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Surety Bonds for Forestry Timber Sale Contracts

A truck is loaded with timber

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Forests provide the public with timber for personal and professional use. Removal of trees can help landowners make money while enhancing the forest ecosystem. But if done incorrectly, removing timber could harm the surrounding wildlife and water sources.

When a landowner, either a private owner or the government, wants to sell timber on their land, they may want to protect their land by having the buyer or logging company obtain a timber sale contract surety bond.

Obligee and Surety Bonds:

The obligee is the entity requiring a surety bond or a performance surety bond. Many state governments require buyers or loggers to acquire a bond and the USDA Forest Service requires a maximum $500,000 surety bond depending on the type of timber and number of trees to be harvested and other factors such as the price the timber when sold. A surety bond ensures that the contract between a landowner and the buyer or logging company is upheld. After the job is completed and the terms of the contract are satisfied, the bond can be released.

Timber Contracts:

In order to protect the landowner and the forest, it is recommended that a professional forestry consultant is hired. A forester can ensure that all laws are followed, help landowners get the best price for their timber, and make sure that precautions are taken to protect surrounding wildlife during and after timber harvesting.

A timber sale contract should be specific and include:

  • Information on the land owner
  • Information on the buyer or timber company
  • The exact location of the timber to be cut
  • The timeframe of when timber can be cut
  • The price to be paid, and when payments will be made
  • Amount of surety bond with bond requirements

What Will This Bond Cost?

The premium you pay for a Timber Sale Contract Surety Bond depends on various factors such as the bond amount and regulations of your state or federal requirements. Our Surety Bond Specialists can provide you with a referal for companies that issue these bonds and that fits your specific project. Call us today at 844-432-6637 or email info@SuretyGroup.com for your referral.

Did You Know?

Factors that can affect the price of timber include quality of timber, number of trees to be cut, size and species of trees, market demand, and location of the trees.

Related Links:

U.S. Forest Service - Forest Products

More Surety Bond Questions?

Check out our FAQ page or What’s a Surety Bond? page. Should you need or choose to buy a surety bond, buy from us. SuretyGroup.com has been underwriting surety bonds throughout the U.S. for more than 35 years. When you work with us, you enjoy the unique benefit of dealing with a team of highly experienced surety agents with in-house underwriting authority. This allows you to receive competitive, low rates, quick approvals, and immediate bond delivery. In most cases, your bond will be delivered within 24 hours after you apply for it.


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