17
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:
