The Experts below are selected from a list of 288 Experts worldwide ranked by ideXlab platform
Paul E Sendak - One of the best experts on this subject based on the ideXlab platform.
-
The story of Stumpage
2020Co-Authors: Paul E Sendak, Thom J. McevoyAbstract:An assessment of the last 20 years wouldn't be complete without some examination of changing timber prices. The first issue of Vermont Woodlands included a chart of Stumpage prices, a survey of the prices being paid for standing timber in the state. It would seem natural to simply compare those prices with a similar report from today. Unfortunately, the University of Vermont Extension, where the original data came from, stopped reporting Stumpage prices in 2007.
-
vermont Stumpage price trends revisited with comparisons to new hampshire
Forest Products Journal, 2013Co-Authors: Paul E Sendak, Thom J. McevoyAbstract:Abstract Our objective was to describe the trends of Vermont Stumpage prices for major sawtimber species and products over the approximately last quarter century and propose a likely explanation of...
-
the annual increase of northeastern regional timber Stumpage prices 1961 to 2002
Forest Products Journal, 2005Co-Authors: John E Wagner, Paul E SendakAbstract:Annual percentage rates of change for Northeastern regional sawtimber and pulpwood Stumpage prices were estimated for the period 1961 to 2002. In addition, we examined if there have been any changes in the annual percentage rate of change during the same period. The results showed that the real (nominal) annual percentage rates of change for hardwood sawtimber and softwood pulpwood Stumpage prices were 4.6 percent (8.5%) and 0.7 percent (4.6%), respectively. Annual real hardwood pulpwood Stumpage prices increaed at 0.6 percent while annual nominal hardwood pulpwood Stumpage prices increased at a faster rate during 1961 to 1981 than during 1982 to 2002; namely, 7.3 vs, 1.6 percent, respectively. Annual nominal softwood sawtimber Stumpage prices increased at 5.2 percent while annual real softwood sawtimber Stumpage prices increased at a slower rate during 1961 to 1981 than during 1982 to 2002; namely, 0.6 vs. 2.2 percent, respectively. This research indicates that an average landowner holding an average mix of hardwood sawtimber could reasonably achieve a 4.6 percent annual increase in the revenue from a future sale of that sawtimber due to real price appreciation alone. The same landowner may achieve greater or lesser gains depending on species composition, structure, age, and density of the stand combined with prudent forest management choices. While the annual percentage rates of change described here may not reflect the slumpage markets of a specific sub-state region or individual property, they may provide a forestry consultant with additional infomation to help compare potential returns from forest management to other uses of a landowner's capital such as mutual funds,stocks, and bonds.
-
hardwood pulpwood Stumpage price trends in the northeast
Gen. Tech. Rep. NE-286. Newtown Square PA: U.S. Department of Agriculture Forest Service Northeastern Research Station. 23 p., 2001Co-Authors: Lloyd C Irland, Paul E Sendak, Richard H WidmannAbstract:Hardwood pulpwood consumption has increased in five leading Northeastern states from 1.2 million cords in 1963 to 4.6 million cords in 1997. A shift from the reliance on softwoods has occurred and by the mid-1970s hardwood use exceeded softwood. This increases the importance of the markets for hardwood pulpwood. These five states?Maine, New Hampshire, New York, Pennsylvania, and Vermont?maintain price reports on Stumpage, some dating from the early 1960s. We report analyses of trends, nominal and real prices of hardwood Stumpage, and comparisons among states. For the most recent decade, real price increases for hardwood pulpwood were detected only in Maine and Vermont. Due to a tightening demand-supply situation, spruce-fir pulpwood Stumpage price increased faster than hardwood price after the early 1980s in Maine, New Hampshire, and New York. Aspen pulpwood Stumpage price increased in Maine during the last 10 years, while decreasing in New York. As expected, prices across the region were correlated with harvesting pressure.
-
northeastern regional timber Stumpage prices 1961 91
Research Paper Northeastern Forest Experiment Station USDA Forest Service (, 1994Co-Authors: Paul E SendakAbstract:State and regional weighted averages were calculated for timber Stumpage prices for the northeastern region. The weighting factor was the timber volume harvested.
Harry J Paarsch - One of the best experts on this subject based on the ideXlab platform.
