How Much Is an Acre of Hardwood Timber Worth? | The Timberland Investor (2023)

FAQs

How much is hardwood Timberland worth? ›

Timber has varying values depending on the type of tree, location, and quality of wood. The low quality wood that gets pulped is worth about $10 per ton while Sawtimber, that which is good enough to be made into professional grade lumber, is worth just north of $26/ton for pine and about $33/ton for hardwoods.

Appraisers often use discounted cash flow (DCF) techniques to value timber and timberland. Land expectation value (LEV) is a standard DCF technique applied to many timberland situations. LEV calculates the value of bare land in perpetual timber production and is often used to value even- aged pine plantations.

Generally speaking, an acre of good quality, high-value hardwood timber can be worth around $3,000-$4,000 an acre, but this number can be substantially higher depending on a variety of factors.

While there is a tremendous amount of variation, the average acre of forest land in the United States contains 15.7 cords (or 39.3 tons) of standing timber, growing at a rate of . 59 cords per acre per year.

For all survey responses across the state, mature pine timberland costs on average $3200/acre (excluding the Southeast region), and land with mature hardwood carried an average value of $2910. The USDA has no equivalent timberland price data for reference.

Profit margins for the supplier average 3 to 5.5 percent. In general, a profit margin reflects the amount of value added to the product during processing and the amount of risk associated with the endeavor. While loggers do not technically add value to the timber they process and deliver, they do turn trees into logs.

Often, the larger the sale, the higher the price per unit of wood that can be offered. It can be more costly per unit of wood removed to cut only a few, selected trees, rather than cut most or all trees in the stand. The greater the harvest expense per tree, the less the harvester may be willing to pay for the trees.

As an alternative investment, timberland provides a good opportunity for diversifying a portfolio of stocks and fixed-income investments, as well as a hedge against inflation. Both the timber and land components appreciate in value over time, and they are not tied to traditional financial markets.

What states are best to buy timberland? ›

Forests here are dominated by Douglas Fir and Ponderosa Pine. California, Colorado, and Montana also have significant timbers industry and a large number of acres of timberland for sale. The hardwood markets in the Northeast States of Vermont, New Hampshire, and Maine are solid investments.

Timber (lumber) is often seen as a good portfolio diversifier that can hedge against inflation. Timberland investment involves investment in land that producers timber.

Although rare, large diameter trees that are 4 foot across can be worth a small fortune if they are tall, straight and branchless for 50 feet or more. Typically, hardwoods are worth more than softwoods with the exception of tall, large diameter branch free white pine, if you can find one.

Walnut trees are always one of the most demanded trees in the wood industry. Oaks, maples, cherry, and ashes are also valuable trees. A high-quality veneer tree with a large diameter can be worth a lot but they are rare. A common rule is the bigger the log, the more it is worth.

Density can be controlled on a plantation-style stand, as the trees are planted in rows to improve access for timberland managers, and the rows result in higher tree density: 7' x 10' rows (trees planted every 7' in rows that are spaced every 10') = roughly 620 trees per acre, and 10' x 10' = roughly 435 trees per acre ...

The legal weight limits will vary by jurisdiction but, for example, in the southern states of the USA, they range from 80,000 to 88,000 pounds (36,300 to 39,900 kg) — about 40 short tons (35.7 long tons; 36.3 t). To load the logs, the truck may be fitted with one or more winches or cranes.

First thin trees will typically go for pulp. The revenue varies depending on market conditions, but as an example, if pine pulp prices are around $8 per ton, the landowner should receive around $400-$500 per acre depending on how heavy the thinning.

Hundred Acre Wood is the home of the very much loved Winnie the Pooh and friends. Did you know you can actually visit 100 Acre Wood?! Yes, you can indeed go to the Ashdown Forest in Sussex, England and hang out in the beautiful 6,500 acre woodland.

Download Louisiana Stumpage Report AgCenter 2022 4Qpdf / 0.26MB Publication ID: Due to the seasonality, five major timber prices went up in the fourth quarter of 2022. Sawtimber price increased from $25.77/ton to $26.9/ton.

