STUMPAGE AND STUMPAGE APPRAISAL 97 



3. Demand on the Market. The kind of product and its salability 

 have a very definite bearing upon stumpage values. Hardwoods are 

 generally more valuable than softwoods. Demand reflected in prices 

 is the most important single factor in determining stumpage values. 



4. Form and Terms of Sale. Timber in farmers' woodlots is fre- 

 quently sold by the lot rather than on the basis of thousand board 

 feet. Flat sales for a lump sum should be avoided. Cash sales bring 

 higher prices than those involving deferred payments. Sales should 

 be made upon the basis of a mutually agreed upon log scale per 

 thousand board feet in the woods or delivered at a given point. 



5. Utilization and Silvicultural Considerations. If stumps are to 

 be cut unusually low, tops to be taken to extreme limits, brush to be 

 piled and burned, and if other fire protection measures are insisted 

 upon, stumpage values may be lower than if the purchaser is free 

 of these restrictions. Timber sales on National Forests command 

 higher prices if the logger is not required to undergo additional ex- 

 pense to protect the young or remaining growth, leave seed trees, 

 cut inferior species or poor specimens, and provide for fire protection 

 by piling and burning the logging slash and debris. On the other 

 hand, selective logging, as explained elsewhere, may be less expensive 

 than clear cutting. 



Stumpage values are determined by several different methods. 

 One simple method is to determine the probable cost of log- 

 ging and lumber manufacture including depreciation and overhead 

 charges such as insurance, interest and taxes; then add 20% to 

 this total investment for profit and risk. These combined costs are 

 then subtracted from the actual sales return from the lumber, the 

 difference being the stumpage value. This is sometimes referred to as 

 the realization value on many logging operations. When no profit is 

 realized, there may be a minus stumpage value. 



The species most commonly used in our lumber markets, namely 

 southern pine and Douglas fir, command relatively low stumpage 

 values. Douglas fir stumpage is generally sold for $1.50 to $3 per 

 m.b.f.; southern pine for $3 to $5; virgin longleaf pine, $5 to $10; 

 ponderosa pine, $2.50 to $3.50; Idaho or western white pine, $5 to $7; 

 sugar pine, $4 to $6; northern white pine, $5 to $10; white oak, $5 

 to $8; yellow poplar, ash, or cherry, $b to $10; western hemlock, 

 $1; eastern hemlock, $1.50 to $4; yellow birch and hard maple, $3 

 to $6; cypress, $5 to $10; eastern spruce, $3 to $5; and western spruce, 

 $3 to $5. 



The U. S. Forest Service and several state forest services sell 

 stumpage to private operators under carefully worded timber sale 



