Dear Client:

To get the most money for you timber, the prospective buyers must know that they are bidding against each other for your timber. The timber sale process will likely be as follows:

I mark the trees to be cut with spots of paint on the stump and trunk of the tree. Then I list timber volume by tree species and mail it out in a bid solicitation sheet. The bid sheet will be sent to about 30 prospective buyers. It contains information they need to know before they bid. They will take it with them when they go look at the timber. After I select the trees and appraise their value, but before we advertise it, I will tell you what I think the timber will bring on the market.

The interested bidders will be on the property to look at the timber during the three weeks prior the bid opening date. Then, they will either send me a sealed bid or bring it to the bid opening. At a time and date set in the bid sheet, I will open the bids in front of all those attending and identify the successful bidder. It would be great if you could attend, but it is not necessary. I expect 3 or 6 bids. The prospective buyer and I will negotiate the time limit for him to remove the logs (usually one year from the date the timber contract is signed). We will also review the timber sale contract, so that he becomes familiar with what it means.

After the bid opening, I will arrange for you to sign two copies the contract (an original for buyer and an original for seller). At that time, the buyer usually makes payment in full. (I will need the full name, addresses and phone number of all the owners.) Normally, the buyer can issue a check to each owner for his share. The 4% Illinois State tax is withheld as the checks are written. You will each receive your share of 96% of the agreed price. The buyer will submit the 4% to the Illinois State Treasurer - to keep his timber buyer's license.

After the timber sale contract is signed and you are paid, the buyer is free to enter the property to get the logs as his schedule permits. They try to do their work when crops are not present, but that is not always possible. If crops are present, the farmer may lose 1 to 2 acres of crop. The timber purchase price includes normal crop damage made while removing the logs. It is prudent to make sure any tenant farmer knows what is planned before the logging machinery is moved onto the site. You may want to compensate him for his loss.

The timber sale contract limits logging activity time to when the soil conditions are firm and stable. The buyer may ask for a 2 year time period on the contract (two working seasons), if the sale area is on wet lowland. We will negotiate for what is reasonable. Once they begin cutting, it should only take about 2 to 4 weeks of good weather to finish (for about 30 forested acres).

I will inspect the logger's work at least 3 times, more if needed. On the day he starts I will show him the property boundaries and where we want the log hauling roads and loading areas. I will also encourage him to coordinate his work with any farm work. Then, I will make unscheduled visits to compare the logger's work to the contract. If it is not according to the contract, I will notify you and him. If it is serious, the timber contract says he must stop cutting and hauling logs upon notice from you or me until the issue is resolved.

If he is having trouble adjusting to the contract conditions, I am prepared to visit more often. I will make an inspection just as he is leaving the site the last time.

Sincerely,

Joe L. Newcomb CF

Consulting Forester

618 265 3286