Alabama Timber Price Trends

Alabama Forest Owners Association October 20, 2010

Timber Mart-South

Timber Mart-South

Thomas G. Harris, Jr. Publisher, Timber Mart-South Professor, University of Georgia Sara Baldwin, Jonathan Smith, Robert Simmons
TimberMart-South 2

Alabama Stumpage Prices

4th Quarter 1976 3rd Quarter 2010
$60 Pine Sawtimber Pine Chip-n-Saw Pine Pulpwood Hardwood Sawtimber Hardwood Pulpwood $50

$40 US$ per ton

$30

$20

$10

$0 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
3

Timber Mart-South

TimberMart-South

Alabama Stumpage Prices

Percent Change 3Q 2010 from 3Q 2009, 3Q 2005 & 3Q 2000
60% 40% Pine Sawtimber 20% 0% -20% -40% -60% 1 year
Timber Mart-South

Pine Chip-n-Saw Pine Pulpwood Mixed Hardwood Sawtimber Hardwood Pulpwood

5 year

10 year
4

TimberMart-South

North Alabama Stumpage Prices

Percent Change 3Q 2010 from 3Q 2009, 3Q 2005 & 3Q 2000
50% 40% 30% 20% 10% 0% -10% -20% -30% -40% -50% -60% 1 year
Timber Mart-South

Pine Sawtimber Pine Chip-n-Saw Pine Pulpwood Mixed Hardwood Sawtimber Hardwood Pulpwood

5 year

10 year
5

TimberMart-South

South Alabama Stumpage Prices

Percent Change 3Q 2010 from 3Q 2009, 3Q 2005 & 3Q 2000
80% 60% Pine Sawtimber 40% Pine Chip-n-Saw 20% Pine Pulpwood 0% -20% -40% -60% 1 year
Timber Mart-South

Mixed Hardwood Sawtimber Hardwood Pulpwood

5 year

10 year
6

TimberMart-South

Alabama Pine Average Stumpage Prices

$60

4th Quarter 1976 3rd Quarter 2010

Pine Sawtimber

$50 Pine Chip-n-Saw $40 US$ per ton Pine Pulpwood

$30

$20

$10

$0 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009
7

Timber Mart-South

TimberMart-South

Alabama Hardwood Average Stumpage Prices

4th Quarter 1976 3rd Quarter 2010
$35 $30 $25 US$ per ton

Hardwood Sawtimber Hardwood Pulpwood

$20 $15 $10 $5 $0 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009

Timber Mart-South

TimberMart-South

Alabama Pulpwood Average Stumpage Prices

4th Quarter 1976 3rd Quarter 2010
$18 $16 $14 $12 US$ per ton $10 $8 $6 $4 $2 $0 1976 1979 1982 1985 1988 1991 1994 1997 2000 2003 2006 2009

Pine Pulpwood Hardwood Pulpwood

Timber Mart-South

TimberMart-South

Alabama Average Pine Sawtimber Stumpage Prices vs. South-wide Average

2000 through 3rd Q 2010
$60 $50 US$ per Ton $40 $30 $20 $10 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

SE Pine Sawtimber AL Pine Sawtimber

Source: Timber Mart-South TimberMart-South 10

Alabama Average Pine Chip N Saw Stumpage Prices vs. Southwide Average
2000 through 3rd Q 2010
$50 $45 $40 US$ per Ton $35 $30 $25 $20 $15 $10 $5 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SE Pine CNS AL Pine CNS

Source: Timber Mart-South TimberMart-South 11

Alabama Average Pine Pulpwood Stumpage Prices vs. South-wide Average

2000 through 3rd Q 2010
$14 $12 $10 US$ per Ton $8 $6 $4 $2 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
12

SE Pine Pulpwood AL Pine Pulpwood

Source: Timber Mart-South

TimberMart-South

Alabama Average Hardwood Sawtimber Stumpage Prices vs. South-wide Average

2000 through 3rd Q 2010
$32 $28 $24 US$ per Ton $20 $16 $12 $8 $4 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 AL Hardwood Sawtimber SE Hardwood Sawtimber

Source: Timber Mart-South

TimberMart-South

13

Alabama Average Hardwood Pulpwood Stumpage Prices vs. South-wide Average

2000 through 3rd Q 2010
$20 AL Hardwood Pulpwood $15 US$ per Ton SE Hardwood Pulpwood $10

$5

$0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Timber Mart-South

TimberMart-South

14

North Alabama Average Pine Sawtimber Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$60 $50 $40 $30 $20 $10 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

US$ per Ton

AL Reg 1 Pine Sawtimber SE Pine Sawtimber

Timber Mart-South

TimberMart-South

15

North Alabama Average Pine Chip N Saw Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 $0 2000 2001 2002 2003

US$ per Ton

AL Reg 1 Pine CNS SE Pine CNS

2004

2005

2006

2007

2008

2009

2010
16

Source: Timber Mart-South

TimberMart-South

North Alabama Average Pine Pulpwood Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$16 $12 US$ per Ton

$8

$4

AL Reg 1 Pine Pulpwood SE Pine Pulpwood

$0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Timber Mart-South

TimberMart-South

17

North Alabama Average Hardwood Sawtimber Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$36 $32 $28 US$ per Ton $24 $20 $16 $12 $8 $4 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SE Hardwood Sawtimber AL Reg 1 Hardwood Sawtimber

Source: Timber Mart-South TimberMart-South 18

North Alabama Average Hardwood Pulpwood Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$20 $16 US$ per Ton $12 $8 $4 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 AL Reg 1 Hardwood Pulpwood SE Hardwood Pulpwood

Source: Timber Mart-South TimberMart-South 19

South Alabama Average Pine Sawtimber Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$60 $50 US$ per Ton $40 $30 AL Reg 2 Pine Sawtimber $20 SE Pine Sawtimber $10 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Timber Mart-South TimberMart-South 20

South Alabama Average Pine Chip N Saw Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$50 $40

US$ per Ton

$30 $20 AL Reg 2 Pine CNS $10 SE Pine CNS $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Timber Mart-South TimberMart-South 21

South Alabama Average Pine Pulpwood Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$16 AL Reg 2 Pine Pulpwood SE Pine Pulpwood $8

$12 US$ per Ton

$4

$0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
22 Source: Timber Mart-South TimberMart-South

South Alabama Average Hardwood Sawtimber Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$40 $35 $30 US$ per Ton $25 $20 $15 AL Reg 2 Hardwood Sawtimber $10 $5 $0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 SE Hardwood Sawtimber

Source: Timber Mart-South

TimberMart-South

23

South Alabama Average Hardwood Pulpwood Stumpage Prices vs. South-wide Average
2000 through 3rd Q 2010
$20 AL Reg 2 Hardwood Pulpwood $15 US$ per Ton SE Hardwood Pulpwood

$10

$5

$0 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Source: Timber Mart-South TimberMart-South 24

Timber-Mart South

Final Questions
TimberMart-South 25