Regardless of location, wood feedstock costs are the largest variable costs of wood-consuming manufacturing projects. It is therefore imperative to have a firm understanding of stumpage prices in a supply region not only during a site selection process, but also as an ongoing operating cost within that supply region.
Stumpage price – the price paid to a landowner for the right to fell trees and remove them from the owners’ timberland – can vary dramatically across local wood basins. For example, within the US South, stumpage prices may vary significantly across state lines and even county to county within a relatively compact geographic proximity. An analysis of the timber sales data collected by Forest2Market indicates that increases and decreases in price are typically tied to one of five primary factors that affect stumpage prices.