Dec. 1939J Marketing of Farm Woodland Products 



17 



Prices paid for logs of similar quality delivered at a particular mill are 

 presented in Table 7. It shows in a general way changes in recent years 

 in the cost of raw materials to processors of forest products. 



Many factors have been important in the determination of these prices. 

 Competition from lumber imported from other regions certainly has had 

 some effect. However, due to its higher quality because of superior man- 

 ufacture and grading, this lumber has been used to satisfy a demand 

 which the local product, as marketed, could not fill, and so this factor 

 can be discounted to some extent. 



The boxboard market has been of more importance. Because of meth- 

 ods of manufacture and character of growing stock, much of the local 

 product has found this its only outlet. Therefore, local mills have had 

 to base their quotations on market prices for boxboards. At the present 

 time, however, there is a trend away from the production of boxboards 

 which coincides with the increasing proportion of the annual output han- 

 dled by stationary mills and the installation of more efficient processing 

 machinery. Any lack of correlation between log prices and boxboard 

 prices can be largely explained by this new trend in production, pro- 

 ducers' lack of familiarity with market conditions, and the balance of 

 bargaining power. 



During the past few months and probably over the next year or so, 

 policies of the Timber Salvage Administration may have an important 

 influence on prices of timber in the area. 



Table 8 outlines prices paid by this organization for logs delivered at 

 storage points or mill sites. These prices should be on a comparable ba- 

 sis with those paid for logs at the mill. 



Table 8. — Prices paid by the Northeastern Timber Salvage Adminis- 

 tration for specified grades of logs at delivery points, 1938-39 



Price per M board feet for logs delivered^ 

 Species and grade^ Scheduled Advance 



Pine Dollars Dollars 



1 18.00 16.20 



2 14.00 12.60 



3 12.00 10.80 



Hemlock 12.00 10.80 



Spruce 14.00 12.60 



Beech and White Birch 



1 20.00 18.00 



2 14.00 12.60 



3 ; 10.00 9.00 



Other Hardwoods 



1 22.00 19.80 



2 16.00 14.40 



3 12.00 10.80 



^For a complete definition of grades see New Hampshire Forest Market Report, Winter 1938- 

 39, New Hampshire Extension Service, Extension Circular 219, pp. 5-11. 



^On basis of 90 per cent contract. The difference between the scheduled and advance price 

 will be paid to the seller either partially or entirely provided that the final sale of logs 

 and lumber results in a sufficient excess over the cost of administration. 



