ERC Stumpage prices

[ShowMeSawyer]

Does anyone know the current rate/price of ERC on the stump?

Better yet, a link to Missouri ERC stumpage prices.

I have a couple farms next to me that I want to talk to the owners about buying their cedar and need some type of price guide line to follow.

Thanks in advance,

SMS

[TexasTimbers]

Unless your particular local area has an established ERC market I would not try to start at what market value is elsewhere. If you are going to log it yourself, and it sounds like you are, I would try and get it free. that will cost you enough unless you are a loger and have all the proper equipment and manpower to go in and knock it out.
If you can't get it free start at $5 ton. Yes, $5 (five). If you are an efficient loggin operation maybe you can go up to $15 ton but you better not be jacking around in the woods too long.
If you are not a logger or set up to do logging effecietly, hire a logger to bring it to you. I hear of prices from $80 to $100 a ton delivered. I am paying $70 now but of course I ain't getting any with all this rain, at any price.

[Cedarman]

Here in Indiana stumpage is about 1/4 to 1/3 of delivered prices. Some people are asking for 1/2 and get it in special cases.  So this translates to 10 to 25 cents per foot standing.  It has gotten outrageous here because a couple of startup mills and a log cabin mill pay 50 to 60 cents per foot for logs delivered.  One startup has already went kaput though.  The last bid I did 2 years ago on state land for for about 9 cents per foot. About $17.00 per ton.

Mo always has run cheaper than Indiana, so my guess is somewhere between 5 and 10 cents per foot. 

If you get into a lot of 3 1/2 to 4 1/2 x 7 1/2' to 8' posts let me know. I can set you up with markets for tractor trailer loads if you get that many. Treated posts are going for up to 5 bucks for a small peeled and treated.  Makes cedar posts look real good.
But these small posts need a lot of red. Less than 3/4" of sap wood on a 4 1/2" and 1/2" on a 3 1/2" post.

[fishman]

the way i set my stumpage price was-- how much is my lowest price i could sell lumber or cants for now (not setting on a pile of lumber ,hoping for sale) less what it cost me to get the log home , milled,and how much money i had in it, if you know your expenses you can set a price, if you don't things can go south in a hurry,  just because the average is one thing, can you afford to pay it and still make a profit?  on the same note maybe your expenses are less, can you pay a little more than average and get some really good trees that the landowner wouldn't sell at a lower price?  bottom line pay only what YOU can pay and still turn a profit.

[ShowMeSawyer]

Cedarman and everyone else, thanks for your posts (no pun) on this subject.

"If you get into a lot of 3 1/2 to 4 1/2 x 7 1/2' to 8' posts." >Cedarman

About 8 miles from my farm there is a large shaving mill and the buyer buys tons and tons of cedar.... most in the post sizes listed above. Around here where I live, most of the cedar is pole cedar, sometimes you can get up to 3 or so 8' posts out of one tree. Cedar growing on rocky hillsides often have 1/4-1/2" sapwood on them. The cedar cutters love this type of cedar as they can cut a load pretty quick for chipping wood. The cedar buyer here is paying $90 a cord delivered.

We used to rent the farm next to us about 15 or so years ago to raise cattle and for hay ground. Had to make new fences and cut posts from the cedar on this guys farm. I did an inventory of the larger cedar, 14" on up, and stopped counting after 400. Most if not all of these cedar are growing on a south rocky hillside. I cut a couple logs from this patch of cedar and the sapwood was 1/2" on a 16" cedar log. I haven't been on my neighbors farm for years, so no telling how big the cedar is after 15 years.

Cedarman, I will be going to the Missouri Cedar Conference in Springfield in August. I got a cousin that is wanting to get into cedar real bad and I told him you were the one to talk too. Was wanting to talk to you at the Wood-Mizer 25th that was in MO a few months back, seen you was plenty busy, I didn't want to interrupt in your conversation with those you were talking to. Maybe I'll have a chance this time around.  :D

SMS

[CLL]

Showme, right now I pay 12.5 cents on the stump. I live at Sedalia, and anything that has a lot of ingrown I sell to the shavings mill at $90 cord. I don't cut smaller than 8" so I can always saw a good 4x4. I have talked to Cedarman and he is great at helping you out.

[ARKANSAWYER]

  Well in the southern part of MO and the northern part of Arkansas cedar is going for $0.35 to $0.42 bdft on the cedar scale.  A land owner will get 1/3 as a general rule.  So that will come out to $0.11 to $0.14 bdft on the stump.
  What else do you need to know?

[Cedarman]

I talked to a guy yesterday that brought some cedar in.  He is selling his 3 1/2" to 4 1/2" good red for $3.50 each.  If you can get a truck load, about 1000 to 1200 and can steel band and load, I will pass along the phone numbers.  Or put an ad in Farm World magazine.  Good 5" should sell very well.  Takes about 50 to make a ton.