How does selling timber help a private landowner?

Studies have shown that private forest landowners who sell timber with the help of a professional forester receive more money for their timber, cut fewer trees, have more residual volume and economic value left in the forest, and are more satisfied with the whole experience.

Is there a minimum investment for timber land?

There’s no minimum investment (we’ll get to that later) and no one monitoring what happens on your property. Plus, much of the lumber across the country comes from small landowners. It’s a proven strategy to make the most of your timber land. In the South, almost two-thirds of timber comes from small landowners.

Where is the best place to buy timber land?

Start your search with agents specializing in farmland. They’re far more common in rural areas and often have experience themselves, or know someone with experience, selling timber land. Logging has strict regulations that protect the environment from overuse.

Do you need a contract to sell timber in North Carolina?

Most of North Carolina’s forest land is owned by private landowners. Many of these landowners will only sell timber once or twice in their lifetime. Selling assets such as timber, homes, land, etc. should be done with a legal contract.

How does the value of timberland increase over time?

The value of timberland appreciates in several ways: 1) land appreciation, 2) real timber price increases, 3) biological growth and 4) forest product growth. Unless the timber property is located in an area of high growth, land appreciation contributes only about 5-7 % of the overall asset appreciation.

Are there any tax exemptions for selling timberland?

The new law did not allow U.S. forest product companies to take advantage of capital gains tax rates for timber harvests. With the loss of this tax advantage, many forest product companies began to sell their timberlands to tax exempt investors like pension funds, foundations and endowments.

How long does it take to sell a timberland property?

As witnessed over the last several years with the recession and housing market crash, there is also market uncertainty. Another negative is the fact that timberland is a fairly illiquid asset. It may take 6 to 18 months to sell a timberland property. Timberland investments are also subject to damage from fire, wind, insects or disease.