-
the stochastic implications of rent maximization an application to Stumpage rates for timber in british columbia
Journal of Applied Econometrics, 2004Co-Authors: Ryan M Haley, Harry J PaarschAbstract:We construct a model of rent-maximizing behaviour by a single seller of timber in the absence of a formal market, deriving the stochastic implications of rent maximization for timber prices (Stumpage rates) when other input and output (lumber) prices are random. Subsequently, we examine the model's ability to describe monthly, time-series, Stumpage-rate data from British Columbia, Canada between January 1979 and October 1999. Deviations of Stumpage rates from their long-run trend are also structured by an error-correction model which suggests that between 13 and 20% of period-to-period changes in Stumpage rates can be explained by an equilibrium adjustment term. Copyright © 2004 John Wiley & Sons, Ltd.
-
the effect of Stumpage rates on timber recovery
Canadian Journal of Economics, 1993Co-Authors: Harry J PaarschAbstract:Governments often sell the right to harvest timber on public land. If timber is of heterogeneous quality and timber pri ces reflect this heterogeneity, then charging a fixed Stumpage rate per cubic meter of timber harvested independent of timber quality can induce the economically inefficient practice of harvesting only the best grades of timber, "high-grading." Charging a lump sum that is independent of the volume of timber harvested yields the efficient choice of minimum timber quality. With competitive bidding, the lump-sum scheme extracts all of the resource rent while the Stumpage rate scheme leaves some rent in the forest.
William G. Luppold - One of the best experts on this subject based on the ideXlab platform.
-
impacts of changing hardwood lumber consumption and price on Stumpage and sawlog prices in ohio
Forest Science, 2014Co-Authors: William G. Luppold, Matthew Bumgardner, Eric T McconnellAbstract:In the early 2000s, increasing US furniture imports preceded declining US hardwood lumber demand and price. In the summer of 2002, however, hardwood lumber prices started to increase as demand by construction industries increased. By the mid-2000s, hardwood lumber prices hit all-time highs. Lumber prices hit all-time highs for red oak (Quercus spp.), white oak, and cherry (Prunus serotina Ehrh.) in 2004, soft maple (Acer spp.) in 2005, and yellow-poplar (Liriodendron tulipifera L.) and hard maple in 2006. The declines in construction that began in 2006 and reduced lumber exports after 2006 caused prices of all hardwood species to hit low points in 2008 or 2009. In this study, we examined changes in the demand and price for hardwood lumber and assessed how these changes corresponded with Stumpage and sawlog prices in Ohio. Stumpage and sawlog prices declined in a manner to that of lumber prices from the mid to late 2000s but were less correlated with lumber from 2009 to 2012. These patterns appeared different from those in previous recession/recovery periods. In past recessions, Stumpage prices were less sensitive to economic decline than lumber prices but highly correlated to increasing lumber prices in the recovery years. Sawlog and lumber prices also were generally well correlated coming out of past recessions.
-
an examination of the relationships between hardwood lumber and Stumpage prices in ohio
Wood and Fiber Science, 1998Co-Authors: William G. Luppold, Jeffery P Prestemon, John E. BaumgrasAbstract:Understanding the relationship between hardwood lumber and Stumpage prices is critical in evaluating market efficiency and in understanding the potential impact of changing technology on stump-age markets. Unfortunately, the complexity of the hardwood lumber market and lack of reliable data make it difficult to evaluate this relationship using traditional econometric systems. However, the relationship can be evaluated using economic theory, a review of market history, and statistical procedures. This paper first presents a theoretical development of the demand and supply of hardwood Stumpage and then examines the history of the white oak, red oak, yellow-poplar, and hard maple markets between 1970 and 1995. Using this information, a multi-period market margin model was developed. Analysis of short-term relationships between lumber price and Stumpage price revealed that these series did not always move in the same direction, but tended to move in the same direction when there were large changes in lumber prices. However, continual declines in lumber prices did not always result in continual declines in Stumpage price because of apparent price expectations of the Stumpage owner. In the long run, the market margin between Stumpage and lumber price has declined in a discrete manner. These declines are related to periodic increases in lumber production and price that occur at the beginning of the hardwood production and price cycle. Theory stipulates that during periods of declining prices, the less efficient sawmills will be forced out of the market. Following these periods, inventories usually are insufficient to satisfy any increase in lumber demand. Therefore, when demand increases, lumber prices increase sharply causing surviving, efficient mills to increase production and to bid up Stumpage prices to new, higher levels. This bidding transfers any short-term economic gains that result from increased production or marketing efficiency to the resource owners.
