Stumpage Pricing Challenges for Lake States Foresters in Q3 2024

Stumpage index pricing presented a grim prospect for foresters in the Third Quarter of 2024 in the Lake States, with the sole exception of some sawlog species’ index prices in Northern Wisconsin regions and Minnesota. Michigan prices were down across the board.

Pulpwood prices were down in nearly all species in the three lake states and by double-digit percentages in many cases.

Bleak market conditions were reflected in questions and comments from foresters and forest managers that Forest Data Network talked to in compiling prices during the quarter, with many landowners commenting on difficulties interesting loggers in a transaction.

An unusual influence on the market was the discussion of a high volume of wood coming onto the market out of the inventories of six Besse Group sawmills. The Besse mills in Wisconsin closed and all six mills including two in Michigan are up for auction arranged by a court-ordered “receiver”. This sparked speculation of a January 2025 rebound when that inventory bulge runs out.

Despite trends in other states, Wisconsin sawlog index prices grew by double digits in contrast with a slow 2023. Even mixed hardwood prices grew by 10% over the prior year to over $180/mbf statewide. Only spruce sawlog prices declined and the price drop was marked.

Prices were strong in Northern Wisconsin regions, including oak prices in the Chippewa region and pine prices in the Northern Lakes region.

Minnesota had stronger oak and maple mbf prices in contrast with a quite weak 2023 market. Pine cord prices in Minnesota increased on average to $35/ cord from 2023.

Another bright spot was good prices on sales of black walnuts in all three states.