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Washington DNR’s Log Sort Sales – A

Look Back and Look Ahead

Timber Measurement Society April 7, 2016

Dave Richards,Chief Check CruiserWashington DNR,Olympia Washington

DNR’s Contract Harvest Program

Mission Statement:

The citizens of Washington State and the forest products industry benefit from a balanced, multi-faceted DNR timber sales program which preserves the long term financial and ecological benefits DNR managed forest lands can provide.(DNR’s Contract Harvesting Strategic Plan - 2010)

DNR’s Contract Harvest Program

• DNR timber sales program:

• Stumpage sales• Scale or Lump sum

• Contract harvest sales• Log Sorts

DNR’s Contract Harvest Program

• 2003 - Contract Harvesting Revolving Fund.

• Pays for harvesting and road building costs.

• Revenue is distributed to trust beneficiaries after paying harvest costs.

DNR’s Contract Harvest Program

• Forest Health Improvement

• 2004, the Legislature passed the “Forest Health Improvement” bill.

• Low value/high risk stands.

• Tens of thousands of acres have been treated.

DNR’s Contract Harvest Program

• Forest Health Improvement

28,583

5,979

2,123

FIT FIT FIRE SALVAGE

FOREST HEALTH

Acres treated in NE Region2004 to present

DNR’s Contract Harvest Program

• Harvesting Contractor

• Harvesters submit bids.

• DNR hires the harvester.

• Individual sorts are auctioned.

• The winning bids are determined.

DNR’s Contract Harvest Program

• Since 2007 more than 466 mmbf have been sold in the contract harvest program.

• Average of 54 mmbf sold each year.

15,8

20

18,9

95

31,2

95

71,3

91

105,

935

67,6

67

68,0

71

47,9

05

39,5

40

42,6

55

0

100,000

200,000

300,000

400,000

500,000

600,000

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

MBF

Volume Sold by Sale Type

CONTRACT HARVEST SALES SCALE SALES LUMP SUM SALES

DNR’s Contract Harvest Program

3% 3% 6% 10%18%

12% 14% 10% 8%

25% 30% 29% 19%12% 24% 17% 22%

16%

72% 67% 65%71% 69%

64%70% 68%

76%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012 2013 2014 2015

% of Volume Sold by Sale Type

CONTRACT HARVEST SALES SCALE SALES LUMP SUM SALES

DNR’s Contract Harvest Program

[VALUE]

[VALUE]

357,530

MMBF by Sale Type - FY2015

CONTRACT HARVEST SALES SCALE SALES LUMP SUM SALES

DNR’s Contract Harvest Program

Lessons learned:

• Time management and workload.

• Roles and responsibilities.

DNR’s Contract Harvest Program

Lessons learned:

• Restructuring business technologies

• Monitoring log quality control

• Training

DNR’s Contract Harvest Program

Lessons learned:

• Identify market driven log sorts

• Manufacture logs that optimize revenue

• Tighter cruises needed

DNR’s Contract Harvest Program

Future Outlook

• Evolving program

• More efficient and flexible

• Higher financial returns to the beneficiaries

Questions ??

Contacts: