Economic and Marketing Information
FOR INDIANA  FARMERS
Prepared by the Agricultural Staff of Purdue University, Lafayette, Indiana
AGRIC. ECONOMICS
LIBRARY
March 27, 1958
Marketing Woodland Crops for More Profit
by JOHN C. CALLAHAN, Forestry Department
ALTHOUGH WOODLANDS
are supplementary enterprises on most Indiana farms, improved marketing practices do offer farmers opportunities for additional income. This may be particularly important when the cash
income from other farm enterprises fails to keep pace with the
price of purchased goods and
services.
The market value of tree crops
at a given time depends largely
upon the quality. Low-quality
trees of undesirable species are
difficult if not impossible to sell.
This might be outwardly discouraging to many farmers considering that more than 75 percent of
farm woodland timber is of low
quality. Nevertheless, there is still
one and one half billion board feet
of high quality saw timber remaining in Indiana woodlands.
More than one-half of this is in
northern   Indiana.
In viewing his woods as a productive unit, a farmer should keep
at least three things in mind:
1. The opportunities of harvesting and selling mature crop trees.
2. Future building needs of the
farm.
3. Steps that should be taken to
improve the productiveness of the
woodland.
timber sales
Most of the wood-using industries in Indiana are interested in
Purchasing only quality trees
which can be converted into grade
lumber, fine furniture, face veneer, bending oak, and other specialty products. As a result a considerable premium is paid for the
better grades of trees (Table 1).
Table 1. Average relative value of
different grades of logs in standing Indiana timber—all species,
1957.1
Purdue log Grode
Relative Value
Prime
1
2
3
(percent)
100
70
40
20
1 Derived from Mimeo F-23 "Price Report on
Indiana Timber Products," by R. C Brundage;
March, 1957.
The importance of this is shown
in Table 2 where the on-the-stump
value of two white oak trees of
the same size are compared. One
tree is of high quality while the
other is of low quality.
The most important indication
of quality is the number of limbs
and other defects in the tree bole
which will detract from the appearance of the lumber. Tree size
also influences quality as larger
trees have had more time to shed
lower branches and form a core
of clear growth on the outside of
the tree.
Tree species will also influence
the price paid for standing timber.
Table 3 reflects the differentials
(Continued Page 3, Col. 3)
THIS   QUALITY  LOG   was  sold  to
a manufacturer for highest returns.
Table 3. Relative value of lumber
(all grades) for important Indiana timber species.1
Species
Relative Value
(percent)
Walnut
130
Cherry
110
Hard  maple,   yellow   poplar
100
Red   oak,   white   oak
90
Ash,   soft   maple
85
Beech
80
Hickory
60
^Derived    from    "Hardwood    Market    Report"
Lumber   News   Letter,   1957  issues.
Table  2. Comparative values of two hypothetical white oak trees of the
same size. 	
Log
Diameter
Log
Length
Log
Scale
Log
Grade
Value Per
Thousand
Board Feet1
Log
Value
Tree   I
Tree  II
(inches)
16
14
12
16
14
12
(feet) (board feet)
12 108                       Prime
12 75                          1
12 48                          2
Tree value   on stump
12 108                          2
12 75                          3
12 48                          3
Tree   value  on stump	
$190
63
36
S 36
18
18
$ 9.72
4.72
1.73
$16.17
$ 3.89
1.35
.82
$ 6.06
See footnotes, Table 1.