taking the guesswork OUT OF SELLING TIMBER: USING THE COMPETITIVE BID ADVANTAGE Yuriy Bihun Forest Stewardship Associate Penn State If you’re like most woodlot owners who decide to harvest tim ber, you usually sell stumpage standing timber or market your cut logs roadside to a log buyer, timber harvester, or sawmill own er. Some landowners shop around, others take the first offer that com es down the pike. Since most for est landowners are not profession als at marketing timber, you may come out a loser in the deal with out help from an expert. In Pennsylvania, less than 25 percent of all timber sales on pri vate, non-industrial woodlands in volve the service of a professional forester. However, repeated stud ies have shown that forester-as sisted timber sales net a greater re turn for the landowner and more than cover the cost of hiring a pro fessional forester. Three-quarters of all sales that involve a forester require an up-front lump sum pay ment to the seller before harvest ing begins as opposed to a pay-as you-cut method. A ' Ph; 71 7-274-3488 CONFINEMENT SYSTEMS, INC. we Ship ups m ' " • 608 E. Evergreen Rd., Lebanon, PA 17042 Hours. Mon.-Fn. 7:00 to 4 30: Sat. 8:00 to 12:00 ' QUALITY Moreover, competitive bidding procedures are used on forester assisted sales, which usually result in higher returns to the landownen Sound forest management usually results in a.more productive forest and continued income-producing potential from future growing slock. A competitive bid sale al lows the landowner or forester more control over harvesting acti vities and the flexibility to imple ment practices that reflect the principles of forest stewardship. Sal* Specifics: •size of the sale (acreage and map) •number of stands or cutting units •timber and boundary marking system •road construction •seeding and mulching log landings •silvicultural methods (ie. clearcut vs. individual tree selection) •dates and time limit for carrying out the harvesting •protection of special features (biological and archaeological) Volume Calculations: •sawtimber and pulpwood volumes (by species, stand or cutting unit) •number of trees •average volume (per acre or per tree) •log scale •site index Even if each tree has been tallied, volumes are not guaranteed and the bidder makes his or her on his own estimate of the merchantable volume. Generally, volume adjustments are not made, but this depends on the indi vidual sale. Contract Execution: •contract •Certificate of Worker's Compensation •penalties for contract violations An acceptable performance and completion bond of 5-10 percent is usually re quired within 30 days of awardii the contract. APOLLO BALL This convenient plug for hog manure drains makes a non-leaking seal on the clean-out drain in pull-plug manure systems. It is a major improvement over leaky, concrete plugs. Sold as a plug and pipe adapter set, the Apollo Ball is a thick, industrial-grade rubber ball that fits into a specially made PVC socket. The ball is filled with sand, which gives it weight but leaves it pliable for a very reliable seal. Molded into its top is a sturdy ring, and attached to this ring is a stainless steel rod with a loop on the end. To open the drain for pen cleaning, you can easily use a simple long-handled hook to catch this loop and lift the ball from its socket. The socket into which the Apollo Ball Plug seals can be installed on any 8* PVC drain pipe. And in new construction of hog bams, it can be easily included in poured concrete flooring, -( If you’re a first time timber selller, you may have some ques tions about where to begin. For in stance, how do you go about mar keting limber on the stump? Do you sell timber like you sell live stock or tobacco? What goes on when a timber sale is put up for bids? The first step in selling timber on a competitive bid basis is to send out a request to potential buyers to submit written, sealed bids on a particular tract of timber and an invitation to a timber show- ing. A prospectus that includes a timber sale map, timber sale vol ume estimate, and a bid form should be enclosed with the invi tation letter. In addition to volume estimates and calculations, the contract requirements and sale specifications should be included in the prospectus. Although not all foresters in clude the same information in their prospectus, some of the items you should expect to see in a pros pectus are: •stump height requirements •top lopping specifications •slash treatment •stream crossings details •general liability insurance •payment schedule Also can be adapted to 6” PVC drains. Landowners consul prospective timber sale. Recently, I had the chance to follow a timber sale and observe one small step in the entire process of marketing timber the timber showing. On this particular sale, the forester mailed 80 invitations and about a dozen people showed up for the tour of the sale area. An assortment of loggers, industrial foresters, timber buyers, and saw mill owners posted for the show ing. After a brief introduction, the forester in charge of the sale read over the prospectus, discussed some of the specifics of the sale and answered 'lestions. .SUlf WOUND DRAH iUSEDUI Lancaster Farming, Saturday, September 5, 1992-CS Interested bidders drove out to the proposed sale location where the forester discussed landing lo cation, access, gravel for road building, culverts, and other ero sion and sedimentation concerns. The forester then took the group into the woods and discussed the nuts and bolts of the sale: timber sale and property boundaries, cut ting requirements, buffer strips to protect stream channels, location of main haul road and major skid trails. In some cases, the forester has the main skid trail flagged be fore the sale, other times the log ger and forester work out the de tails once (he contract is awarded. On this particular sale, one-tenth of the trees marked for removal had been scaled as check-trees and their volume was specified on an attached check tree sheet. Loggers were encouraged to estimate their volumes and compare them to the volumes determined by the forest er. After a tour of the proposed sale, the group returned to a road side location for questions and last minute instructions for submitting the bids. The deadline for sealed bids with a 10 percent deposit was set for 10 business days from the showing. Of the dozen potential buyers that attended the timber showing, five submitted bids be fore the deadline. Two additional bids came in late and were not ac cepted. The bids were opened on the deadline date and, in this case, the highest bid came from a very reputable" logging operator who won the sale. In most cases, the forester is not required to accept the highest bid and weighs a varie ty of factors before awarding the sale including, the reputation of the timber harvester and his or her ability to meet the contract speci fications. In this particular sale, the win ning bid was $62,300. The next highest bid was $42,000 a dif ference of more than $20,000! Most consulting foresters charge 15 percent of the sale price in this sale, about $9,345. Without the competitive bid process, the landowner might have sold his timber for $42,000 or less would you spend $9,345 to make $20,300? If you arc considering selling timber, it is in your best in terest to lake advantage of the competitive bid process and use the services of a professionnal for ester to assure wise forest ste wardship of your natural re sources.
Significant historical Pennsylvania newspapers