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The
marketplace for timber is very unstructured when compared to farm products, factory goods,
or the stock market. It is, therefore, quite difficult for anyone to enter this
marketplace successfully without years of experience and preparation. Typical forests produce a great diversity of products.
Species, size, and tree quality are all factors which influence timber values. For
example: smaller pines might be used for pulpwood and, in that case, have a value on the
order of $5.00 per ton. Somewhat larger pines would be suitable for use as sawtimber and,
in that use, might have a value in excess of $50.00 per ton. It is important that
sawtimber be sold as sawtimber if the forest owner is to be properly compensated for his
timber. It is common to find trees of sawtimber size and quality being harvested as
pulpwood with the owner being paid a fraction of the trees' real value when discretion is
left to the logger or timber buyer.
The Kingwood Forestry professionals use the
timber markets to your best advantage. Not only will we ensure that you, as a forest
owner, will get the highest possible price of your timber, but also that the productivity
of your land will be enhanced through careful selective harvests.
We will select trees for harvest that are
best for you to sell. We do not buy timber and will not take advantage of the trust our
clients place in us. Our computerized directory includes over 300 prospective buyers of
timber, all coded by geographic area and preferred product. We use a detailed prospectus
which shows the location and volume of timber being sold, plus conditions of sale for each
timber offering. Every prospective buyer has an equal opportunity to purchase. Sales are
almost always on a competitive sealed bid basis. The landowner always reserves the right
to refuse the bids.
Kingwood will prepare a Forest Products Sale
Contract for execution between the landowner and the buyer. Normally the full purchase
price is paid in cash in advance and the buyer has a fixed period of time in which to
remove the designated timber. Our marketing service is not completed until we make a final
inspection of the timber harvesting operation. We check logging operations while they are
in progress to ensure that all of the terms of the contract are honored.
With our experience and proven marketing
techniques, our clients can be sure of gaining maximum cash income while leaving the
forest in productive condition. |
