Visitors to Timber 2015 will discover as they view the various stands that the market for timber is very strong. Those fortunate to have thinnings for sale should secure a good price for their material.

It is extremely important for growers to put a good system in place to ensure that they get paid for all timber harvested and also that there is a clear agreement between buyer and seller.

In relation to timber prices, there is good information available from the Irish Timber Growers Association (ITGA) and Teagasc.

Template tree sales agreement

In order to assist timber growers in the thinning, felling and sale processes, ITGA launched a template master tree sales agreement last year for growers to adapt to their particular timber sale and forest.

It forms the basis of a legal contract between the seller and the buyer and is structured under various headings for clarity and ease of use.

It incorporates an ITGA model timber sales dispatch system, which deals with timber removals, especially security.

The terms and conditions contained in the template agreement are designed to cover a range of potential private sale situations and forest types and includes definitions, warranties, payment terms, right of access, felling, harvesting and removal, indemnity and insurance, compliance, risk, duration and termination, health and safety issues, environmental conditions, force majeure and an arbitration clause.

The schedules that form a vital part of this agreement are also provided for in template form.

For each sale, the schedules can be completed specific to the individual sale and site. It records prices agreed, the manner of payment and other conditions.

The schedules further include a template for the description of the sale and the thinning/felling systems to be employed, a schedule to attach the location and site maps for the sale, showing entrances and exit routes, with any hazards or sensitive areas. The template agreement has been drafted to anticipate trends in the industry – for example, it caters for the sale of forest biomass.

ITGA recommends that growers and their forest managers make use of this information and assistance as forests and timber are proving to be a very valuable resource. It is always prudent to get professional advice before embarking on a timber sale.

The template agreement is produced with funding assistance from the Forest Service.

ITGA sales dispatch system

Where a timber grower has a productive spruce plantation, it is likely that between 35t and 55t/ha will be harvested in each thinning operation. This equates to between 1.5 to two loads per hectare. For a standard 10ha spruce forest, up to 20 loads could move from the site in first thinnings alone.

The standard method of sale for thinnings and fellings is usually based on weight. When timber is sold on a weight basis, the forest owner will only get paid for that timber weighed over a weighbridge and reported back.

Dispatch system

The dispatch system is essentially a method that tracks timber from felling to removal through to mill destination. The system is important for sellers, buyers and harvesting contractors, as it is not in anyone’s interest to have timber illegally removed from a harvested site.

The timber sales dispatch system provides growers with a standardised procedure to assist in accounting for all timber removals from forests and to improve timber security. Full details and procedures are currently available on www.itga.ie.

Call in to the ITGA stand at Timber 2015, where committee members will discuss the sales agreement and the sales dispatch system.

ITGA publishes prices in its newsletter and the Forestry & Timber Yearbook (www.forestryyear book.ie), which will also be available at a reduced price in the ITGA stand.

Donal Whelan is ITGA Technical Director.