Valuing The Timber On Your Property | Timber Basis
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- čas přidán 30. 05. 2022
- Consulting forester and Indiana Land Specialist Rob Haubry discusses what a timber basis is and how it can affect the value of the timber on your property.
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Rob Haubry Agent Page:
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Thank you. Good information
Good good information! Thank You!
Glad it was helpful!
If it grows 1.5% per year for 10 years, I don't think math is as simple as 1.5X10 = 15.
Example, you had 1000 board feet in year 1.
Year 2 = 1000 + (1000x.015) = 1015.
Year 3 does not equal just another 15 board feet for a total of 1030, because you also have to factor in the 1.5% from the additional 15 board feet acquired in year 2.
It's exponential vs linear growth.
Correct. We were just trying to help people understand the concept in general.
@@Whitetail_Properties I appreciate this video, It was very helpful. FYI, I too, stopped the video and went to the comments to see what was wrong about the 1.5 calculation. Your credibility was immediately suspect, when I heard that. We are trying to learn so tell it like it is, we can handle it.
Good info.
Consider installing a Screech Owl nest box. Or in some locations a Saw-Whet Owl nest box. Owls eat rodents which host ticks and attract and feed pit vipers, Bobcats and Coyotes. Given Forestry practices there are not enough quality nesting cavities for Screech Owls. Screech Owls have a 90% diet overlap with Copperhead snakes and more than 60% overlap with Rattlesnakes.
Consider a late Winter - early Spring Controlled Burn to eliminate undergrowth, kill ticks, rodents and pit vipers. Remember to prepare the land by removing downed limbs and brush from proximity to tree trunks to avoid damage. In Illinois, Indiana and Missouri burns are recommended every ten years to eliminate fire fuel and release nutrients.
Of course the IRS is involved! So the whole point of trying to figure out what the value is when you bought the property as opposed to when you sell the timber is to get you a break on your taxes other than that I can’t see a reason and it even mattering what’s the value was when he bought the timber it should only matter what you can get for it when you sell it
Unless the point is to try to save your money on your taxes, and I’m all for that
I've been unable to locate the resource "Timber Taxation for Private Landowners", but I did find one put out by the Dept. of Agriculture titled "Forest Landowners' Guide to the Federal Income Tax". Do you think this is the same resource published under a different title? If not, do you have a link to the resource you are referring to?
That sounds like a very similar resource. Rob was using a generic term, or a term that applies in his region of south central Indiana.
Always wish when they quote a web accessible document they give the clear title or post link in Pinned Comments
Awesome video. I own 93 acres for 5 years. Mostly cedar with few large oaks and few dozen walnut trees. Several timer companies told me about 10k for my half worth of timber that i want cut so about 20k total but they get half. Question is would it be cost effective to do the reverse cost analysis for 10k or would it cost more then i will even pay in taxes. Im looking to cut for deer habitat improvements not primarily for the money
You must know the Mill Delivered Price for all of the products that will be removed. With that, ask for the Operating Rate which is paid to the contractor. The most fair value for landowner is a to sell your Stumpage - Pay As Cut which means you get paid a unit price per product after the scale is received from the mill. The forester or logger will pay the landowner that unit price per product which is a fraction of the Mill Delivered Price. You will want to know how all parties involved are paid. I am a forester in Maine but will work for anyone anywhere. I can help you with this over the phone or email
I used to be a timber cutter myself and me and my boss man have went and looked a many of a boundary of timber and cut it off of the stump here and after the first load or two found out that the place had previously had cows on it and the timber wouldn't worth even cutting for a decent profit and the landowner would talk to us about just cutting it for sawmill lumber and sometimes they would say go ahead with it and sometimes they would completely change their minds about it and we would have to find another job to do then too just depends upon how much the mills were paying per thousand feet of logs is how it would go too
Yeah i do not have high value timber for sure. It was an old farm with cross fencing.
I inherited 40 acres from my dad when he passed in 2016, and there are many black walnut trees on the land. If I sell the lumber would I only have to pay taxes on predicted amount of lumber that increased since then
Not knowing your specific state regulations and laws we wouldn't want to give you bad advice. What we would recommend would be to reach out to your local consulting forester and they will certainly be able to get you the information you are looking for!
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Trees grow with out math problems and they are worth more than 5 lifetimes… guaranteed or redo your equation and buy a new vest.
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