Timber prices can vary from area to area and from region to region. It is not unusual for adjacent tracts of timber to bring drastically different prices, no matter how similar they may appear at first glance. While dollar values cannot be placed on these factors unless referencing a particular tract of timber at a particular time, some general comments can be made concerning how each factor can influence stumpage. The timber must meet the manufacturing needs of the firm that buys the timber or to whom the buyer is selling the logs. Some mills may use only certain species while others may buy many species.
All mills have size limitations on the wood used for manufacturing their products.
Trees that are too large or too small have no value to a mill unless they can be resold to another manufacturer. If not resold, there is an added expense of waste disposal. Also, all things being equal, tall, large-diameter, mature trees can generally be harvested at a lower cost per unit volume than short, skinny trees. Therefore, the buyer can afford to pay the landowner more for larger-size trees. All things equal, the buyer will pay more for higher volume per acre.