3 Steps to Selling Your Trees and Making a Profit
If you have been investing in a forest and want to start selling timber for money now, you should follow a proper approach. In Australia, selling trees involves three stages as discussed below:
- Find the Buyer: Of course! That’s the first step for selling anything. You need to find a buyer interested in the product you are trying to sell. For trees, you will be looking for a sole contractor or a forest management company. However, buyers prefer onsite forest assessments to understand the quality and value of timber they are buying. Here, you should know how to strike the right balance between getting the best returns while protecting the assets for the forest’s future for a long-term value.
- Get Assessment and Valuation in Writing: How much you can sell your trees for depends on the location, quality, size, and species of trees. While market rates also make a difference, getting a written assessment and valuation gives you a solid base to quote your selling prices.
- Complete the Agreement: After finalizing the deal, you should sign a timber harvest agreement with the buyer. It includes the payment terms and royalties that the buyer will give you for every cubic meter of your forest area. It also authorizes the buyer to harvest a specific part (or the whole) of the forest for commercial needs.
However, your job doesn’t end here. You should still visit the forest to keep a check on the harvesting and other operations. Since it’s your forest, you need to ensure your land isn’t misused or destroyed and you are well informed of compliance reporting and requirements always.