Before you begin
Local Land Services provides assistance and advice to help you prepare for, plan and undertake a forestry operation.
There are several steps you need to take before you can legally harvest timber from the native forest on your property.
This guide to preparing to undertake a forestry operation assumes that you already:
- have a valid PNF Plan
- have assessed your forest
- agree with your mapping assessment including any high koala habitat suitability.
Follow the Good Neighbour Protocol
Native forests on private land add value to the wider community through:
- economic opportunities
- cultural heritage values
- aesthetics
- environmental services.
These values often cross property boundaries.
Before you begin any forestry operation, you should engage with neighbouring landholders. This will help you to manage shared responsibilities and resolve any concerns around forestry operations.
Communication between private forest managers and neighbours should be respectful and consider each person’s land use objectives, rights and responsibilities.
Following these guidelines will help you create opportunities to improve cross-boundary relationships and land management outcomes through proactive communication.
Remember, forest processes act on both a local and landscape scale, and forest management activities can have cross-boundary implications.
Objectives of early consultation
- Build constructive relationships between private forest managers, neighbours and the community to maximise the cross-property benefits of sustainable forest management.
- Encourage communication and cooperation between forest managers and neighbouring landholders to share information and resolve issues.
- Facilitate the management of issues that cross property boundaries, including fence maintenance, pest and weed control, fire management and hazard reduction, cultural heritage, threatened species and habitat, and water quality.
Your ‘good neighbour’ commitments
- When planning forest operations, forest managers will consider the potential impacts of forest operations on their neighbours. This includes hours of operation, chemical use, and dust created from the use of unsealed roads.
- Forest managers will notify neighbours that may be directly affected before commencing forest operations and provide an opportunity for neighbours to make their views known.
- Forest managers will consider the concerns of neighbouring landholders and incorporate appropriate actions to minimise adverse impacts into forest management plans.
- Forest managers will consider limitations on local infrastructure such as roads or traffic conditions when deciding on routes of travel.
- In the event of unresolved concerns or disputes between forest managers and neighbours, the forest manager will take measures to resolve disputes and grievances in a timely manner.
Working with a forestry contractor
Under a Private Native Forestry Plan, land managers may harvest timber for a range of management and commercial purposes.
Some experienced landholders may choose to undertake their own forest management. Many others hire a consultant or contractor to help with:
- planning
- management
- harvesting
- regeneration activities
Forestry contractors may be able to:
- identify the main timber products your forest can produce
- assess the quality of the standing timber and the likely yield
- indicate the likely income that can be generated
- advise on or assist with harvest activities.
If you want to engage a forestry professional to help manage your forest, there are a range of professional associations, training and certification schemes that can help you.
Forestry Australia is a professional association of forest scientists, professionals and forest growers. It is committed to promoting integrated forest management that balances sustainable management, environmental outcomes and community needs.
Forestry Australia facilitates the Registered Forestry Professional Scheme. The scheme requires forestry professionals to meet a series of eligibility criteria including:
- a tertiary degree in forestry or related field and at
- least 30 hours of continuing professional development
- a commitment to the Forestry Australia Code of Conduct.
The Registered Forestry Scheme is subject to audit by an independent external auditor who reviews and assesses the scheme to ensure it is meeting its objectives.
Visit Forestry Australia to find more information.
ForestFit is a training and certification scheme jointly developed by the NSW Government with the Australian Forest Contractors Association (AFCA). It includes:
- a nationally recognised and endorsed forest contractor training program
- certification for contracting businesses who meet industry standards and regulatory requirements.
Visit ForestFit to find more information.
Timing your harvest
The market for timber fluctuates and often operates in cycles aligned with domestic economic activity. It can be helpful to make inquiries about the state of the log market. In a strong market there is a greater chance of getting a premium price for high quality logs. There is also higher demand for low-quality logs and species which are less preferred.
You should consider the season(s) in which you harvest and haul timber. Hauling logs from your property during wetter periods may require investment in road maintenance and gravel that would otherwise not be required. Undertaking harvesting in wetter conditions may also result in increased periods of temporary cessation and environmental impacts.
If possible, don’t be in a hurry. The trees on your property have taken many decades to grow and mature and the standing timber in them is not likely to change much from one year to the next.
Arranging the sale of timber
Arranging the sale of your timber is different to selling livestock in that there is no centralised marketplace. It is up to individual forest managers to find their log buyer(s).
Most timber is sold in roundwood form as logs. Exceptions can include split fencing timber and firewood which are sometimes cut into product in the forest. Logs can be sold at the stump (where the tree is felled), from a log landing, or delivered to a wood processing facility.
Arranging a log sale involves a large number of processes including:
- selecting and felling the tree
- extracting the log
- measuring the log
- loading and transporting the log.
To undertake these processes requires specialised equipment and expertise.
