How Much Money Is an Acre of Timber Worth?
Understanding the value of an acre of timber is essential for anyone in the forest products supply chain—whether managing timberland, planning harvests, or securing raw materials. A complex interplay of market dynamics, harvest strategies, and emerging environmental trends shapes timber valuation.
In this updated analysis, we explore the forces driving timber worth, dive into fresh 2022-2024 stumpage price data for US South plantation and natural pine, and highlight key trends to watch in 2025.
What Drives Timber Prices?
Before we can determine the value of an acre of timber, we need to understand the law of supply and demand, which ultimately drives the price of timber.
Demand is heavily influenced by location, surrounding mill types, proximity to those mills, and the volume and type of timber products consumed in a given area. Therefore, the volume and type of products available on a tract of timber will determine the value per acre.
Location and Proximity to Mills: Timber near sawmills or pulp mills fetches higher prices due to lower transportation costs. In the US South, sawtimber for lumber often commands a premium over pulpwood.Timber Type and Age: Managed pine plantations, typically clearcut at 25-35 years, yield 80-105 tons per acre, with sawtimber (12"+ DBH) driving the highest returns. Natural stands with mixed hardwoods can be even more valuable when high-grade logs are present.
Harvest Method: Clearcuts maximize volume and revenue per acre, while thinnings provide earlier cash flow with lower yields. The choice depends on market timing and management goals.
Market Trends: Demand for timber products like lumber, pulp, and bioenergy materials fluctuates with construction cycles, paper production, and sustainability initiatives.
These factors create a wide range of per-acre values, making understanding historical trends and current market conditions essential.
Price Trends: US South Pine (2022-2024)
Using transaction-based data from 2022–2024, we've updated our analysis of stumpage prices for US South plantation and natural pine, focusing on clearcut and thinning harvests.Plantation Pine Clearcuts (26+ years)
Mature plantation stands, averaging 80-105 tons/acre, saw a dip in 2023 due to a temporary oversupply of sawtimber, followed by a recovery in 2024 as lumber demand strengthened (see US South Plantation Pine Values per Acre 2022–2024 graph).
Plantation Pine Thinnings
Thinnings, yielding 30-50 tons/acre of mostly pulpwood and chip-n-saw, showed lower values for younger stands (16-20 years) due to smaller log sizes. The 21-25-year stands fetched higher prices with more chip-n-saw and small sawtimber, though prices fluctuated with pulp market demand (see US South Plantation Pine Values per Acre 2022–2024 graph).