James L. Cummins

What Are Trees Worth? by James L. Cummins 

Ask anyone about the value of a tree and you can expect such answers as: trees give us oxygen and purify our air; trees beautify our surroundings and provide valuable wildlife habitat; or trees provide valuable lumber and wood products that people use every day. It is important to remember that the value of some trees is not simply measured by the dollar value of its wood or other products, but also by its aesthetic value or the non-market benefits it can provide. 

No, money does not grow on trees, but many people do not realize that trees have a dollar value of their own that can be measured by competent foresters and tree appraisers. Here are some factors used to determine the value of trees: Current Market: Current market demand is generally based on housing trends, new home starts, and the paper market. The higher the demand, the higher the prices paid for trees. 

Distance to Market: Obviously, it is less expensive to drive 30 miles than it is 60 miles, so trees nearer the market could receive higher value than those further from the market. Buyers typically work within a 90-mile radius of their mill but often go further when market prices are high. 

Tree Variety: The value placed on certain trees varies by their species and location. For instance, pine trees are a top dollar producer in the southern half of Mississippi, whereas they are less valuable farther north. Hardwood tree values often depend upon the species and quality. 

Quality: High-quality trees are straight, tall trees with few branches on the lower portion of the tree. Defects and bends in the trunk can significantly reduce the value. 

Size: Generally, larger trees contain more wood-volume and earn more money for the landowner. Trees are measured by diameter and height to estimate volume. So wider, taller trees make the most money–unless, of course, it is hollow and then it would be valuable only as a wildlife tree. 

Pulpwood Trees: Pulpwood can come from any commercial tree species that does not have the size or quality to make higher quality wood products. It mostly comes from small diameter trees (at least 5 inches dbh), but also includes large trees with defects or low branches that eliminate sawtimber possibilities. Pulpwood is used to make paper products, oriented strand board (OSB), and several other useful goods. 

Chip-and-saw: This is a common product of Southern pine stands with trees between 9 and 14 inches dbh. These trees are used to create a small amount of good boards and lumber, while the rest is chipped and used like pulpwood. This can bring 2 to 3 times the price of pulpwood. 

Sawtimber and Veneer Size Trees: Trees that are 14 inches dbh with at least 16 feet of clear trunk can be used as sawtimber or veneer. These are the high-quality wood products that make harvestable trees valuable to the landowner. If you have a stand of trees you would like evaluated, contact your local forester.

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