Timber and Non-Timber Forest Products

Forests are important to Wisconsin residents for a range of reasons. People may simply enjoy woodlands for the solace and natural beauty they provide. Others value the recreational opportunities woodlands offer. But many woodland owners also hope to reap economic benefits as well. The timber industry (the harvesting and processing of trees for paper and wood-based products) is one of the largest employers in the state. In the year 2000, more than 1,800 timber companies employed 99,000 people in Wisconsin with a total payroll of more than $3.6 billion. In 1994, according to the DNR, timber production accounted for about 6 percent of Wisconsin’s gross state product—roughly $15 billion of $242 billion. In the following section, the process of harvesting timber and the products that can be produced from a forest will be discussed.

What is stumpage value?
Before you attempt to market your timber, you will need to know its stumpage value, or the value of standing trees before harvesting. Although many landowners believe that harvesting their own timber may bring in more money, research indicates that working with a professional who has greater access to markets will typically yield higher returns. Logging is a complex, costly, potentially dangerous operation, which is why many landowners choose to sell stumpage and have someone else do the logging. In forestry, the value of timber is assessed by a combination of factors: its species and potential products, the overall sale volume of trees being harvested, mill inventories and market conditions, site and logging conditions and the estimated price of trees marked for sale. Different buyers may offer substantially different prices for the same timber, depending on their own costs and market fluctuations. It is therefore important to solicit bids from a number of reputable loggers to receive the highest value. Foresters can help with determining stumpage value, which in turn will be useful in deciding which bids, if any, to accept.

Potential Timber Products
Timber is classified according to diameter and usable height of a tree. Tree diameter is measured 4-1/2 ft. above ground to the nearest inch and is referred to as Diameter at Breast Height, or DBH. Usable, or merchantable, height is measured from the top of the expected stump (6 inches for softwood, 12 inches for hardwood) to the upper limit of the trunk that can be used (varies depending on what table you use to determine volume.) Frequently the upper limit is a main fork, or a serious defect, or where excess limbs grow. Height is usually measured in 8-foot lengths called sticks.

Trees of sufficient size to produce logs that can be sawed into lumber are referred to as sawtimber and must be at least 8-foot sticks, at least 10 inches DBH, and have top Diameter Inside the Bark (DIB) of either 8 inches or 50 percent of DBH, whichever is larger. Sawtimber trees must be relatively free of defects such as holes, scars, excessive branchiness, decay, or bark distortions.

Exceptional quality trees with at least one 8-foot stick, at least 16 inches DBH and top DIB of at least 10 inches can be sold as veneer trees, to be sliced or peeled into thin sheets. These trees are more valuable than sawtimber.

Pulpwood, or trees that are converted to chips or fibers to manufacture paper, hardboard or particle board, includes many tree species. Minimum DBH for pulpwood trees is 5 inches, minimum DIB is the larger of either 4 inches or 50 percent of tree DBH. Pulpwood is commonly cut to 100-inch lengths.

Trees to be used or sold as firewood can be those removed during thinnings, trees with obvious defects such as poor form, undesirable species, or trees with excessive limbs. Many landowners erroneously select snags (dead trees) as their first choice for firewood. But snags do not make very good firewood since they are usually partially rotted. In addition, snags make excellent wildlife habitat and should not be removed. When selecting for firewood, cutters need to pay attention to the amount of space between remaining trees. In general, this number represents feet, but is two times the average tree diameter in inches. For example, in a stand where trees average 4 inches in diameter, the desired spacing is 8 feet. To find forest product industries in your area, follow this link: www.woodindustry.forest.wisc.edu

Other Non-Traditional Forest Products
Woodlands offer many other sources of income besides or in addition to timber production. Fruit-or nut-bearing trees, maple syrup, ginseng, mushrooms, cones or seeds, botanical and aromatic oils, honey and weaving materials are to name just a few. Ginseng is a major crop in Marathon County, for example, and can be grown in woodlands because it needs between 70 percent to 80 percent shade. Prices for ginseng can be well over $200 per lb., which has caused over-harvesting of the wild plant in many areas. Forest-grown botanicals are used for food flavoring, beverages and pharmaceuticals, including natural remedies and nutritional supplements. Goldenseal is one of the plants grown in woodlands that fit in this category. For more information on agroforestry products and forest farming, check out the USDA National Agroforestry Center: http://www.unl.edu/nac/

Leasing your lands for hunting/fishing and public recreational uses
Some woodland owners lease their land for hunting and/or fishing, another potential source of income. Another option is entering into conservation easement agreements, which can help protect your land’s water resources while earning extra income. Several programs funded through the Department of Natural Resources offer conservation easements for eligible woodlands with streams. Easements allow landowners to retain ownership of the land, but prohibit certain land uses such as planting or harvesting crops or building structures on the land. In exchange for giving up these rights, the landowner receives a cash payment and agrees to permanently abide by the easement’s restrictions. When transferring ownership, the easement stays with the property. For more information, contact a DNR real estate expert in your regional DNR office: Northeast Region (Green Bay): 920-492-5838, South Central Region (Madison): 608-275-3314, Southeast Region (Milwaukee): 414-263-8616, West Central Region (Eau Claire): 715-839-3781, Northern Region (Rhinelander): 715-365-8925.

Land Gifts
People in a position to donate woodlands for permanent protection may be interested in donating their land or arranging for a conservation easement on the property. This may involve a non-profit private land trust, the Department of Natural Resouces or the National Park Service. Contact the local offices in your area to learn more about the programs they offer.

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