Title: Florida forest steward
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Title: Florida forest steward
Physical Description: Serial
Language: English
Creator: Institute of Food and Agricultural Sciences, University of Florida
Publisher: Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville, Fla.
Publication Date: Winter 2006
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Bibliographic ID: UF00090040
Volume ID: VID00042
Source Institution: University of Florida
Holding Location: University of Florida
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The Florida Forest Steward

A Quarterly Newsletter for Florida Landowners and Resource Professionals


Winter 2006


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Volume Gains from Fusiform
Rust Resistance in Slash Pine
Exceed Expectations
By Dr. Dudley Huber, UF-IFAS School
of Forest Resources and Conservation

The Cooperative Forest Genetics
Research Program at the University of
Florida has just finished an evaluation of
how much extra volume might be
available as a result of planting fusiform
rust resistant seedlings. Data for the
analysis came from eight-year-old block
plots of slash pine, planted with 10
different improved slash pine seedlots
plus unimproved and improved checks.
Each seedlot was planted in 50- to 100-
tree block plots. The primary emphasis
of these tests was to compare actual
plantation volumes with estimates of
genetic gain determined in progeny test
row plots. The two genetic values
available from progeny testing were
separate measures of growth potential
and fusiform rust resistance.


The results indicated that the growth
potential estimated from progeny tests
accounted for almost exactly the
measured gain in plantation volume per
acre. However, the gain in volume per
acre due to rust

UF I UNIVERSITY of

UF FLORIDA-

IFAS --


Volume 13, No. 3









resistance was much greater than
previous work had indicated. For
example, in an area where the
unimproved check would get 40% rust,
the percentage volume gain per acre for
a relatively rust resistant seedlot would
equal the gain from growth potential
plus an additional 24% from rust
resistance. Our previous work, which
was not based on block plots, had
indicated that the additional gain from
rust resistance would be only 8%. When
the amount of rust in the unimproved
check was even higher, the relative gains
in volume per acre from rust resistance
were much greater; often exceeding
50%.

While these results apply directly to
volume gains at age eight, these plots
will be measured through age 15 to
obtain a direct measure of volume gains
for a pulpwood rotation. Also, modeling
based on growth projections and stand
tables will be used to project these gains
at age eight to older harvest ages. As
exciting as these volume gains per acre
are, they do not fully quantify the value
of rust resistance which also includes
preventing product degrade from high
value products such as sawtimber and
chip-n-saw into pulpwood. For
additional information about Florida's
genetic improvement programs, see
Genetically Improved Pines for
Reforesting Florida's Timberlands
(http://edis.ifas.ufl.edu/FR007).

Highlights of Marketing Forest
Products Workshop Series

If I asked you how much money you
would pay for something without telling
you what that something was, what
would you say? Unless you are
adventurous you would probably want to
know what it is before you make a bid.


Likewise, you probably wouldn't want
to sell something before you had at least
a ball-park idea about what its value is,
right? What about timber? If you don't
know how much value is in the trees you
are selling, how can you be sure you are
getting a fair price? That is the question
we addressed at the last workshop series
on marketing forest products.

James Vardaman, a consulting forester
in Alabama, is asked on a routine basis
by landowners how they can make more
money growing trees. His answer is
always the same: stay home and study
HOWand WHEN to sell timber. This
workshop was designed to give you the
tools you need to do this.

Current state of north Florida's
timber buying markets

Jeff Main, President of Land & Timber
Services Group, gave an excellent
overview of recent supply and demand
factors that have influenced timber
markets, reforestation, and real estate
trends.

Market Changes
Many changes in the forest products
industry, land ownership, mill operations
and imports and exports over the last 20
years have created today's markets.

Industry consolidation since 1985
there have been at least 21 mergers
between major timber companies, such
as International Paper's merger with
Federal, Union Camp, Shorewood
Packaging and Champion. To offset the
cost of these types of mergers, large
landholdings have been sold.

Land and timber ownership changes -
Jeff divided these into 2 phases:









1. land sold by industry to other
corporate land managers or
investors and
2. land sold by phase 1 purchasers
or additional land sold by phase 1
sellers for further subdivision or
taken out of wood production for
"highest and best use".

