N. R. Green Resource Consulting, LLC

While  this page revolves around the services that are provided by N. R. Green Resource Consulting, LLC and information pertinent to the management of forest and wildlife resources, I thought I would make a quick post about the best time of the year to be outdoors, and that is The Fall.

In my mind, there is nothing more tranquil or relaxing than being outdoors as the leaves change and temperature falls.

In this day and age where we are tied to the hip with smart phones, and “i thingies” consider getting away from it all and get back in touch with nature.

An October afternoon along the Blue Ridge Parkway near Floyd, Virginia.

Timber Tax Basis Appraisals

In the decade plus that I’ve been practicing forestry, I’ve found that landowners, much to their detriment, are unaware about what their actual tax liability is as it pertains to how much in taxes they must pay out of timber sale proceeds.

Disclaimer:  I am not an accountant or an expert in tax law.

Generally, what happens is that landowners will claim the gross proceeds from the sale of their timber as being subject to capital gains.  What’s unfortunate is that they need not report all of their gross proceeds.  Just as you only pay capital gains tax on the gain in value when you sell stock and make a profit, you are also only required to pay the taxes on the gain in value from when you acquired the timber asset.

While a licensed and qualified CPA can only be the professional who can determine what you must pay in taxes, a professional forester can determine what the timber was worth when you acquired it.  We can take growth ring measurements from either the stump or by examining tree cores, and then make the calculations needed to determine how much timber was on the property when it was purchased, and then use available records to determine what it was worth at that time.

This can save landowners thousands of dollars!

In some cases, landowners may claim a loss on the timber should it be damaged by fire, insect infestation or storm damage.  In stands of timber that are in decline due to old age, a loss in value from the time of purchase may also be taken into consideration.

Nathan Green

Consulting Forester

N R Green Resource Consulting, LLC

greenresourceconsulting@gmail.com

Nothing strikes more fear into a landowner than the threat of wildfire.   While statistics vary, on average about 6 million acres of forest burn each year in the United States.  While a huge chunk of this area is confined to wilderness and federal lands in the West, a good portion does occur in the East where forest land is owned by private individuals and companies.

I recently started a project on a property which was burned last year in a large wildfire.  I have no idea how the fire started, or how many acres it burned, but it is clear that in some areas it was an intense, and destructive fire.  But just how much damage to the timber did it do?

Here are some photographs.

This is a species of an upland oak commonly called chestnut oak.  While the butt of the tree exhibits burned up bark, the tree is remarkably unscathed.   Oaks are rather adept at handling wildfire.  If you look even more closely at the photo you can see the plethora of oak seedlings sprouting up.

You see in nature, forests must find a way to regenerate on their own.  In many cases, they use a natural disturbance such as a fire to achieve this goal.

However, as you are about to see, this isn’t a panacea.  Wildfire is potentially destructive.

Here is another chestnut oak.   This tree was not able to weather the fire like the one pictured above.  The fire was hot enough to penetrate the bark and damage the cambium layer (growth tissue).  You can now see where a fungus is growing on the outside of the bark and is most likely working on digesting a portion of the tree.

This tree will never recover from the damage.  While it will likely continue to live, it’s merchantable value has been substantially diminished as the rot will continue up into a good portion of the bole, destroying the valuable wood within.

The image above is the likely result of the rot which is occurring in image #2.  This represents an economic loss in at least 40% in the value of the tree as the most valuable wood is found in the first cut.  Additionally, the life span of this tree is drastically reduced as a damaged butt is much more susceptible to ice and wind damage than a tree which has one that is intact.

While its destructive properties are well documented, lets take a time out and look at a few positives of wildfire.  I’ve already mentioned that it helps some species reproduce, however it is also an important tool in managing wildlife habitat.

If you notice a common theme with all of the posted pictures, and in particular the picture directly above, you will notice all of the fresh, green vegetation sprouting up.  This is what good wildlife habitat is supposed to look like.  Fresh green browse for deer, brambles and berries for bear and grouse, escape habitat for turkey, I could go on but I think the point is clear.  Fire, while it can destructive, can also be used as a tool to enhance resources of a property.  I’m willing to bet, just by looking at this property that aside from a fall acorn crop, this property probably did not hold wildlife year round.  Now, thanks to this fire, wildlife can be seen year round.

If you have any questions about the condition of your property, give us a call and we can assess what might be best for you.

Nathan R. Green                                                                                                                    Consulting Forester                                                                                                                           N R Green Resource Consulting, LLC

greenresourceconsulting@gmail.com

540-998-4712

The forestry profession, along with other fields dealing with natural resources, has changed drastically in just ten years due to revolutionary changes in technology.

Back in the old days foresters had limited options when it came to navigating, mapping, and determining the acreage of tracts of land.  Hand compasses, metal chains, dot grids, expensive  and rain sensitive aerial photographs and topo maps, hipchain and planimeters where the only things available in the tool box.  Sometimes, even with the most skilled forester, data generated with these rudimentary tools could sometimes be off the mark.  Additionally, the time spent by the forester in the field increased the cost of doing business and made the gathering of time sensitive information arduous.

