Timber Valuation Opinion

Transcription

1 Timber Valuation Opinion 11/02/2012 Tract PIN: Location: 77 CAMBY DR, Buncombe County, NC The subject property timber was cruised on 10/23/2012, and the merchantable hardwood sawtimber volume was estimated to be 103,600 board feet Doyle scale and 1,047 tons of pulpwood. The product mix is estimated at 60% yellow poplar, 21% oak/cherry/walnut, 10% white pine, and 9% other species. For the purpose of this analysis, it is assumed that all merchantable timber will be harvested. Two approaches are typically considered to estimate a value for the subject timber. Comparative sale approach: Because of the unique features of this tract and the lack of applicable data due to the extremely dynamic market conditions, this approach is not applicable. Market conversion returns approach: The market conversion returns approach is derived by calculating an average unit price of the timber on the tract based on the expected delivered price, less the cost of getting the product to market. An informal survey was conducted of timber markets and loggers to estimate delivered prices and logging costs. The results produced a value range of $24,100 to $26,067. It is likely that a properly marketed timber sale would fetch lump sum bids in this range. Respectfully submitted, John Culp, NC Registered Forester 1118

2 Timber Valuation Opinion Notes and discussion. 11/02/2012 Tract PIN: Location: 77 CAMBY DR, Buncombe County, NC Timber Estimate The timber was classified as one management area for the purpose of the forest management so that all areas could be treated under a general prescription. However, there are several unique areas on the forested portion of the tract that are quite different with regards to timber quality and volume. Timber is estimated by measuring samples of trees at various locations and extrapolating the volume estimates for those sample trees to the whole tract. More variability within a tract requires more sampling. The extent of the variability in your tract makes an estimate based solely on conventional sampling techniques questionable. It would probably be more cost effective to count every tree in order to get a statically reliable estimate. In this case I used a fair amount of judgment and experience, along with the sampling estimate results, and I think the results are a fair representation of the volume that will allow you to make good management decisions. Timber Value The valuation opinion represents the total value, assuming all merchantable timber would be cut. I think that a timber sale designed to harvest mature trees and undesirable trees would yield $14,000 to $18,000 of stumpage value (value of the trees as they stand). If you subtract the costs associated with sale preparation, marketing, and administration, the remainder is your net proceeds. Timber Harvest Areas The proposed harvest will be concentrated in the island of timber adjoining the driveway, the area below the house east of the creek, and the area that drops off to the river. The area on the west side of the creek has only sparse merchantable timber. Timber Markets The timber markets for your product are presently relatively strong. I expect a normal seasonal decline in the spring. Demand usually is strongest in the fall and winter. We may see a sharp surge in demand and prices this winter because the inventory levels of some of the local mills are extremely low. Any weather related event that interrupts the ability of loggers to work, such as a moderate snow or rainy week, has the potential to cause prices to have a temporary spike.

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5 TIMBER MANAGEMENT PLAN FOR THE PROPERTY OF Charles & Darline Burnette Family Trust Buncombe County North Carolina John Culp Registered Forester 1118 P.O. Box Asheville, NC (828)

6 Date: 10/29/2012 Forest Management Plan For the property of Charles & Darline Burnette Family Trust Buncombe County, North Carolina This plan is for Buncombe County PIN The subject property contains acres of woodland that is being managed for forestry production. Area Acreage Home 1.00 Open Area Woodland Total Location: The tract is located off 77 Camby Drive in Buncombe County, North Carolina. Coordinates: Lat/Lon: 35 42' " N, 82 37' " W. Landowner Objectives: The landowner s management objective for the property is to grow commercial timber using sound forest management practices that protect water quality and the integrity of the forest. General Property Description: The subject property is situated on rolling to steep terrain. The property is classified primarily as forested. There is a small branch that feeds the French Broad River on the property. The property ranges in elevation from 1,763 to 2,105 feet. The average slope is 33%, and the maximum slope is 126%. Maps showing the property topography, classifications, and soils are attached. Reports of soil productivity, engineering properties, and other properties are available at: Management Description: This timber plan encompasses an 8-year planning horizon, to the year Your forest needs to be revisited at least by that time to plan future silvicultural activities and harvests. Your tract has been classified into single woodland area or management unit based on the type of terrain, soil type, tree size, age, stand structure, and composition. The description and forest management recommendations are as follows:

7 Area 1: Timber consisting of acres Type: Upland hardwood Major Tree Species: Mixed oak, yellow poplar, Virginia pine, white pine, red maple, hickory, ash, cherry, and walnut Average Tree Age: years Average Diameter: 15 inches Stocking: variable Average Basal Area: square feet Slope: Average: 38% Aspect: North facing cove Resource Description: This upland hardwood stand has a mix of pole timber and saw timber on the south side of the tract. Parts of the north side of the tract appear to be in the process of naturally regenerating from open land to forest. There is a small pocket of Virginia pine and white pine in the center of the tract. Forest health is generally satisfactory. However, invasive species including oriental bittersweet, multiflora rose, and boxwood are impacting regeneration in some parts of this area. Advanced reproduction is composed of white pine, oak, red maple, hickory, and yellow poplar. While there is no imminent forest health threat to the timber, there are a significant number of mature trees and undesirable trees present. A harvest would be beneficial in order to realize financial return from the forest and create openings to promote better forest growth. Timber area

8 Recommendations: A timber sale to harvest mature trees and undesirable species such as Virginia pine is advisable. It is recommended you work with a registered forester to develop and implement a harvest plan during this planning cycle. The harvest plan will specify the trees to be cut and the details of how the harvest should be conducted. The harvest plan should also evaluate the market conditions to make sure the timing of the timber sale best meets your needs. Any forestry activity must stay in compliance with the North Carolina Forest Practice Guidelines. Maintain property line markings. Monitor all roads and skid trails each year. Any situation that may contribute to accelerated erosion should be addressed. Monitor invasive species and treat as necessary. Monitor to make sure adequate natural regeneration is occurring. Have a professional forester monitor the progress by Calendar of Prescribed Treatments Date Practice Area Develop and implement a harvest plan. all Maintain property lines and roads. all Monitor forest reproduction and forest health issues, such as invasive all plants, and seek professional help as needed Have a forester inspect your tract to update your management plan. all

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