Overview

We’re proud of our transparency around costs and profits and although we have connections to a major exporter, we are not obliged to market through any particular company.

We’ll present a variety of payment options, in writing, highlighting the benefits and drawbacks of each. We’ll explain in detail the operational costs, our fees, and the projected profits so that you can choose the option that best suits your financial situation.

As harvesting progresses we’ll share comparisons between forecasts and actual figures with you. Your options include: Managed Log Sales, Per Tonne Stumpage Payment, Lump Sum Payment or Forestry Right.

Managed Log Sales

In this scenario we sell the individual log grades to one or more customers to get the best price.

Once the logs have been sold, you receive the net income after logging operation costs and our fees have been paid. This is an open book process – we provide an initial forecast and send you a monthly report detailing the actual costs and revenue.

This process usually provides the best return as you get the highest price possible at the time of harvest however log prices can fluctuate which may affect your return.

Per Tonne Stumpage Payment

If you choose to market this way, you will receive a per tonne price that represents an average price across all the grades.

We calculate the average price by forecasting the expected revenue, costs and fees and allow for likely changes in log price if the harvesting occurs over a number of months.

This is the simplest option in that you receive a fixed price for every tonne sold but if the log price goes up, your rate remains the same. This may mean that you don’t receive the optimum return. Payment is made at the time of Harves.

Lump Sum Payment

This is a single price that is calculated for the log supply. The total revenue, costs and fees are forecast for the harvest and you receive the net income.

Payment may be made as a single fee or a series of instalments as the harvest proceeds. For example you might receive 10% pre harvest and the balance when an agreed percentage of the harvest is complete.

While you will receive payment sooner, this option will likely have the lowest return since the risk is with the log purchaser and they will allow for contingencies in costs and prices.

Forestry Right

You might choose to sell your trees well prior to harvest. This can be done via a Forestry Right Agreement which allows another organisation to own the trees while you retain ownership of the land.

This allows you to generate an income ahead of tree maturity. You could receive a series of payments (a bit like receiving rent) or you might negotiate a small payment up front with the majority paid at harvest time, however in doing so you need to understand you may not receive the optimum return on your investment.

As the land owner, you retain the right to sell your property before harvest occurs but the fact that someone else owns the trees is recorded on the title ensuring ownership of each asset is clear to all parties. The tree owners would have a fixed period in which to complete harvesting. When you have completed harvesting, we can help you replant your next crop of trees. Click here to read more about our Silviculture Services.

Contact us to enquire about marketing your trees