Logging and selling timber
Oregon is among the nation’s leaders in timber harvesting and lumber production. While most timber comes from industrial forestry, small forest landowners play an important role in supplying material to Oregon’s mills.
Many landowners are experienced in forest management, but planning and conducting a timber harvest, with its complex terminology, can be a challenging task.
A timber sale is the result of years of forest management and an opportunity to see a return on investment. The process requires planning, researching markets, ensuring access, hiring professionals, drafting contracts and understanding tax obligations.
Working with a professional forester
Partnering with a professional forester is a viable option when considering the timber sale process, and it may help you achieve better outcomes.
Foresters are experts in evaluating forest health, determining timber value and developing management plans tailored to your goals. They can also guide you through regulatory requirements, identify reliable contractors and negotiate fair terms with log buyers. Their expertise could help to ensure your timber harvest aligns with best practices while protecting your land for future generations. You can find a professional forester by visiting these reputable sources:
- Association of Consulting Foresters
The Association of Consulting Foresters (ACF) is a professional organization representing independent consulting foresters who provide expert guidance to private landowners, businesses and agencies. The services it offers include guidance on timber valuation, harvest planning, timber sale administration, wildlife habitat enhancement and long-term forest stewardship. - Society of American Foresters
The Society of American Foresters (SAF) is a national organization dedicated to advancing sustainable forest management through education, advocacy and professional certification. SAF offers a “Find a Forester” tool that can help connect forest landowners with certified professionals who meet rigorous standards for academic preparation, professional experience, continuing education and adherence to ethical forestry practices.
Working with professional loggers
When looking to hire a professional logger to harvest timber on your property, a good place to start is the Association of Oregon Loggers (AOL). AOL represents logging professionals dedicated to sustainable forestry practices and responsible timber harvesting. Through its Professional Logger Program, AOL works to ensure that participating loggers meet high standards of safety, environmental stewardship and operational excellence.
Professional loggers receive ongoing education in areas such as forest practices laws, environmental protections and efficient logging techniques. Learn more and find a professional logger using AOL’s Oregon Professional Loggers Directory.
Choosing a logging contractor is a critical decision, and it’s important to ask the right questions and find contractors suited to your property and project needs. Check out the Oregon State University publication Choosing the Right Service Provider for Your Family Forest: Logging Contractor for practical tips and guidance.
Things to consider before you conduct a timber harvest
Whether you decide to use a professional forester or manage the process on your own, here are key things to consider before starting your timber harvest:
Who pays for set-up (moving in the equipment required to do the job)?
Logging contractors typically charge a fee for moving equipment to the woodland owner’s property to begin a job.Does the price quote include hauling? How is this cost determined?
When a logging contractor submits a bid for a job, be sure hauling costs are included in the offer. The primary costs for logging operations include cutting, skidding and hauling.What method of logging and equipment will be used?
Matching equipment to a specific site is extremely important for the contractor and the woodland owner. The contractor needs to utilize the most efficient system to increase production and reduce operating costs, and the woodland owner desires a system that minimizes residual damage to the property.Does the logger have proof of insurance?
Any operation on your property should come with a written contract. One of the prerequisites for any written contract is proof of insurance, including liability and property damage coverage. Be sure to review the actual policy, not just a summary, and check for the beginning and ending dates of coverage.Who markets the wood?
Many landowners assume the logger is the best individual to sell their logs because they are in the logging business. But loggers are in the business of harvesting timber and not necessarily selling it. Landowners should consult with individuals who buy and sell logs for a living: log buyers and consultants.Does your logging rate include slash piling?
Slash disposal is one of the most often overlooked elements in a logging contract. How logging slash is managed should be part of any written contract, including the type of machinery (dozer, excavator, manual) and method of disposal (windrows, piles, on the landings or none at all). The contract should specify not only who will pile the slash, but also who will be responsible for burning the material when the burning season opens.Does the logging cost include road building and repairs after the operation?
The logger may recommend improvements to a woodland road to accommodate logging traffic (big, heavy trucks), along with measures required to restore the road to equal or better condition prior to operations before leaving the site. Those costs can be included in the bid or as a separate line item, both to be paid by the landowner.Who marks the trees, the logger or landowner?
In a thinning or partial cut, tree marking may be imperative. If the landowner is not educated in tree selection (based on spacing and health), the logger can be of assistance, but remember their vested interest is in harvesting trees, not saving them. Consider hiring a professional forester to assist you with marking trees with paint or flags to ensure only the trees you want harvested will be removed.How do you track loads sent to the mill?
Tracking loads sent to the mill is one way to ensure proper credit for your trees and provide peace of mind to the landowner. Designate someone (other than the logger or trucker) to be on or near the site to identify trucks leaving the property. Each load of logs should be accompanied by a trip ticket that details the time and number of logs on the truck. When the landowner receives payment from the mill, they will have a record of the number of loads and the time and date of delivery, making it easy to cross-check with the original trip tickets.Does the logger subcontract any of the work?
Subcontracting is often used in logging operations, particularly for tasks such as cutting and hauling. To ensure accountability, include a clause in the written contract with the primary contractor specifying that any subcontractors must comply with all terms and conditions of the original agreement. If hauling services are subcontracted, make sure the hauling rate is negotiated in advance and clearly documented in the contract.Are you working with a professional logger who is aware of all current forest protection laws, including the new riparian-related rules?
It’s critical to ensure that the logger you hire understands and complies with Oregon’s forest protection laws, particularly the latest updates to riparian-related rules. These rules often include specific requirements, such as maintaining equipment limitation zones to protect sensitive riparian areas. Learn more about these requirements and other forestry laws on the forest protection laws page of this website.Should I ask for references for recent jobs completed for small woodland owners?
Once you have identified a potential logging contractor, the best evidence of them successfully completing operations like the one you are planning is documentation of prior jobs. If the contractor refuses or has no documentation of prior work experience with small woodland owners, you should be very wary of hiring them.If a job extends into late fall, how do I determine when it’s too wet to work?
Most logging operations for woodland owners are done during the summer months. There are no set guidelines for suspending operations once the rainy season starts, but you should still develop some parameters in the contract regarding the suspension of activities on your property. These are most often related to impacts on haul roads and residual stand damage (erosion, rutting and possible stream sedimentation) on and around the logging site.Who does all the paperwork, including the Notification of Operations, purchase orders and logging contracts?
A Notification of Operations that must be submitted to the Oregon Department of Forestry (ODF) can be completed by the landowner or logging contractor. This is the document you file with the state to conduct most activities on your property, and to sell your logs you must have a permit that includes this notification number. There are no exceptions.When it comes to purchase orders, if the landowner owns the logs, they themselves need to sign. If the logging contractor has purchased the logs from the landowner, then the contractor owns the logs and should sign the purchase order. Learn more about notification requirements and other forestry laws on the forest protection laws page of this website.
Who is responsible for reforestation?
Typically, the landowner is responsible for reforestation. Occasionally, logging contractors will perform this activity, but in nearly all cases will subcontract the actual tree planting. Regardless of who performs the activity, ODF will hold the landowner responsible for any violations of state laws regarding replanting. Learn more about reforestation on the planting trees page of this website.On the Notification of Operations, is the landowner the owner of the timber and therefore responsible for paying the harvest and severance taxes?
The Notification of Operations form requests information on the ”owner,” “operator” and “timber owner.” Usually, the owner and timber owner are the same party and responsible for the tax.If the logger removes pulp logs or non-merchantable trees, will the percentage split previously agreed upon for the saw logs be the same for the pulp logs?
Oftentimes, a contractor will make a separate bid for non-merchantable material because it is of such low value. If a different split is not specified in the contract, the contractor receives the single amount specified in the written agreement.How much damage can I expect to residual trees?
Residual stand damage (direct damage to the trees in addition to soil compaction) will be determined by the equipment selection and the quality of the operator, but the operator is the greatest factor. When you develop the written contract, establish a quantitative measurement. For example, “residual damage to trees will not surpass 5%.” This means the logger must show no visible impacts on 95% of the trees in the harvest unit. Whatever the measurement, stipulate in the contract any repercussions of violating the requirement.
