Selling timber land: the trees, the land, or both

Can I sell the timber and keep the land?

Yes, in most cases a landowner can sell timber and keep the land. A timber sale is a contract with a buyer who cuts the trees. You still own the land afterward.

If you sell the land instead, the contract should say whether the trees go with it. It should also say whether you keep timber rights for some period. Put that in writing before you sign.

How does a timber sale work?

A timber sale is a written contract, and professional forestry help is wise before you sign. A University of Arkansas Extension fact sheet gives those two rules. Other states publish similar guidance, so check your own state forestry agency.

In a lump-sum sale, the buyer pays for the standing timber before harvest. In a pay-as-cut sale, the buyer pays a set price per unit for each product cut, such as sawtimber or pulpwood.

The fact sheet warns against selling timber on shares, where the logger keeps a percentage of the proceeds. These deals are often sealed with a handshake and invite disputes.

What should a timber contract cover?

The Arkansas fact sheet lists items every timber contract should address.

• The parties and a legal description of the area to be sold.
• Lump-sum or pay-as-cut, and the terms of payment.
• The type of harvest, such as thinning or clearcut.
• Damage clauses, such as for roads, fences and water quality.
• When title to the trees passes to the buyer.
• A liability clause and a way to settle disputes.

How much is standing timber worth?

Standing timber is priced as stumpage, and state agencies and universities publish stumpage price reports. NC State Extension reports that pine sawtimber averaged $31.66 per ton in the fourth quarter of 2024 in North Carolina. The University of Arkansas Division of Agriculture posts quarterly Arkansas timber price reports built on Timber Mart-South data.

These are statewide averages. NC State Extension warns that prices can vary considerably and may not reflect specific stumpage values. It recommends professional help to value your standing timber.

Look up your own state's forestry agency or extension service for its stumpage report. Then ask a consulting forester to value your stand.

How is a timber sale taxed?

Timber income is taxed by rules that depend on how you held the timber and how you sold it. The Forest Landowners Guide to the Federal Income Tax at timbertax.org gives these plain points.

Timber qualifying under Section 631(b) is Section 1231 property, so net gains can receive long-term capital gain treatment. Section 631(b) covers selling standing timber under a pay-as-cut contract.

The guide also says timber is a capital asset if you hold it primarily for personal use or as an investment. If you cut and sell your own timber, you recover your basis by subtracting it from the proceeds. The guide calls this timber depletion and says each timber account needs its own depletion unit.

Basis is your tax cost in the timber. Keep records of it. Ask a CPA who knows timber before you sign, and see capital gains on a land sale.

When does selling the land make more sense?

Selling the land makes more sense when you want out of it. Timber takes years to grow back, and a land sale can end tax bills and upkeep. Wooded land may also have no road, wet ground or unclear boundaries. See landlocked property and wetland-restricted property.

Land value depends on the land. Start with the land value calculator and your state page.

What should I ask before I sell the trees?

Ask who marks the trees, who pays for road repair after the harvest, and what happens to the tops and slash. Ask what happens if rain stops the harvest. The contract answers these, so ask before you sign.

Check your state forestry agency for water quality rules on harvests. Many states publish them. Ask a local attorney to review the final contract.

Does Liberty Acres buy wooded land?

Liberty Acres is a family-owned land company. We buy land anywhere in the US, in any condition, and close through a title company. We pay back taxes and all closing costs, with no agents and no commissions. We can close in as little as 14 days. Most sales close within a few weeks to a few months, once the title work is done. For larger parcels with development potential, we can sign terms that allow time for zoning and entitlement work. You keep title until closing, and the price can reflect the added value. Tell us the county and parcel numbers. Also tell us if a timber contract is active, if someone holds timber or hunting rights, or if a loan or lien exists.

A real sale from our files

An owner living out of state held a wooded lot in Maine with no plans for it. His last name was spelled two ways in the records, and the first deed missed a strip of the land. He signed a corrective deed, and we closed 56 days after signing.

Names and identifying details are left out to protect the seller's privacy.

Common questions