150 Kincaid Lane
Boyce, Louisiana 71409
| Phone: (318) 445-5566 | Fax: (318) 445-4422 |

Vol. 10 No. 2 Fall, 1999
A Tale of Two Trees
Two pine seeds, borne from the same cone, had the same
spark of destiny.
They fulfilled it through very different paths. The two seeds were planted side by side in a nursery where they were watered, fertilized, and nurtured in every possible way. It is here they became pine seedlings. When they were nine months old, they were pulled from the soil and put into separate dark bags with about 1,000 of their brothers and sisters. The seedlings were jostled around as the bags were moved this way and that. About 48 hours later a sudden burst of sunlight hit the seedlings as the bags were torn open. The seedlings were planted in the earth at different locations. It took them a couple of days to get over the shock of being moved like that. They slowly began to adapt to their new environment.
The first pine seedling was planted in a clearcut area where only a burning had been done to prepare the site for planting. At first he felt the sun on his needles and water available to his tiny roots. He reached for the sun and felt a tingling throughout his being as the sun shown down upon him. Although the soil was hard, he expanded his little root hairs to gather up the soil moisture from the spring rains. He felt full of promising potential.
After a few weeks he began to notice that he was not alone. Grasses, wildflowers and sedges had seeded into the area all around him. The roots of various hardwood stumps were alive and sprouting. His roots kept bumping into other roots. No matter, he would just turn in a different direction. The sun’s light became filtered with shade during the mornings and late afternoons as his neighbors grew alongside him. He lifted his arms high to reach towards the sun’s light. As the summer began, less and less water was available. He felt other plants trying to move into his space. He was determined to live and realize his destiny, so he gathered all of his resources to hold onto the area he had gained and did not yield to the pressures from other plants or to the summer drought. He survived the first year in his new location.
Over the next few years the pine seedling grew. He became adept at capturing space and gathering nutrients which he used for growth in the spring while storing some for survival. He grew head and shoulders above his competition along with the other pine seedlings that managed to survive. He noticed that about a third of the other pine trees planted at the same time as he was were missing. They did not fair as well as him. No matter, he was alive and growing and considered himself a full-fledged tree.
At age fifteen, approximately one-half of the pine trees were removed during a thinning operation. This gave him more room to expand, which he gladly did. Another thinning was conducted at age 22. He was 30 years old when he was chosen for harvest during a thinning operation. He was about to fulfill his destiny.
In the meantime, his brother had a much different life. He was planted in a bed that had been mechanically prepared with a 3N1 operation. His roots easily penetrated the soil. A herbicide was used to control the grasses and other herbaceous plants soon after he was planted. He had plenty of room to expand his roots and had the benefit of full sunlight to use for making food. The hardwood sprouts were controlled with herbicide a couple of years after planting so he lived his first few years virtually free from competition. He was able to grow much faster and for longer periods of time each year than his brother. By age four he was aware of the roots and side shading from the other pine saplings growing around him. He was fertilized at age five and grew lush, deep green needles as he grew taller and fatter. He saw three thinnings of the forest at ages 12, 18, and 23. He grew faster with each thinning. At age 30 he was selected along with all the remaining trees for a final harvest of the timber.
The two different stands of timber were harvested and the two trees taken to different mills for processing. The first tree was taken to a mill where he was transformed into plywood and OSB panels. The second tree was taken to a sawmill and was transformed into lumber. The plywood and the lumber were joined together in the building of a house, where they remain to this day providing shelter for a family living outside of Houston.
The two trees had the same genes and same potential, but different life experiences. One had more adversity. His physical stature showed the strain of living in a highly competitive world. The second tree had more opportunities for growth and was able to exhibit more of its potential, because of a less competitive environment. Trees don’t compare, so we won’t discuss specifically how large they each were or how much money they made during their lifetimes. We’ll suffice it to say that they each fulfilled their destinies in different ways.
1999 shaped up pretty well as expected. Prices for good pine sawtimber hovered around $400/MBF throughout most of the year, although a lot of sales reported figures in the $350 - $375 range. Our clients have done better than that due to timing, our process, and good fortune. Demand for lumber and panels remained strong and the mills benefited from increasing prices for their products. Mill production has been strong, however, most mills glided through the year without ever fearing low supplies of logs. Most yards are in excellent shape as they head into the winter months. This has kept the stumpage prices flat.
Pine pulpwood haulers have dealt with quotas all year long. Hardwood pulpwood prices have been terrible through most of the year, with better prices in the last month or so as mills beef up yards for the upcoming winter. Hardwood sawtimber prices have been pretty strong this summer with good quality oak bringing excellent prices in competitive markets.
An overview of the lumber, plywood, and pine sawtimber stumpage prices for the last six years appears below:

