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Income Producing Rural Property: How?

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  • woodsrunnerwoodsrunner Posts: 2,725 Senior Member
    Mixed hardwood stands can be highly desirable and profitable. I know of several cases in the Ohio-Indiana area where individual American Black Walnut trees sold for in excess of $100,000 EACH! But these were exceptional trees that were veneered very thinly for interior decorating wood grains. High quality White Oaks, American Black Cherry, Sassafras and others can bring hundreds of dollars for individual trees in some cases, so be cautious about cutting or selling high quality hardwood trees. Here where I am hardwoods are not quality like in the northern states. Once you drop below the Southern Appalachian Mountains various minerals occur in the soils to a much higher degree than in the northern areas, and hardwoods tend to extract these minerals staining the wood fibers to the point that the lumber is too streaked for aesthetic uses like fine furniture, panals, etc. Most of the hardwoods in the Deep South go for crossties, pallet lumber, wooden boxes and crates and pulpwood, and are low $$ producers. Pine is king here (for the most part)!
  • JermanatorJermanator Posts: 16,244 Senior Member
    I know of several cases in the Ohio-Indiana area where individual American Black Walnut trees sold for in excess of $100,000 EACH! But these were exceptional trees that were veneered very thinly for interior decorating wood grains.
    You got to get me hooked up with someone good in my area. My late mother in law told me specifically that she wanted the huge black walnut tree in her back yard cut down and sold after she died. It is a nice one too. She has been gone for almost 10 years now and her executor (my sister in law) has done a really bad job of liquidating the property and the tree.

    Do you have anyone reputable in your network up my way? I can get photos.
    Reason obeys itself; and ignorance submits to whatever is dictated to it.
    -Thomas Paine
  • VarmintmistVarmintmist Posts: 8,305 Senior Member
    Phone book, consulting forester.
    Ask the loggers who not to get, and take that guy.


    The going rate around here is 15% off the top. For that he marks the trees for cut, cull, girdle, plans the access roads, comes out and checks on the loggers, and sends the bids out, handles the money until all parties are satisfied, and gives you a management plan.
    It's boring, and your lack of creativity knows no bounds.
  • JermanatorJermanator Posts: 16,244 Senior Member
    So the key here is a consulting forester-- someone that works for me, not the loggers. That makes sense.
    Reason obeys itself; and ignorance submits to whatever is dictated to it.
    -Thomas Paine
  • DoctorWhoDoctorWho Posts: 9,496 Senior Member
    Varmintist and Woodrunner sure covered all the bases, I want to do a variation on that theme in the Dominican Republic, there is a profit in land there too, however just stripping land for agriculture without a plan to plant trees in order to prevent soil erosion is poor judgment.

    I agree a consulting forester is a great idea and a wise investment.
    "There is some evil in all of us, Doctor, even you, the Valeyard is an amalgamation of the darker sides of your nature, somewhere between your twelfth and final incarnation, and I may say, you do not improve with age. Founding member of the G&A forum since 1996
  • rbsivleyrbsivley Posts: 1,259 Senior Member
    I like Varmint's comments about consulting foresters, but I'm biased, remember, since I am one!

    A consulting forester IS going to charge you a fee. He has to live, feed his kids and survive, also, remember. On timber sales, at least in the Southern States, the fee is normally 10% of the best price the timber brings. On management recommendations he'll charge a daily rate, and again, here where I am it will be 2-3 hundred dollars. Is the consultant worth it? I say absolutely without question! (But remember, I'm biased) Here's an example, and something like this will happen more frequently than you think:

    In the morning, at daylight, 10/29/12, I will meet a large logging outfit to open gates and move them in to start logging a 120 acre tract of pine timber. The landowner was offered $19.42 per ton for the timber, clearcut. The landowner contacted me since I had originally planted these trees 24 years ago and had selectively marked the stand twice for thinning. It was/is a beautiful stand of timber and should not be thinned or cut at this time, but..... The landowner has developed very serious medical problems suddnly becoming totally paralyzed from the waste down and 100% wheelchair bound. He desperately needs the money the timber will bring. (Sound financial planning on his part in the past along with my help as a consulting forester, has made a source of income off rural land available to cover this emergency).I negotiated with 3 other forest products companies, and successfully traded on $32.00 per ton or $12.58 per ton more than the landowner's offer. A knowledgable consulting forester is well worth what you pay him!

