Knowing players in timber market key to getting best price, not ability to predict market
By Jim Griffith

For the last three to five years, I have been hearing that the timber market is going to improve.  But now, guess what? I was recently told that we should not look for any improvement in the timber market for at least another three to five years.

It appears we are in a market that is going to be here for some unforeknown time.  I did see one report from a major timber company that pine pulpwood should see a strong increase in demand, and therefore price, in the year 2010.  But it was only a blip in the time line and then the prices were going right back down to where they are now.  This increase was for pulpwood only.

So what do we do?  If I knew exactly what was going to happen, I would buy at the low point and be ready to sell at the high point, deposit my millions in the bank, move to the beach, and let someone else write this article for a while.  Obviously no one knows what the market is going to do.  But it is our job to know who is doing what in the market.

It is still necessary, not more so now than ever, to know the players in the market.  Even though we are in a depressed market and prices seem low, compared to 1998, there is still a need to contact the right buyer for your timber.

I see too many people still selling their timber to the local logger. There is nothing inherently wrong with selling to someone local, but it is my job to know the buyers who not only can, but are willing to pay the highest price for your tract of timber.

We see it time and again at our timber bids.  Market prices reflect one thing, but bids on timber sales often appear to be something different when the right buyers show up.  And that is why it is important to use a forester that can get the right buyers bidding on your timber sale.

Georgia Farm Bureau has now been getting the right buyers for our members timber for a number of years.  It may be time for you to call a Farm Bureau forester to make sure you get the most out of your timber sale.  If you are waiting for prices to peak, you may need to re-evaluate what you consider a peak.  Call today to consult with a Farm Bureau forester at 1-800-898-1911, extension 5308. Jim Griffith is general manager of the Georgia Farm Bureau Real Estate Company.