Most forest owners opt to sell their logs at the stump. They engage forestry service providers to undertake the operational and marketing tasks. The price paid for a log in the forest is referred to as stumpage price or royalty rate. The stumpage price is a residual price derived from the price which would be paid for a log delivered to a wood processing facility, less the cost of haulage, harvesting, marketing, and planning.
For high quality logs the common unit for pricing is $ per cubic metre. For low quality logs and pulp the common unit for pricing is $s per tonne. Native hardwoods' green weight may vary considerably between species but, as a guide, one cubic metre is equivalent to ~ 1.15 tonnes.
The cost of harvest and haulage is a significant component of a log’s value. It often accounts for 40-50% of the delivered price for a high-quality log and 75% of the delivery price for a low quality log.
Harvesting costs are also the most variable because the terrain and the log yield (m3 per hectare) influence them. For example, a high log yielding forest on gentle terrain will have a much lower harvesting cost than a low log yielding forest in rugged terrain.
Log haulage costs are based on distance from the forest to the wood processing facility as well as the quality of the roads along the haulage route which determine the speed at which a truck can travel.
Choosing a forestry service provider
Unless you plan to harvest your own timber, you will likely need help to sell your logs. Choosing the right forestry service provider(s) is important as they will determine how and where to sell your logs. Most forestry service providers are also log buyers who trade under a variety of names and titles.
Types of forestry service providers
Harvesting contractors play an essential role in the log supply chain. They have the needed equipment and skills to assess, fell, extract, segregate and transport timber.
If you choose to sell direct to a harvesting contractor, the usual practice is:
- they will pay you for the timber that they harvest
- they will then sell it to a wood processor(s) at a higher price to recover their costs for the harvest and haulage operations.
If you select this option, it is likely that you will only deal with the harvesting contractor.
If you wish to control where your timber goes you can sell direct to a wood processor. In NSW there are over 100 wood processing facilities with most located east of the Great Dividing Range. The large number of wood processors reflects the diversity of the market for native timber.
If you sell to a wood processor, try to match your timber to their needs as this will likely generate the best log price. To find a market for all your logs it may be necessary to sell to more than one wood processor.
Wood processors will usually have preferred harvesting contractors that they recommend you choose from. If you choose this option, the usual practice is that you will enter into an agreement with the wood processor(s) for your timber. You will deal with their preferred harvesting contractor on operational matters.
The wood processor will pay you for the timber supplied. They will also be responsible to pay the harvesting contractor for the harvest and haulage of the timber.
You may be able to negotiate to use a harvesting contractor of your choice. This will require you to negotiate agreements with both the wood processor and the harvesting contractor.
If you sell to a forestry consultant, they will usually have preferred contractors for the harvest and haulage and preferred wood processors who they sell to.
Consultants’ existing networks mean that you won’t have to spend time negotiating with individual log buyers. If you enter into an agreement with a forestry consultant they will be responsible for the payment of the contractors and the wood processors(s).
When selling directly to a forestry consultant you may be able to negotiate to use a harvesting contractor of your choice. This will require you to negotiate agreements with both the forestry consultant and the harvesting contractor.
Registered professional foresters (RPFs) are people with formal training and qualifications in forestry who are competent to provide technical advice and guidance on the management and harvesting of your forest. RPFs who are not timber buyers are able to provide advice that is independent and unbiased. Find out more about Registered Forestry Professionals at Forestry Australia.
Key considerations for harvesting and haulage
Engaging the right harvesting and haulage contractors is critical to effective forest management. Your PNF Plan approval requires all forestry operations to follow the relevant PNF Code of Practice. It is important that you select contractors that understand the PNF Codes and will ensure all forestry operations are in line with these requirements.
Whether you directly engage the harvesting and haulage contractor(s), contract through a third-party, or have a contractor assigned by the processor/timber agent, there are some key considerations that should be met.
Are they familiar with, or have experience operating under, the PNF Code relevant to your PNF Plan? Are they willing to operate under the Codes?
This is essential to ensure you as the landowner are not liable if there is an accident.
This should extend to all employees operating machinery and equipment.
Pathogens, weeds and pests are a risk when moving from one site to the next.
Are these clearly outlined?
Are these clearly identified?
Can they provide references from other recent jobs they have completed?
You may also wish to consider:
- the type of harvesting operation will they be undertaking. For example, mechanised or hand felling
- check that they will mark up the forest for trees to be felled during the harvest and whether they conduct a pre harvest survey of the area
- how viable is your PNF Plan area for the contractor? For example, if you are a small harvest area, some contractors may wish to group you in with other properties in the area. This will reduce the associated costs with harvesting
- if the contractor you are engaging will be the same for both the harvest and haulage, or if you will hire two separate contractors for these actions
- what the contractor’s management operations are:
- are their practices environmentally conscious and minimise the use of fossil fuels where appropriate? For example, by limiting machinery use, or having staff carpool polices
- will they ensure the optimal use of timber products by harvesting and selling products which would otherwise be wasted?
