Whether you've been managing and harvesting timber on your property for years or are thinking about it for the first time, you want to ensure a successful timber sale. Here are things to keep in mind.

John Johnson has been managing and harvesting trees from the 850 acres of timber he owns in Galena, Mo., since 1983 when he retired from the Navy. He is now a full-time tree farmer and member of the American Tree Farm System.

"We're in the final stages of clean up now," he said. "We're in the process of harvesting some over-mature trees. In essence we're just thinning our land; it's kind of like weeding a garden."

When Johnson returned to one of the family farms, it had a variety of mixed oak and hickory trees. He has since added pine and walnut. Johnson evaluates his trees every three to four years to select a harvest area.

Fred Gibler's story is different. Gibler, a goat rancher near Higbee, Mo., owns 313 acres, but 120 acres of it is in timberland Ð red, white and black oak; hickory; and walnut. A year ago, he noticed some of his red oak trees were dying. So he decided to harvest some of the trees for the first time last fall.

"Trees only live so long, and then they die," he said. "I figured I might as well take out the old trees and start managing it a little better for future generations."

Even though their stories are different, these landowners' ultimate goal was the same Ð to have a successful and profitable timber sale.

Money matters
To ensure a profitable harvest, it's important to get a logging company that's willing to pay a fair price for your trees and follow your guidelines.

Johnson said about 90 percent of the harvests he has done have gone well. The other 10 percent he has been less pleased with, including one that was "less than optimum." The main reason for his displeasure centered around problems with the logging companies.

One way to ensure that a logging company doesn't take advantage of you is to consult a forester first. "I always consult a forester before each sale," said Johnson. "They help me get an idea of what my trees are worth."

Tim French, forestry regional supervisor for the Missouri Department of Conservation, agrees. "It's a good idea to contact a forester or private land conservationist first," he said. "They can provide lots of great free information so that you can learn more about the forest management process and find out what trees you have. I recommend it especially for the first time seller."

He also recommends, in some cases, the services of a consultant forester. Consultants work on a contract basis or charge an hourly fee. "They can provide you with an expanded level of service, including timber volume and value appraisals, resource management plans and marketing assistance, all aimed at helping you get the most money from the timber you have to sell," said French.

Certain trees are worth more to loggers, said Darwin Woods, owner of D-N-R Loggin' out of Clark, Mo. "Walnut, red oak and white oak trees are worth more," he said. "That's where your best money will come from. There's lots of demand for them now, and that's good for both parties."

Once you know what you have and determine it's time to harvest, you need to market your timber. A sealed bid sale is usually the best way to ensure you get the most for your timber.

French recommends using the sealed bid sale unless you have a small amount of poor timber you want to harvest. "I highly recommend bidding the timber out to as many buyers as possible," he said. "It can make a big difference. It's kind of like a landowner protection technique. It enables you to find the serious logger who is willing to pay you the best price for your timber."

French especially warns about loggers who approach you after driving by your property. "Not all loggers are out to get your money," he said, "but if you sell anything, it's best not to sell to the first person who offers to log it, especially if they come to you."

Reputation and expectations
Gibler also recommends checking out a logger's reputation before hiring him. After going through the bidding process, Darwin Woods was on the top of Gibler's list. "I talked to others who had hired Woods, and everyone was pleased with him," said Gibler. "He had a good reputation in the area. If you pick an honest logger, it takes a lot of your worries away because you know you're going to be treated right."

Woods said there are a few things landowners should expect before they harvest the timber on their land. One is that it may be a while before a logger can get to the job. "Right now it will take me 10 months to get caught up if the weather is good," he said. "Don't expect loggers to come out that next week. I can stay busy all year as long as weather permits."

He also pointed out that the landscape changes quite a bit after it's logged. "It usually isn't all that pretty when you're done," said Woods. "You have to manage it and give it several years before it starts to look nice again."