Thankfully, milestones in technology and the continual drop in upfront costs associated with this technology have made navigating and mapping forests easier.  Real time GPS in concert with hand-held field computers such as the TDS Recon gives resource managers a tool that provides better data- quicker.

Additionally, these electronic devices can also access cheap digitized aerial photos and topo maps to further aid in assessing forest resources.

N. R. Green Resource Consulting, LLC uses the SX Blue GPS through a TDS Recon to generate the most accurate data for its clients.

If you are interested in harvesting or managing your timber you can contact us via e-mail at greenresourceconsulting@gmail.com.

Nathan R. Green                                                                                                                                    Consulting Forester                                                                                                                            N R Green Resource Consulting, LLC

“I don’t want to do any timber cutting or logging because I want to preserve the real estate value of my property.”  This is a phrase that I hear time and time again.  But, is this premise true?

If the landowner has mountain land that might not be the most developable, then it stands to reason that logging the timber really won’t hurt him financially at all.  To start with, the landowner recoups a substantial amount of revenue from the timber sold.  While his land is now devalued, it lowers the price of the land which increases the number of interested buyers. Someone who is looking to invest in the next generation of forest products, or someone who simply wants cheap land to hunt on, can now better afford the property.  More people can afford to initially invest in land at $1,000 per acre, than $2,000.00 per acre.

This is something that forest products companies have been doing for years.  In most cases they come out better financially in the long run.  Why else would the do it?  The loss in land value is not proportional to the amount of timber revenue!

Other important aspects to keep in mind is that logging roads created throughout the property help facilitate better use of the property and increase outdoor recreation opportunities- particularly for hunters.  In addition, these bare areas can be reseeded with wildlife friendly grasses to attract and retain game.  The bottom line is that while the property is worth less there is more demand for it

What if the property has development opportunities or a unique landscape?  If this is the case, a consulting forester can implement a variety of selective harvesting techniques to retain the more aesthetically pleasing three dimensional forest.   In short, a limited amount of timber can be logged and sold while having very little impact, if any, on the value of the property.

To figure out what might be the best for your forestland investment goals, call us today!

Nathan R. Green                                                                                                                     Consulting Forester                                                                                                                         N. R. Green Resource Consulting, LLC                                                                      540-998-4712                                                                                                                            forestrypro556@gmail.com

A common misconception among most people is that in order to be a responsible steward of the land that you must replant following a timber harvest.  Like most things in life, there is no definitive answer.

Here are things to consider:

1)Nature always finds a way and every stand of hardwood timber has the ability to regenerate on its own.  Hardwood stands will regenerate on its own suing a combination of three methods- coppice regeneration (stump sprouts), advanced regeneration (seedling sprouts), and from the seed bank in the soil duff.  It will regrow!

2)A stand naturally regenerate is more diverse than a cultivated stand of pine.  This diversity means there is less chance of a catastrophic financial loss due to insects or disease.

3)On certain soils, pine will  out-grow hardwoods.

4)Quality hardwood timber will always be worth more at the end of its rotation, than pine.

5)Planting pine is prudent if the previous stand was comprised of merchantable pine timber -0r- if the previous hardwood stand was comprised of a poor mix of species and inferior genetic stock.

These are just a few things to consider when you sell and manage timber.  What is best for you depends on your objectives, your property, regional timber markets, and sometimes the law.

A consulting forester can better assist in this decision making process.

Contact us and see what we can do for you!

Nathan Green                                                                                                                    Consulting Forester                                                                                               forestrypro556@gmail.com

This is a question which gets asked every time when I speak to landowners about selling timber.  It is a valid question and it is important for people to know just what they are paying for and how my services benefit them.

The single most important reason to hire a consultant to administer a timber sale or harvest is because consultants bring certainty into the equation.  Like any other investor, timber buyers are looking for certainty when they buy timber.   Since landowners aren’t in the timber business, they sometimes forget details or important aspects that only a professional would think about.  Things such as right-0f-ways, liens, boundary lines, and water quality laws are just a few subjects that are often glossed over, if at all.  This causes timber buyers to be leery- and rightly so, as many a buyer has been duped by landowners both intentionally and accidentally. This attention to detail puts buyers at ease and in a buying mood.

Additionally, landowners who try to sell timber on their own will sometimes unknowingly create problems that drive down the value of their timber.  A good example of this is the landowner who marks off a block of woods to harvest, but unknowingly creates an area that doesn’t lend itself to efficient or safe harvesting.  Not only do they inadvertently make harvesting the tract difficult, but they also make it hard for a buyer to effectively examine the timber  by having sale boundaries which haphazardly zigzag.

Finally, a consulting forester knows how to efficiently and accurately estimate  timber volumes.  These volumes help give buyers an idea of what is out on the property before leaving the office as many companies many only be interested in one or two types of products.   Supplemental information such as tree and log size are also helpful in not only giving buyers important information pertinent to timber value, but it also helps draw interest in the sale as a whole.

In general, the more accurate information that you can provide a buyer, the better and a consulting forester is the best way to get that important information out!

If you are interested  in learning more about your forests, give us a call!

Nathan R. Green- Forestry Consultant

N. R. Green Resource Consulting, LLC                                                                                  540-998-4712                                                                                                                                               forestrypro556@gmail.com