Where the cost, quality and capacity of local contractors is equivalent to other non-local contracts, then you should always try to use local goods and service providers.
If there are no local service providers, then this may be something you are able to help support or encourage the development of in your area if your operation is large enough.
Documentation
Once you have determined how you will sell your timber, and who your contractor will be, there are a few other important steps and considerations that should be undertaken before you start harvesting operations.
Written contracts
The following information is general in nature and not comprehensive. Advice from a registered solicitor is recommended to ensure that your written contract is valid and covers off on all relevant issues.
It is strongly advised that you have a written contract(s) with the forestry service provider(s) who have responsibility for the harvesting, haulage and sale of your logs. Having a contract ensures everyone involved is aware of their responsibilities and provides a reference point if any issues arise. It is important to ensure that fair contracts are used, and that anticorruption measures are imbedded where applicable.
It is recommended that operational contracts address the following issues:
- Roles and Responsibilities: the role and responsibilities of the parties to the agreement should be clearly set out. This should include the responsibilities surrounding the preparation of the Forest Management Plan (FMP) and management of the operation.
Compliance: having obtained a PNF Plan you have a binding agreement with LLS. It is essential that your actions and that of your contractors and agents comply with that agreement and the requirements of the PNF Codes. It is important therefore that there is an agreed process for monitoring and reporting on compliance.
It is essential that the standards against which performance will be judged are clearly specified together with the roles and responsibilities of the parties and the timing of reporting obligations.
- Reporting: it is essential that there is a clear reporting process to keep you updated on operational matters, especially any issues that relate to compliance with the PNF Codes.
If there are any breaches, you may have to rely on the dispute resolutions conditions of your contract to have these resolved.
There are reporting obligations outlined under the PNF Codes, so it is essential that you are provided with sufficient information to:
- report the proposed commencement date and estimated duration of forestry operations
- prepare a map showing the location of the proposed operations, as well as a map showing the location that they occurred after harvest
- estimate the volume of forest products harvested
- estimate the number of hectares where forestry operations occurred
- provide the date that the forestry operations were completed.
If you are going to be present on the property and assist in managing the forestry operations, you must also discuss this with the contractor to ensure all WHS obligations are met.
Dispute resolution – arrangements on how disputes are to be raised and resolved.
Log specifications, measurement and grading – the standards to which timber will assessed, serviced, measured and graded into log products.
Log price - the rates that will be paid for the various log products.
Log sale accounting – the procedures which keep track of the timber that is being removed from the property. This is usually achieved by ensuring that the haulage contractor keeps a logbook and provides you with the docket for every load that leaves your property. These dockets can form the basis for payments, depending on your payment arrangement.
Each docket should be numbered and provide details on the date and time the truck loaded, the landholders name and property details, the name of the harvesting contractor, the product type and species, and the number of logs and volume or weight of the load. Dockets are to be filled out and signed before leaving the log dump.
Payments – the terms of payment and how frequently payments are to be made.
Property Access – arrangements for access into and throughout the property.
Hours of operations and routes of travel – specify the hours of operations, and routes of travel after taking account of local community interests, and any infrastructure limitations. You may wish to consider:
- having a curfew for operating hours, especially when working close to a boundary where neighbours may be affected
- local traffic conditions, i.e. when the school bus is operating, or peak traffic periods
- what travel route restrictions there may be. i.e. are there any unsealed roads where wet weather and dust may be an issue, or roads and bridges with weight or size limit restrictions which will need to be considered.
Timeframes – for when harvesting operations will commence and be completed allowing for wet weather and market fluctuations.
Additional works – any additional works which you would like the contractor to undertake whilst on the property that are unrelated to the forestry operations. It is essential that you ensure that these are lawful activities such as the allowable activities under the Local Land Services Act 2013, the NSW Rural Fire Service 10/50 Vegetation Clearing Code, or through Development Approval from Local Council. You will need to ensure that all relevant approvals are received and made available to anyone undertaking the works.
Contract Variations – a clear process for how contract variations can occur should be established.
Agreement on the exit conditions – the PNF Codes detail certain requirements that must occur when a forest operation event has finished. This includes that log landings, portable mills sites, snig tracks and extraction tracks are drained and re-shaped and bark is to be dispersed away from log landings etc. It is important that there is a clear agreement that these obligations will be carried out by the contractor.
Site remediation - to ensure that your property is left in a state that you are satisfied with at the completion of operations.
Your next steps
Once you have a PNF Plan approval from Local Land Services, have assessed your forest, and have prepared for a forestry operation by consulting your neighbours and engaging a contractor, your next steps before conducting a forestry operation are:
- Lodging a Forest Management Plan for approval
- Notification of harvesting operations.
Contact Local Land Services NSW
Our team welcome your enquiries, feedback and comments.
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