Delivered product sales application process is open
BOISE, Idaho (KIFI) - The application period is open for logging contractors to sign up for Idaho Department of Lands’ (IDL) Delivered Products Sales Pilot Program.
Delivered Products is new to IDL and allows the agency to contract directly with loggers for harvesting and delivering timber products to purchasers.
Timber harvesting contractors must apply to become eligible bidders for IDL’s harvest and hauling contracts. Qualified contractors will then have the opportunity to bid on available sales.
IDL is accepting applications through Sept. 1, 2023, at 5 pm PT. A simple online application can be found on IDL’s website.
Following the application period, qualified contractors will be contacted to bid on an upcoming delivered product sale this fall. The sale will be located approximately five air miles Southeast of Coolin, Idaho, and will allow for the harvest and haul of approximately 1,500 MBF of timber. The sale is within the Priest Lake Supervisory Area.
Timberland owners use two basic timber sale models for selling forest products, with timber sold either as stumpage or as delivered products. Until now, IDL sold endowment timber using the stumpage model, with standing timber sold at public auction and purchasers being responsible for harvesting and removing the trees at their expense.
Now, under Delivered Products, IDL will sell at public auction specific product sorts like pulp, posts and poles, sawlogs, cedar poles, or house logs directly to end-users, contracting with loggers to harvest and deliver the product sorts.
“The pilot project will determine if the delivered products model will empower IDL to strategically market sales and specific products to improve net return and capture higher values, thus helping the agency meet its constitutional mandate to maximize long-term returns for the beneficiaries,” Director Dustin Miller said.
“In our research we found that other states and companies that sell timber as delivered products report net revenue increases of 10% to 20% compared to the traditional stumpage sell,” he added.
“Associated Logging Contractors (ALC) of Idaho has long supported the Land Board and IDL on this effort, it is good to see this first step launched,” ALC’s Executive Director Shawn Keough said. “The ALC encourages contractors to fill out the simple form and get their name on the list in the event a project comes up in their area they’d like to bid on,” she added. “This program may help small contractors with their businesses as it opens a ‘seat at the table’ so to speak.”
Montana and Washington both use stumpage sales and delivered product sales to sell state-owned timber. Industrial landowners and most consultant foresters working with larger private landowners also use the delivered product sale approach because it provides increased revenue and better control of timing and results for their clients.
The Idaho Legislature and Governor approved IDL’s FY2021 budget request for $500,000 to implement a Delivered Product Sales Pilot Program. Subsequently, in March of 2022, IDAPA 20.02.14 was updated to authorize IDL to sell endowment timber as delivered products.
