Maryland and Delaware Stumpage Price Report

Transcription

1 Maryland and Delaware Stumpage Price Report October - December 999 The stumpage price report is a cooperative effort between Maryland Cooperative Extension, Maryland Department of Agriculture, Maryland Department of Natural Resources-Forest Service, Delaware Forest Service, Maryland Tree Farmers and Forest Landowners. It is consolidated and distributed every four months by the University of Maryland, Wye Research and Education Center, P.O. Box 69, Queenstown, MD 26. Their phone number is The prices contained in this publication are collected from consulting and state agency in four price-reporting areas throughout Maryland and Delaware, and are intended to serve ONLY AS A GUIDE in the marketing of standing timber. The actual value of a specific stand of timber may be influenced by the following factors: Timber quality Volume to be cut per acre Logging terrain Market demand Distance to market Season of year Distance to public roads Woods labor costs Size of the average tree to be cut Type of logging equipment Percentage of timber species in the area End product Landowner requirements Landowner knowledge of market value Property taxes Performance bond requirements Insurance costs Size of harvest Any one of the above factors can have a highly significant effect on stumpage prices for a species in one given area while it may have a less significant effect in another area. This information is meant as a guide only. Use with care. Prices paid for standing timber can be influenced by many factors, including but not limited to: timber quality, distance to market, accessibility of property, sale volume, market demand, season, skid distance, landowner requirements, and logging costs. Region: Eastern Shore (ES) = Kent-Worcester County and Sussex-Kent County, Delaware; Southern (S) = Anne Arundel/Prince George s-st. Mary s County; Central (C) = Cecil- Carroll/Montgomery County and New Castle County, Delaware; and Western (W) = Frederick- Garrett County.

2 The University of Maryland is equal opportunity. The University=s policies, programs, and activities are in conformance with pertinent Federal and State laws and regulations on nondiscrimination regarding race, color, religion, age, national origin, sex and disability. Inquiries regarding compliance with Title VI of the Civil Rights Act of 96, as amended; Title IX of the Educational Amendments; Section 0 of the Rehabilitation Act of 93; and the Americans with disabilities Act of 990; or related legal requirements should be directed to the director of Personnel/Human Relations, Office of the Dean, College of Agriculture and Natural Resources, Symons Hall, College Park, MD 202. Maryland Stumpage Price Survey Results October December 999 The table below summarizes reported prices paid for standing timber during October December. Prices for sawtimber are in $ per thousand board feet (International ¼ inch scale). Pulpwood and fuelwood are reported in $ per cord, biomass in $ per ton. The Range shows the high and low prices reported. Reporting is voluntary, and this is not a complete record of sale activity in Maryland. A total of 9 timber sales were reported. Total responses, 3; total number of timber sales, 9; and total sales in acres, 2. Total # of reports reports does not add up to column totals. Sale characteristics: Size # % Type # % Reported by # % Buyer/Sell er # % Location # % <0 Mbf 0 Lum p sum 32 2 Consulting Buyer Eastern Shore Mbf 6 Milltally 3 Public lands 3 Seller 36 2 Southern 3 >00 Mbf 22 No data 2 Industrial 3 No data 6 Central 3 Unknow n Independen t logger/buy er 0 0 Western 6 CFM state 3 Unknow n 3 Utility 3 Unknown 9 2

3 $/thousand board feet Species/Product Eastern Shore Southern Central Western # Avg. Range # Avg. Range # Avg. Range # Avg. Range Red oak White oak Other oaks Ash Cherry Sugar maple Tulip poplar Beech *Mixed Hdwd Other Hdwd: Loblolly pine Other sfwd: Poles, hardwood ($/linear ft) Poles, softwood ($/linear ft) Fuelwood ($/cord)

4 Pulpwood ($/cord) Biomass ($/ton) *Mixed low quality hardwood. This information is meant to be used as a guide only. Use with care. Prices paid for standing timber can be influenced by many factors, including but not limited to: timber quality, distance to market, accessibility of property, sale volume, market demand, season, skid distance, landowner requirements, and logging costs. Maryland/Delaware Stumpage Price Report October-December 999 What time period is covered by this report? The MD/DE Stumpage price report gives the prices paid in the states of Maryland and Delaware for stumpage during the months of October, November, and December of 999. What is stumpage? Stumpage refers to the price that a landowner receives for standing trees. Why four different regions? The four regions described in this report were designed to more accurately reflect the forest product markets in Maryland and Delaware. The markets within each of the four regions are unique. For example, the quality and quantity of black cherry and oaks produced in the Western Region usually surpasses that of the other three regions. Loblolly pine is a timber species that is found mostly on the Eastern Shore and Southern Region. The four regions were developed to take these types of differences into consideration while providing a more accurate and easily understandable price report. It is important to note that counties in border areas may reflect the trends of all the regions on which they border. What do the prices mean? The Stumpage Price Report reflects the stumpage prices observed over the three-month period. Due to the dramatic changes common in timber markets, past reports may not accurately describe the latest market conditions. A current report is one s best guide to the current market status. It must be remembered that this report is based primarily on a survey of consultant and public agencies. The report is intended to describe general trends in the market and ignore specific factors that may affect one timber tract or another.

5 There are many factors that can influence the price of timber on a given tract of land and they are listed on the front cover. For example, you may notice that the range of prices for one species may vary from 0 to 30 dollars per thousand board feet. One reason for this wide range is that the lower value is for timber of poor quality while the higher value is for timber of high quality that would be used for veneer products. What are the different products mentioned in the report? The majority of the prices reported are for timber that is sold and used to produce sawtimber and veneer products. Sawtimber trees are typically above 2 inches in diameter at breast height (. feet from the ground) and have at least one -foot log that can be harvested. Sawtimber trees are harvested, taken to a sawmill and cut up into boards, railroad ties, and other dimensional products. Veneer quality timber is typically of larger diameter, comes from the bottom log of the tree, and has no branches or imperfections. These logs are usually turned at a special mill that slices thin strips of wood that are used as veneer on a variety of wood products. Poles are used for telephone poles, piling, and related products. They must meet special requirements. Fuelwood refers to timber sold for firewood markets. Typically this will include poorer quality trees, dead trees, as well as tree tops. Pulpwood includes trees that are used to produce paper products. Biomass includes trees that burned for power generation. How are the prices reported? The stumpage prices for each species and or product category include three pieces of information: ) the number of reports; 2) the range of values from lowest to highest; and 3) the average of all reported values. Poles, fuelwood, pulpwood, and biomass are special products that are sold by the linear foot, cord, or the ton. All other prices are reported as the dollars per thousand board feet of timber. One board foot is 2 inches x 2 inches x inch, with the number of board feet in each tree depending on its diameter, number of logs, and defects. Therefore, a thousand board feet of timber may be made up of a few large trees or many small trees. The scale used to determine board feet in standing trees is the International ¼ inch scale, which provides the most accurate measure of board feet for the four regions. Stumpage prices reported in a Doyle log scale, another common rule, tends to underestimate the volume of timber, and must be adjusted to be compatible with the International / inch scale. Where to get help? The sale of timber products should include three people: ) the forest landowner selling the timber; 2) a licensed professional forester to assist the landowner in determining which trees should be harvested and working with the logger; and 3) the logger who carries out the actual harvesting of the trees.