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Hardwood Revenue as a Commodity vs Value Added Firewood - How Much Do We Earn? -E196

  Рет қаралды 12,937

Oak Mountain Acotts

Oak Mountain Acotts

7 ай бұрын

In this video, we thought that we would break down our hourly pay from our hardwood operations. Does it make sense to spend our time cutting and selling to the mill or should we value add the hardwood into firewood right here on the property and sell it?
We are using the Kubota B2601 and the Kranman T1750 hydraulic timber trailer to yard some wood today while we run the numbers!
Important Note: All videos on this channel are intended for entertainment purposes only and not intended to be instructional in any way. The creator does not represent or warrant the accuracy, or proper, safe or intended use of any equipment or practices presented in the videos. Viewers should consult their own manufacturer instructional and safety information including any local laws applicable to the similar use or operation of any similar or same equipment before use. These videos are not intended to be relied upon for such correct or safe operation of same or similar equipment or practices.
This video is not sponsored.

Пікірлер: 45
@CideryFromScratch
@CideryFromScratch 6 ай бұрын
Look at those subscribers grow 👏🏻 Thanks for showing the specifics from a dollar perspective! Very value-added content 😊
@OakMountainAcotts
@OakMountainAcotts 6 ай бұрын
Thanks guys. We are grateful for all of the subscribers!
@CH-um4iy
@CH-um4iy 2 ай бұрын
It's good that you can see the big picture, most people do not!
@OakMountainAcotts
@OakMountainAcotts 2 ай бұрын
Thanks. It seems like a good sideline for us!
@thelogfather5002
@thelogfather5002 7 ай бұрын
Two completely different products. Like buying tomato seeds, or tomatoes seedlings, or tomato plants, tomatoes, or tomato sauce! It’s all the same, but every step adds a significant value to the end user and a higher investment for the producer! Great video! Those are my favourite kind! Keep up the good work, Jeff
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Thanks Jeff. I was listening to your discussion on up charging for seasoned wood... I think you are on to something there... the problem we have here is our customer base seems to be much smaller and no one is interested in buying their wood green a year ahead... Take care, Jason.
@dailesperry8256
@dailesperry8256 7 ай бұрын
It may not be them wanting to buy a year a head some don't have storage to buy ahead or just can't afford to.
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
That is the harsh reality for sure… you would have to purchase two years worth of wood in one year to start the cycle and have twice the storage space available.
@summit583ktm
@summit583ktm 7 ай бұрын
I am in the same situation as you Jason. One must remember to also add to the numbers the amount of money saved since making firewood keeps you busy so you dont have time to spend a lot of money on recreational hardware like boats, bikes, jetskis, golf vacations and so on…that is where the biggest ”income” is😂
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
This is very true. We played that game over the years too… not much return on investment with those pass times! I love my time in the woods!
@chrisbubar6604
@chrisbubar6604 7 ай бұрын
Great breakdown of the numbers Jason. I have twisted those numbers for years to make them make sense. My bottom line has been the enjoyment I get working my woodlot. If we can break even financially I'm happy. If our commodity was priced higher, that would help.
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Hi Chris, lots of ways to look at it but you could make yourself crazy figuring it all out! I’m like you, I want to stay busy and I love the work so I’m going to stay at it…
@WorkingForALiving
@WorkingForALiving 5 ай бұрын
Jason, Great video and content. Equipment is a long-term investment where minimal depreciation is offset by the increase in profitablility and the decrease in effort. We have a similar model here where we are playing the long game. Keep up the good work. Cheers. Scott
@OakMountainAcotts
@OakMountainAcotts 5 ай бұрын
Thanks Scott. We think it is a sound model. I guess we are fortunate to have some new gear around!
@noelstractors-firewood57
@noelstractors-firewood57 7 ай бұрын
Great video Jason. As long as you’re not losing money that’s a good thing. The main benefit here is, your outside doing something and getting exercise. That’s the main thing.👍🏻
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
I agree Noel. I was doing some detailed calls this morning and there are so many benefits, I know we are coming ahead. Annual growth on the woodlot from leaving the best, having a hobby that makes a little revenue instead of just spending (boats, jet skis, etc) not to mention the physical activity and mental well being from working in the forest!