Buying timberland in Iowa

Find timber land for sale in Iowa including wooded tracts of timber for sale, sustainable forest investments, and productive logging operations. The 39 matching properties for sale in Iowa have an average listing price of $773,433 and price per acre of $6,905.

How many board feet is an acre of timber? ›

9,000 board feet per acre. cut.

Once the trees are full-grown and ready to be harvested, they can yield you $3000 an acre, but there's a catch. “Trees are a good investment, it's just a long-term investment,” South Carolina Tree Farm Committee Chairman Dr.

1. Australian Buloke – 5,060 IBF. An ironwood tree that is native to Australia, this wood comes from a species of tree occurring across most of Eastern and Southern Australia. Known as the hardest wood in the world, this particular type has a Janka hardness of 5,060 lbf.

Topping the list of most expensive woods in the world is Bocote, a flowering plant from the borage family that is mostly found in Mexico, Central and South America. Initially a yellow/brown shade, this wood darkens over time. It has a fragrant smell and is usually used for furniture and flooring.

Once the timber proceeds qualify as a capital gain, determine the amount of the gain. Gross income minus depletion allowance minus cost of conducting the sale equals the net capital gain.

Unfortunately, its not an easy question to answer. While Landowners usually receive around 50% of the value of the logs, this can be anywhere between $500 and $5,000 per acre (or more). With such a large variation, it is important to understand timber value and what makes certain timber stands worth more than others.

To calculate the proportionate value of each timber product, divide the appraised value of the product by the total appraised valued of the property. To calculate the original cost basis of each product, multiply its proportionate value, the decimal, by the total acquisition price.

It can also protect new seedlings, as herbivores find it difficult to forage among a tangle of dead branches (imitating nature, foresters know that leaving tree tops in large pieces after logging is one way to keep deer from eating all the seedlings that will be required to establish the next forest).

The formula is: Tree Value = Base Value x Cross-sectional Area x Species Class x Condition Class x Location Class Base Value is the dollar amount assigned to 1 square inch of a tree's trunk cross-sectional area and is typically based on the cost of the largest available replacement plant of the same species.

What is the return on Timberland investments? ›

The NCREIF gained 12.9% in 2022, the largest annual increase since at least 2010. Returns from timberland investments can be compared to national economic indicators such as the US 10-year Treasury yield and the S&P 500: In the last 13 years, the NCREIF Index has averaged a return of 5.2%.

Weyerhaeuser continues to lead with 11.1 million acres, about the same as the next five firms combined (and down from 12.3 million acres last year).

Timberland revenue is $1.4B annually. After extensive research and analysis, Zippia's data science team found the following key financial metrics. Timberland has 50,000 employees, and the revenue per employee ratio is $28,600. Timberland peak revenue was $1.4B in 2021.

Maine is the most forested state in the US, with 88.8% of its total area composed of forests. In fact, Maine has the highest percentage of any state when it comes to total woodland cover. The majority of these forests are made up of hardwood trees such as oak, maple, birch and ash.

While it may come as a surprise to many, timberland properties are excellent investments that come with a wide range of benefits to a portfolio, including an admirable rate of return. It is also one of the most time-tested and robust assets known to man.

Non-industrial private forest (NIPF) landowners make up approximately 55% of all ownership types, and corporate landowners make up approximately 32%. All remaining timberland is owned by federal or state government agencies.

What Types of Commercial Properties Are the Most Profitable? High-Tenant Properties – Typically, properties with a high number of tenants will give the best return on investment. These properties include RVs, self-storage, apartment complexes, and office spaces.

The going price for property at timber value in Oregon is $2,000 to $4,000 an acre. If it's sold as a home site, it's worth $30,000 an acre.

The demand for wood products in California is at an all-time high. In fact, we are unable to meet current demand and import 80% of the wood we use. Each year, the average person uses products that are the equivalent to one, 100-foot tall tree, 18-inches in diameter.

