A landowner interested in selling the trees on her property for lumber needs to know the different values of the trees based on the sale method as well as the work involved in each option. She also needs to know how to locate a reputable buyer and applicable laws.
Landowners with a considerable number of trees on the property have the ability to sell those trees as lumber in one of two ways: as stumpage or as logs. Selling trees as logs involves the landowner cutting, harvesting and processing the material herself and then locating a market for the resulting products. This method is costly and time-consuming. It requires a variety of machinery and tools and is best for landowners with considerable financial and woodland resources.
The other option for selling trees is the stumpage method. A third party purchases the tree while it is still planted in the ground and handles the harvesting and processing. This model requires much less involvement from the landowner, although it does require locating a buyer who pays reasonable prices and follows all the appropriate logging laws. Landowners using this method receive payment in either a lump sum or based on the exact number and value of the lumber.