Farm Loan Arbor Tree Nursery

Markets for forest products and services
Why Farm Forestry
Why Plant Trees
Markets for products & services
Designing a Farm Forest

Markets for forest products and services

Being able to capitalise on the sale of farm forestry products and services depends on having a product that is in demand, having access to those who are prepared to pay, being able to utilise effective trading mechanisms, and having the ability to negotiate sufficient rewards. This is often only possible with additional funding from farm loans.

It is important that farmers look at opportunities to meet the product specifications of the market and look at ways to reduce harvesting and marketing costs. As small, independent producers, farmers may consider entering into cooperatives with other farmers or engaging brokers who can put together marketable parcels or search out buyers. There are many marketing lessons to be learnt from past failures:

• Do not produce a product for which there is only one likely buyer or processor unless you are able to negotiate an agreement prior to investment.

• Do not assume that if you produce the same product as large growers you will receive the same access to the market or the same price.

• Get agreement on all aspects of the sale, including payment arrangements, point of sale, method of measurement, and classification of product grades.

• If there are concerns about being paid, ask for payments to be put into a trust account prior to harvesting.

• Be cautious when adopting forestry regimes that are ultimately dependent on achieving a commercial thinning of dubious viability.

• Document the history of forest management including the seed source, chemicals used, and tree management. In some cases this may require certification. At least keep a tree diary and record management as it is undertaken. Taking photographs and regularly recording tree growth in fixed measurement plots can be of great value.

• Ensure that contractors complete the operation to your satisfaction before they are paid.

Harvesting and marketing logs
Log Prices, Stumpages and Royalties

Market Specifications
Economics of farm forestry
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