Few Acres Can Yield Big Timber Profits

Few acres can yield big timber profits
By Keryn Page

MISSISSIPPI STATE -- Landowners with as few as five acres can manage their land for pine timber production, and an often overlooked byproduct can add to the profits.

Tim Traugott, a Mississippi State University Extension Service forestry professor, said in the past landowners needed 20 to 40 acres of land to make timber production economically feasible. With today's market situation and prices, however, five acres of pine trees is more than enough.
"If a landowner plants five acres of pine trees today and manages it the way it should be managed, he or she can expect a return of $25,000-plus -- it could be much more than that -- when it matures at 35 years of age," Traugott said. "Timber buyers routinely purchase tracts of five acres or less."

Case studies show existing pine stands can earn an average of about $100 to $150 per acre per year. "That doesn't mean you plant the trees and get $100 to $150 a year -- landowners must properly manage the timber, thinning a few times over the 35-year lifespan. When the timber is harvested after 35 years, the profit will equal about $100 to $150 per acre per year," Traugott said. Traugott said his data is based on timber that is managed as a crop, much like the management techniques used by producers of soybeans, cotton and other traditional crops.

Without proper management, pine trees cannot be expected to generate these high profits.
"No matter how many acres you have, you need to manage it like a crop. If landowners seek professional help, manage the timber just like they would any other crop and market the crop properly, a five-acre pine tract will make them a tremendous amount of money," Traugott said.

Small-acreage pine plantations work because good management produces a higher volume of timber. With proper management, a landowner could produce the same volume of timber on a five-acre tract that could be produced on a 25-acre tract that has not been properly managed.
"Landowners need to understand it's not the number of acres that matters; it's the volume of timber on those acres. If you plant in pine trees and manage it properly, you're going to have high timber volumes," Traugott said.

Extension forester Britton Hatcher said selling timber at maturity is not the only opportunity landowners have to make money off pine trees. An often overlooked source of income is the pine straw that gathers on the forest floor each year.

"A lot of people here in the South are looking at a product every day that they don't realize can make them money. It is possible for landowners with pine stands in the right condition and location to make $150 or more per acre per year by selling the pine needles for mulch," Hatcher said. "If a landowner does all the work on five acres, yields 100 bales per acre and wholesales the straw for $3 per bale, those five acres could yield $1,500 per year."

Landowners can choose to harvest the pine straw themselves or contract with a harvester to do the work for them. The benefits of hiring someone else to harvest may outweigh the reduction in overall profit.

"Landowners who contract with someone to harvest their pine straw can make a considerable income, plus they don't have to do the work themselves. Not only can a landowner make money from their straw, but getting the pine straw up also helps to reduce a potential fire hazard," Hatcher said. Hatcher said managing a pine tree for straw production is not difficult: pine trees inevitably drop the needles, and landowners can simply gather them for baling.

There are two main methods of harvesting pine straw. Buying equipment to mechanically harvest is less labor-intensive but can become rather expensive. A relatively simple and inexpensive method is to purchase a hand baler, which is more labor-intensive.

Pine stands must be at least 6 to 8 years old to produce enough pine straw to make baling economically worthwhile, and baling can extend until the stand's first thinning. Once logging debris is cleared, needle harvest can continue after the thinning. Needle fall starts in late October or early November and can continue until April.

Pine straw yields, depending on harvest method, are estimated at 100 or more bales per acre for healthy, growing pine stands. Landowners who are willing to fertilize have the potential to see more than 250 bales per acre. "There's a square bale that averages about 15 to 20 pounds and a round bale that weighs about 40 pounds. The square bale has been known to bring as high as $6 or $7 per bale, and the round bale has sold for more than $12 per bale," Hatcher said. "If you're the landowner and you're doing all the work yourself and start wholesaling or retailing it, you're talking about a good bit of money."

Pine straw contains nutrients vital to tree growth, so landowners should fertilize stands with diammonium phosphate to replace the nutrients lost in baling.

Hatcher warned that producers are not allowed to harvest pine straw on lands enrolled in the U.S. Department of Agriculture's Conservation Reserve Program.

Should Manufacturers Become Retailers

An interesting article by George Koeninger in the 08/06 FDM Magazine

Mr. Koeninger professes that a manufacturing company should be very cautious if it is considering moving into retail. In fact, he basically argues against it altogether. His reasoning is sensible and comes from his 35 years of experience. He gives seven reasons and a few possible alternatives for those who are not necessarily wanting retail but are really wanting extra revenues - and profitability.

