Hi Aaron:
As you mentioned, MBF is a forestry term for "1000 board feet". M = Roman Numeral = 1000; BF = board feet. It is common to report stumpage, FOB, and lumber prices in $/MBF or $/BF. So, $200/MBF is equal to $0.20/BF.
To answer your question, it would also be helpful to know what was agreed upon per your written, contractual agreement with the licensed timber buyer. Is the buyer purchasing just one tree at a rate of $200/MBF ($0.20/BF), or is he offering you a flat rate of $200/MBF ($0.20/BF) for all trees? I ask this question because it is important to get all details in writing before any legal transaction takes place. Under no circumstances should it be assumed that you have to share the cost with the logger and sawmill if the actual contract states that you are to receive a flat rate of $0.20/BF. My questions to you are as follows, "Is this the rate for just one tree?" "Is this the rate for all trees?" "Is this the rate for a particular species of tree?" See where this can become confusing if you don't get everything in writing!
Back to your example--if the timber buyer offers you $200/MBF for a tree containing 800 board feet, then you should receive $160 for that tree. Again, it is extremely important to get all this information in writing to avoid any misunderstandings! Herein lies one of the many advantages to lump-sum timber sales--the total price offered is the total price paid. The landowner simply needs to know if the lump-sum price is fair and equitable to all parties involved, which is exactly why hiring a professional forester is advantageous to the forest landowner.
