Frequently Asked Questions
What is the timber market like in Alabama and what species drive value?
According to the Alabama Forestry Commission, Alabama is one of the top timber states in the South with over 23 million acres of forest. Loblolly pine is the main cash crop. The market for smaller pine trees (pulpwood) stays steady because there are plenty of paper mills, OSB plants, and wood pellet factories around the state. Based on recent TimberMart-South reporting, larger pine trees used for lumber (sawtimber) usually fetch $20 to $35 per ton at the logging site, while pulpwood brings in $8 to $14 per ton. In North Alabama, there is a good market for hardwood logs like oak and poplar. Ultimately, what your timber is worth depends heavily on how close your land is to an active mill.
What should I look for when evaluating Alabama timberland for purchase?
First, hire a professional forester to do a “timber cruise” to confirm exactly how much wood is actually on the property. Check the past harvest records and ask if the seller has any current contracts with loggers that you would be stuck with. Make sure the land roads on the property are in good shape, because if loggers have a hard time getting their trucks in, they will pay you less for the wood. Check the deed to ensure no older timber company still owns the rights to cut the trees. Finally, look at USDA soil maps to see how fast new trees will grow back after you cut them, which is critical for long-term planning.
Is Alabama timberland a good investment and what kind of returns can I expect?
Based on historical forestry investment data, Alabama pine timberland usually delivers total returns of 5 to 8 percent a year. Those factors in selling the wood, the land going up in value, and tax breaks. You can also make money between harvests by letting companies rake and sell the pine straw for landscaping. You can lease the land to hunters for an extra $8 to $15 per acre a year. Because the Current Use tax program keeps property taxes so low, it doesn’t cost much to hold the land. If you are willing to hold it for the 25 to 35 years it takes a pine tree to fully mature, it is a very stable investment.
