Campbell Global selling East Texas timberland

[C.Read]

http://www.kjas.com/news/local_news/article_6a1b8d4c-5a07-11e8-979c-575267887672.html

[AntlerCollector]

Well I guess I can expect a big rate hike in my leased land

[Man]

"The company estimates that the will grow from the current 2.8 million tons of wood harvested per year to more than 5 million tons by 2028."

Well at least it sounds like we won't lose our leases.

[muddyz]

$1,240 an acre, heck of a deal.

[Easttxbowman]

$1,240 an acre, heck of a deal.

If you knew what kind of supply agreement to GP that’s included with that purchase you’d be saying it’s ridiculously high. Campbell didn’t make money off that’s sale.

[AntlerCollector]

"The company estimates that the will grow from the current 2.8 million tons of wood harvested per year to more than 5 million tons by 2028."

Well at least it sounds like we won't lose our leases.

No we will just lose our woods!

[Bayouboy]

No we will just lose our woods!

Or, maybe they will harvest and replant in an educated manner. Go to states like Ga. and see how their timber is harvested and regrown. Nothing like the East Tx dumpster fires we have going on.

My lease is part of this transaction. We have been expecting it any day. Glad it’s over.

[jaspermac]

Or, maybe they will harvest and replant in an educated manner. Go to states like Ga. and see how their timber is harvested and regrown. Nothing like the East Tx dumpster fires we have going on.

My lease is part of this transaction. We have been expecting it any day. Glad it’s over.

Comparing GA pine management to east Texas pine management is like comparing south Texas deer management with Canadian deer management.

You are obviously not educated in this matter but I'll listen to how you think so.

Campbell made some horrible decisions but some where out of their control. They paid way too much at the top of the market and got in a bad for them but good for GP and IP fiber agreement. They had to cut twice the timber to pay the note. there are some super great guys that manage the property and I think they do a great job.

[backwoods]

If you knew what kind of supply agreement to GP that’s included with that purchase you’d be saying it’s ridiculously high. Campbell didn’t make money off that’s sale.

Can you please elaborate? Did the supply agreements call for too much or too little?

[backwoods]

Comparing GA pine management to east Texas pine management is like comparing south Texas deer management with Canadian deer management.

Can you please explain this more? I’m Curious to know the difference

[Bayouboy]

Comparing GA pine management to east Texas pine management is like comparing south Texas deer management with Canadian deer management.

You are obviously not educated in this matter but I'll listen to how you think so.

Campbell made some horrible decisions butler where out of their control. They paid way too much at the top of the market and got in a bad for them but good for GP and IP fiber agreement. They had to cut twice the timber to pay the note. there are some super great guys that manage the property and I think they do a great job.

Maybe not as educated as you. But, my eyes don’t lie. And, I have seen how timber and pines are treated from La. to Georgia. Not everything is laid down, ripoed apart, and left to rot for years before replanting. I have even seen companies like Rayonier stack pines at their load out areas and let them rot. I hope to see a company come in someday with better practices. May not happen in my lifetime. But, it does not hurt to have hope.

[SwampRanger]

Since lease dues are due wonder when we will hear something?

[Easttxbowman]

Yeah no way to compare Texas to Georgia...... the management is WAY different. Their markets are way different so it calls for different management, plus the BMPs are different. That direction is misty pulpwood and small logs and it’s more than likely all on beds versus flat planting. Texas is among the leaders for forest stewardship and some of the most strict BMPs.

As far as wood utilization and being left to rot.. there are tons of reasons this happens and every single company no matter where you’re at does it. Maybe the tract got wet, logger quit, or maybe it wasn’t a company logger and anothercompany bought the timber.. in which case their performance deposit is taken away if wood is left.

[Easttxbowman]

Since lease dues are due wonder when we will hear something?

I promise you won’t lose your lease. That’s non timber income to them..

[Easttxbowman]

Can you please elaborate? Did the supply agreements call for too much or too little?

Campbell over estimated timber volume and they have a committed supply agreement to GP and IP... no matter what they have to bring in a certain amount of wood to those players. If not they are penalized HARD and have to still bring in the volume. This means Campbell has had to drop the rotation age of their plantations to meet the agreements, it’s not sustainable and they wanted out. Their land can be bought for the right price and still hold up the agreement but it would have to be cheap! Campbell’s prices for their wood was determined by other competitors and gatewood.. this means GP drove down prices for everyone and basically got all the wood they needed for dirt cheap. So essentially GP is an East Texas monopoly controlling the market and Campbell got shafted.
I agree that the Campbell guys have done a great job with what they have been handed.


Maybe jaspermac will chime and give his input also as he obviously has some knowledge about the timber industry.