Clemson Extension Forestry and Wildlife

S.C. Quarterly Stumpage Price Trends and Potential Impact of COVID-19 on Forestry Summer 2020

Many landowners have heard the term stumpage price but may not be sure about its meaning. Stumpage price refers to the price a timber buyer will offer landowners for standing trees.

Graph of SC Statewide Sawtimber Stumpage Prices for Q2'20. Pine Sawtimber $22.49/ton and Hardwood Sawtimber $24.46/ton
Graph of SC Statewide Sawtimber Stumpage Prices for Q2’20.

Sawtimber stumpage price trends:

South Carolina statewide pine sawtimber prices were on average $22.49/ton in the 2nd quarter of 2020. For mixed hardwood sawtimber, statewide prices, on average, were $24.46/ton in this quarter. See figure 1 on the next page for a graph of SC sawtimber prices.

Graph of SC Statewide Pulpwood Stumpage Prices for Q2'20. Pine Pulpwood $9.08/ton and Hardwood Pulpwood $8.45/ton
Graph of SC Statewide Pulpwood Stumpage Prices for Q2’20.

Pulpwood stumpage price trends:

South Carolina statewide pine pulpwood prices were on average $9.08/ton in the 2nd quarter of 2020. For mixed hardwood pulpwood, the statewide stumpage prices, on average, were $8.45/ton in this quarter. See figure 2 on the next page for a graph of SC pulpwood price.

Overall economy and housing market conditions, as well as local environments such as accessibility, terrain, sale size, tree size and quality, and distance to the nearby mills, affect stumpage prices for both sawtimber and pulpwood. Properly managed trees in good health and condition would likely get paid more than unmanaged trees.

Potential Impact of COVID-19 on Forestry Market:

COVID-19 pandemic has required extraordinary responses from governments worldwide with nearly the entire world economy under some form of lockdown and unemployment rates skyrocketing. The pandemic’s impact on forestry and forest-based industries will have consequences for the forest landowners due to its potentially negative influence on the overall economy and demand for wood products. Since demand for wood is derived from manufactured products, the pandemic’s impact on regional stumpage markets should be more evident in the next quarter (3Q and 4Q) prices as this swift economic shock gets through the system.

A recent survey conducted between April and May 2020 by Timber Harvesting and Forest Operations found that 34% of loggers reported lowered logging rates, 27% delayed equipment purchase, and other issues (employee layoffs, downsizing, longer hauls, and safety training delays). However, housing starts were up 4.3% in May and building permits were rising 14.4% over April in recent data released by Census Bureau.

The sawtimber and pulpwood price data are published with permission from TimberMart-South Athens, GA 30605 email tmart@timbermartsouth.com.

This article was originally featured in the Summer 2020 Version of CU in The Woods newsletter.

Author(s)

Puskar Khanal, Cooperative Extension, Forestry and Wildlife Specialist

This information is supplied with the understanding that no discrimination is intended and no endorsement of brand names or registered trademarks by the Clemson University Cooperative Extension Service is implied, nor is any discrimination intended by the exclusion of products or manufacturers not named. All recommendations are for South Carolina conditions and may not apply to other areas. 

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