Selling Timberland: Lump Sum Sale and Pay-as-Cut Sale

When it comes to timberland selling, there are two vital sale terms to know: lump sum sale and pay-as-cut sale. Depending on the

Lump-Sum Sales

Lump sum sales occur if a timber buyer would like to offer a lump sum of money for all timber on a certain plot of land, or if they offer to buy a specific type of timer on the land (select-cutting). On one hand, the money up-front would be excellent, but you have to understand all the advantages and disadvantages of selling lump-sum.

Sometimes, the logging crew will miss a few trees on the property. This means that you could potentially come away with added value to your lump sum sale. Once they are done harvesting, you could sell those missed trees to another buyer. However, do not count on the mistakes of others.

Timberland owners beware: it’s not safe to sell your timber as a lump sum without professional consulting. That’s why Green Ridge Forest Products will assist you in every step of the process in your timberland selling endeavors. We've been purchasing, selling, and managing timber for decades-- and it's this experience that makes us uniquely qualified to help you manage your timber land and increase both the value of your timber and the overall health of your trees.

Pay-as-cut Sales

Also known as “per-ton-sales” or “cut-n-haul sales,” pay-as-cut sales happen when a timberland owner is paid for the quantity of trees harvested on the land. The owner will only be paid for what timber the loggers cut and send to the mill.

There could be some downsides to this technique of sales. With pay-as-cut some trees may not reach the mill, resulting in a cut in the overall value for the timberland owner. That’s why it’s important to know what company is going to be cutting your timber. If you have a knowledgeable and trustworthy logger, they will be able to help you maximize the value of your lumber and maximize your profits.

Green Ridge Forest Products will assist you in getting the most value out of your timberland, cutting with the most precision and care. We’ve been in the forestry industry for years now, and we know how to get your value out of your timberland.

If you’re looking to cut your timberland, don’t hesitate to reach out to Green Ridge Forest Products and we’ll get you started. We’ll help you reach the correct value of your timberland.