Slow growth rate: Hardwood forests take longer to replenish due to the tree's slower growth rate. Workability: Due to its density, hardwood tends to be a lot harder to work with during construction. Cost: Hardwoods are generally more expensive, however in saying this, you get what you pay for.

How many trees per acre in a healthy forest? ›

Forests in California might appear picturesque as they currently exist, but they are in no way natural or healthy. As the US Forest Service will tell you, healthy forests average between 40-60 trees per acre; California forests typically contain hundreds of trees per acre.

What Is the Black Walnut Tree Price? The Black Walnut is one of the most expensive and lucrative trees to sell, thanks to its high-quality dark wood. The tree ranges from $5- $10 per board foot, although it can cost more depending on other factors. In most cases, your 20-inch tree can fetch you $700- $800.

This tree is a very valuable timber tree because often it will grow up to 25-30 m with no additional limbs. It is a fast-growing tree but does not possess the typical downfall characteristics of others in that species.It is not a weak wood and does not have the short lifespan often seen in fast-growing species.

As a result, black ebony wood is highly sought after by craftsmen, musicians, and collectors, and its scarcity has only added to its value. If you could grow it or find it, a single black ebony tree could be worth a million dollars.

The Hundred Acre Wood was inspired by Ashdown Forest in Sussex, England. In the original Milne books, the Hundred Acre Wood was merely a section of the unnamed forest and was where Owl lived. It was inspired by Five Hundred Acre Wood in Ashdown. The wood's weather in Christopher Robin seems to be somewhat symbolic.

What is this? If you are curious about what state has the most trees, Alaska has total forest land of around 91.8 million acres, making it the most forested state in the country.

The Paulownia may currently be the world's most valuable sustainably harvested hardwood tree. A single 12-foot log can easily bring three thousand dollars. Paulownia lumber is resistant to fire, with a combustion point nearly twice that of other lumber.

Topping the list of most expensive woods in the world is Bocote, a flowering plant from the borage family that is mostly found in Mexico, Central and South America. Initially a yellow/brown shade, this wood darkens over time. It has a fragrant smell and is usually used for furniture and flooring.

This is one of the most expensive types of wood in the world. Ebony is a very hard and heavy wood species. The wood has a black color, often with various shades, it is poorly pricked, well polished. Used for finishing expensive furniture, making musical instruments, colored flooring, inlays.

Why Is African Blackwood So Rare? There are a number of reasons, but it is believed that over-harvesting, bad conservation planning and agricultural development have meant there are simply fewer trees and habitat areas that are sustainable for growing Blackwood. The trees themselves also typically have a low yield.

What is the most profitable timber to grow? ›

Trees used for veneer purposes are the most valuable. Walnut trees are always one of the most demanded trees in the wood industry. Oaks, maples, cherry, and ashes are also valuable trees. A high-quality veneer tree with a large diameter can be worth a lot but they are rare.

What is the hardest wood in North America? Of locally available woods, Black Ironwood is typically the strongest type of wood you can find in America. It's found in Florida and has a 3,660 lbf (16,280 N) Janka rating. Other strong North American woods include species of hickory, maples, oaks, walnuts, and beeches.

Record-breaking growth

The Empress Splendor (botanical name Paulownia fortunei and P. elongata) is the one of the fastest-growing trees in the world. A hardwood, it can grow 10-20 feet in its first year and reaches maturity within 10 years.

1. Australian Buloke – 5,060 IBF. An ironwood tree that is native to Australia, this wood comes from a species of tree occurring across most of Eastern and Southern Australia. Known as the hardest wood in the world, this particular type has a Janka hardness of 5,060 lbf.

Which Wood Lasts the Longest? Teak wood easily lasts the longest when used for outdoor furniture or decking. When properly maintained, it can last for the entirety of your life and years after.

By far the most popular species of hardwood flooring is oak, most likely due to its distinctive features, longevity and durability. It's known to be a very beautiful species of wood thanks to its golden tone and caramel hues which make any space feel cosy; perfect for family homes.