This report provides a general overview of current log sort yard operations in the United States, including an extensive literature review and information collected during on-site visits to several operations throughout the nation. Log sort yards provide many services in marketing wood and fiber by concentrating, merchandising, processing, sorting, and adding value to logs. Such operations supply forest products firms with desired raw materials, which helps improve their bottom line by reducing the number of marginal logs processed. Ultimately, sorting logs leads to better use of the available timber resources. Successful log sort yards are self-sufficient and have well-established markets and a steady supply of wood. Log sort yard concepts and analyses described in this report have broad applications.

This publication discusses basic marketing and economic concepts, planning approach, and feasibility methodology for assessing log sort yard operations. Special attention is given to sorting smalldiameter and underutilized logs from forest restoration, fuels reduction, and thinning operations. A planned programming approach of objectively determining the feasibility of establishing a log sort yard operation is recommended. This critical thinking will help develop the strategic, marketing, business, and operational plans to guide the development and operation of the log sort yard. Preliminary financial feasibility should begin early in the planning process to help focus efforts on potentially viable opportunities and save time, effort, and money from chasing poor investment scenarios. After options are narrowed, detailed resource assessment, markets, and financial analyses are done. Several critical factors are considered and evaluated for each log sort yard scenario. Although commercial log sort yards have a proven track record throughout North America, small community-based and government-operated log yards have had limited success. Serious consideration must be given to employing an experienced log sort yard contractor to operate and manage day-to-day operations. Several operational, policy, and judicial issues need to be resolved for successful operation of government and community log sort yards in the United States.

The value and use of the trees removed in fuel reduction thinning and restoration treatments could be enhanced if the wood were effectively evaluated and sorted for quality and highest value before delivery to the next manufacturing destination. This article summarizes a preliminary financial feasibility analysis of a log sort yard that would serve as a log market to buy and sell small-diameter logs in western Montana. We based our evaluations on equipment for a medium-sized log sort yard that would preprocess and sort 33 million board feet of small-diameter logs per year to seven different products. The delivered log input costs represent 78.1% of the total sales revenue, whereas the yard's operating costs account for 17.7% of the revenue. The log sort yard's operating cost would be $3.74/piece or $79.53/thousand board feet. Douglas-fir (Pseudotsuga menziesii) would make the biggest contribution to the yard's gross margin because this species both represents the largest volume (45% of the input log volume) into the yard and produces high-value products (house and veneer logs). Improved knowledge regarding wood market conditions and local log supplies is a prerequisite to understanding a log sort yard's financial feasibility.