@noelstractors-firewood57
@noelstractors-firewood57 7 ай бұрын
@@OakMountainAcotts 👍🏻👍🏻👋👋🇨🇦
@goatstead814
@goatstead814 7 ай бұрын
Good video, interesting to see the breakdown. Just wondering why you don’t use the bulk firewood bags , like log lift, to reduce your time and touches. With a conveyor you would be able to fill the bags without touching the wood and it dries in the bag then dump it in a trailer or truck without touching again. You could shave off a lot of time and labor.
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Hi, thanks for your feedback and question. I've been looking at the bulk bags but I can't find any at what I would consider a reasonable price. Everything is $20/bag and up... It looks like you need 3 bags per cord loose stacked so that is $60/cord. The bags would have to be durable so they could be reused year after year to get a payback.... I just can't get the math to add up yet... not saying I wouldn't try them though!
@RCAFpolarexpress
@RCAFpolarexpress 7 ай бұрын
Good Evening Sir, You Have Done An OUTSTANDING Informative Video 👌😇🧐👍Keep Warm and Happy New Year Cheers 😇👌🍻
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Thanks for the positive feedback! This one took a while to edit, that's for sure :)
@yvesjolicoeur747
@yvesjolicoeur747 7 ай бұрын
Interesting topic and like any number crunching, one can make it say whatever you want. In my view, if you are enjoying what Karen and yourself are doing...well there you go...that is worth a fortune in itself. While machinery does tend to lose value over time, well maintained it could last you a life time. Might be unusual but for the past few years, tractor prices have steadily gone up, however I could sell my 3 year old tractor for the price I paid for it. Keep having fun and be safe out there.
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Hi Yves, I agree with you... this is what we love to do and that pretty much sums it up! I'm sure the used equipment market will change but I could sell my backhoe now for what I paid for it back in 2008... crazy world!
@MrBuckAll
@MrBuckAll 7 ай бұрын
Here is my take on this….If you do the logging yourself with small equipment you end up losing revenu vs contracting out to someone with a harvester…the harvester will pay 40-50$ per cord standing wood so the real difference that you must work with for extraction budget is 130-25$ trucking 105-45$ for the value standing timber you are left with 60$ for 2 h man and saw plus 1 hour tractor if we put the numbers for saw at 5$/h and tractor at 35$/h you are left with 20$ for your time of 3 hours…This is why I buy logs even tho I have 100’s of acres, when i buy a load it is the specification I want with the species my firewood customers want. Thanks For another good video Jason
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Thanks for the calculations! I subscribed to your channel and will check out some videos. My neighbour had some hardwood cut three years ago by a local contractor with harvester and forwarder. They paid $38/cord for everything that came off of it... I thought that was a little low? Take care, Jason.
@MrBuckAll
@MrBuckAll 7 ай бұрын
@@OakMountainAcotts The corporations that get access to crown land used to be required to buy a mandated volume from private landowner before they were allowed to cut on crown land. The regulations were removed in the early 2000’s and lumber prices have been going down ever since! Prices should be 100$/cord higher that what they are now
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
I agree. I’d like to see crown rates raised and land thinned sustainably sending fuel wood for hog to make power for the province. The small wood lot owners would have a chance at making a buck!
@benzie692
@benzie692 7 ай бұрын
As a seller of any product, I set the price, not the buyer. If the buyer thinks they can tell me what the price is, then they clearly don't need what I'm selling that bad! (And yes, I do understand the forest industry very well...just my independent thinking on the subject). The company you spoke of just idled their big pulp mill in Ontario...given current pulp prices, its tuff to operate a pulp mill on an economically viable basis....this is the second pup mill in Ontario to shutdown over the past 6 months. The company at least in Ontario paid their suppliers the absolute bottom of the barrel prices for wood which makes it difficult for the suppliers to run a profitable business. Anyway, from the business aspect, you really do need to factor in the cost of production beyond your time to account for the real and legitimate cost of your equipment and fuel, etc. Not doing so is a disservice to yourself, despite the positive aspects you mentioned re. your overall financial reality if you will. Event you will have to spend big coin to either repair or replace equipment as it wears out... you could offer some high-grade firewood in smaller quantities at higher prices to try to increase revenues and / or you could consider selling log length firewood to buyers that want to process their own wood. In northwestern Ontario, hardwood (white birch) sells delivered for $200/ cord currently. Not sire if this helps you at all but at least some food for thought.
