🌲Get my free guide to DIY forest Management: thetimberlandinvestor.com/how-to-read-your-forest-an-intro-to-diy-forest-management 🍁Join SilviCultural for FREE today: silvicultural.com/sign-up/
I really like your choice of backdrop on a steep slope. Unlike other agriculture where you have no choice but to sell when the crops ripen, or the livestock reaches peak size, the landowner has the option to wait and let the timber grow even larger, meanwhile, ripe tomatoes will rot if not picked when ripe. (I am just commenting for the algorithm's sake, I like your content)
I learned a long time ago nothing is so simple that it can’t be screwed up! Knowledge is king. It doesn’t eliminate mistakes but it certainly can minimize them. I’m definitely going to read your book. Thank you for sharing.
Just found your channel. I appreciate you sharing your forestry knowledge; I’m finding it helpful as we try to improve our Woodlot here in NB, Canada. Best, Jason.
Great in theory but in the real world no logger is going to pay one dollar more in stumpage than they have to. A buyer may walk onto your outstanding timber sale and think "Wow, this timber is worth twice what I usually pay I wonder if I can get it for a 5% premium." Loggers and sawmills look at those high quality jobs as an opportunity to make up for all those crappy jobs they usually get stuck doing.
In the eyes of landowners, loggers have all the leverage, but Ive never heard a logger describe their position in the market as anything as disadvantaged. In reality, its fairly balanced market, and a landowner can and will be compensated well for valuable timber. In fact, most contracts these days just split the log value 50/50
@@thetimberlandinvestor You just made my point. If I sell timber worth $200MBF that way the logger gets $100MBF and I get $100MBF. His harvesting fee is $100MBF. If I or my family spends forty years carefully tending timber so it is worth $1000MBF and I sell it on halves the logger gets $500MBF. He shouldn't, if anything his costs have gone down because of the bigger stems. He should get paid the same $100MBF and I should get the remaining $900MBF. In my experience loggers look at high quality timber as an opportunity to expand their margins.
@@rossprior8968We just swung from two unrealistic extremes to "prove" how unfair things are, first saying the landowner would get a 5% premium for wood worth twice as much then jumping to the injustice of a 50/50 split for super high grade wood. Some states, such as Maine, keep decent stats on stumpage contracts, and in them we see a huge variation in what the landowner gets based on species, quality, size, terrain, and so on. We also see landowners getting a higher percent of high grade log values and lower percentages for low grade products like pulp, averaging out somewhere around 50/50. It is exactly what you would expect to see in a functioning market where contracts are negotiated based on the conditions present. That said, industrially where the is a long-term relationship between individual loggers and landowners, there is a huge game of averages played for simplicity's sake, but in the long run, the landowner still reaps the rewards from managing a forest properly.
I visited a prime example if this approach yesterday, a forest of about 1000 acres, most of which was planted on poor quality agricultural land in the 18th-19th century and has been in the same family ownership ever since. In the 1900s they started to regenerate the forest by felling and replanting very small coupes, which they carried on doing up until the 1980s by which time this became uneconomical. By this time a mosaic of different species and different ages had been created, including many conifers from the pacific north west which were ideal for conversion to continuous cover forestry (CCF) due to their prolific seed production and in many cases good shade tolerance. The stable and very fertile soils helped too. Since the 1990s the consultant foresters managing the forest have been carrying out selection forestry by only harvesting trees when they reach a minimum diameter threshold determined by their knowledge of local markets and the growth rate of the individual trees. This had taken decades to develop, and the stands are not yet at a fully irregular structure. When they are, they should attain some sort of equilibrium, where the average annual cut over the 5-7 harvesting cycle in any block more or less equals the average annual increment, so trees can be harvested indefinitely without reducing the growing stock. Some extremely large and valuable trees have already come out of this system. One Douglas fir was sold for over £2500 and had a volume of over 16m3, at about 120 years old. The forester knows his markets and is able to make very good privies and has access to niche markets (like a guy who makes natural bee hives by hollowing out short sections of Douglas fir logs!). Impossible to achieve all of this for the vast majority of landowners, but an inspiring model, unique in the UK, and elements of the system could be adopted by many.
