The Timber Cruise and Appraisal
The timber cruise is an estimate of the volume of forest products on your property. After cruising the timber, stumpage prices are applied to the cruise to obtain an estimate of value. This is how the minimum bid is established. The minimum bid is the lowest price acceptable for the timber, similar to the reserve price for an item at an auction. If no bids meeting the minimum are received (a rare occurrence), then the bids will be rejected and the tract will not be sold.
The Sale Notice
The sale notice is sent to prospective timber buyers to advertise the sale of your timber. It contains important information such as date and time of the sale, location and type of timber, and a brief description of the timber. The timber cruise is provided to buyers as part of the sale notice, but the minimum bid is never disclosed before the sale. It is the first information buyers see about your timber, so it should be informative and professional.
The Sale Map
The sale map should be detailed and easy to understand. Acres, access and harvest boundaries should all be shown . A professional map will show the timber buyers you know what you have and are serious about selling it. During my time as a timber buyer, I received many sale notices containing poor quality maps, or even no maps at all. These sales always received the lowest priority, and received fewer bids than sales conducted by experienced consultants.
The Sealed Bid Sale
It's finally the day of the sale! The bidders have had three to four weeks to look at, cruise, and make their own estimate of the value of the timber, and now they're ready for the sale. At the time of the sale, all bids will be collected and read aloud. The sale is open for any buyers to attend, and sometimes the landowner attends as well. If the high bid meets the minimum, the high bid will be accepted, and the sale awarded to the winner. The buyer will have 30 days from the date of the sale to conduct a title search, prepare the timber deed, and close the tract. At closing, the landowner receives payment in full for the timber, and timber rights are assigned to the buyer for the time period of the timber deed, usually two years.
Loblolly Pine Thinning
A loblolly pine thinning differs in several ways from a final harvest, and the sale process is quite a bit different as well. First, a thinning is a silvicultural treatment, not a harvest. Income will be generated from a thinning, but not nearly as much as will be realized later in the final harvest sale. Thinnings are always sold on a per-ton basis, so the buyer will pay for the wood as it is removed. Maximizing price is not the only objective; it is much more important for the thinning to be done by a knowledgeable, conscientious thinner. I would much rather accept a few cents less per ton in the thinning and be left with a good stand afterward, than to have a stand overthinned or residual trees damaged by a less reputable operator. Interstate Forest Products only recommends selling to experienced thinners who leave the forest in good condition for the future.
Reforestation
The final step of the timber sale process, or the first step of the next rotation, is reforestation. Interstate Forest Products recommends reforesting all clearcut areas with improved loblolly pine seedlings. We will arrange to have the property replanted by professional tree planters in late fall or winter. Depending on the time the trees were harvested, a site prep spray may be in order to eradicate competition from undesirable species, and prevent overstocking. Special techniques such as bedding may be required in extremely wet areas. Cost share can sometimes help with the additional expense of planting longleaf pine, shortleaf pine, and hardwoods, if you choose this plan. IFP makes specific recommendations for your land based on years of experience and recommendations of the US Forest Service, North Carolina Forest Service, and Virginia Department of Forestry.