-
why do Stumpage prices increase more than lumber prices
In: Meyer Dan A. ed. Technology and market information for the next millemmium proceedings of the 26th annual hardwood symposium; 1998 May 6-9; Cashie, 1998Co-Authors: William G. Luppold, John E. BaumgrasAbstract:Every sawmiller who has been in business more than 5 years realizes that hardwood Stumpage prices tend to increase faster than lumber prices, decreasing the margin between these two prices. Although increases in Stumpage versus lumber prices are readily apparent, the reason for the decrease in the margin is not. Recent research findings indicate that the Stumpage/lumber market margin is decreasing as sawmills become more efficient. During a given year, progressive sawmills adopt new production technologies and marketing procedures in an effort to increase profits. Other mills implement these processes if they seem profitable while others cannot or will not adopt them. When periodic downturns in the lumber market occur, many less efficient mills are forced out of the market. When subsequent increase in price occurs,the remaining efficient mills vigorously compete for Stumpage, eventually erasing any short-term profits gained by adopting new technologies or marketing methods. Each time this happens, the Stumpage/lumber market margin decreases. These margins tend to decrease faster for a species that experiences large increases in lumber prices. However, most species eventuallywill have similar decreases in lumber Stumpage market margins because of similarities in production and market methods across sawmills.
-
Price Trends and Relationships for Red Oak and Yellow-Poplar Stumpage, Sawlogs, and Lumber in Ohio: 1975-1993
Northern Journal of Applied Forestry, 1995Co-Authors: William G. Luppold, John E. BaumgrasAbstract:Abstract The rapidly changing domestic and international hardwood markets of the 1980s had a large impact on the demand and price of hardwood lumber, logs, and Stumpage. In this paper we examine inflation adjusted (real)prices for red oak and yellow-poplar Stumpage, logs, and lumber. We then relate the observed trends to changes in domestic lumber consumption, lumber and log exports, sawmill technology, and forest inventory trends. Increasing real prices for red oak Stumpage, logs, and lumber are the result of expanding domestic and international demand coupled with relatively limited Stumpage supplies. Yellow-poplar, a species in relatively abundant supply and lower demand, experienced a decline in real prices for logs and lumber. Gains in Stumpage prices have exceeded those for both logs and lumber, indicating that Stumpage prices have benefited from transferred efficiencies in harvesting and milling. Although this study focuses on Stumpage and log prices in Ohio from 1975 to 1993, the results appear to be relevant to adjacent states. North. J. Appl. For. 12(4):168-173.
-
Relative price trends for hardwood Stumpage, sawlogs, and lumber in Ohio
1993Co-Authors: John E. Baumgras, William G. LuppoldAbstract:During the 1980's, the hardwood lumber industry experienced a rapidly changing domestic and international hardwood product market. These changes have significantly affected prices of hardwood lumber, and subsequently affected prices of hardwood sawlogs and Stumpage. To illustrate these changes, this paper examines deflated prices and price trends for hardwood lumber, and Ohio sawlogs and Stumpage from 1975 to 1991. Differences between log price trends, and the trends in Stumpage and lumber prices also are examined. Results show increasing real prices for red and white oak sawlogs and red oak lumber; high-quality sawlogs showed the largest gains. Real prices of sawlogs and lumber declined for non-select species such as yellow-poplar and hard maple. The analysis of price relationships also indicated that the relative gains in red oak and yellow-poplar Stumpage prices exceeded those of sawlog prices. For red oak, sawlog prices also increased at a greater rate than lumber prices. These results indicate that Stumpage prices have increased because of transferred efficiencies in milling and harvesting, as well as the growing domestic and international demand for high-quality oak lumber and veneer.
John E. Baumgras - One of the best experts on this subject based on the ideXlab platform.
