There's a pole place in Goodwater, up in Coosa Cty.. or at least there was one a year or so ago. 'Transmission' poles are big poles.. I'm not sure what the specs are on the poles they buy there.
I used to buy timber years ago in central AL (still am a forester) and timber prices fell in '08 when the rest of the economy tanked. Some of it rebounded, but pine logs haven't and are worth on the stump roughly half of what it was back pre '08. If the housing market is down, then there is no great need for pine lumber and plywood. If the consumer isn't buying a ton of lumber and plywood, then the mills don't need so much of it, so prices offered for the raw materials go down.
Location will also drive the prices, because different mills in different geographic locations have different delivered prices. That's why it's crazy for landowners to hear about what hardwood logs are bringing in north AL, and expect to get the same prices in Greenville. You can't haul the wood 200-300 miles to higher delivered prices without eating the extra money in freight, and the logger's not going to tie up his truck for a haul that lasts 6 or 8 hours, and only move one load a day.
Jarod: I'm still working some with a timber company, and the prices you quoted are in the ballpark for what central AL prices are typically doing these days. You did about as good as you could with them on those products.
It's going to cost him a ton of money to stump it and get it clean enough to row crop it. I currently sell machines for this very application and per acre it's anywhere from $1500 to $2100 depending on the removal of any huge hardwoods, are stumpseverywhere or are they rowed, and getting the site cleared well enough not to do damage to the farmers planting and harvesting equipment, much less whomever it is, the farmer or landowner, that has to get the soil right so it will be able to grow peanuts, etc. He can go the less expensive " bulldozer and windrow and burn route" but that may take a very long time. Time is money.
What is the cost going to be to take a stand of first generation loblolly pines that were planted on row crop ground and put it back in pastureland/row crop ground?
I'm not talking peanut growing land; just your standard corn/beans/cotton type crops?
I was thinking that it wasn't near as expensive as your $1500-2100 price range....
Yes it will be every bit of that maybe more. You then have to pour lime and fert to it which will be a lot after pines been there. Then years of lower productivity til it gets back right. Not a cheap move at all
Quietly killing turkeys where youre not!!! My tank full of give a fraks been runnin on empty I'm the paterfamilias
Re: timber value per acre
[Re: hosscat]
#2128021 06/02/1701:24 AM06/02/1701:24 AM
We will never have the timber prices we had back in the early 2000s, ever. UNLESS, we have a hurricane come inland like back in mid 90s and put a lot of timber on ground. IMO.
Too many mill are gone or changed output product. Poles are still king in my area delivered to Cahaba. Mileage kills the stumpage price. Too many mills right now are on quota and no end in sight.
Once upon a time, a family might have a good stand of pine say 30-35 years old and look at clear cut for retirement. Not any more. All of the CRP pine plantations locally have flooded the market with pulpwood. What was a good program at one time for land reclamation, is actually devaluing per acre prices for pine. If there is a $2000-$3000/acre clear cut of pines locally it is just about all poles and RARE.
I still consult people that want a fmv on their timber. What I tell them what it is worth after the cruise, they think "WTH"?
Re: timber value per acre
[Re: hosscat]
#2128051 06/02/1702:13 AM06/02/1702:13 AM
Plus all these 2004 hurricane IVAN (planted 2005) aged plantations are just starting to hit the market. Tens of thousands of acres down here. There will be a pine PW glut for a few years thus low prices. We had just thinned about 700 acres and they got wiped out and had to be replanted. That will make you sick. It happened everywhere down here.
Last edited by deadeye; 06/02/1702:17 AM.
A man is not old until regrets take the place of dreams
He alone is educated who has learned the lessons of open-mindedness
It depends on so many different factors it is impossible to guess. Use to we used about $3200 as a guide on a loblolly stand with a 28 year rotation. Now you can't get a paper mill or sawmill to give you a guaranteed delivery price for a month.
I looked at a logging job this morning in south Alabama that surprised me a little. It was a 18 year old longleaf plantation planted in old peanut fields, very good dirt. Dang stuff won't grow. The landowner couldn't find anybody that would give a price per ton doing a thinning, so he is clear cutting it and chipping it. It was in a government program of some kind, but the time had lapsed. He figures he can stump it and get $140+ per acre rent as agriculture fields. By the way, across the highway on similar dirt was some loblolly that is probably the same age or less. It has been thinned already and has some very good chip-n-saw standing. I'm not saying all longleaf is like that, but I can show you plenty of it that is.
This would work well for clearing smaller machine planted plantations in sandy ground...
Last edited by deadeye; 06/02/1702:26 AM.
A man is not old until regrets take the place of dreams
He alone is educated who has learned the lessons of open-mindedness
Re: timber value per acre
[Re: hosscat]
#2128061 06/02/1702:29 AM06/02/1702:29 AM
A hurricane would flood the market even more and the stumpage prices would drop like a lead sinker, you would have a hard time getting anybody to cut your timber. Your pole prices would be gone for years with the wind shake if the trees survived the hurricane. The biggest negative in timber prices we have had in NW Fl and south Alabama was when the Koch brothers bought Alabama River, Stone Container in Brewton and the GP mill at Cedar Springs, Georgia. They set the prices and everybody else fell in line with their pricing. Why should they pay a higher price for pulpwood delivered when they are on tight quota and getting all they want. South Alabama hardwood logs don't have the quality the furniture makers want and the south Alabama veneer is basically just a filler layer in hardwood veneer. They don't even want the south Alabama white oak for whiskey barrels. About all the mills are full and on quota, don't look for delivered prices to get better for a long time. Another problem is that the loggers are going out of business, starved out by tight quota, higher equipment expenses, higher fuel and other petroleum product prices and labor among other expensive problems. The longleaf I was speaking about is a 400 acre plantation. The owner can lease a couple of big excavators and put a stump puller head on them and pop a lot of stumps out in a day.
Re: timber value per acre
[Re: hosscat]
#2128074 06/02/1702:42 AM06/02/1702:42 AM
Timbercruiser brings up the biggest problem with the wood business - a very few companies now control the market and will pay as little as they can. The price of lumber has gone up some, but timber continues down because we don't have a free market any longer.
I don't see a solution coming.
BTW, if pines we're planted in rows it is possible to farm between the stumps. By the third year they will fall apart and can be easily removed from the field. That would be the cheap way to put a pine plantation back into farm land.
Last edited by poorcountrypreacher; 06/02/1703:04 AM.
All the labor of man is for his mouth, and yet the appetite is not filled.
It isn't getting better. What you are seeing is just way this is going to go.
You either got a short memory, attention span or weren't farming... but - We got pushed out of farming economically and you and I both will eventually get pushed out of Timber economically. They pushed us out within one generation. I was driving a tractor at age 12 and by 26 I was working in an office building.
That's the way this is going to go. "Free Market" is just an Alias for Corporate America.
You better find another way to make a living if you are a small owner. I've been through this once already.
Anyone need a rusty old Combine?
No government employees were harmed in the making of this mess.