Legal Definitions - stumpage

Stumpage refers to several related concepts concerning timber that is still standing on land. It can mean:

• The actual trees themselves, before they are cut down.
• The monetary value assigned to these standing trees.
• The legal right or permission granted to someone to cut down and remove these trees.
• The payment made for obtaining that right or permission.

In essence, stumpage deals with the value and rights associated with unharvested timber.

Examples:

• Example 1 (Focus on value and fee): A private landowner, Ms. Chen, owns a large tract of forest. She decides to sell the mature pine trees to a logging company. The price the logging company pays Ms. Chen for the right to cut and remove those specific trees is considered the stumpage fee. The overall estimated worth of those trees before they are cut is their stumpage value.

  Explanation: This illustrates both the monetary value of the standing trees and the payment made for the right to harvest them.

• Example 2 (Focus on the right/license and the physical timber): The State Forest Service issues a permit to a timber company allowing them to harvest a designated section of public forest. This permit grants the company the stumpage right, giving them the legal authority to cut down the specified stumpage (the standing trees) within that area.

  Explanation: This shows "stumpage" referring to the legal permission (the right) and also to the physical trees themselves that are subject to that right.

• Example 3 (Focus on valuation for different purposes): A real estate appraiser is evaluating a large rural property for sale. To determine the full market value, the appraiser assesses not only the land and any buildings but also the commercial worth of the mature hardwood trees growing on the property. This assessment of the trees' value, before they are harvested, is part of the stumpage valuation, which contributes to the overall property appraisal.

  Explanation: Here, "stumpage" refers to the inherent value of the standing timber, even if there's no immediate plan to cut it, for purposes like property valuation or insurance assessment.