Instructions for Appraising Stumpage On National Forests

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The average lumber selling prices extended to log scale are thus: For green timber ($18X1.10) $19. 80 For dead timber ($15X1.10) 16. 50 The milling and haulage costs, similarly extended, total $7.48.
Stumpage rates may then be determined by the formula, X=S —Lc— Mc—D—P, all in terms of log scale, as follows: For green timber: $19.80-$6.02-$7.48-$0.93-$2.55=$2.82.
For dead timber: $16.50-$16.98, as above, = -$0.48.
1 It is assumed that the mill will operate 10 months in the year, cutting 150,000
... feet of logs per month, or figuring overrun at 10 per cent, 165,000 feet of lumber.
2 The average value of the mill used in calculating taxes and insurance is $2,750, the average interest, bearing investment. The value of the yard stock of 330,000 feet is: Assumed stumpage rate, S3, and logging c^ 02 costs, exclusive of supervision, $5. 02, both reduced to mill-tally basis; that is, =$7.29; together with milling costs, S4.20. The latter exclude taxes, insurance, and haulage. The total of $11.49 times 330,000 makes the average yard stock worth $3,791.70.


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