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Revenue answers...

1.

What is the cost for forest management advice?

Private consulting foresters and the Minnesota DNR forestry generally charge a percent of the proceeds from the timber harvest, or a per cord amount. If you are just getting a forest management plan without a timber harvest, generally there is a per acre fee for the plan. Forest product industry foresters do not charge a fee, although the wood is contracted for their mill.


2. How will I get paid?

That depends on who buys your timber. If you sell to a forest products industry forester, you will be paid by the company. You can sell to a logger who is then responsible for payment. In either case, a contract stating the payment terms, rate per cord, etc. should be signed by both buyer and seller. Your forester can help you with the contract details.

  
3. What are the relative values or the average price per cord of my trees?
Values are dependent on many factors such as amount of timber, quality, species of trees, season of harvest, acreage harvested, and landowner preferences. The price can not be easily determined until the timber is appraised by a forester in the woods. Then these variables plus additional harvesting regulations are considered to calculate the value.

  
4. What is a cord?

About three pick-up loads full of wood or a stack of wood 4 ft. X 4 ft. X 8 ft long.


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5. How is the amount of sold timber tracked for accuracy?
The amount of timber sold off your land is determined using either of two methods: (1) Lump sump (sold as appraised) or (2) pay as you cut (consumer scale).

Lump sum method:

The forester “cruises” or estimates the amount of wood on your timber sale and you are paid that estimated amount. This method is quick and easier for all parties, but requires an accurate estimate.

Consumer scale method:

You are paid for actual cord removed from the timber sale. The loggers fill out a scale ticket documenting each truckload that leaves the property.

Your forester can explain these methods in further detail.

  
6. What are the tax implications of cutting my timber?

Timber receipts are considered taxable income, but there are many factors to consider when filing your taxes. Consult a tax professional or visit the following websites for more information:

You can also enroll your forestland into the Sustainable Forest Incentives Program, which provides property tax relief for forest landowners. You must have at least 20 acres, a professional forest stewardship plan, follow the state’s forest management guidelines, sign an 8 year agreement and not owe back property taxes.

 

 

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