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(i.e. 50/50, 60/40, etc.)
- High risk
- Average-low to average landowner returns
Cons:
- Landowner receives financial payment from delivered receipts that the logger returns to the landowner.
- The logger is making the judgment on which trees to select for harvest.
- The landowner gets paid on the logger's work schedule.
- No competition built into the equation and no third party observation to ensure landowner's fairness.
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- Often a smaller sized logging operation; many larger, more experienced logging operations are held by timber procurement operations (sawmill, or consolidation yards).
- Procurement operations that purchase on a pay-as-you-cut have a much higher control of scaled volumes, and values. Landowner has a greater risk of reduced volumes and reduced values.
Pros:
- Works best on woodlots with high variance in timber quality, lower basal area (# of trees per acre)
and smaller stem sizes
- Works best on woodlots with lower quality or smaller harvest volumes.
- If the logger and landowner relationship is strong, often the logger will do odd jobs for the landowner at the same time
- If the logger is reputable and you know them really well, you will be treated fairly on your delivered receipts; in that the logger works on scale and price as well.
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