150 Kincaid Lane Boyce, Louisiana 71409

Vol. 8 No. 1 Fall, 1997
- Growing Fiber to Hold Glue Together?

Timber management on private lands is in the midst of major transition. Generally speaking, private landowners have realized the greatest financial returns through growing large, sawtimber sized trees which were used by forest industry to manufacture lumber and plywood. Basically, this is still true today as builders are more readily using southern pine lumber as a replacement for spruce, fir, and western pine species. Also, plywood is still the most likely product made from large pine trees grown in Louisiana. But the times, they are a-changin’.

Oriented strand board (OSB) is a product similar to plywood that is made by shredding the tree into long fibrous strands, laying those strands at 90-degree angles and gluing them together into panels. OSB can be made from smaller trees and is a product that utilizes trees more efficiently. The product is gaining in popularity with builders and replaces many uses of plywood with a cheaper product. Its most popular use is for sheathing. OSB can now be found in the most expensive homes.

Martco in LeMoyen and Willamette in Arcadia have OSB plants running in Louisiana. Over 20 new OSB plants have opened up since 1995, causing an over-supply of panels on the market and low prices for the products.

Laminated beams and I-joists are other products that utilize fiber from trees by tearing it up and reconstructing it. No longer do we need huge trees for large beams. Forest industry has learned how to shred the tree and reconstruct it in almost any shape desired for building materials. Lumber can even be made this way. The lumber made this way has even strength, is straight, and doesn’t warp nearly as much as lumber sawn from logs. Research and technology are even finding ways to incorporate plastics with wood fiber to make useful building products.

The stimulus for these technological advances is market driven. The decrease in the supply of available timber from public lands coupled with the forest industry’s commitment to sustainable forestry has led them in the direction of spending more on research and development. This spending resulted in the technological advances mentioned above…using fiber from trees more efficiently.

Higher prices for timber, new products, sustainable forests--what does this mean to private forest landowners? I see opportunities for landowners to make more money from their forests through more intensive management. Making sure their forest is fully stocked with desirable trees is a good beginning. Controlling stocking levels and competition results in capturing productive potential on the most desirable trees. The next crop of trees to be harvested will probably be done in fewer years and with smaller trees than the current crop.

As forest industry makes this transition toward more efficient use of trees, some out-dated methods of management will be left by the wayside. Although it will certainly take a long time, the measurement of trees in board feet will eventually be replaced by more accurate means of expressing the volume of trees. While I can say a lot about the merits of using the Doyle Log Scale to measure timber, it is true that it does not give an accurate measure of the actual volume in the tree. So, while in this transition period, whether it be ten years or twenty, we at Templin Forestry, Inc. have begun to include tons, cords, and cunits along with board feet in all of our volume estimates. We believe this will assist us (and our clients and foresters and loggers who use our information) in evaluating the actual volume and value of various stands of trees. This will have obvious advantages in timber sales. It will also be helpful in evaluating growth. The tons of fiber will be maximized at a different time than the volume expressed in board feet.

We believe that landowners who prepare for the future by using the technology available today will realize greater financial rewards much quicker. Planting after harvest is a good method to ensure fully stocked stands of trees. There is much more to this story than I can write here. Ask your forester about the future of forestry as you make your plans for yourself and your family. Do the things that are in your own best interest. Chances are that the best choice for you is the best choice for everyone (that’s one of the most wonderful things about forestry). If you have specific questions and need some help managing your forests, please call us. We offer comprehensive forest management services to landowners throughout Louisiana.

Stumpage Report

It’s been a long time since I’ve written a newsletter. Much has happened in my life and in the stumpage market since then. I’ll quickly review the markets for timber since my last report and then discuss the current markets.

The markets for pine sawtimber were basically flat throughout most of 1996. Many mills relied more heavily on gatewood (unsolicited timber bought by logging contractors) than normal and didn’t buy a lot of timber on the open market.