Verticle intergration thru to kiln dried dimensional furniture grade sawn lumber sold thru wholely owned retail sales outlets paired with 100% reseeding of clear cut blocks. Together with bulk sale of all sticks not suitable as furniture grades bulk sold to resellers of processed cut and dried firewood w/o debt is a very stable safe deployment of capital. Ray
🌲Get my free guide to DIY forest Management: thetimberlandinvestor.com/how-to-read-your-forest-an-intro-to-diy-forest-management
🍁Join SilviCultural for FREE today: silvicultural.com/sign-up/
I really like your choice of backdrop on a steep slope. Unlike other agriculture where you have no choice but to sell when the crops ripen, or the livestock reaches peak size, the landowner has the option to wait and let the timber grow even larger, meanwhile, ripe tomatoes will rot if not picked when ripe. (I am just commenting for the algorithm's sake, I like your content)
Love the application of economic theory to "on the ground " forestry! Very helpful
I learned a long time ago nothing is so simple that it can’t be screwed up! Knowledge is king. It doesn’t eliminate mistakes but it certainly can minimize them. I’m definitely going to read your book. Thank you for sharing.
Just found your channel. I appreciate you sharing your forestry knowledge; I’m finding it helpful as we try to improve our Woodlot here in NB, Canada. Best, Jason.
Glad to see you're back making videos man.
I read your ebook. Great overview. Thank you. Where are in Mexico? Fun to see a Mainer down south.
Do you have a website?
Great in theory but in the real world no logger is going to pay one dollar more in stumpage than they have to. A buyer may walk onto your outstanding timber sale and think "Wow, this timber is worth twice what I usually pay I wonder if I can get it for a 5% premium." Loggers and sawmills look at those high quality jobs as an opportunity to make up for all those crappy jobs they usually get stuck doing.
In the eyes of landowners, loggers have all the leverage, but Ive never heard a logger describe their position in the market as anything as disadvantaged. In reality, its fairly balanced market, and a landowner can and will be compensated well for valuable timber. In fact, most contracts these days just split the log value 50/50
@@thetimberlandinvestor You just made my point. If I sell timber worth $200MBF that way the logger gets $100MBF and I get $100MBF. His harvesting fee is $100MBF. If I or my family spends forty years carefully tending timber so it is worth $1000MBF and I sell it on halves the logger gets $500MBF. He shouldn't, if anything his costs have gone down because of the bigger stems. He should get paid the same $100MBF and I should get the remaining $900MBF. In my experience loggers look at high quality timber as an opportunity to expand their margins.
@@rossprior8968We just swung from two unrealistic extremes to "prove" how unfair things are, first saying the landowner would get a 5% premium for wood worth twice as much then jumping to the injustice of a 50/50 split for super high grade wood.
Some states, such as Maine, keep decent stats on stumpage contracts, and in them we see a huge variation in what the landowner gets based on species, quality, size, terrain, and so on. We also see landowners getting a higher percent of high grade log values and lower percentages for low grade products like pulp, averaging out somewhere around 50/50. It is exactly what you would expect to see in a functioning market where contracts are negotiated based on the conditions present.
That said, industrially where the is a long-term relationship between individual loggers and landowners, there is a huge game of averages played for simplicity's sake, but in the long run, the landowner still reaps the rewards from managing a forest properly.
I visited a prime example if this approach yesterday, a forest of about 1000 acres, most of which was planted on poor quality agricultural land in the 18th-19th century and has been in the same family ownership ever since.
In the 1900s they started to regenerate the forest by felling and replanting very small coupes, which they carried on doing up until the 1980s by which time this became uneconomical. By this time a mosaic of different species and different ages had been created, including many conifers from the pacific north west which were ideal for conversion to continuous cover forestry (CCF) due to their prolific seed production and in many cases good shade tolerance. The stable and very fertile soils helped too.
Since the 1990s the consultant foresters managing the forest have been carrying out selection forestry by only harvesting trees when they reach a minimum diameter threshold determined by their knowledge of local markets and the growth rate of the individual trees.
This had taken decades to develop, and the stands are not yet at a fully irregular structure. When they are, they should attain some sort of equilibrium, where the average annual cut over the 5-7 harvesting cycle in any block more or less equals the average annual increment, so trees can be harvested indefinitely without reducing the growing stock.
Some extremely large and valuable trees have already come out of this system. One Douglas fir was sold for over £2500 and had a volume of over 16m3, at about 120 years old. The forester knows his markets and is able to make very good privies and has access to niche markets (like a guy who makes natural bee hives by hollowing out short sections of Douglas fir logs!).
Impossible to achieve all of this for the vast majority of landowners, but an inspiring model, unique in the UK, and elements of the system could be adopted by many.
Verticle intergration thru to kiln dried dimensional furniture grade sawn lumber sold thru wholely owned retail sales outlets paired with 100% reseeding of clear cut blocks. Together with bulk sale of all sticks not suitable as furniture grades bulk sold to resellers of processed cut and dried firewood w/o debt is a very stable safe deployment of capital. Ray