Mill changes many are manufacturing
new products such as oriented strand
board (OSB), super pulpwood /
canterwood or pine mulch. Most have
upgraded in terms of production
efficiency, increased utilization and
more shifts. Several mills have closed.
Since 1998, pulpwood markets have
consolidated, with some additional mill
changes:
mills are holding down prices for
delivered logs,
wood specs have been redefined,
smaller inventories are held by
mills, and
pricing is maintained more or
less at the cost of production.

Import Export Factors when the US
dollar is strong relative to other
currencies there are generally fewer
lumber exports. With a more fully
globalized pulpwood market and greatly
decreased industrial ownership of raw
materials, facilities are driven by cost.

What does the future hold for Florida's
timber market?
Although there is evidently an
oversupply of wood in the Southeast,
Florida's supply will probably diminish
due to the multiplied effects of
urbanization, timberland
fractionalization and increased public
land purchases. Forestland investment
managers (TIMOs) will require finite
investment periods and we can probably


expect their lands to return to market
sooner the next time around.

On the demand side, the mills operating
in Florida are modern, well operated and
efficient. As long as a significant supply
of stumpage is available a healthy timber
market will remain for the foreseeable
future and active management will
continue to pay off.

How the timber market works

Dr. Alan Long gave us a good timber
market 101 talk, discussing how timber
prices are determined and where to get
timber price information.

The price you get for your timber, aka
stumpage price, is equal to the mill gate
(delivered) price minus harvesting cost
and profit.
Gate price depends on markets
for finished products, current
inventories, weather, source of
wood and competition.
Harvest cost is dependent on the
size of the sale and type of
harvest, species, tree size and
density, soil and slope
conditions, weather,
accessibility, distance to mill and
contract specifications.
Profit depends on interest rates
and available markets.

Sources of stumpage price information:
Timber Mart-South (a summary
of the previous quarter is in this
newsletter)
http://www.forest2market.com/
provides monthly region-wide
averages for the major products
Consultants
Local agency or procurement
foresters









Major product specs (can vary slightly
depending on the mill):
Pulpwood (or OSB): 4-8 inches
dbh, 25 ft minimum log length
Chip-n-saw: 8-13 inches dbh, 30
ft minimum log length
Sawtimber: 11-29 inches dbh, 17
ft minimum log length

Selling your
timber for
what it's worth

Getting the right
price for your
timber starts
with knowing
what you have "'
to sell and then
using the market competition to get the
highest price.

Inventory your timber
For each stand, an inventory should
measure, by species, how much is
pulpwood, superpulpwood, CNS,
plylogs, and poles. In general, if your
property is 160 acres or larger, it is
recommended that you hire a consulting
forester to conduct an inventory and
assist with the timber sale.

Decide when to sell: this is perhaps the
most difficult step due to the
unpredictability and variability of timber
prices over time and space. As a rule of
thumb, it is best to sell timber when
current prices are above the long-term
trend line. Take advantage of active
market periods and avoid selling, if
possible, during periods of decreased
demand for your products. The
advantage of growing trees is that you
can usually "bank on the stump" until
market conditions improve.


Decide on a selling method: negotiation
or sealed bid

In a negotiation, the seller arrives at a
price after negotiating with one or more
potential buyers. This method may yield
a fair price but it may not be as high as
the value of a bid sale that receives
responses from a larger
number of potential
buyers. Sellers do not
usually have as much
information about
current market values as
the buyers in a
negotiation. Negotiation
is necessary and
appropriate when: the
tract is small and/or
irregular; small volumes are sold per
acre; timber is sold from a thinning or
salvage sale; there are few mills within a
reasonable trucking distance; specialty
products are sold; or when the seller
prefers or has a previous working
relationship with a certain buyer.

In a sealed-bid timber sale, the seller
advertises the sale to as many
prospective buyers as possible. The
seller may specify a minimum bid or the
right to refuse all bids. Potential buyers
submit confidential written offers that
are opened at a specified time and place.
Each bidder is allowed a single bid and
no bids are accepted after the bid
closing. Sealed bids are most appropriate
when the area to be harvested is large
and uniform (i.e., clearcut harvest).
Sealed bids historically have yielded the
highest price to the landowner and take
advantage of competition among buyers.
This selling method is not suitable for
small, irregular tracts; and it eliminates
opportunities for negotiation.









