Is there money in small scale timber harvesting

[tommy timber]

My dad and I are considering starting a small logging operation like 10 to 20 acre jobs, private landowners and equipment costs are clear but we need to garner info on if there's actual profit potential at this scale or if we need to go big to make it work.

What's your honest take
We appreciate your thoughts

 

[What]

Yes, if you don't mind saying no to crappy jobs. Some people feel a need to take every job that comes along. Don't do it, better your equipment is parked in your yard, than out working a bad job. Also don't expect to get rich overnight. Some people think that logging means huge wealth, and it rarely does. If you have delusions of making a million or 2 profit every year, you'll be sadly disappointed. Last year I made about $314,000 after all expenses. Get a good bookkeeper to, that is not the place to go with the cheapest option.

 

[Rumgml3t]

@tommy timber the profit isn't in the cutting, it's in the logistics and sales.
at a small scale, your biggest bottleneck will be transportation costs and mill access. you need to make sure you can fill a log truck efficiently and consistently, and that the mill is willing to deal with a small volume supplier

your margins will be highly dependent on having a reliable, cost effective way to get the wood from the stump to the buyer. If you can haul it yourself, your profits go way up!

 

[Alan]

I agree with both points here. At that scale, careful job selection is a must. Don’t take work that barely covers costs. If you can move timber yourself and maintain good relationships with mills, small-scale operations can definitely be profitable. But it sure takes planning and discipline.