ADDITIONAL RESOURCES
PUBLICATIONS
Choosing the Right Logging Contractor for Your Family Forest
Choosing a logging contractor for a harvest operation is an important decision. This resource helps you select the right person for your property and your project.
Small-Scale Harvesting for Woodland Owners
Logging and selling timber can appear to be a complex and esoteric task for many small woodland owners. This publication helps demystify the process.
Producing and Selling Logs for Maximum Revenue
A woodland owner must take certain steps to produce and sell logs for maximum revenue. This publication includes best practices for obtaining bids, selecting a buyer and writing purchase orders, as well as using the Scribner log rule, making decisions about bucking, selecting log lengths and diameters, bucking to remove defects, and comparing markets.
Contracts for Woodland Owners
This publication describes basic principles of contract law as applied to planting, growing, maintaining, harvesting, road construction, maintenance, repair, and selling logs and timber. It includes definitions of common contract terms and sample contracts.
Measuring Timber Products Harvested from Your Woodland
Managing woodland property offers you the opportunity to harvest a variety of products. This resource helps you understand measurements of timber quality and quantity, harvest economics and market availability.
Timber Harvesting Options for Woodland Owners
This publication guides owners of small woodlands in choosing harvest options most appropriate for their timber and property characteristics.
Selling Timber and Logs
This manual offers step-by-step instructions for selling timber and logs.
Safe and Effective Use of Chainsaws for Woodland Owners
The chainsaw, along with a planting shovel, is probably the most recognized and used tool in any forestry management regime. This publication discusses correct usage of a chain saw, including felling and bucking techniques, along with the required safety features and operations.
Maintaining Woodland Roads: A Field Guide
This publication contains information on road shapes and surfaces, cross-drainage structures, stream crossings, wet-weather operations, and inspection and maintenance regimes. It also discusses legal issues and contracts, culvert sizing, designs for fish passage, road capacity, and filtering methods.
Scribner Volume Tables: Bucking Logs for Maximum Revenue
This spreadsheet allows you to enter the specifications of up to four log purchase orders. Then you can enter various log length and diameter combinations from your trees and compare the values to determine which mill is best suited for your timber.
Harvesting Timber and Timber Taxes
All timber harvested in Oregon is subject to the Forest Products Harvest Tax. In addition, harvests may be subject to the Small Tract Forestland Severance Tax. This resource explains both.
Understanding Oregon’s Timber Tax Programs and How to Complete Forms
Oregon offers special tax assessment programs to forest landowners if they agree to manage their property primarily for growing and harvesting timber. These programs reduce the property tax landowners pay on their forestland, and this resource provides program details.
Timber Salvage After Wildfires
Wildfires burn thousands of acres each year on lands protected by the Oregon Department of Forestry and the Forest Protective Associations, spurring many landowners to begin timber salvage operations. The information in this publication should answer many of the questions landowners have about salvaging timber from burned areas.
VIDEOS
Choosing the Right Forestry Professionals
Choosing the right forestry professionals, such as consulting foresters, loggers and tree planters, is crucial for achieving your management goals, ensuring high-quality work, maximizing financial returns and enhancing the long-term value of your forest. This video provides resources and insights to help landowners determine how and when to hire these experts.
Income Opportunities from Logs
This video from the Oregon State University Extension Service answers common questions about earning income from your timber.
Best Practices of Managing Logging Slash Piles and Burning
Logging generates woody debris, commonly known as “slash,” in the form of tree tops, limbs and broken pieces. Learn about the best practices and methods for piling and burning woody material that’s not left for nutrients, firewood or wildlife purposes.
Woodland Roads: Are You Ready for Winter?
Woodland roads are essential for access and forest management. Learn about proper maintenance practices, including wet-season strategies, to protect water quality and ensure long-term functionality.
OTHER
Oregon Forest Industry Directory
Use this directory of businesses in Oregon’s forestry sector to find contact information for log buyers, non-timber forest product buyers, and forestry consultants and contractors.
Oregon Department of Revenue Timber Harvest Taxes
This website provides information on Oregon’s timber harvest taxes, including rates, reporting requirements and resources, to help landowners and timber operators comply with state tax regulations.