-
an examination of the relationships between hardwood lumber and Stumpage prices in ohio
Wood and Fiber Science, 1998Co-Authors: William G. Luppold, Jeffery P Prestemon, John E. BaumgrasAbstract:Understanding the relationship between hardwood lumber and Stumpage prices is critical in evaluating market efficiency and in understanding the potential impact of changing technology on stump-age markets. Unfortunately, the complexity of the hardwood lumber market and lack of reliable data make it difficult to evaluate this relationship using traditional econometric systems. However, the relationship can be evaluated using economic theory, a review of market history, and statistical procedures. This paper first presents a theoretical development of the demand and supply of hardwood Stumpage and then examines the history of the white oak, red oak, yellow-poplar, and hard maple markets between 1970 and 1995. Using this information, a multi-period market margin model was developed. Analysis of short-term relationships between lumber price and Stumpage price revealed that these series did not always move in the same direction, but tended to move in the same direction when there were large changes in lumber prices. However, continual declines in lumber prices did not always result in continual declines in Stumpage price because of apparent price expectations of the Stumpage owner. In the long run, the market margin between Stumpage and lumber price has declined in a discrete manner. These declines are related to periodic increases in lumber production and price that occur at the beginning of the hardwood production and price cycle. Theory stipulates that during periods of declining prices, the less efficient sawmills will be forced out of the market. Following these periods, inventories usually are insufficient to satisfy any increase in lumber demand. Therefore, when demand increases, lumber prices increase sharply causing surviving, efficient mills to increase production and to bid up Stumpage prices to new, higher levels. This bidding transfers any short-term economic gains that result from increased production or marketing efficiency to the resource owners.
-
why do Stumpage prices increase more than lumber prices
In: Meyer Dan A. ed. Technology and market information for the next millemmium proceedings of the 26th annual hardwood symposium; 1998 May 6-9; Cashie, 1998Co-Authors: William G. Luppold, John E. BaumgrasAbstract:Every sawmiller who has been in business more than 5 years realizes that hardwood Stumpage prices tend to increase faster than lumber prices, decreasing the margin between these two prices. Although increases in Stumpage versus lumber prices are readily apparent, the reason for the decrease in the margin is not. Recent research findings indicate that the Stumpage/lumber market margin is decreasing as sawmills become more efficient. During a given year, progressive sawmills adopt new production technologies and marketing procedures in an effort to increase profits. Other mills implement these processes if they seem profitable while others cannot or will not adopt them. When periodic downturns in the lumber market occur, many less efficient mills are forced out of the market. When subsequent increase in price occurs,the remaining efficient mills vigorously compete for Stumpage, eventually erasing any short-term profits gained by adopting new technologies or marketing methods. Each time this happens, the Stumpage/lumber market margin decreases. These margins tend to decrease faster for a species that experiences large increases in lumber prices. However, most species eventuallywill have similar decreases in lumber Stumpage market margins because of similarities in production and market methods across sawmills.
-
Price Trends and Relationships for Red Oak and Yellow-Poplar Stumpage, Sawlogs, and Lumber in Ohio: 1975-1993
Northern Journal of Applied Forestry, 1995Co-Authors: William G. Luppold, John E. BaumgrasAbstract:Abstract The rapidly changing domestic and international hardwood markets of the 1980s had a large impact on the demand and price of hardwood lumber, logs, and Stumpage. In this paper we examine inflation adjusted (real)prices for red oak and yellow-poplar Stumpage, logs, and lumber. We then relate the observed trends to changes in domestic lumber consumption, lumber and log exports, sawmill technology, and forest inventory trends. Increasing real prices for red oak Stumpage, logs, and lumber are the result of expanding domestic and international demand coupled with relatively limited Stumpage supplies. Yellow-poplar, a species in relatively abundant supply and lower demand, experienced a decline in real prices for logs and lumber. Gains in Stumpage prices have exceeded those for both logs and lumber, indicating that Stumpage prices have benefited from transferred efficiencies in harvesting and milling. Although this study focuses on Stumpage and log prices in Ohio from 1975 to 1993, the results appear to be relevant to adjacent states. North. J. Appl. For. 12(4):168-173.
-
Relative price trends for hardwood Stumpage, sawlogs, and lumber in Ohio
1993Co-Authors: John E. Baumgras, William G. LuppoldAbstract:During the 1980's, the hardwood lumber industry experienced a rapidly changing domestic and international hardwood product market. These changes have significantly affected prices of hardwood lumber, and subsequently affected prices of hardwood sawlogs and Stumpage. To illustrate these changes, this paper examines deflated prices and price trends for hardwood lumber, and Ohio sawlogs and Stumpage from 1975 to 1991. Differences between log price trends, and the trends in Stumpage and lumber prices also are examined. Results show increasing real prices for red and white oak sawlogs and red oak lumber; high-quality sawlogs showed the largest gains. Real prices of sawlogs and lumber declined for non-select species such as yellow-poplar and hard maple. The analysis of price relationships also indicated that the relative gains in red oak and yellow-poplar Stumpage prices exceeded those of sawlog prices. For red oak, sawlog prices also increased at a greater rate than lumber prices. These results indicate that Stumpage prices have increased because of transferred efficiencies in milling and harvesting, as well as the growing domestic and international demand for high-quality oak lumber and veneer.
