Forestry and timber is a growing success story

FORESTRY as an alternative land use is a valuable source of income for a landowner.

Our forestry and timber sector is emerging as an economic success story. Brexit will be one of the challenges facing the industry in the near future.

The forestry and timber sector includes growing the forest, harvesting and haulage, and processing the various wood products. Forests absorb and fix carbon and help abate climate change.

Forestry also provides significant environmental benefits, and is Ireland’s largest outdoor area for recreational activities. Wood fuel use in recent years has increased considerably.

THINNING AND HARVESTING

Depending on the yield class, the time of first thinning can be anywhere between years 15-18. Thinning will increase overall timber revenue by increasing the volume of sawlog produced. It also produces an interim revenue source for the forest owner.

It will also improve the quality of the final crop. For most crops with a yield class of 20 +, they should be well capable of taking 2 or 3 thinnings on a three or four year cycle. Timber quality is hugely important and dictates the best manner in which to offer the timber for sale. The percentage pulp has a huge bearing on the price.

It is absolutely essential that proper silvicultural thinning is undertaken. I have seen plantations ravaged at first thinning stage with the result that the rotation is increased and the quality, quantity and revenue considerably reduced at clearfell stage. Professional assistance might prove very cheap in the long term.

The forest owner is the primary producer and to insure he/she gets the best price for their crop, make sure your timber is offered to the market in the best possible manner.

Having examined all tenders in consultation with your Consultant Forester, then you decide which is the best option for you, taking into account all factors. The highest bidder may not always be the most appropriate purchaser.

To justify thinning an average tree of . O8m3 would be required. Any crop with an average tree of .07m3 or less would not be attractive to any contractor to harvest.

Every forest is different and factors such as timber quality, current timber prices, ground conditions, extraction distances and road access impact on the financial returns from thinning. Haulage distances to the Sawmill also have a huge impact on price.

I own and manage my own plantations. I would only recommend to my clients those purchasers to whom I would offer my own timber. With these I am assured of proper silvicultural thinning and prompt payment.

There are many advantages to proper silvicultural thinning including:

• Provision of substantial revenues early in the rotation;

• Shortening the rotation length by concentrating volume production on the better stems.

• It allows easier access into the crop for management purposes.

Forest owners should consider the various options open to them in selling their thinnings. They include selling thinnings by employing a Consultant Forester, or selling thinnings themselves where the owners feel that they have the necessary expertise (extremely doubtful).

Forest certification will become more of an issue in the very near future, and owners should be aware of this. My Company offer a long and short term harvest contract which has proved to be very popular with forest owners.

It is much easier to work with a single forest owner on a one to one personal level. Sale by weight is the norm and the forest owner will only get paid for that timber weighed over the weigh bridge.

Timber on the roadside for too long a period is of little benefit to the owner, drying out and losing weight. A secure timber sales dispatch system is vital for forest owners and purchasers.

Revenues received from the sale of thinnings is tax free.

It is absolutely imperative that a timber sales agreement be in place prior to the commencement of harvesting. This should clearly state:

1. Agreed timber price.

2. Payment schedule

3. Commencement date approx.

4. Completion date by which all timber must be removed from roadside.

(A certain degree of flexibility must be allowed to points 3 and 4).

5. Clearly outline any forest service or other environmental considerations.

Price is determined by a number of factors. Amongst these are:

• Proximity to the mill

• Form of the crop

• External and internal access

• Ground conditions

• Extraction distance

Meanwhile, theft of timber is becoming a huge problem and therefore security is of the utmost importance.