Manual for the Appraisal of Timberland

Appendix C.
Timber Management Cost Model for Texas Timberland

Cost Item Frequency

Property taxes Annually

Consultant fees At time of harvest (average of three times during a 35-year rotation)*

Consultant fees for management/administration Annually

Accountants fees Annually

Reforestation expenses (site preparation, seedlings, planting, etc.) Once every 20 to 35 years

Boundary line maintenance Once ever 5 to 10 years (average is 7 years)

Fire break/lane establishment Once every 20 to 35 years

Fire break/lane maintenance Once every 1 to 3 years (average is 3 years)*

Road maintenance Once every 3 to 5 years (average is 4 years)*

Timber stand improvement

herbicide application

prescribed burning

pre-commercial thinning

fertilization

pruning

Once every 3 to 5 years (average is 3 years)*

Once every 3 to 5 years (average is 3 years)*

Once every 20 to 35 years (once during rotation possible)

Every 10 to 35 years

Every 12 to 35 years

Surveying Once during ownership if boundaries are maintained

Legal fees Once every 5 to 10 years

Pest control Once every 3 to 10 years (average is 7 years)*

Pest Inspection Annually

Insurance Annually

Travel to forest (reasonable travel) Once or more annually

* Recognizing the wide range of ownership objectives and intensity of management, for any specific management activity, a range of years is provided. But the average time period presented is the recommended reasonable length of time for the prudent manager.

Note: If a chief appraiser is using information received from a contractor maintaining or harvesting timber for the landowner, depreciation on capitalized equipment cannot be considered a timber-management cost factor. However, if the landowner is maintaining or harvesting the timber, depreciation on capitalized equipment is a timber-management cost factor that should be included by the chief appraiser.

Cost Item	Frequency
Property taxes	Annually
Consultant fees	At time of harvest (average of three times during a 35-year rotation)*
Consultant fees for management/administration	Annually
Accountants fees	Annually
Reforestation expenses (site preparation, seedlings, planting, etc.)	Once every 20 to 35 years
Boundary line maintenance	Once ever 5 to 10 years (average is 7 years)
Fire break/lane establishment	Once every 20 to 35 years
Fire break/lane maintenance	Once every 1 to 3 years (average is 3 years)*
Road maintenance	Once every 3 to 5 years (average is 4 years)*
Timber stand improvement herbicide application prescribed burning pre-commercial thinning fertilization pruning	Once every 3 to 5 years (average is 3 years)* Once every 3 to 5 years (average is 3 years)* Once every 20 to 35 years (once during rotation possible) Every 10 to 35 years Every 12 to 35 years
Surveying	Once during ownership if boundaries are maintained
Legal fees	Once every 5 to 10 years
Pest control	Once every 3 to 10 years (average is 7 years)*
Pest Inspection	Annually
Insurance	Annually
Travel to forest (reasonable travel)	Once or more annually
* Recognizing the wide range of ownership objectives and intensity of management, for any specific management activity, a range of years is provided. But the average time period presented is the recommended reasonable length of time for the prudent manager. Note: If a chief appraiser is using information received from a contractor maintaining or harvesting timber for the landowner, depreciation on capitalized equipment cannot be considered a timber-management cost factor. However, if the landowner is maintaining or harvesting the timber, depreciation on capitalized equipment is a timber-management cost factor that should be included by the chief appraiser.