Cowlitz Chapter

Meeting with Ray Teter, CPA

Thursday, June 23rd, 2022   5:30 P.M. – 7:00 P.M.

Clock Tower Conference Room, Cowlitz River Dental Office, Second Floor  

358 Front Avenue NW, Castle Rock

Ray Teter, an accountant with Ragan & Brown CPAs’ P.S. in Longview, will discuss timberland record keeping and accounting practices. Topics to be examined are acquisitions, basis for land asset, basis for timber asset, capital gains of the timber harvest either 631(a), 631(b) or lump sum, treatment of costs (site prep planting, maintenance, pre-commercial thinning, commercial thinning, depletion), Form T (timber) and state taxes. Parking is available along Front Street or in the parking lot between the Red Canoe Credit Union and Cowlitz River Dental Office.

Notes from Log Buyers' Forum - May 19th

The meeting was held at the Sunnyside Grange with five log buyers participating. The following is a short summary of each presentation.

Erik Metcalf, Cascade Hardwood Group, said that average logs were 8-9” tops and 26-28 feet long. The market is softening a bit but is still tight, especially the maple market. Cascade Hardwood supplies 25 grades of alder lumber and are the only suppliers of alder that is 10/4” and 12/4” thick. Some uses are for cabinets, paint brush handles and stock for musical instruments. There was some discussion regarding the changes in the Oregon buffer rules for small streams. Many landowners are cutting their buffers this year before the change in rules. This may affect the market especially for alder as it generally grows close to streams.

Ken Maurer, RSG and Gram, said that RSG is the 10th largest lumber manufacturer in the U.S. With the 20% retreat in home sales during the last two years, Ken believes there will be a downturn in the market. However, another factor is that people are moving out of cities to the country. Millennials in particular have enough wealth to work from home in a location of their choosing. Enough wood is coming into the mills even with the wet spring. Ken emphasized that we need to be promoting the fact carbon is being stored in wood products and we are a very environmentally responsible industry. The Kalama mills are running 2 shifts for Douglas fir and 2 shifts for cedar. One of their biggest issues is getting enough employees.  

DeDe Stover, Weyerhaeuser Export buyer, said that the export market is strong with the highest prices in the last 20 years. Russia’s invasion on Ukraine has disrupted lumber shipments from Eastern Europe to Asia, so builders who rely on European redwood have increased interest in Doug-fir. Russia has banned exports of chips, veneer and logs to Asia. Russia lost their PEFC certification and having this certification of sustainable forestry practices is becoming important. The Korean market is always looking for logs to replace ones in their aging temples. These temple logs need to be over 31 inches on the small end and 36 feet and longer. Korea also wants high quality white wood. China has had many Covid shutdowns and their inventories are low. China takes a variety of wood but presently no pine. Japan wants a nice, clean, straight log and uses high tech scanners so log manufacturing quality is important to them. Container ships are very expensive to operate and the estimate was $2.6 million/ trip plus $31,000 per day. Weyerhaeuser’s labor contract expires on June 1st and longshoremen contract is up on July 1st.

Matt Ellery, Bell Lumber & Pole Company, said that they buy poles all over the U.S. On the West Coast, there are mainly peeling poles in Longview. Transmission poles are generally 65 to 100 foot Douglas fir with an 18 inch butt. Bell’s products also include piling. The pole supply is very dependent on other markets because there is only a small percentage of a stand (maybe 10%) that meets the specifications for the poles market. This year, Bell has been able to acquire all the wood needed. This is their 3rd year of operating one shift in Longview. Matt said that their specifications were the same as export, a straight log only longer.

Kent Jones – Oeser Company and Alder Slicers, Oeser’s West Coast mill is located in Bellingham and the company has been in operation since 1929. They use both Douglas fir and Western Red cedar with lengths from 35 to 120 feet. The Red alder slicers are made into a thin veneer. The log yard is near Onalaska. Prices are strong between $1200 to $1600/ Mbf. No defects are important with the product being exported mostly to Korea.

Many thanks for an educational evening.

Log Buyers' contact Information is below.

Erik Metcalf, Cascade Hardwoods Hardwood Logs erikm@chwa.com  (360) 269-0700
Matt Ellery, Bell Lumber & Pole Company Poles matt.ellery@blpole.com  (541) 405-6066
Kent Jones, Oeser Company Slicer alder and poles kentj@oeserco.com (360) 827-2790
Kent Maurer, RSG & Gram Cedar & domestic logs kmaurer@rsgfp.com (360) 430-2643
Dede Stover, Weyerhaeuser Export Douglas-fir and white wood dede.stover@weyerhaeuser.com (360) 431-8667
     

Save the date: The CFFA picnic will be at noon on July 23rd this year on the Andrews Tree Farm on the Coweeman River up Rose Valley. The lunch will be potluck with the chapter supplying hamburgers and beverages. Please bring a small salad or dessert. Bring lawn chairs, if you have ones that are easy to transport. WFFA members from other chapters are welcome.

To reach the Andrews Tree Farm from the north or Longview go to I-5 exit 36 and go south on Old Pacific Highway towards Carrolls for about 1.5 miles, then left onto Rose Valley Road for 3.7 miles. Turn left at the Mark Andrews Tree Farm sign. From the south, take I-5 exit 32 then north on Old Pacific Highway past Carrolls and turn right on Rose Valley Road (address is 2336 Rose Valley Road).

NEW MEMBER RATE - Our chapter continues to seek more members and we need the current members help.  With the reduced new member rate and the Cowlitz chapter paying $10, the cost for 2022 is only $35 for the first year. New members will receive a WFFA sign and a book Stewards of the Land. If you are a new member and haven’t received these items, please ask at the meeting or email cowlitzfarmforestry@gmail.com.

 

 

 

Contact Us

cowlitz@wafarmforestry.com

Officers

President:    Ron Pursley

Vice President:    Johnny Hill

Secretary:    Sara Pursley

Treasurer:    Walt Vandeperre

Board Member:    Debbie Peck

Board Member:    Pat Huson

Board Member:    John Keatley

Board Member:    Erik Metcalf

Board Member:    Byron Hinners

Past President:    Butch Ogden

More information

Please contact President Ron Pursley, cowlitz@wafarmforestry.com for details on upcoming events

Membership