Questions about forestry and forestland?
Ask a consulting forester

Note: This is the first in a series of forestry-related articles to promote proper forestry practices, forestry education, and forestry extension. The series will also speak to some of the misconceptions about forestry... WVU-ES editor

You may be fortunate enough to own forestland in West Virginia. You may have wondered how to make your woods more productive. You may wish to know how much a stand of timber is worth. You may want to know more about how to manage that land to fulfill your objectives of ownership.

As more markets move into and develop in the Appalachian region, more landowners will be asking themselves just these types of questions. These landowners will want to know where to get assistance, advice, or information about forestland.

Ask a consulting forester.

A consulting forester is a graduate forester (with at least a B.S. in forestry) whose independent business provides forestry services to individual landowners. The consulting forester's business is not affiliated with any timber buyer or buying agency. Services provided vary widely from one consulting firm to the next, but nearly all consultants provide assistance in timber volume estimates and inventories, appraisals, marketing and sales, forestland reconnaissance, and forest management. Other services may include tree planting, timber stand improvement, trespass appraisals, forestland investment and taxation analysis, among others. Charges for these services may be based on per acre, per unit volume, per day, or by commission.

In the Appalachians, the consulting service which perhaps receives the most attention is timber sale assistance. The long-term nature of forestry allows a landowner only one chance in a lifetime to sell timber; therefore, any timber sale transaction should be done carefully, safely, and correctly. Furthermore, this transaction should treat the landowner fairly and treat the land with care.

A timber sale is truly an example of the free market system: Prices are set by supply, demand, willingness of buyer and seller, and most important, by how much the parties involved know about timber and its markets. A landowner does well to represent himself or herself fully with someone knowledgeable of these markets. To illustrate, one of our clients was offered $8,000 for his tract of timber. After he contacted several other local buyers, he had offers up to $27,000. Yet, when he retained a consulting forester, the forester marketed and sold the timber to a large, regional market located 70 miles away for $67,000. In another example, a client had an offer of $75,000 for his unusual tract of timber. After contacting a consulting forester, the landowner was advised as to whom to sell and the proper time to market the timber. The resulting sale price was $509,000. These are examples of exceptional proportions, but true nonetheless--brought about by the marketing knowledge of a consulting forester acting as agent for a landowner. As in any wise business transaction, the landowners/sellers should put themselves at a level of knowledge equal to that of buyers by way of proper representation.

The duties any consultant owes a client are:

1. to properly advise the landowner to follow a timber growing and harvesting plan, which will sustain the productivity of the forest and the land;

2. to inspect the timber harvesting on clients' lands for use of Best Management Practices to conserve soil and water;

3. to provide safety in the timber transaction; and

4. to market the timber to its highest and best use and price.

Many other duties are involved which complement or fill out these primary duties.

A consulting forester applies simple business sense to a knowledge of forestry practices and the forest products industry. The first step is to assess the forestland to determine a plan of action for either growing or harvesting the timber. If allowing the timber to grow is the landowner's decision, then the consultant provides information on maximizing growth, market timing, emerging markets, and need for intermediate activities.

If the landowner decides to harvest the timber, then the consulting forester conducts a timber volume estimate, either by means of a 100% tally or by a statistical sample of the timber volume. Timber volume is appraised by its quality, quantity, species composition, accessibility, etc. When marketing, we directly contact regional markets to notify them that the timber is for sale under controlled specifications. Our company normally sends marketing bid invitations to 80 to 150 buyers for any given sale. We consider marketing to a wide range of buyers vitally important to the process. Regional markets may be little-known in a local area, but very often they are strong bidders, despite the 60 to 200 miles they will travel (distances are even greater for high quality veneer timber). For our sales today, the average distance between timber tract and successful bidder exceeds 100 miles. In these times, marketing forest products is an interstate business, and it pays to know the markets in a very broad range.

In the bid invitation, the consultant announces the date for timber showings and a bid date is set. The bid date is the time when sealed, competitive bids are received and opened. (Consultants may have somewhat different methods of handling bids.) The highest or best bidder is chosen, and the landowner decides whether to accept the offer, based on the appraisal information already provided by the consultant. Most consultants arrange strictly for lump-sum, up-front timber sale payments, meaning that the entire bid is paid to the landowner before any timber is cut. Next, the consultant assists in drafting a timber sale contract, keeping in mind the safety, protection, and objectives of the landowner. Then when harvest operations are active, the consultant visits the property to inspect for contract compliance.

From planning through harvest, the consulting forester acts as agent for the landowner. The private status of consultants allows them to be involved in the actual transactions and to protect the landowner throughout all dealings and operations.

If you wish to locate a consulting forester, contact the USDA or local extension office nearest you.