Here are the simplified versions of his reasons:

1. Retail takes cash away from manufacturing, often leaving manufacturing technology and capabilities behind the curve.
2. There are few/no returns in a manufacturing environment. If you manufacture and retail, your cash is not assured until after you have made the product, let it sit on a shelf, then it is not returned.
3. Need a stronger brand than the other brands on your store front or people will go to the others.
4. You''ll have to pay for an excellent management team for the retail startup from the very beginning - very expensive. See #1.
5. You will probaby need a completely new software system - retail is a different business than manufacturing.
6. Where are the profits reported? How is your bonus system structured? Will manufacturing personel get smaller bonuses because the retail division is not meeting numbers?
7. "Us v. Them" mindset between retail and manufacturing will always exist.

His main suggestion is that manufacturing companies looking for new sources of profitable revenue should develop new markets abroad in places that are hungry for American products.

Build it right, people

When you are building something, build it right. No matter what you are building just DO IT RIGHT - use the right materials, the proper methods, get the right advice, use the right equipment, or just hire it out.

Cheaper is not necessarily better - in fact, almost always not with building materials.

Get posts that are long enough. Get joists that are big enough. Get the correct hardware. Use the right tools. Get the right level of treatment if you are building around water.

Do it right. Do it right. Do it right.

Wood Damage

The latest installment of...

American Pole and Timber Weekly - Edition 104

Welcome! We hope you find value in this edition of Pole and Timber Weekly.
If you have any questions, call us at (866) 397-3038. You can always visit us online at http://www.PoleandTimber.com.

Breaking Down Wood - the Major Causes of Damage to Wood
There are 3 main factors that cause wood to break down - water, sun, and wood boring organisms.

Water
Moisture is harmful to wood in AT LEAST two ways. First, the presence of dampness creates an environment where harmful fungi can grow and destroy the wood. Termites also require some moisture to live in wood. Second, repeated entry and exit of water causes the wood to swell then shrink again and again. Over time, this cycle causes the wood to split, warp, and crack.

Sun
The sun - actually, the sun's heat - causes wood to split, warp, crack, and twist because it causes water to evaporate. Boards warp toward the sun because the sunny-side-up is shrinking due to a decrease in moisture. Basically, the top side of the board becomes shorter than the bottom side so it bows, warps, cups, or twists. Further, the sun's UV rays cause the wood to turn gray.

Wood Boring Organisms
The most common wood boring organisms are termites, teredos (shipworms), and limnoria. They all eat wood. Termites are on land, though, while teredos and limnoria live in wood in the water.

Solutions
The #1 solution is to use pressure treated wood coated with 21 POLY from American Pole and Timber. Pressure treating wood with CCA or ACQ effectively makes wood inedible to organisms. Coating wood with 21 POLY makes it completely impenetrable to wood borers, UV rays, and water.

Always use wood that is treated to the correct retention level for your needs. Treat to .40 pcf for Ground Contact, .60 for Freshwater, and 2.5 for Brackish or Saltwater.

To learn more about pressure treated wood and 21 POLY, go to http://www.PoleandTimber.com. You can call directly at (866) 397-3038.

New Website with New SUPER ULTRA CONTENT
The new and improved and super-ultra-amazing Pole and Timber website will be out in late August or early September! Check back often at http://www.PoleandTimber.com. In addition to more interactive content, it will include cut sheets for our products and information specification sheets for treated wood and marine construction.

Until Next Week
Good luck out there and call us if you need anything!

American Pole and Timber is a national manufacturer and supplier of treated poles, timbers, pilings, large timber trusses, and other commercial and industrial wood products. Call us at (866) 397-3038.

Benefits of Building with Poles and Pilings

Benefits of Building with Poles and Pilings

• Poles and Pilings have long life spans due to reduced heartwood exposure.
• They can be sanded, stained, or painted to match existing décor.
• Poles and Pilings are stronger and suffer less warping than dimensional timbers.
• Long life span and superior strength make them very cost effective.

Definitions:

Pole — defined by its particular structural installation. If the pole is set with the butt (large end) in the ground, such as a utility pole or barn pole, it is referred to as a pole.

Piling — also defined by its installation. Pilings are driven into the ground with the tip (small end) first.

I wrote this for http://www.AmericanPoleandTimber.com among other things.

Chromated Copper Arsenate Treated Timbers

Background
Chromated copper arsenate (CCA) is a chemical registered for use as a wood preservative.

How is Timber Treated with Chromated Copper Arsenate
It is injected into wood at high pressure so that it saturates the wood. It is used to protect wood from dry rot, fungi, moulds, termites and other pests that can compromise the integrity of the timber.

What are Chromated Copper Arsenate Treated Timbers Used For?
Chromated copper arsenate treated timbers are commonly used for decks, walkways, fences, gazebos, pergolas etc. Other uses chromated copper arsenate treated timbers include highway noise barriers, sign posts, utility posts and retaining walls.

