What is a Timber Sale Contracts Bond?
The USDA Forest Service is soliciting bids for timber sale contracts. These contracts are not free and require a payment bond to be submitted with the bid package. Payment bonds must meet certain requirements, including that they are issued by an authorized surety company, have an amount of at least $8 million, have a term of at least one year from the date of issuance, and indicate "timber sale contract" in the declaration section. The information provided below will provide you with more details about these required bonds as well as how to submit your bid package.
Is it possible to make money selling the wood off of a wooded ACREAGE without destroying the property?
If you want to sell your old trees, it’s important that the buyer knows what they're looking for. They will need a variety of species and sizes in order to make an offer on them; so be sure not only call around but also survey those who are interested before picking one tree lot over another. Not all buyers work within any specific market- some might buy exclusively from millers while others look specifically at firewood lots or more rare types like old stand forests (if they can find such). Get written estimates (offers) as well rather than just verbal quotes!
How much does a Payment Bond - USDA Forest Service Cost?
Payment bonds are a cost of doing business. The cost is typically around 3%. What does that translate to? For $100,000 worth of coverage, the premium would be about $3,000. To find out exactly how much your premium will be we can get you a free surety bond price quote with no obligation!
How does a performance and payment bond work?
The Performance Bond secures a contractor's promise to perform the contract in accordance with its terms and conditions, at the agreed upon price, and within the time allowed. The Payment bond protects certain laborers material suppliers or subcontractors against non-payment.
A performance bond is an contract bond/agreement that requires one party (the surety) to make good on another person's promises if they are not fulfilled. One example of this would be when someone makes a bid for building work but then does not complete it as promised because their finances were somehow affected by unforeseen difficulties such as natural disasters etc...The payment bonds protect parties involved in construction projects from being left out without compensation due unpaid invoices.
A written timber sale agreement or contract is a necessary and important document for both the buyer and the seller (the landowner) to protect themselves from future misunderstandings. It's nearly impossible to get back promises that were never in writing, so it's best if you can agree on all terms before business begins!
The timber industry is a great way to earn some income in the forest. Depending on what kind of trees you have, and when they're sold for harvesting, your profit could be anywhere from $500 per acre at most to as much as $2000 an acre depending on market rates. At current prices that are about average ($1500), annualizing over 25 years will give you approximately $60 per year which isn't too bad!
The timber industry can provide quite a bit of money if managed properly with different tree species yielding varying amounts based off harvest timing - but it's important not to overextend yourself because then there may come a time where even more valuable land has been stripped bare leaving owners no choice but sellout or pursue other ventures.
Learn more about USFS timber sales.