Management
For a timber sale to be successful, you need to follow a management plan. Varying degrees of management are based on what you want to do with the land. "For many landowners, a timber sale is a once in a lifetime event Ð possibly to pay their taxes, for a child's college education or a down payment on a house," said French. "And that's fine. The choice is up to them; of course, we recommend that they have some kind of management plan that will continue to provide for the needs of future generations."

The Missouri Department of Conservation offers two levels of forest management service. Both are free. The main difference between the two is time commitment. The advisory service includes printed information, training sessions, office consultation, consultant referrals and sometimes on-site visits for those wanting to log their trees for one time only.

The management service is available to landowners interested in long-term management of their forests. Marketing help, lab services, timber stand improvement advice, wildlife improvement advice, outdoor recreation development advice and erosion control advice are all available under this service. If you are willing to commit to a management plan, there is often incentive money from the state you can take advantage of, too.

Whether you choose the free services of the Conservation Department or hire a consultant forester, it's important that you have the most information possible when considering a timber sale.

Johnson manages his forests extensively. Right now his plan focuses on establishing a rotation so that the same portion of the land will be harvested again in 80 years. His plan is then updated every five years. He has harvests planned for five, 10, 15 and 20 years from now.

"My greatest concern now is how to pass this information on to succeeding generations," said Johnson. "Every year we have our grandchildren here for a week so they can learn about the outdoors in hopes that they will be interested in it one day, too. Trees are just like any other crop," he said. "They just take longer to grow."

1. Know what you have to sell. Select the trees to be harvested and determine what volumes and products are in those trees. Clear up any property disputes with neighbors. Mark each tree to be harvested with paint about chest high and at the ground line. Then estimate the wood volume or number of products that will be cut by species.
2. Determine what your timber is worth. The price for standing trees has no set value. Timber is worth what you and the buyer agree to. Many factors influence the price of standing trees: species, size, quality, volume of sale, distance to mill, site accessibility, logging difficulty, market conditions, and your restrictions on harvesting and skidding techniques.
3. Determine a selling method.
   1. The sealed bid sale is recommended. This process informs potential buyers about the timber sale. Interested buyers then inspect the sale area and submit bids. Each bidder is allowed one bid. If no bids meet your requirements, you can refuse all bids.
   2. A negotiated sale involves face-to-face negotiations between the seller and buyer. It is recommended to use this method only if you have a small amount of poor timber to sell or you have a particular buyer you want to work with.
4. Determine a method of payment.
   1. In a lump sum sale, you receive a single payment before harvest begins. Payment is based on the amount of timber volume estimated, so estimate accuracy is important. This method is simple for the landowner because all timber to be harvested is marketed beforehand, and the payment is made before the harvest begins.
   2. In a yield sale, the landowner is paid a certain amount for each unit of product cut. This means someone (usually the mill) is responsible for keeping track of the volume harvested. But problems can arise in obtaining an accurate count.
5. Advertise your sale. If you are selling your timber through a sealed bid sale, you must send out a timber sale notice to all prospective bidders. A notice should include your name, address and phone number; location of timber for sale; description of trees or logs to be sold; type of bid (lump sum or yield sale); times when potential buyers can inspect the timber; date, time and place written bids will be opened; whether a down payment is required to bind the offer when the contract is signed; limitations or special considerations on the sale; requirements for a performance bond; statement whether the logger must carry insurance and liability; and statement indicating your right to reject bids.
6. Develop a written contract. Meet with the buyer to discuss items to be included in the contract and clear up any misunderstandings. It should reflect what you and the buyer have agreed to with respect to the sale. Some buyers provide their own standard contract, but it may not adequately represent your interest as a seller. You may want a lawyer to draft or review your contract.
7. Supervise the harvest. Before harvesting, review the contract with the buyer and walk the site with the buyer so that you can further explain any objectives. Visit the site frequently after harvesting begins to ensure the buyer meets the terms in the contract and to answer any questions that may arise. When the harvest is completed to your satisfaction, write a letter releasing the buyer from the contract and return the performance deposit.
8. Prepare for the future. To ensure you are satisfied with the result of the harvest, good forestry practices should be applied during and after the logging operation. Have a reforestation plan.