FORT WAYNE, Ind. — Grain prices are down, but prices are moving up for another Indiana crop: Trees.
That is according to the annual Indiana Consulting Foresters Stumpage Timber Price Report, which relates a higher number of timber sales this year and prices for most hardwoods reaching pre-recession levels.
High-quality trees – such as larger oak, walnut and hickory – sell extremely well. The average high-quality stumpage price is $591 per 1,000 board feet. That is up from $478 in 2013 and similar to the 2008 average price.
"And my impression is, prices on the high end have only gotten stronger since we surveyed," said Tom Crowe, a consulting forester based near Fort Wayne who coordinates the survey report. The report, published in September, reflected prices through April.
Rising stumpage prices are supported by a strong global demand for high-quality hardwoods; Indiana sends high-end hardwood timber and veneer boards to Asian and Middle Eastern markets. But there is newfound price strength for lower-quality timber, indicating some broader economic recovery.
"Demand for low-quality timber has been very strong this year, particularly if the timber is near the mill or if good access is provided," stated the report.
That indicates more demand for lumber used in construction and remodeling, as well as strength in the manufacturing sector – the lowest-quality trees are used for pallets. For average-quality stumpage, average prices improved to $377 (per 1,000 board feet) compared to $338 last year.
The average price for low-quality stumpage improved to $235, up from $203 last year. Prices for average and low-quality stumpage are the third-highest since 2000, the survey’s first year.
Strong demand continues for black walnut and hickory; the higher quality and larger the logs, the better. Foresters also report strong demand for quality and quarter-sawn white oak logs. Both hard (sugar) maple and soft maple sell well, with hard maple prices improving.
Red oak markets are more volatile. "Red oak is up overall, but prices are bouncing around quite a bit," said Tom Wolfe. Black cherry prices are improving, though not yet to past price levels more desirable to the industry, he said.