Originally Posted By: 59Hunter
I bet the net on hunting leases isn't as lucrative as we think it is. I don't know what the total overhead is, but I would imagine they have to lease 10-15 thousand acres to pay the salary, benefits, truck, gas, payroll taxes, etc. for each person they employ to handle leases.

For easy math, let's say they get $10/acre/year for hunting lease. Over 15 years, the gross $150/ac. Over that same 15 years, say they grow 1,000 tons/acre - at $10/ton - that's $10,000. I know I'm using rounded numbers, that they don't normally clear cut at 15 yrs, and there are present value factors. But, just trying to compare generally, it seems like a $1-$2 move in stumpage has a greater impact on net revenues than hunting leases.


Ok, I wasn't thinking well last night and put the timber growth in cords and used ton prices. So my $20 figure was way too low and should have been a little under $50. I was too low but you are way too high.

A tract I planted in 1993 cut enough on the first thinning to recover the planting cost. I figured a while back that I would get around $33 per acre per year if I clear-cut it now at current prices. Timber prices are down and going further down.

Many timber companies have recognized the trend and sold off all their land. As they make less on timber, they are gonna want more from hunting.

The recreational value of forest land has really ran up the price over the past 30 years or so. If you are gonna buy land for no other purpose than to make money growing timber, then I don't think much land in AL is worth over $500 an acre. It sells a lot higher because of the recreational and speculation possibilities.

All the labor of man is for his mouth, and yet the appetite is not filled.