What Is a Pulpwood Stumpage Sale? (Price Valuation)
A pulpwood stumpage sale is an agreement in which you sell a buyer the right to harvest pulpwood trees while they are still standing. The buyer pays you a stumpage price, usually per ton or cord. To judge an offer, estimate sale volume, check local delivered prices and harvesting costs, compare bids, and set clear written terms before cutting begins.
Prices vary by region and over time because mills, haul distances, access, and harvest costs differ. That makes a national “average rate” a poor guide to what a particular woodlot is worth. The key is to compare offers for the same products, units, and sale conditions.
In my work explaining equipment and land-management terms, I’ve found that “stumpage” is often confused with the price a mill pays for delivered wood. That confusion can make a fair offer look low, or an attractive price per ton hide costs and conditions that change what the landowner actually receives.
Define the Pulpwood Sale, Products, and Measurement Unit
A pulpwood stumpage sale transfers the right to harvest specified trees; it does not mean you are selling wood already cut and delivered to a mill. The buyer typically arranges harvesting and transport, then pays you according to the contract’s price and measurement method. The value depends on what can be sold and the cost of getting it to market.
Pulpwood is wood that meets a mill’s specifications for making products such as paper or other fiber-based materials. Which trees qualify depends on the species, dimensions, quality, and buyer’s requirements. Some stands contain both pulpwood and sawtimber, which may be sold as separate products. Do not assume that every tree a buyer proposes to cut has the same value.
What product and unit are being priced?
A pulpwood quote commonly uses either a green short ton or a cord. A green short ton is 2,000 pounds of wood as measured under the buyer’s scaling system, including its natural moisture. A standard cord is 128 cubic feet of stacked wood. Because the gaps between pieces and the amount of solid wood vary, a cord does not represent a fixed volume of solid wood.
There is no universal tons-to-cords conversion. Species, stick size, moisture, and stacking all affect the relationship. Ask the buyer to state the unit and how the wood will be measured. Board-foot log rules, such as Doyle, Scribner, or International, estimate lumber volume in logs; they are not interchangeable with pulpwood units.
Product specifications matter as much as species. Ask which species are accepted, what lengths and top diameters qualify, and how the buyer treats crooked, rotten, or damaged pieces. A buyer may reject wood that fails mill specifications. If larger, higher-quality trees could qualify as sawtimber, ask for a separate estimate rather than automatically pricing them as pulpwood.
Estimate Stumpage Value and Compare Local Bids
Stumpage value is the amount paid to the landowner for standing timber, not the delivered price at the mill. A useful estimate starts with a current local delivered price, then accounts for harvesting, loading, hauling, and applicable contractor or marketing costs. Sale conditions and the buyer’s margin also affect the offer, so one simple subtraction cannot replace comparable local bids.
How to estimate the sale’s value
First, estimate how much merchantable volume is in the sale and identify its likely product mix. A consulting forester can inventory the tract or use representative plots to estimate volume. The estimate should name the species, product, unit, and scaling method. A price per unit has little meaning without a reasonable estimate of how many units qualify.
Next, seek current bids from buyers who can use the same wood. Ask for prices for the same species, product, unit, and sale conditions. Distance to a mill, tract size, terrain, road access, and limits on when or where harvesting can occur may affect the amount a buyer can offer.
A basic comparison is:
Estimated stumpage per unit = local delivered price − harvesting and loading costs − hauling costs − applicable contractor or marketing costs, adjusted for buyer margin and sale conditions.
Treat this as a way to understand an offer, not as a universal formula that produces a guaranteed price. The buyer’s exact costs and margin may not be public, and local bids show what buyers are actually willing to pay for that sale.
The table uses invented figures to show the arithmetic. These are not market rates or a suggested price.
| Hypothetical item | Example amount per green short ton |
|---|---|
| Delivered price at mill | $30 |
| Harvesting and loading | −$12 |
| Hauling | −$7 |
| Other applicable costs and buyer margin | −$3 |
| Illustrative stumpage offer | $8 |
In this example, $8 is the amount left for stumpage after the listed deductions. A different haul distance, harvest system, product specification, or buyer margin could change the result. Do not use these figures to price your own timber.
What a fair bid comparison should include
Give each bidder the same sale map, estimated volume, species and product information, access terms, and operating restrictions. Then compare the net amount you expect to receive, not just the highest quoted price per ton or cord. Clarify whether the bid is paid on measured volume, a fixed amount for the whole sale, or another agreed basis.
| Sale condition | Why it can affect an offer | What to ask bidders |
|---|---|---|
| Long haul to the mill | Transport costs may reduce what remains for stumpage | Which mill and haul assumptions support the bid? |
| Wet ground or steep terrain | Equipment access and harvest limits may add cost | When can work occur, and what areas are excluded? |
| Small or mixed-species tract | The volume or product mix may be less attractive to a buyer | Which species and products are included in the price? |
| Possible sawtimber trees | A higher-value product may be lost if priced as pulpwood | Will the buyer identify and price products separately? |
These are comparison factors, not fixed discounts. Ask bidders to explain differences in their offers, and have a forester review material or complex sales. The next step is to compare bids against the same sale description and confirm each quoted unit.