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Great comment and insight! I'm familiar with the mill in Terrace Bay and had visited a few times over the years. The pulp business is challenging to say the least and this is one of the reasons I decided to hang up my hat and move to a different sector with 20 years left in my working career. We watch our numbers pretty close as you can imagine and this is working for us. I think a stand alone firewood business is volume based and 6 days a week to make it work. You would definitely need to look at every opportunity to value add as well. Sort your species, sort your size, market creatively and go after some high return niche markets. I've always thought of cutting white birch and selling it at a premium if you will in smaller quantities for people with stone fireplaces looking for the aesthetic factor... at the very least, I'm going to put up a few cords of birch this year and sell it at a lower price than premium hardwood just to move a few sticks. We have a lot of it here on our woodlot... I hope you enjoyed the video! Jason
@buckinfirewood
@buckinfirewood 7 ай бұрын
Interesting.. but how about all the numbers?.. financing, fuel, repairs, maintenance, wear and tear and consumables.. do you deliver for free? Too many missing parts..
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Now that would be a video! As you know, there are a lot of factors that come into play in this business. That's why we elected to keep it high level and compare gross revenue to start.... the devil is in the details though so you have to monitor it all to make sure your net worth is increasing and not diving the wrong way!
@buckinfirewood
@buckinfirewood 7 ай бұрын
@OakMountainAcotts yes I've found that first hand.. the hard way that is.. we barley made it into 2024.. now we just gotta scrape by to March and we should be fine .. alot of changes in how we operate.. but with all the great people around us now and the hard lessons we will be good .. if we can make it to March
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Hang in there…
@rossnolan2883
@rossnolan2883 7 ай бұрын
Congratulations 🥳
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Thanks for watching!
@outdoorswithlarryrobin
@outdoorswithlarryrobin 7 ай бұрын
Hello Jason, Practice makes perfect, Your getting good loading logs. You have to have a lot of land for People to understand, we use our equipment for a lot more than Firewood, Stay Safe 🪵👍🏼🇺🇸
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Thanks for stopping by guys. What a nice day to be in the woods! Take care, Jason.
@toddyuill3924
@toddyuill3924 7 ай бұрын
Great video we have a logger thinning now because of the age of our stand and no time to do it like you guys do I wish I could do it like that haha but in a few years when I retire I would like to have a setup like you do keep up the good work
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Thanks for the positive feedback! Unfortunately we have hundreds of acres we haven’t started commercial thinning yet! Most was precommercial thinned 20 years ago but we’ve never been back…
@toddyuill3924
@toddyuill3924 7 ай бұрын
@@OakMountainAcotts your doing a good of leaving the best and cutting the rest
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Thanks so much. We love to get feedback like this!
@bwillan
@bwillan 7 ай бұрын
It is certainly food for thought. Joe at Ohio Wood Burner (youtube channel) whole business philosophy is value added firewood. He specializes in selling smaller quantities of firewood to his customer base.
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
I'm envious of the guys near the big markets that can bundle, sell to specialty restaurants, pizza oven owners, etc.... we are pretty much limited to bulk sales for home heating here :)
@rickbell3402
@rickbell3402 7 ай бұрын
Jason, if you and Karen feel that the firewood work is worth your time, that’s all that matters.
@OakMountainAcotts
@OakMountainAcotts 7 ай бұрын
Hi Rick, we love it. Great way to put in the time and get a little exercise along the way!
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