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White pine stumpage

Started by Osterman.r, February 05, 2023, 09:09:52 AM

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Osterman.r

Hi guys, I run a small circular mill operation in south/western NH. I have found a local land owner that has a good amount of white pine and he wants it cut. Wondering what a fair stumpage price is to pay the land owner for the timber. I will be doing all the logging and trucking to my mill as I need timber to fill lumber orders.

Stephen1

I don't know but I'm sure someone will come along that has some answers.
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Blue Noser

Quote from: Osterman.r on February 05, 2023, 09:09:52 AM
Hi guys, I run a small circular mill operation in south/western NH. I have found a local land owner that has a good amount of white pine and he wants it cut. Wondering what a fair stumpage price is to pay the land owner for the timber. I will be doing all the logging and trucking to my mill as I need timber to fill lumber orders.
If you can't determine a standard stumpage rate for your area you'll have to determine three values. The first is your cost to produce the finished product. Second, the value of the finished product. Last, but not least, what's the minimum amount you're willing to work for.
If you subtract your costs and the minimum amount you're willing to work for from the value of the finished product then you've arrived at a maximum stumpage value.
These values could be calculated on a lump sum basis (the value of the entire job), per hour, per board foot, per cord, etc.
You can then negotiate a stumpage rate from there. Negotiating prices down will leave more money in your pocket and or more wiggle room if you run into any unanticipated costs. 

chep

All depends but that area is usually between 100 and 175 mbf if it's good wood.

Osterman.r

Chep, thank you, that sounds reasonable.

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