Disposing of Chromated Copper Arsenate Treated Timbers
Chromated copper arsenate treated timbers should not be burned, mulched or used for compost. They should be disposed of using solid municipal waste methods.

The Future of Chromated Copper Arsenate Treated Timbers
In the USA, industry has volunteered to cease using chromated cooper arsenate treated timbers by the end of 2003. This decision has been supported by the EPA who will ban chromated copper arsenate treated wood for residential applications.

Alternatives to Chromated Copper Arsenate Treated Timbers
In response to this alternative treatments and preservatives have been developed and registered with the EPA. Other possible alternative materials include untreated woods such as cedar and redwood, plastics, metals and composite materials.

Source: AZoM.com

New American Pole and Timber website

Here it comes! It is almost here! September 1st. This Friday.

New and improved. It rocks.

Cycle Counting in a Job Shop Environment

Cycle counts in a job shop (custom manufacturing) environment can be the biggest PITA I have dealt with. With many other activities, you can train your people, set them in motion, and after some repetitive lessons and a few trials and errors, things run no their own (for the most part).

With a job shop, materials change so much and so quickly, each cycle count is bound to be different and reconciling those differences is nothing less than paper chasing and detective work. All cycle counts have SOME degree of this but this environment is nuts.

If you have any comments or questions about this, go for it. I did not say it is impossible, just a pain in the A$$.

Creosote Shortage

Industry-wide Creosote Shortage

There is a currently an industry-wide shortage on creosote wood treatment. The shortage, caused indirectly by the high costs of oil, has created an approximately 40% decrease in total creosote production.

Creosote is a coal based product. The higher costs of oil have made some coal derivatives more attractive for use in other markets thus decreasing the amount available for creosote production.

The shortage is expected to last many months and will probably get worse before it gets better.

American Pole and Timber suggests CCA treated posts, poles, and timbers as alternative. CCA pressure treated wood is more attractive and cleaner to work with and position as well.

Call American Pole and Timber toll free at (866) 397-3038 to ask about CCA treated timbers, poles, posts, and lumber.

- Article by Chris Denny

Marine Borers

How Marine Borers Destroy Wood

Shipworms (Teredos) and Gribbles (Limnoria)

Shipworms and Gribbles are the main causes of organic damage to marine structures. The best solution for protection against marine borers is to protect the wood with a physical barrier which does not allow marine borers to reach or penetrate the wood.

Shipworms (Teredos)

Shipworms live in saltwater or brackish water and can get up to SIX FEET LONG. They are worm-like bivalve mollusks with a greatly reduced shell which they use to bore tunnels into wood. Shipworms typically spend their entire lives in a tunnel in a single piece of wood.

Shipworms damage the wood from the inside-out. The damage is difficult to assess but you can recognize a shipworm infestation by the small holes they leave in the wood.

"Wherever you have untreated timber, you're going to have problems with shipworms," said David M. Cacoilo, a partner and design engineer at Mueser Rutledge Consulting Engineers in New York, which has worked on a dozen marine borer projects. "Once they're there, the potential for the population to explode is tremendous."

Gribbles (Limnoria)

Gribbles attack in huge numbers at the outer edges of the wood and create the common “hour-glass” shape pilings often develop at water level.

Gribbles are nearly microscopic crustaceans, resembling the wood louse, with seven pairs of legs and four pairs of mouthparts. Given enough time, they can devour the pilings under a pier until the structure is weakened enough to collapse.

Clean Water Equals More Marine Borers

Interestingly, a large population of shipworms and gribbles indicates low water pollution levels. Areas with high levels of pollution in the water have little problems with these marine borers but when the water gets cleaned up, they move in.

Ultimate Solution to Marine Borer Attack

American Pole and Timber suggests using CCA pressure treated poles, pilings, and timbers and coating them with 21 POLY vinyl coating as the ultimate solution for protecting wood structures against marine borer attacks.

21 POLY is a vinyl coating specially engineered to bond to wood. It is approved, and used, by the corps of engineers and is proven effective at protecting wood structures against marine borers. For more information about 21 POLY, go to www.PoleAndTimber.com.

Call American Pole and Timber toll free at (866) 397-3038 to ask about 21 POLY Coated timbers, poles, pilings, and lumber.

New Website with New SUPER ULTRA CONTENT

The new and improved and super-ultra-amazing Pole and Timber website will be out in late August or early September! Check back often at www.PoleAndTimber.com.. In addition to more interactive content, it will include cut sheets for our products and information specification sheets for treated wood and marine construction.

Until Next Week

Good luck out there and call us if you need anything!

American Pole and Timber is a national manufacturer and supplier of treated poles, timbers, pilings, large timber trusses, and other commercial and industrial wood products. Call us at (866) 397-3038 or contact us online.

- Article by Chris Denny