because it's not enougn for him. He does buy from the man I talked to. This man does small tracts. I'll go by and see some of his work. I'm going to have to clear, so I might as well make some money on it intsead of pay to have it done.

Old Jack · #25 05/09/05, 06:31 AM

Make sure you get everything in writing, check with your forestry agent. Around here a common practice is to go in and get the land owner to sign a contract, then the original "logger" sells the contract to someone else who may not know or care about the original conditions you set.
Also in your contract don't give them an open ended time period. After it's logged, plan on some forest management of your own, ie: replanting the "good" trees.
Other wise the junk trees will take over and ruin your forest.

Darren · #26 05/09/05, 08:30 AM

Have you considered the tax implicartions of the timber sale? What you don't want is the money you receive considered as ordinary income. That means the IRS will take a bigger cut than it might otheriwse. In this area, there's occassional tax workshops offered to timber owners. Talk to an accountant or forester before you sign the papers. Otherwise it could cost you a lot of money. If you can prove that you've been managing the timber over a period of time, you can qualifiy for a lower tax rate. Again talk to someone in the business that doesn't have anything to gain when you sell the timber.

FarmerJeff · #27 05/09/05, 10:13 AM

Big black walnut = BIG BIG BIG Money. Definitely absolutely without a doubt contact an INDEPENDENT consulting forester as was already said.

bgak47 · #28 05/09/05, 10:38 AM

If I had 3ft+ diameter hardwood trees on my property, I don't think I could allow them to be cut unless I was DESPERATE for the Money. Old growth trees such as these should be preserved. They are at least 100yrs old,& probably more.They are valuable for much more than their monetary worth! I'm not really a tree hugger, but these trees should be protected.Think of it as an investment! They will be worth much more in 20yrs when the demand for mature hardwoods will be even greater than it is now. You could Retire on the difference between what these trees are worth now & what they WILL be worth.

agmantoo · #29 05/09/05, 08:15 PM

sancraft ,
Since you recently purchased the property if you have someone (professional forester) to determine the value of the trees you can have that income tax free as you will be just selling what you bought and that is your money coming back. The monies above the income from the trees will be your basis in the farm.

Darren · #30 05/09/05, 10:37 PM

Quote:

Originally Posted by agmantoo

sancraft ,
Since you recently purchased the property if you have someone (professional forester) to determine the value of the trees you can have that income tax free as you will be just selling what you bought and that is your money coming back. The monies above the income from the trees will be your basis in the farm.

I'm not sure that's correct, Agmantoo. Sancraft needs to step back and make sure the tax implications are understood. My guess is the timber sale may be taxed at the highest rate because the property was purchased relatively recently. It also depends on how the timber is considered because some states treat it as either real or personal property depending on how the contract is written. There's lots of info out there on the tax implications. Here's one site.

http://www.timbertax.org/estate_laws...l/ch3/ch3G.htm

Come tax time next year sancraft could end up owing Uncle Sammy thousands of dollars if the sale isn't handled properly. The other point that comes to mind is why have the trees grown to such a size when the mill is so close? Someone kept the timber off the market for some reason. We've just taken the time to start to really explore our property since it was purchased several years ago. We've had offers to sell the timber and have refused each time. We just found about a 1/4 acre of blue cohosh and some black cohosh and few ramp patches. We're still looking for ginseng and goldenseal. Because of the terrain, some of the areas are not the easiest to access.

When you have an area logged, the other stuff that grows there is often destroyed because the habitat changes. When you look at the prices some herbs bring, you could have a steady income under your nose and not know it before a logger wipes every thing out.