What are the prices of forests in 2020? Are they higher or lower than last year? Is it possible to unequivocally tell the real market price of a forest?
Unfortunately, calculating a forest’s price is complex, because it depends on many interrelated factors. Only by correctly evaluating them each year is it possible to calculate the potential forest price and find out if your forest is worth it. The following article will discuss the factors that influence a forest’s price.
Anyone who wants to buy a forest pays attention to how quickly they can benefit from it. Few people buy a forest solely because of its beauty – most people plan to sell it at some time.
Criteria affecting forest price:
- Forest location.
- Forest marshland.
- Dominant tree species.
- Height of trees.
- Strain diameter.
- Tree density.
- Possible environmental restrictions.
- Economic and market situation, etc.
It is worth noting that in the field of forestry, timber purchasers often use the forest owner’s knowledge to purchase forests at a much lower price than their real value. This is why it is important to have an experienced forest valuation specialist objectively evaluate the value of your forest. Forest Auction Forest Sales Specialists have information on similar forest deals and can help you get the highest possible price at the auction. Among other things, the price of your forest will vary depending on whether you sell the forest with land or for felling.
Price of Steep Forest
When selling a standing forest for felling, its buyer will be most concerned with the type and age of the trees. A young aspen will never match a mature oak tree, as oak wood is sold at a price that is at least several times higher. The Ministry of the Environment has provided prices for the sale of the state forest, which can be used as a guide to determine the value of different tree species, but they are always adjusted by market demand and supply.
Among other things, it should be noted that the price of the uncut forest is derived from the price of round timber minus the costs of logging and selling.
The forest valuation process itself determines the volume and structure of the felled trees, combines this information with the SFE’s sales prices, calculates the cost of harvesting, and provides a possible forest price. It is up to you, as the forest owner, to agree with it.
Forest Price with Land
When you sell a forest with land, one of the key factors that will determine the price will be how long ago the fellings were done and how well they were restored. This is why the price of a forest with land can sometimes be lower than selling a standing forest. By buying a forest with land, the new owner takes on responsibility for restoring it, so it’s not something the buyer who carries out harvesting has to worry about.
As in the case of steep forests, the forest is evaluated according to:
- Market developments in recent years.
- Volume and value of mature and immature stands.
- Estimated costs for forest maintenance up to and including potential felling and reforestation.
- Predictable potential thinning and other factors.
- Forest land value.
Also, stands and land are valued separately. Unlike in other cases, the price of land is not measured in terms of the market price, but in terms of characteristics that influence forest growth. For example, a sleep slope or extremely wet, marshy land will be worthless.
How to keep your forest price high?
- Care for the forest by clearing, not leaving fallen or broken trees, and taking care of tree condition. It will be hard to sell an unused, abandoned forest at a high price. This is especially relevant for people who have received forest by inheritance or similar conditions but do not intend to take care of it. In this case, it would be better to sell the forest to professionals and thus contribute to the improvement of the overall state of forests in Lithuania.
- Maintain roads and fire lanes near your property.
- Monitor the condition of trees, and detect and report diseases or pests that have become extinct.
- Protect the forest from illegal logging and wood theft. You will be responsible for the illegal logging, and a fully or partially felled forest will not be attractive to buyers.
- When selling a forest for felling, you must determine whether the proposed amount includes any taxes payable by the forest owner.
- Steep forest sale of endeavor that is included in the price of forest maintenance and replanting after harvesting costs.
- Don’t sell the forest without a contract. Do not fall for seductive proposals that try to circumvent the law. Sales and felling of forests are carefully regulated by the state, so violations will become apparent.
- Don’t limit yourself to just one or two offers, but try to get as many as you can. This is possible by participating in our auctions.
- Allow impartial forestry professionals determine the condition and value of the forest, not the person proposed by the buyer.
So, the price of a forest is affected by many things and it takes a lot of effort to keep it high. Often scammers and fraudsters just want to make money from people. After all, the forest is a valuable investment.
When the time comes to sell your forest, we suggest you go to our auction, because with us the sale ends with a deal, not a promise. The sales managers make sure that the exact auction amount is credited to your account. Also, the companies that sign up for the auction are honest, reliable and solvent. When they bid for any forest, they commit to buying it. Commitment is our advantage.
Trust the professionals in your field and get the best value for your forest! Unique Forest Price Calculator – try it →