How much money
should a forest owner make?
Timber is the most abundant crop in Wisconsin, yet the forest owners don’t get paid a fair, reasonable, or profitable price for their trees. Everyone else in the timber industry makes their wage, earns a return on their investment, and the companies make a profit.
For forestry to ever be sustainable,
the growers must be paid enough to make it worth their while.
One option would be for forest owners to organize and cooperate. (Check out Scandinavia)
They could control the timber market and set the price of timber at a profitable level.
(I’m not holding my breath anymore on that one)
We have found that by local manufacturing and direct marketing to customers, we can earn 100 times what our neighbors are paid for their timber harvests when they sell in the traditional timber market. Our income potential on our forests here at Timbergreen Farm is about $4,000 per acre each year. (Our annual growth is 400 board feet per acre and the market price of flooring here is about $10 per square foot.) We have more timber than I can handle at my age and energy level, (and I don’t want to work that hard,) but I can show you how to earn that income potential if you want to. Its all in this website!
But most forest owners apparently don’t want to follow our example.
They want to just sell timber and let someone else do the work.
Here are my thoughts on the potential income from selling timber today in the traditional timber market.
Most forest land around the U.S. has been over-harvested and high-graded. According to the USFS and Wisconsin DNR inventory…. the average annual growth in SW Wisconsin is about 110 bf/acre of sawtimber. Average quality is poor and might sell for $300 per thousand board feet (mbf) generating an annual income of $33/acre.
With a little management and a decade, you can double the annual growth and increase the quality of the timber. 220 bf worth $400/mbf could then produce an annual income of $88/acre.
Another decade of improvement and you could reach 300 bf/acre worth $450/mbf and an income of $135/acre each year.
After 30 years of management, our forest is now growing 400 bf/acre of sawtimber each year worth $500/mbf for an average annual income of $200 per acre. That is Every Year!! (but No Thanks!)
If you are selling timber and not making an income in this range, you are missing the boat.
But, compare selling timber in the commercial market to
Full Vigor Forestry! Isn't it still a No-Brainer?
There are a million ways to plan and operate a business to get paid a good income from your timber.
So - do you choose to earn;
Whatever some guy pays me…
$33/acre each year
$88/acre each year
$135/acre each year
$200/acre each year
$1,000/acre each year
$2,000/acre each year
$4,000/acre each year
Even more if you want…?
It is your choice.
Birky