Timber Markets Improve—Finally!

For the first time in nearly a decade, timber stumpage (standing trees) prices are up significantly over the past year, with pine and hardwood sawtimber improving markedly, reports the head of one of the nation’s largest forest management firms.

Marshall Thomas, president of F&W Forestry Services, writes in his company’s quarterly newsletter that the timber price increases are long overdue.

“Pine sawtimber in the Southeast is the star, up about 20 percent year-over-year, but hardwood sawtimber in the Northeast is also up dramatically, depending on species and region,” Thomas said.

Thomas notes that lumber prices—which reached record highs over the last year and have been up as much as four times pre-pandemic levels—appear to have peaked. While landowners haven’t benefited much from the run-up in lumber prices, he said eventually some should trickle down. He added that sawmills are increasing capacity to meet new demand, which is good for landowners long term, especially those near mills located in weak market areas.

“The news on prices and increasing consumption is good for landowners…it feels good to see the foundation developing for improved stumpage prices,” Thomas said.

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