Tree Farmer - September/October 2009 - (Page 25)

to Protect Your uncounted Cash Please allow me to exaggerate in order to make a point. These comments will be more or less true of many landowners. You don’t know what your timber is worth. Even if you do understand the basics of pulpwood, sawlogs, pine and hardwood, you can’t know what the local markets are doing. Unless you are in the wood business full time, you don’t know what your timber is worth. And even if you did know what volume you had in the various products, and a good understanding of the price these products might bring locally and currently, you could still be oblivious to the many variables that influence the value of timber. For example, if your land is sandy, well-drained, and “loggable” in wet times, your timber is worth considerably more money. If your timber is just a few miles from a converting facility, it is worth a lot more money than a distant tract. And if that mill really, really needs a slug of wood right away, guess what: The value of your timber has gone even higher. But, okay, let me give you the benefit of the doubt. Suppose you have a professional timber seller giving you good advice. You hired a flock of foresters to come and cruise your timber and determine volumes by products. Yes, indeed you would be much better off. But you still don’t know how much money you Registered forester Tom Kazee helps clients across the Southeast reduce the potential for financial crimes through his firm, Woodland Security Inc., in Orange Park, Florida. Reach him at (904) 504-9489 or . By Kazee ToM have on the stump. The very best cruise is a good, scientific prediction; there remains a host of variables that cause unpredicted variations. And a poor cruise is a disaster waiting to happen. So, your timber might look like a lovely forest to you and other normal people. To an auditor, it looks like uncounted cash. When your terms and conditions are written down and clear to you, then you can decide to agree or not. Never let anyone rush you into an agreement. This is a great warning sign that a con (confidence game, or fraud) is in the works. 4 Never let anyone rush you into an agreement. This is a great warning sign that a con is in the works. Into these circumstances we introduce the timber buyer and logging contractor. Given the potential values associated with timber sales and harvesting, what do I recommend to my neighbor who wants to sell 20 acres of timber? She cannot hire a flock of foresters to check each other. The sale has to be very efficient. So, very quickly, I would recommend: Market aggressively. You don’t have to hire an expensive forester to do this on a small sale. Make certain you acquire more than one independent, professional offer before you begin to finalize an agreement. Use the telephone to lure potential buyers out for a look-see and walk around tour. Listen carefully and learn from their experience. Invest in professional advice. If your timber sale/timber harvesting experience is substantial in your opinion, consider hiring a professional forester to represent you. Like a good real estate agent, they will make you money when conditions are right. Even with a relatively small timber sale, a forester can keep you out of trouble with regulations and environmental issues. Insure the written contract represents your intent and protects your interests. There are real liabilities associated with any transaction; this is no exception. 5 1 2 3 Educate yourself as much as possible. Join associations that share information. Invest in the short seminars available from universities and state agencies. Get all the free advice you can. Utilize your state forestry commission for management plans and guidance. Let timber buyers educate you on what your assets might represent. Never agree to a timber sale verbally. There is too much opportunity for confusion that a crook can exploit. 6 I have exaggerated and generalized quite a bit. Most landowners are smart enough to avoid pitfalls, but honest people don’t think like crooks. That makes you vulnerable. Most — nearly all — timber buyers and loggers are honest people. We have to watch out for those rare exceptions that can be very costly. Tree Farmer SEPTEMBER/OCTOBER 2009 25 woodland security 6 Rules

Table of Contents for the Digital Edition of Tree Farmer - September/October 2009

Tree Farmer - September/October 2009
Table of Contents
Cover Story
A Hot Trend: Enhance Habitat with Prescribed Fire
Tools & Techniques
Woodland Security
Taxing Issues
Wildlife Matters
2008 Northeastern Regional Tree Farmers of the Year

Tree Farmer - September/October 2009