* Compiled by Templin Forestry from Random Lengths
** Templin Forestry
We are expecting an increase in stumpage prices this coming winter and spring, especially for timber with good access. The markets for timber change quickly. The information we give you on stumpage rates are like giving you the quarterly mean temperature, you don’t see the highs or lows that change every day. The information does show trends but is not applicable to a specific tract of timber at a specific time. For that you need to consult your forest advisor.
The average timber prices our clients received as compared to the reported averages in Louisiana for the last two years are shown below:

* Published by the Louisiana Office of Forestry
Our surplus national budget combined with the passing of numerous tax cuts by Congress present us with an excellent opportunity to examine our taxation code in light of social and economic goals. Eliminating the “marriage penalty” in the tax code is one example of how we can use taxes to promote actions that are beneficial to our way of life. Heavily taxing polluting, gambling, alcohol and cigarettes are examples of how we can use our tax code to discourage actions that are detrimental to the individual and to the state.
Forest landowners will realize significant tax relief if the current bill is signed into law. Reduced capital gains rates, increased deductions for reforestation, and elimination of inheritance taxes under certain conditions are the major items affecting forest landowners. These improvements in the tax code will do more to stimulate better forest management of private land than any government cost-sharing program.
We progress as individuals and as a nation when our thoughts and beliefs are consistent with our words and actions. For most of us, we become more consistent with age or maturity. We learn from experience that our lives are happier and more peaceful when we act in a consistent manner that intentionally follows our deepest convictions. Consistency promotes trust. We complicate our lives and become dissociated from our goals when we have inconsistent thoughts and actions. The same is true of any group including our government.
We can intelligently use our tax code to promote beneficial actions and discourage disrespectful ones. The tax code, like most of our lives, has been developed over many years of experience. Changes in these most often occur in tiny increments. Improvements occur when we are ready and opportunity presents itself. The tax bill presents an opportunity for our government to align our tax code with domestic policy. Our readiness for improved taxation is based on our awareness of the situation and our intent and desire.
We can intentionally decide to improve our lives life in some aspect, whether it be forestry related or in some other area of our lives. We could contact our representative, senator, or president and tell them what we think about the tax cut bill. Or we could simply communicate our intent to act more consistently with our beliefs regarding forestry or any other aspect of our life with our spouse or a friend. The more we communicate the better we understand each other and ourselves. Understanding and awareness lead us to act in ways that are truly beneficial to ourselves as well as for all concerned.
We’ve had several excellent sales of land so far this year. Timberland prices have steadily been rising. Marketing strategies and processes have never been more important for getting top dollar for your property. If you are a buyer or seller, be sure to contact us.
1). 112 acres of hardwood land and timber about two miles southeast of Winnfield will be sold through lump sum, sealed bids on November 4, 1999. Call for a prospectus on this property.
2). 305 acres in Cleburne County, Arkansas approximately three miles north of Concord. This secluded tract has a dead-end public road leading to it along with water and electricity. Wolf Bayou runs through the property. The property includes numerous breath-taking overlooks, timber, a private canyon and beautiful clear water. The location, size and amenities of this property are unique and will make an excellent recreational retreat for the right person or group. One-half of the mineral interest will be conveyed - $199,000
We bring buyers and sellers together. Be sure to call us if you have an inclination in either direction.
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