Contract, Harvest Controls, and Payment Verification
A written timber-sale contract defines what the buyer can cut, how the wood is measured, and when you get paid. It also records the limits and duties that protect the land, roads, and remaining trees. Agree on these terms before any cutting begins; a clear price alone does not prevent disputes about boundaries, volume, damage, or cleanup.
Set the sale up before signing
Mark the tract boundaries and walk them with the buyer. Do not rely on a verbal description or a map that has not been checked on the ground. A boundary error or unclear marking can lead to timber trespass, with serious legal and financial consequences. Resolve uncertainty before work starts.
Then identify the products included, estimate their volume, and document restrictions. Note wetlands, streams, roads, residual trees to protect, and any areas excluded from harvest. Give each bidder the same information so their offers can be compared on equal terms. For a substantial or complex sale, a consulting forester can help prepare the inventory and bid documents.
Put the essential terms in writing
Before signing, check that the contract states:
- The sale boundaries and trees or products included.
- The price and payment unit, such as a green short ton or cord.
- How volume will be measured and who will provide scale or load records.
- The contract term, payment schedule, and any deposit or settlement process.
- Permitted access, road use and repair duties, and required best management practices (BMPs) for protecting soil and water.
- Responsibility for damage to roads, fences, or trees left standing.
- Required insurance, permits, taxes, and post-harvest cleanup duties.
Confirm which records you will receive and how often payments will be reconciled. If payment depends on scale tickets, specify how you can review them and match them to the contract’s product and unit. Check buyer credentials and required permits before work begins. Do not allow cutting under an oral agreement or while price, measurement, or boundaries remain unclear.
Post-Harvest Inspection and Future Stand Care
After cutting, inspect the site against the written agreement. Check the boundaries, roads, stream crossings, remaining trees, and cleanup, then compare the buyer’s records with the payments you received. A closeout review can identify damage or missing records while the buyer is still engaged and help you document any required repair or restoration.
During the harvest, check that work stays within marked limits and follows the agreed restrictions. Keep notes and photos of concerns, and contact the buyer promptly if you see a possible boundary or contract issue. Do not enter active logging areas without the operator’s permission and a safe plan.
When harvesting is complete, review scale tickets or other measurement records, reconcile the volume and payments, and inspect roads, crossings, and residual damage. Record any agreed repairs and confirm when they are finished. If the contract requires cleanup or restoration, document whether it was completed.
A harvest also changes the stand that remains. Ask a forester whether the remaining trees and ground conditions meet your management goals and whether follow-up work is appropriate. The right next step depends on the site and your objectives; avoid treating a pulpwood sale as a one-size-fits-all prescription for future forest care.
Frequently Asked Questions
These answers clarify the terms that most often cause confusion when landowners review pulpwood offers. Local contract language and measurement practices can differ, so use the written agreement to confirm the details for your sale.
What does “stumpage” mean in a pulpwood sale?
Stumpage is the price paid to the landowner for the right to harvest standing trees. It is separate from the delivered price paid for wood at a mill.
How is a pulpwood stumpage price estimated?
Start with a local delivered price for the same product, then account for harvesting, loading, hauling, applicable contractor or marketing costs, buyer margin, and sale conditions. Compare current local bids before judging an offer.
Is pulpwood priced by the ton or by the cord?
It may be priced by a green short ton or a cord. The contract should state the unit and the method used to measure the wood.
How many tons are in a cord of pulpwood?
There is no universal conversion. Species, piece size, moisture, and stacking affect how much solid wood is in a stacked cord. Do not use an assumed conversion in place of the buyer’s stated scale.
Is the delivered mill price the same as stumpage?
No. The delivered price is for wood at the mill. Stumpage is what remains for the landowner after relevant harvesting, loading, hauling, and other costs and adjustments.
Can pulpwood and sawtimber be sold together?
They can be included in one sale, but they may be priced as separate products. Ask a forester or buyer to identify which trees qualify for each product and how each will be measured and paid.
How do I estimate the volume before requesting bids?
Use a forester’s inventory or representative plots, and identify species, products, units, and the measurement method. For material or complex sales, a consulting forester can help prepare a reliable estimate.
What should I compare when reviewing bids?
Compare expected net stumpage for the same species, products, units, estimated volume, access, and restrictions. Also compare measurement records, payment terms, contract duties, and road or damage responsibilities.
Can I let a buyer start cutting before we finish the contract?
No. Set and walk the boundaries, agree on measurement and payment, and sign written terms before cutting begins. Unclear boundaries can lead to timber trespass and substantial liability.
What should I check after harvest?
Reconcile measurement records and payments, then inspect boundaries, roads, stream crossings, remaining trees, and cleanup. Document any damage or required repairs and confirm that agreed restoration is complete.
(This article was written by one of our staff writers, Evan Bradley. Visit our Meet the Team page.)