Rajan Parajuli - One of the best experts on this subject based on the ideXlab platform.
-
Subregional Timber Supply Projections with Chip-n-Saw Stumpage: Implications for Southern Stumpage Markets
Forest Science, 2019Co-Authors: Rajan Parajuli, Shaun M Tanger, Frederick W. CubbageAbstract:Abstract Softwood chip-n-saw (CNS), an intermediate Stumpage product between sawtimber and pulpwood, has become a mainstay in southern timber markets in recent years. Most of the previous studies in southern timber markets primarily focused on pulpwood and sawtimber markets, and often overlooked CNS as a standalone timber product. Using the Subregional Timber Supply model, this study examines the dynamics of sawtimber- and pulpwood-dominated softwood Stumpage markets with growing CNS markets in the US South. Results suggest that South-wide CNS inventory increases over the short run but begins to decrease by 2024, which leads to CNS prices rising over the years. The projected trends vary widely from one wood basket to another. This study provides additional nuance to future prospects of southern timber markets.
-
toward an elasticity of chip n saw demand and supply models of chip n saw Stumpage in louisiana
Forests, 2018Co-Authors: Shaun M Tanger, Rajan ParajuliAbstract:Softwood chip-n-saw (CNS) is a relatively new Stumpage product in the sawtimber- and pulpwood-dominated Stumpage markets in the U.S. South. Based on a quarterly data series from 2003 to 2016, this study estimates the demand and supply models of the softwood CNS Stumpage market in Louisiana. The two-stage least squares (2SLS) results reveal that own price elasticity of demand (PED) is price elastic, and the cross-price elasticity (XED)with sawtimber approaches unit elasticity. On the supply side, CNS is price inelastic in supply (PES), but more responsive to own price changesthan sawtimber quantity supplied. Further, severance tax increases are found to decrease the supply of CNS, indicating that suppliers are responsive to severance tax incidence. As the first empirical estimation of CNS, the findings should be of interest to those involved in the analysis of Southeastern Stumpage markets.
-
an econometric study of the hardwood sawtimber Stumpage market in louisiana
Forest Products Journal, 2017Co-Authors: Rajan Parajuli, Daowei ZhangAbstract:Abstract Although the hardwood timber market is an important segment of the forest industry in the United States, little attention has been paid to modeling hardwood Stumpage and lumber markets. Ba...
-
modeling Stumpage markets using vector error correction vs simultaneous equation estimation approach a case of the louisiana sawtimber market
Forest Policy and Economics, 2016Co-Authors: Rajan Parajuli, Daowei Zhang, Sun Joseph ChangAbstract:In this paper, we compare the estimation results obtained from the multivariate vector error correction (VEC) method with the traditional simultaneous equations estimation approach. We found that the traditional simultaneous equations estimation approach produces similar demand and supply coefficients in the Louisiana Stumpage market as the VEC method.
-
modeling prices for sawtimber Stumpage in the south central united states
Forests, 2016Co-Authors: Rajan Parajuli, Shaun M Tanger, Omkar Joshi, James E HendersonAbstract:The South-Central United States, which includes the states of Louisiana, Mississippi, Texas, and Arkansas, represents an important segment of the softwood sawtimber market. By using the Seemingly Unrelated Regression (SUR) method to account for the linkage among the four contiguous timber markets, this study examines the dynamics of softwood sawtimber Stumpage markets within the region. Based on quarterly data from 1981 to 2014, the findings reveal that both pulpwood and chip-and-saw (CNS) prices have a positive influence on the Texas and Arkansas sawtimber markets. Moreover, Granger-causality tests suggest that unidirectional causality runs from pulpwood and CNS markets to the respective sawtimber market. Compared to the pre-financial crisis period, sawtimber prices in these four states are 9%–17% lower in the recent years.