Decide on a payment method: lump sum
or pay-as-cut

In a lump sum payment, the seller and
buyer agree on a total price for the
timber before it is cut and the full
payment is made at contract closing. A
lump sum can also be paid in
installments. This payment method is
best when the sale boundary is easily
defined and the timber to be cut is
uniform. The advantages of lump sum
payments for sellers are that they receive
full payment before harvesting begins
and risk of timber loss is transferred to
the buyer. As such, buyers are careful
not to over-pay for the timber to
compensate for this added risk. Often the
landowner will receive less for his or her
timber than they might otherwise
receive.

The pay-as-cut payment, or scale sale, is
the most common method of selling
timber. This type of sale requires the
seller and buyer to agree on per-unit
prices and specifications for each
product before harvesting. There is
usually an initial advance payment or
deposit, with subsequent payments as the
timber is harvested. The seller retains
ownership of the timber and risk of loss
until it is harvested. This method is best
when the seller needs to sell quickly, or
when the sale involves thinning,
harvesting areas with difficult or
uncertain access or a timber cruise will
be difficult or inaccurate because of non-
uniform conditions. Close monitoring of
this type of sale is critical and the total
amount of income is unknown until the
end of the sale.

More details on selling timber are in
Steps to Marketing Timber:
http://edis.ifas.ufl.edu/FR130.


Marketing alternative products

There are many opportunities to make
additional income from enterprises other
than timber, ranging from some of the
more common options like selling pine
straw, cattle grazing and hunting leases
to more exotic ones like gathering wild
edibles or medicinals, decorative florals,
ecotourism and specialty wood products.
For any of these to work there must be a
market for the product or opportunity
you have to sell.

Before you start any new enterprise
consider the following: a management
plan, available markets for your product,
labor intensity, capital investment,
record keeping, and management options
(will you use existing resources or
cultivate or create new ones).

See these UF-IFAS publications for
more information on some of these
enterprises:
Pine Straw Management in
Florida's Forests:
http://edis.ifas.ufl.edu/FR030
Wildlife and Hunting as
Alternative Farm Enterprises:
http://edis.ifas.ufl.edu/UW224
Ecotourism:
http://edis.ifas.ufl.edu/CR007
Integrated Timber, Forage and
Livestock Production Benefits
of Silvopasture:
http://edis.ifas.ufl.edu/FR139
Agroforestry: Options for
Landowners:
http://edis.ifas.ufl.edu/pdffiles/F
R/FR13600.pdf

Florida Division of Forestry services

Each program was concluded with a
presentation by the local DOF county
forester about local market conditions,









available services and cost shares.
These were very helpful tips and helped
us keep things relevant for local
audiences. For information about
available technical assistance and cost-
share programs see these publications:
Improving, Restoring, and
Managing Natural Resources on
Rural Properties in Florida:
Sources of Financial Assistance:
http://edis.ifas.ufl.edu/FR156
Improving, Restoring, and
Managing Wildlife Habitat in
Florida: Sources of Technical
Assistance for Rural
Landowners:
http://edis.ifas.ufl.edu/UW218

Many thanks to all these folks for
presenting the program: Greg Barton,
Jerry Brooks, Chris Demers, Shep
Eubanks, David Holmes, Matthew
Johnson, Jeff Jones, Dr. Alan Long, Jeff
Main, Steve Tullar, Tony Wallace, Chris
Vann and Russ Weber.

Leftover materials available: There are
about a dozen or so binders left over
from this program, available on a first
come first serve basis. Contact Chris at
352-846-2375 or cdemers(@ufl.edu if
you want a copy.

National Wild Turkey
Federation's Operation Oak
Program
By Brian M. Zielinski, NWTF Regional
Biologist

The National Wild Turkey Federation is
proud to announce the continued
expansion of its Operation Oak Program
that is dedicated to restoring and creating
wildlife habitat throughout the
Southeast. A partnership between the
Natural Resources Conservation Service


(NRCS) and the NWTF has made
10,000 select oak seedlings available
free to private landowners in Florida. A
total of 4,000 live oak, 1,000 white oak,
and 1,000 persimmons will be available
to landowners, with a minimum order of
100 trees. These native seedlings are
grown under a specialized nursery
protocol at the Flint River Nursery in
Georgia. The result of this nursery
protocol is a large, vigorous seedling
with high survivability, high growth
potential, and the potential to produce
mast in approximately 7-10 years.
Participants will need to pick up their
seedlings at a centralized location. Pick-
up locations and dates will be finalized
in November and trees will be made
available in early February.

