Many times a client needs the value of his or her standing timber appraised. You may need this if you are selling or buying property, for estate planning, for loan collateral, preferential tax treatment, or for investment planning.
The value of uncut standing timber is referred to as stumpage and is essentially the price paid at the sawmill less the cost of logging and transportation. After careful measurement of your timber to determine volume, the stumpage is applied to calculate total estimated value. We say estimated value because, most inventories do not involve measurement of every tree because it would be cost prohibitive, with the exception of an extremely high value stand. We rely on the data collected from a timber cruise to be statistically accurate enough to satisfy most needs.
After data is collected and organized, value is determined by research of current market trends of various timber products. Stumpage prices as determined by market reports are used to place value on your timber and a report is produced that will help you understand the value of your timber.
An appraisal can help you calculate your timber cost basis and potentially reduce your income tax liability from timber sales. We can provide you with a comprehensive appraisal of your timber and assist with the development of your cost basis. For more information on determining your timber cost basis, please read the linked article:
https://extension.missouri.edu/g5055
If an appraisal of your timber is what you need, please contact us to discuss how we can help you.
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