Many landowners have heard the word “stumpage price” but may not be so sure about its meaning. The word stumpage is derived from stump + age. Stumpage price refers to a price that a timber buyer will offer landowners for standing trees. In general, larger standing trees (diameter over 10 inches) suitable for sawtimber get higher prices on the stump, whereas pulpwood size trees (less than 9 inches diameter) get less value.
Sawtimber stumpage price: South Carolina statewide (state as a whole) pine sawtimber stumpage (standing timber) prices, on average, were $23.11/ton in the 3rd quarter of 2019. For mixed hardwood sawtimber, statewide prices, on average, were $24.41/ton in this quarter. In general, the sawtimber prices for both pine and hardwood receive higher rates in the lower part of the state than closer to the mountains.
Pulpwood stumpage price: South Carolina statewide pine pulpwood prices, on average, were $10.04/ton in the 3rd quarter of 2019. For hardwood pulpwood, the statewide stumpage prices, on average were $9.34/ton in this quarter. In general, the pulpwood prices for both pine and hardwood receive higher rates in the lower part of the state than closer to the mountains.
However, stumpage prices for both sawtimber and pulpwood in your local markets could vary significantly as compared to the above statewide averages depending on size and species composition, quality of timber, total acres and volume, logging operability, distance from nearby mills, and overall market condition. Managed timber stands with large, straight, and quality trees with clear logs (logs without knots or branches) that could be used for lumber, veneer, or export products generally get higher prices. This means, properly managed trees in good health and good quality would likely get more stumpage price than unmanaged trees. Trees that are blown down or broken during hurricanes or ice-storm also have a residual value, but their value would be somewhat less than standing trees.
One common mistake some landowners make while selling their timber is to accept the first offer, without waiting for other offers. Competitive bidding by timber buyers tends to assure that fair market value for timber is offered. For more information, please refer to the SC Forestry Market Quarterly Updates Archive, https://www.clemson.edu/extension/timbermarket/
This article was originally featured in the Fall 2019 Version of CU in The Woods newsletter.
Author(s)
Puskar Khanal, Cooperative Extension, Forestry and Wildlife Specialist
Clemson University Cooperative Extension Service offers its programs to people of all ages, regardless of race, color, gender, religion, national origin, disability, political beliefs, sexual orientation, gender identity, marital or family status and is an equal opportunity employer.
