Help on logging my property

[cooper]

I am looking for some opinions on what would be my best option on what to do with the timber on a piece of property i just bought and are planning to build a home on. I did speak with a logger the other night a showed him my property he said there were 5 logging truck loads of logs they are primarily fir and he said high quality logs would the taxes take most of the profit or is it worth my while I can always use a little extra cash.

 

[Bearcreek]

Use the timber to build your house.

 

[OlympicYJ]

Use the timber to build your house.

That gets pretty pricey unless they're custom pieces like beams and such. I don't know how it is in Oregon but all lumber used to build houses has to be graded by a certified grader to meet code. This adds on to the cost of milling the timber. Just have the logger purchase the timber and put it toward the clearing. You might even get some money back if he markets them properly and how much land you clear.

Depending how much land you have will dictate how much you'll get back. If you have him do more than clear it will cost even more money so you should think about the value of the timber to you after logging costs minus how much to stump and burn = how much you get back / save on stumping costs.

Land clearing up my way costs about $3,700 an acre. You'll get roughly 4000 bd ft on a truck and say you get a price of around $473 mbf (don't know the current price) that means 5 loads will net you about $9,460 then take out his logging cost and that's what you have left to put toward the clearing.

Good luck

Wes

 

[Metals406]

Most ya get for fir here right now is $325 a thousand.

Larch peelers are fetching $70 a ton.

:msp_sad:

 

[madhatte]

I did speak with a logger the other night a showed him my property he said there were 5 logging truck loads of logs they are primarily fir and he said high quality logs would the taxes take most of the profit or is it worth my while I can always use a little extra cash.

I got called in as an expert witness in a timber theft case near PDX a couple of years ago. What the logger did was split the loads between several mills and only showed the landowner tickets from one mill. His insurance company eventually settled, so he was not prosecuted. Point is, small jobs like you're talking about are commonly more expensive than they look, the logger operates on little or no margin, and can occasionally be less-than-honest as a result. If you are dead-set on cutting these trees, work out a deal where you pay the logger to do the clearing, then you are reimbursed from the sale of the logs by the mill. Keep track of the load tickets, keep track of the branding hammer, and don't be surprised if the process seems like a paranoiac pain in the ass. Keep it understood that the logs belong to you until they are purchased by the mill. Mind you, not a lot of loggers will like this arrangement, and it will cost you cash up front to get the work done. However, this is the best way I know for an inexperienced seller to keep control of a small sale like this.

 

[OlympicYJ]

Most ya get for fir here right now is $325 a thousand.

Larch peelers are fetching $70 a ton.

:msp_sad:

Man your guys prices must be lower. I got that number off the WA DNR website (avg price per thou) it was for august though. I haven't looked at a price sheet since spring. There were some mills paying more than that and export of course. As a side note the WA DNR doesn't allow their logs to be exported it all goes domestic.


Hatt you are correct forgot to mention that. Cheers man. Hope all is well that way. Needin some rain bad from what I hear.

Wes

 

[madhatte]

Hope all is well that way. Needin some rain bad from what I hear.

Truth. Just got off a small range fire a few minutes ago. Should be less sketchy by Sunday, I hope.

 

[OlympicYJ]

Couple acres?

Wes

 

[madhatte]

Less, but right on a road. Oh, and something sparked up NE of Shelton this afternoon as well; I can see the smoke from here.

 

[hammerlogging]

I am looking for some opinions on what would be my best option on what to do with the timber on a piece of property i just bought and are planning to build a home on. I did speak with a logger the other night a showed him my property he said there were 5 logging truck loads of logs they are primarily fir and he said high quality logs would the taxes take most of the profit or is it worth my while I can always use a little extra cash.

Maybe look for a local forester that can help you, especially with the taxes issue. Timber is (can/should be) taxed as capital gains rather than personal income, that'll save you. Plus, first you can seperate the timber from the land value, then you can have the basis established and you only have to pay revenue on the difference between the value of the timber at purchase volume vs its current volume which is different from paying for the volume since day one-- make sure to get a timber tax person on this, but thats how you save on taxes.

the land clearers likely sell timber to lower their clearing cost to you. but, the right logger is probably capable and has done both anyhow.

Realistically, plan on selling the logs and buying lumber. Save some timbers for decorative purposes if you want them. But it doesn't have ot be this way, depends on your style.

 

[northmanlogging]

Be very careful who you hire, my ma got bent back in 91-92 Five+ loads taken off the property we only got paid for 2 and then only half of those, If possible be there daily and keep an eye on things, keeps us gypos honest :msp_biggrin: and if something comes up they can deal with it instead of waiting for you to show up. That said I know nothing about taxes in Oreegone, locale DNR or county assessor should be able to steer you in the right direction... With timber prices in the toilet for the foreseeable future may be money ahead to clear enough to build yer house and access, then just sit on it until things get a little better. That all depends on what you really want

 

[treecutter395]

selling timber

I am looking for some opinions on what would be my best option on what to do with the timber on a piece of property i just bought and are planning to build a home on. I did speak with a logger the other night a showed him my property he said there were 5 logging truck loads of logs they are primarily fir and he said high quality logs would the taxes take most of the profit or is it worth my while I can always use a little extra cash.

here in indiana the landowner can hire a logger to cut the timber for them and pay the labor bill and then use it for removing the stumps and tops and its all a tax right off