    Good job.
    Randy

    Rank does not concur privileges. It imposes responsibility. Author unknow
  • jbohiojbohio Posts: 5,618 Senior Member
    CHIRO1989 wrote: »
    Christmas trees. Or, find a farmer that needs some hay and let him plant and harvest it and then apply for CRP if it still exists down the road.

    :that:

    Or like jbp said. Buy more than what you need/want, parcel out the frontage. Even better if it has a farmhouse on it, saves you having to build the cabin.

    Seed it with morel mushrooms, pick 'em and sell 'em in the spring. They sell for ~$20 a pound. Ginseng is also a rather lucrative wild plant to pick and sell, with minimum effort.
  • DoctorWhoDoctorWho Posts: 9,496 Senior Member
    Great idea, low maintenance high dollar crops are a good idea.....
    "There is some evil in all of us, Doctor, even you, the Valeyard is an amalgamation of the darker sides of your nature, somewhere between your twelfth and final incarnation, and I may say, you do not improve with age. Founding member of the G&A forum since 1996
  • bruchibruchi Posts: 2,581 Senior Member
    Dig a big hole, BIG, build bunkers, put a heavy steel door to reach them at one end of your property, cover them up and RENT THEM to "preppers". They can fill them with their supplies, even play survivalist (underground only) on weekends and if they ever need to use them for real, taxes will be the last of your worries...

    Might as well encourage them to hoard lots of guns and ammo as well as food, water and medical supplies on them, damned I make a pamphlet on what I need, get one of those welding machines that run on a gas generator, have a hidden backdoor to them and if TSHTF weld the access door shut and you have a bunch of free supplies to hold you over. Dynamite could do on a pinch as well.
    If this post is non welcomed, I can always give you a recipe for making "tostones".
  • woodsrunnerwoodsrunner Posts: 2,725 Senior Member
    Jerm, did my PM sent last night come through OK? Let me know. I'm having trouble sending PM's. It was a list of consultants for you to check on.
  • JermanatorJermanator Posts: 16,244 Senior Member
    I got them Rich. I appreciate it!
    Reason obeys itself; and ignorance submits to whatever is dictated to it.
    -Thomas Paine
  • bruchibruchi Posts: 2,581 Senior Member
    How far from civilization is this land?

    Maybe erect some storage units at one end, fence and rent them, security is an issue but a 10 x 20' unit rents for about $180 a month most places, metal shipping containers work as storge units.

    Too much trouble still, fence and rent an area to someone that owns heavy equipment provided they take care of their own security, make it very affordable and not so much effort and worries required?
    If this post is non welcomed, I can always give you a recipe for making "tostones".
  • RazorbackerRazorbacker Posts: 4,646 Senior Member
    Mixed hardwood stands can be highly desirable and profitable. I know of several cases in the Ohio-Indiana area where individual American Black Walnut trees sold for in excess of $100,000 EACH! But these were exceptional trees that were veneered very thinly for interior decorating wood grains. High quality White Oaks, American Black Cherry, Sassafras and others can bring hundreds of dollars for individual trees in some cases, so be cautious about cutting or selling high quality hardwood trees. Here where I am hardwoods are not quality like in the northern states. Once you drop below the Southern Appalachian Mountains various minerals occur in the soils to a much higher degree than in the northern areas, and hardwoods tend to extract these minerals staining the wood fibers to the point that the lumber is too streaked for aesthetic uses like fine furniture, panals, etc. Most of the hardwoods in the Deep South go for crossties, pallet lumber, wooden boxes and crates and pulpwood, and are low $$ producers. Pine is king here (for the most part)!

    You're certainly a great resource. From the foot hills to the Delta to the Gulf Coastal Plain, here they value stands of hardwoods by the amount of "tie lumber". Up in the Northern Ozark mountains on up into MO the Walnuts bring nice value. But in the flatlands we're told they grow to quickly to have nice figure. But this is the first I've heard of mineral staining.
    But yeah, down South, Pine is king. Pulpwood or lumber. But there's no annual income as you know. With the hybrids, they're thinable in 20 years. Clear cuttable in 30. Meanwhile the land owner pays a timber tax all those years.
    The big companies lease out tracts to hunt clubs. But the only real hunting is around and along the water course and other wetland easements they're required to leave.
    I feel certain you could come here and feel right at home.
    Teach your children to love guns, they'll never be able to afford drugs
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