Planted Pine Price

ctsnow

Six Pointer
Looking at buying an additional 20 acres that joins our property. It is planted in loblolly pines that are about 15 years old. I know it changes depending on market and several other variables, but what is the avg income per acre if you clear cut planted pines? Trying to see if the price of the land is justified by income from the trees.
 

ddavenport

Six Pointer
Contributor
Most planted pines these days are clearcut in the 25-30 year range. Reforestation costs between 100-400 acre I think depending on whether it is flat-planted (no land prep) or fully prepped (v shearing, etc.). 15 years is close to a 1st thinning probably, but that won't yield much money. My guess is that currently you might expect to realize between $2,000-$2,500 per acre by the time it is clearcut. All things considered, I think a current value of $1,200 per acre for the trees would be reasonable but I am certainly not an expert. Also, it is a small tract and it might be difficult getting someone to cut 20 acres so that might affect that price a liitle.
 

nckeith

Ten Pointer
Assuming someone will take on a 20 acre project. Any connecting properties close to needed cutting?


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timber

Twelve Pointer
Prices srw down. At one time when pine pulp was up we did alot of clrear cut on 18 year old stuff. There plans were to cut then replant and cut again in 18 years. Depending on the soil 15 years is young. Have thinned some about that age but most we thin is in 17 to 18 year old range. As far as value depends on the stand. A stand that young just not going have the weight. If running 60 tons to the acre at around 9.00 per ton thats 450 a acre clear cut
 

ctsnow

Six Pointer
Thanks guys. Yeah we have another 25-30 acres of mature poplars/oaks that need to be cut. So we will probably do both at the same time if we purchase the property. So it would be around 50 acres total.
 

ddavenport

Six Pointer
Contributor
Prices srw down. At one time when pine pulp was up we did alot of clrear cut on 18 year old stuff. There plans were to cut then replant and cut again in 18 years. Depending on the soil 15 years is young. Have thinned some about that age but most we thin is in 17 to 18 year old range. As far as value depends on the stand. A stand that young just not going have the weight. If running 60 tons to the acre at around 9.00 per ton thats 450 a acre clear cut
I assume you are in the business based on your screen name so I am sure you know more than I about the subject. Wouldn't you agree that the value he would place on it for purchase would be more than the $450 assuming he would have a mature stand in 10-15 years? My thinking is that if he clear cuts it now he will eat quite a bit per acre which may be ok depending on how bad he wants it.
 

timber

Twelve Pointer
I assume you are in the business based on your screen name so I am sure you know more than I about the subject. Wouldn't you agree that the value he would place on it for purchase would be more than the $450 assuming he would have a mature stand in 10-15 years? My thinking is that if he clear cuts it now he will eat quite a bit per acre which may be ok depending on how bad he wants it.



I would give it couple more years. Then look at it to make decision to thin or clear cut. Haven’t seen it so just going by a average of tracts have looked at. If was mine definitely wouldn’t clear cut it with the prices now along with the young age. Have thinned some around 15 yrs old on good soil. But normally it 17 to 18 yrs Old Just me personally I would put more than 450 on timber if it’s a normal planted stand. Prices can change Don’t see it dropping much more than it is now or the supply will dry up Which already has some. Most everything we are cutting now was priced before first of year and prices locked in at a lot higher price. People around here are not in any hurry to sell at these prices.
 

Southern

Ten Pointer
There is an int
I assume you are in the business based on your screen name so I am sure you know more than I about the subject. Wouldn't you agree that the value he would place on it for purchase would be more than the $450 assuming he would have a mature stand in 10-15 years? My thinking is that if he clear cuts it now he will eat quite a bit per acre which may be ok depending on how bad he wants it.

I think what you are saying is what I preach to clients everyday. The wood may be worth $450 or whatever, today if clear cut. It may be worth $2000 in 15 more years. But the time value makes it worth more than the $450. Who wants to wait another 15 years before it is worth anything again? There has to be some value given to the guy who paid to plant, waited 15+ years, and also had to look at an ugly cutover for years. I am not sure how you monetize this but from a land management/marketing/enjoyment/opportunity cost perspective, the timber is always worth more than what a timber buyer will pay you for it on any given day. If the price for the land is calculated correctly, then the dirt is priced at xx$ per acre based on market and the timber is priced on top of that at market price. But somebody had to pay to put the trees in the ground and wait 15 years. I am not sure what I am saying makes sense but if you cut the timber today, you will shortchange yourself on what it is worth in 15 more years in my opinion.
 

ctsnow

Six Pointer
I would give it couple more years. Then look at it to make decision to thin or clear cut. Haven’t seen it so just going by a average of tracts have looked at. If was mine definitely wouldn’t clear cut it with the prices now along with the young age. Have thinned some around 15 yrs old on good soil. But normally it 17 to 18 yrs Old Just me personally I would put more than 450 on timber if it’s a normal planted stand. Prices can change Don’t see it dropping much more than it is now or the supply will dry up Which already has some. Most everything we are cutting now was priced before first of year and prices locked in at a lot higher price. People around here are not in any hurry to sell at these prices.
Yeah I was just curious to what the timber value might be whenever it is time to cut. We wouldn’t be cutting it until it was mature.
 

ddavenport

Six Pointer
Contributor
There is an int


I think what you are saying is what I preach to clients everyday. The wood may be worth $450 or whatever, today if clear cut. It may be worth $2000 in 15 more years. But the time value makes it worth more than the $450. Who wants to wait another 15 years before it is worth anything again? There has to be some value given to the guy who paid to plant, waited 15+ years, and also had to look at an ugly cutover for years. I am not sure how you monetize this but from a land management/marketing/enjoyment/opportunity cost perspective, the timber is always worth more than what a timber buyer will pay you for it on any given day. If the price for the land is calculated correctly, then the dirt is priced at xx$ per acre based on market and the timber is priced on top of that at market price. But somebody had to pay to put the trees in the ground and wait 15 years. I am not sure what I am saying makes sense but if you cut the timber today, you will shortchange yourself on what it is worth in 15 more years in my opinion.
Yes that is exactly what I was trying to say.
 

timber

Twelve Pointer
Yeah I was just curious to what the timber value might be whenever it is time to cut. We wouldn’t be cutting it until it was mature.



If you thin at 18 yrs thn wait 10 more yrs to clear cut $1700.00 a acre would be a ball park figure. Thats what you get out of thinning plus clear cut together. . A few dollars plus or minus per ton will make a difference.
 

curdog

Ten Pointer
Contributor
Here's a rough average of prices across the state.
It would be about impossible to give an accurate price on a specific tract of timber without looking at it and knowing local markets . I've looked at tracts that were ready to get thinned and got thinned by age 13. I've also looked at ones that were 18-20 years old and weren't ready to be thinned and probably never will be. These tracts were planted and had heavy natural regeneration of either loblolly or Virginia pine that produced a stand that will not amount to anything of value.
I've also seen stands that would benefit from a thinning, but the ground was too steep to conduct a thinning without tearing up the residual trees in the stand. The only option was to clear cut.
You would benefit from someone local to you to take a look and provide an estimated value. No, you're not going to get rich on a pine thinning, but you need an accurate number if you're looking to purchase the land.
 
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