If you or your family owns a wooded piece of land in Michigan—especially 20 acres or more—you might be sitting on a financial opportunity without even realizing it. Many landowners don’t know that responsible timber harvesting can generate real income and lower annual property taxes when paired with one of Michigan’s forest tax incentive programs.
At Buskirk Lumber, we’ve been helping Michigan landowners sustainably harvest timber for over a century. Whether you’re looking to reduce annual expenses or reinvest in your property, we can help you get the most value from your land—today and long into the future.
Turn Your Forested Land into a Financial Asset
Many of the landowners we work with inherited their property from family or purchased it years ago for hunting or recreational use. Often, they didn’t know how much valuable timber they had—or how much it was worth—until we walked the land with them.
If your property is mostly forested and at least 20 acres, you may qualify for tax savings and generate thousands of dollars in timber income, even with a modest selective harvest. All without compromising the long-term health of your forest.
What Kind of Income Can Timber Harvesting Provide?
We get this question all the time: “How much can you make harvesting timber?” The answer depends on your forest’s size, tree species, age, and health—but here’s a rough idea:
- Every 10–15 years, a well-managed forest can produce a selective harvest worth $10,000 to $25,000 or more, depending on the acreage and timber quality.
- Mature hardwoods like oak, walnut, and maple typically bring the highest returns.
- Selling directly to a sawmill (like Buskirk Lumber) allows you to skip the middleman and potentially earn more.
A harvest like this can help pay your property taxes for years, cover maintenance costs, or go toward upgrades and improvements. Even better—this doesn’t mean clear-cutting. With selective harvesting, you maintain healthy, diverse woods for future generations.
How Timber Harvesting Helps Offset Property Taxes
In addition to the income from timber sales, Michigan offers two major tax incentive programs for landowners who commit to sustainable forest management. When paired with a smart harvesting strategy, these programs can significantly reduce your annual tax burden.
1. Qualified Forest Program (QFP)
This program provides tax relief for private forest landowners who follow an approved forest management plan.
Requirements:
- Own 20–640 acres (at least 80% forested for 20–39 acres; 50% for 40+)
- Follow a forest management plan created by a qualified forester
- Keep the land privately owned (no public access required)
Benefits:
- Up to 18 mills off your school operating tax
- Prevents “uncapping” of taxable value when the land changes hands
- Encourages long-term forest health and value
Learn More About Michigan’s Qualified Forest Program
Here’s an Example:
If you own 40 wooded acres in northern Michigan with an assessed value of $150,000, enrolling in QFP could save you $1,000+ per year in taxes. Combine that with a $15,000 selective harvest every 12 years, and you’ve got a strong long-term financial strategy.
2. Commercial Forest Program (CFP)
Designed for larger tracts (40+ acres), the CFP offers steeper tax reductions in exchange for public access for hunting and fishing.
Requirements:
- Minimum of 40 forested acres
- Follow a state-approved forest management plan
- Allow public access for non-motorized hunting, fishing, and trapping
- Permanent enrollment, with penalties for withdrawal
Benefits:
- Fixed annual tax per acre ($1.35 per acre through 2026)
- No general property tax
- Promotes healthy, sustainable timber production for decades to come
Learn More About Michigan’s Commercial Forest Program
This program isn’t for everyone—especially if you prefer to keep your land private—but for the right landowner, it can mean thousands in annual tax savings.
What About the Taxes on Timber Income?
Good news: Timber sales can be treated more favorably than regular income, depending on how long you’ve owned the land.
Here’s a quick breakdown:
- Held for over a year? Timber income often qualifies for capital gains tax treatment (typically 15%) instead of higher income tax rates.
- You may also qualify for:
- Depletion allowances (deduct the cost basis of harvested timber)
- Expense deductions for replanting, maintenance, and management
- Professional guidance from a forester or tax specialist to help document it all
Why Michigan Landowners Trust Buskirk Lumber
We’re a Michigan-based company, and we understand Michigan land—because we’ve been working it since 1920. We work directly with landowners to ensure you get fair value for your timber while maintaining the long-term health of your forest.
When you work with Buskirk Lumber:
- We offer free timber evaluations
- We practice selective, sustainable harvesting
- We connect you with trusted foresters to create your management plan
- We help you understand and take advantage of property tax programs
- We handle everything from cutting to cleanup
Whether you’re trying to lower your property tax bill, prepare your land for sale, or just want to understand what your trees are worth, we’re here to help.
Ready to See What Your Timber Is Worth?
Your woods might be doing more for your wallet than you think. Contact us for a no-pressure evaluation and let’s talk about how your land can work harder for your family—without compromising its future.
Send us a message online or give us a call at (800) 860-WOOD.
Buskirk Lumber is a buyer of standing timber in Michigan. Based in Freeport, we service Michigan’s Lower Peninsula and beyond—bringing over 100 years of sustainable logging experience to every project.