We finally got some normal precipitation patterns this past winter and spring. Many mill inventories got dangerously low this past winter and most mills used the timber they keep under water on the yard for emergencies. Stumpage prices improved at the end of 1996 and early in 1997. They have basically been surprisingly strong throughout the summer and into the fall. Along with strong pine sawtimber prices the prices for hardwood pulpwood prices are very strong this summer.

The current dry period is allowing the mills to accumulate logs they are hoping will carry them through the wet season. The current weather affects the amount of timber the mills will have in the winter months. A few rains would help stumpage prices remain strong during the fall and winter.

The prices for lumber have improved while panel prices have remained flat. The demand for southern pine lumber has never been better, but production is high. Panel prices are a composite of mostly plywood and OSB. North American OSB production increased about 30% in 1996. OSB production is expected to increase 24% more in 1997. The panel market currently is over-supplied. The pulp and paper industry seems to be improving and the outlook is good for the rest of 1997 and 1998.

Low interest rates, a robust housing market, low inflation, and a strong economy...when will it all end? We’ve ridden the wave of this economic expansion for quite a while. The economic gurus are divided as to when it’ll end. The main thing is to enjoy the trip while we can! It looks like fair skies ahead for our economy and for healthy markets for timber.

One side thought is that I’ve been seeing quite a few small southern pine beetle (SPB) spots flaring up this late summer. Hopefully the weather and natural predators will hold their populations down next year. One thing we don’t need is a SPB outbreak in 1998.

The average pine stumpage prices received in the last year by our clients as compared with the average prices reported by the state are shown in the graph below. Don’t necessarily think your timber should bring this price. The value of timber on any specific tract depends on a variety of factors, not the least of which is professional representation when selling timber.

* Published by the Louisiana Office of Forestry

Forester Finds a Friend

I had the good fortune to marry my best friend and partner in life, Celia A. Jones, from Gibsland, Louisiana in December 1996. Celia is also a consulting forester with bachelor and master degrees in forestry from Louisiana Tech University. She has recently earned the ACF designation from the Association of Consulting Foresters of America, Inc. She is currently the only woman in Louisiana with this designation. Celia also grows antique daffodils at her farm in Gibsland. She was featured in the March, 1997 issue of Southern Living. I am very fortunate to have her as my wife, companion and partner. She makes my life and work more fun and interesting.

We’re Moving!!

We are moving to Kincaid Lake! We intend to move the office Thanksgiving weekend, 1997. Our new address will be 150 Kincaid Lane, Boyce, Louisiana 71409. Our new telephone number will be (318) 445-5566 after Thanksgiving. Until then, our offices will be open along US. Highway 167 in Bentley.

Real Estate Page

We have some excellent sales of forest land coming up for sale on the basis of lump sum sealed bids in Jackson Parish as well as some desirable property for development in Rapides Parish. Please call us for a prospectus on these properties:

96 acres - Jackson Parish, Louisiana This tract is located south of Choudrant. This tract has woods road access. It has an excellent site for growing pine timber. There is a light stocking level of pine sawtimber on the property along with an excellent stocking of natural pine saplings on the property. The bid date for this property is Thursday, November 20, 1997

240 acres - Jackson Parish, Louisiana. This tract is located just north of the above tract. It also has woods road access. The bid date is for this sale is November 20, 1997.

We have approximately 47 acres of land for sale that is suitable for housing and/or commercial development along LA 28 East, east of Pineville and directly north of Harmony Hills Subdivision in Rapides Parish, Louisiana. The price for this property is $125,000.

Also, my wife and her sisters are selling 40 and 35 acres of cutover land in Columbia County, Arkansas. This sale will be conducted on the basis of lump sum sealed bids. Call (318) 899-3361 for a prospectus of these properties.

Call us if you are buying or selling land. We delight in matching sellers with buyers, and buyers with sellers. We can most probably help you in either case. We are working with some buyers who are looking for large tracts of hardwood timber land as well as pine land.

We expect to have several tracts of timberland for sale later this year. If you are interested in buying or selling land, call Steven K. Templin at (318) 899-3361 for more information or See our Real Estate Page

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