If you are interested in receiving free
seedlings you must complete an
application form and mail, e-mail or fax
it back to the attention of: Kay Morris,
Operation Oak, P.O. Box 530, Edgefield,
SC 29824, kmorris(@nwtf.net, fax (803)
637-9180. Applications must be
received on or before December 1, 2006.

If you would like an application or have
additional questions about the 2007
program, please contact Brian M.
Zielinski, NWTF Regional Biologist, at
(386) 804-6691 or email:
bzielinskinwtf@,hotmail.com.

Stewardship Publications New
and Old

A series of Forest Stewardship Program
publications is available through the
University of Florida IFAS. Here is a
run-down of the publications in this
series that are currently available on-line
at edis.ifas.ufl.edu/:










-Environmentally Sound Forest Harvesting (SS-
FOR-6)
-Forest Terminology for Multiple-Use
Management (SS-FOR-11)
-Longleaf Pine Regeneration (SS-FOR-13)
-What is in a Natural Resource Management
Plan? (SS-FOR-14)
-Providing Wildlife Cover (SS-FOR-15)
-Selecting a Consulting Forester (SS-FOR-16)
-Steps to Marketing Timber (SS-FOR-17)
-What to Expect in a Forest Inventory (SS-FOR-
18)
-Conservation Easements: Options for
Preserving Current Land Uses (SS-FOR-21)
-Assessment and Management of Hurricane
Damaged Timberland (SS-FOR-22)
-Improving, Restoring, and Managing Natural
Resources on Rural Properties: Sources of
Financial Assistance (SS-FOR-23)

These and many other publications on
various natural resource topics are
available at
http://edis.ifas.ufl.edu/TOPIC Natural
Resources and the Environment.


Congratulations to these
Landowners for Achieving
Forest Stewardship Certification

Mark Carpenter, Holmes County
John D. Brown, Holmes County
Bill & Val Ford, Holmes County
Charles Alford, Holmes County
Edna & Lee Knight, Holmes County
Dr. William Cox, Holmes County
Ken Carroll, Holmes County
EJLanum, Holmes County
Sheri Brooks, Holmes County

Timber Price Update

The timber pricing information below
is useful for observing trends over
time, but does not necessarily reflect
current conditions at a particular
location. Landowners considering a
timber sale are advised to solicit the
services of a consulting forester to
obtain current local market conditions.
Note that price ranges per ton for each


product are included in parentheses after
the price per cord.

Stumpage price ranges reported across
Florida in the 3rd Quarter 2006 Timber
Mart-South (TMS) report were:

* Pine pulpwood: $15 $26/cord ($6 -
$10/ton), T from 2nd Quarter 2006
Pine C-N-S: $55 $75/cord ($21 -
$28/ton), [
Pine sawtimber: $85 $115/cord
($32 $43/ton), T
Pine plylogs: $94 $127/cord ($35 -
$47/ton), T
Pine power poles: $140 $171/cord
($52 $64/ton) T
Hardwood pulpwood: $10 $24/cord
($3 $8/ton), "

Trend Report

With the exception of pine chip-n-saw,
which hit a 10-year low this quarter
across the Southeast, average stumpage
prices for all products in Florida were up
at least slightly from last quarter.
However, Southeast stumpage price
averages were all down due to various
market factors including fewer housing
starts, decreased lumber and panel
prices, and several lumber mills taking
market-related downtime this quarter.

Average Pine Stumpage Prices for Florida
3rd Qtr 1997 through 3rd Qtr 2006
140
120
100
80 --I
60
40

0-
73 81 83 91 93 01 03 11 13 21 23 31 33 41 43 51 53 61 63
Year/Quarter (beginning third quarter 1997)
--pulpwood ---chip-n-saw --- sawtimber




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