Objectives for Today. Improving Value Recovery Through Optimal Bucking. Cover Page. Timber Sale Prospectus samples

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1 Improving Value Recovery Through Objectives for Today Short paragraph announcing offer of timber sale, location, acreage and general volume with species Day of timber showing Day of bid opening Paragraph detailing bidding deadline and where bids should be sent Timber Sale Prospectus samples Discuss the high stakes world of log bucking with presentation from: Announcement: No Class on Wednesday No Lab on Thursday

2 Improving Value Recovery Through 7 8 Volume Table 9 Volume Table User-friendly table detailing timber sale volume by species; should include species DBH class, # of trees, average volume per tree; total by species and grand total Disclosure statement informing potential buyers that said volumes are only an estimate and that potential are buyers are encouraged to determine individual estimates Paragraph describing how trees are marked (saw logs, pulpwood, cull) 10 Volume Table

3 Improving Value Recovery Through Stipulations insurance (general liability at $500,000) and workman s compensation requirements; Amount of performance bond (i.e., $5,000; 10-20% of bid amount) held until successful completion of job Payment schedule (i.e., 100% up front, 15% up front then remainder before starting the job, payment by working block) restrictions that may influence amount of bid timeline, stipulations (roads) Statement that owner(s) reserve right to reject any bids 13 Stipulations 14 Stipulations Location Map Is there more value in your logs? IMPROVING VALUE RECOVERY FOR HARDWOOD LOG MANUFACTURING THROUGH OPTIMAL BUCKING Log bucking decisions have a strong influence on the value of the logs that are produced Applied research has shown that value recovery in the bucking process often fails to live up to its potential Straightforward bucking techniques can be used to increase the value of logs produced 3

4 Improving Value Recovery Through As a tree grows, lateral branches die These branches cause knots in the stem Clean wood overlays the branch stubs The branches were smaller when the tree was young, and also have more clear wood over the branch stubs This results in the best lumber generally being cut from lower on the stem Slab Section Some General Terminology: Center Section Quality Section Degrader: defect in quality zone To be a grading defect on sawlogs, a defect must impact the quality zone Heavy and medium bark distortions are grading defects for sawlogs and veneer Light bark distortions are not grading defects in sawlogs, but are generally defects in veneer logs KNOW YOUR MARKETS Log grading does not always follow the rules strictly A defect will sometimes be ignored if the log is otherwise attractive KNOW YOUR MARKETS (cont.) Size matters. It is much easier to produce quality lumber or veneer from large logs than smaller logs with similar traits. Sometimes the buyer will allow things the rules don t allow in large logs. 4

5 Improving Value Recovery Through KNOW YOUR MARKETS Relationships with buyers matter Know your buyer or buyers WARNING: Always be aware of the lower diameter limit for the target log grade when making bucking cuts. This diameter limit is inside-bark. It is a good idea to check this measurement before cutting each log. Is it 14 or 16? TO FURTHER IMPROVE VALUE RECOVERY USE RULES-OF-THUMB There are several rules-of-thumb. Different rulesof-thumb apply to different types of stems. Different sections within a stem should often be addressed using different rules-of-thumb. RULE OF THUMB #1: Place bucking cuts to minimize sweep and crook. Sweep in logs reduces the scale volume of the log. If a log has 60 bf of gross scale and had a 10 bf scale deduction for sweep, then the log would have been worth 1/5 more if it had been straight. Always look over the stem carefully before bucking. If possible, look the stem over while it is still standing for a better view of the valuable butt section and to assess general tree vigor. RULE OF THUMB #1 (cont): Place bucking cuts to minimize sweep and crook. Sweep can reduce the grade of the log. A one grade reduction causes a very large loss in value since prices often go up 50% or more for each increase in grade. RULE OF THUMB #2: Look for the Best Log that can be Cut from a Stem Section, then Work Around that Log. This rule-of-thumb applies when an increase in grade of the best available log is possible. Because of the very large jump in value with an increase in grade, it is nearly always best to select bucking cuts that preserve that log. 5

6 Improving Value Recovery Through When using sawlog grading rules based on clearcuttings on a grading face RULE-OF-THUMB #3: Place Defects at the Ends of Logs to Increase Clearcuttings. Longer clearcuttings allow better lumber to be cut from the log. The grading rules for sawlog grades reward logs with more possible clear boards with higher log grades. Therefore, longer clearcuttings produce higher grade logs on average. RULE OF THUMB #1: Place bucking cuts to minimize sweep and crook. Sweep in logs reduces the scale volume of the log. If a log has 60 bf of gross scale and had a 10 bf scale deduction for sweep, then the log would have been worth 1/5 more if it had been straight. RULE OF THUMB #2: Look for the Best Log that can be Cut from a Stem Section, then Work Around that Log. This rule-of-thumb applies when an increase in grade of the best available log is possible. Because of the very large jump in value with an increase in grade, it is nearly always best to select bucking cuts that preserve that log. When using sawlog grading rules based on clearcuttings on a grading face RULE-OF-THUMB #3: Place Defects at the Ends of Logs to Increase Clearcuttings. Longer clearcuttings allow better lumber to be cut from the log. The grading rules for sawlog grades reward logs with more possible clear boards with higher log grades. Therefore, longer clearcuttings produce higher grade logs on average. RULE-OF-THUMB #3 FOR CLEAR FACES GRADING RULES WHY RULE-OF-THUMB #3 WORKS If adding more length to a log will increase the number of faces that are not clear And if the increase in faces that are not clear reduces log grade Then cut the log to the shorter length Sometimes a cull section should be removed Sometimes the section with the defect can be added to the next log Adding 2 feet to a log adds at most 25% to gross scale, and less for logs longer than 8 Decreasing a grade reduces value much more than 25%, usually closer to 50% The two feet that did not go on this log can sometimes go onto the next log 6

7 Improving Value Recovery Through A SITUATION WHERE CULL SECTIONS SHOULD BE REMOVED If adding the defective section to the next log reduces the grade of that log, then buck out a cull section OBSERVATIONS ABOUT OPTIMAL BUCKING PATTERNS Fairly large holes can occur in high quality sawlogs Often leave a section of cull material on a log to reach the required log length OBSERVATIONS ABOUT OPTIMAL BUCKING PATTERNS Often Fairly cull sections large holes can occur in high quality are removed sawlogs (generally to improve grade by implementing one of the rules-ofthumb) Often leave a section of cull material on a log to reach the required log length The Rules: RULE OF THUMB #1: Place bucking cuts to minimize sweep and crook. RULE OF THUMB #2: Look for the Best Log that can be Cut from a Stem Section, then Work Around that Log. RULE-OF-THUMB #3: Place Defects at the Ends of Logs to Increase Clearcuttings. 7