This process is pretty simple. We hire a forester to do a "timber cruise."
The forester will systematically survey a designated area to assess the value of the timber present, then deliver a report on the timber value.
Here's a more detailed breakdown of the process:
Preparation: Before heading into the field, the forester establishes the boundaries of the area to be surveyed and plans the survey route. They typically use aerial maps and GPS technology to ensure they hit the right spots.
The map might look something like this:
Tree Identification: Once in the field, the forester will identify and record the species of pine (or other) trees present. The major pine varieties in Georgia are Slash, Loblolly, and Longleaf.
Slash Pine:
Loblolly Pine:
Longleaf Pine:
Next, the forester will measure various tree parameters, including the diameter at breast height, the total height, and the crown characteristics.
Measurement of Tree Parameters (1/3):
Diameter at Breast Height (DBH): foresters measure the diameter of each tree at breast height, typically 4.5 feet above the ground. This measurement provides a standardized way to estimate tree size and volume.
Measurement of Tree Parameters (2/3):
Height: The height of selected trees may be measured using tools such as clinometers or laser rangefinders. Height data is essential for estimating tree volume accurately. This makes sense. The taller the tree, the greater the tonnage.
Measurement of Tree Parameters (3/3):
Crown Characteristics: Foresters may also assess the crown size, symmetry, and health of each tree. Healthy, well-formed crowns typically indicate better-quality timber.
Sample Plots: On larger properties, surveyors may establish sample plots to collect data representative of the entire area. They measure and assess trees within these plots and then extrapolate the findings to estimate timber volume and quality for the entire area.
Calculations and Analysis: Using the collected data, foresters apply mathematical formulas to estimate the volume of timber present in the surveyed area. They may also assess the value of the timber based on factors such as species, size, quality, and market conditions.
In our area, foresters will classify the timber into one of four categories based on the size/quality of the tree:
1) Pulpwood (6-9" DBH) ($) 2) Chip-n-Saw (10-13" DBH) ($$) 3) Sawtimber (14"+ DBH) ($$$) 4) Poles (10-20" DBH, 30' height, and very straight) ($$$$)
Reporting and Decision Making: Finally, the forester generates a report detailing the estimated timber volume and potential value. This information guides forest management decisions, including timber harvesting plans, silvicultural treatments, and conservation efforts.
Here's what a timber cruise report looks like:
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First, be aware that different types of deals require different types of due diligence. This thread is intended to teach you the common due diligence items you should check on a land flip.
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Here's the Ultimate Thread on Land Flipping Due Diligence
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Further, although I list many items, this thread is not exhaustive.
Also, this is not legal advice. Always consult your attorney when buying land.