Skip to content
MMBONDING
U.S. Forest Service, BLM California, CAL FIRE (state forests), private landowners

California Timber Sale Bond

Buying timber off public land in California means posting two bonds: a bid guarantee with your offer and a performance bond before you cut. The Forest Service, the BLM and CAL FIRE each set their own amounts. We place both for logging operators and mills, including first-time purchasers and smaller outfits through the SBA program.

Quote this bond(805) 752-8600
Key facts
Bond amount
20% of contract price on BLM sales; set per sale elsewhere
Authority
U.S. Forest Service, BLM California, CAL FIRE (state forests), private landowners
Statute
36 CFR 223.35; 43 CFR 5451.1; 14 CCR §1511

The premium is a percentage of the bond amount, set by underwriting. The figures above are the bond amounts, not what you pay.

Illustration for the California Timber Sale Bond

What it is

A timber sale bond guarantees the purchaser's side of a timber sale contract: paying for the timber, cutting and removing it on the terms and schedule in the contract, and meeting the road, slash, erosion and cleanup requirements the sale carries. It is a contract bond, like a construction performance bond, with a land agency as the obligee. Under 36 CFR 223.35, Forest Service timber sale contracts may require the purchaser to furnish a performance bond "for satisfactory compliance with its terms," and the prospectus states the amount of bid guarantee and performance bond for each sale (36 CFR 223.83). BLM sets its figures by regulation: a bid deposit of at least 10% of appraised value (43 CFR 5441.1-1) and a performance bond of at least 20% of the contract price on contracts of $10,000 or more, capped at $500,000 (43 CFR 5451.1).

Not the LTO license

California's Licensed Timber Operator (LTO) license from CAL FIRE requires training, experience, proof of insurance and a fee, not a surety bond. The timber sale bond is a different thing: it is what the seller of the timber requires from the buyer, sale by sale. If you are being asked for a bond, it is almost always the sale contract asking, not the license.

Who needs it

  • Logging contractors and mills bidding Forest Service timber sales in California's national forests
  • Purchasers on BLM California timber and vegetative-resource sales (Redding and Northern California field offices)
  • Buyers of state-forest timber sold by CAL FIRE, including Jackson Demonstration State Forest
  • Operators buying stumpage from private landowners whose contract calls for a performance bond

Bond amounts and requirements are general guidance and can change. Confirm the current requirement with the listed agency before you file. We will quote your exact bond.

Tough credit or a prior claim? It's welcome here. See how we place hard-to-place surety bonds, or get a quote and we'll place your exact bond.

Questions

Timber Sale Bond FAQs

What is a timber sale bond?
A performance bond on a timber sale contract. It guarantees the buyer will pay for the timber and cut, remove and clean up on the contract's terms. If the buyer defaults, the agency recovers its loss from the surety, and the buyer repays the surety. It is written for the agency selling the timber, not for the Licensed Timber Operator license.
How much is a timber sale bond?
It depends on who is selling. BLM requires a performance bond of at least 20% of the total contract price on contracts of $10,000 or more, capped at $500,000 unless you choose a larger bond (43 CFR 5451.1). The Forest Service states the amount in each sale's prospectus (36 CFR 223.83). CAL FIRE and private sellers set it in the sale documents.
What does a timber sale bond cost?
A premium that is a percentage of the bond amount, set by the surety on your financials, logging experience and credit, the same way a construction performance bond is priced. Established operators with clean statements pay the least. We shop more than one surety, and we can route smaller operators through the SBA guarantee when a standard market declines.
Do I need a bid bond to bid on a timber sale?
Usually a bid deposit, and a bid bond is one way to post it. BLM sealed bids must carry a deposit of at least 10% of the appraised value, which can be cash, a certified check or a bid bond from a Treasury-listed corporate surety (43 CFR 5441.1-1). BLM California's required forms are Form 5440-009 and Bid Bond Form 1822-3. The Forest Service states its bid guarantee per sale.
What happens to my bid deposit if I win?
On a BLM sale a cash deposit is applied to the purchase price when the contract is signed. A corporate surety bid bond is returned to you instead, which is the advantage of bonding the deposit: your cash stays in the business until the sale closes (43 CFR 5441.1-1). Losing bidders get their deposits back when bidding ends.
Does the Forest Service require a performance bond on every sale?
It may. 36 CFR 223.35 says timber sale contracts "may require the purchaser to furnish a performance bond for satisfactory compliance with its terms," and the prospectus for each sale states the amount (36 CFR 223.83). In practice the amount scales with the sale's value and the road and cleanup work it includes. Read the prospectus before you bid; the bond figure is in it.
What does the BLM accept as a performance bond?
A bond from a corporate surety on the U.S. Treasury's approved list, a personal surety bond the authorized officer accepts, cash, negotiable U.S. securities, or an approved guaranteed remittance (43 CFR 5451.1). A corporate surety bond is the form that keeps your working capital free, which matters on a sale that runs across seasons.
What about timber sales on California state forests?
CAL FIRE sells state-forest timber, including from Jackson Demonstration State Forest, under PRC §§4650-4651, following Department of General Services procedures (14 CCR §1511). The regulation sets no bond figure; the sale notice and contract do. Send us the sale documents and we quote against the stated amount.
Can a small logging outfit get bonded through the SBA?
Yes. Since March 25, 2011, the SBA Surety Bond Guarantee Program can guarantee bid and performance bonds on contracts for the sale of timber and other forest products such as biomass (13 CFR 115.10). That gives a newer or smaller operator a path when a standard surety declines. Underwriting still applies, and approval is never guaranteed.
Does my LTO license need a bond?
No. CAL FIRE's Type A commercial Licensed Timber Operator license requires the two-day class, 3,000 hours of experience, proof of insurance, an application and a $125 fee. No surety bond is on that list. The bond requirement comes from whoever is selling you the timber, one sale at a time.
How long does the bond stay in force?
Until the sale contract is closed out: timber removed, payments made, roads and slash handled and the agency releases you. On a multi-season sale that can be years. The surety looks at that term when it prices the bond, and the bond is released when the agency signs off, not on a calendar date.
What does a surety want to see on a timber sale bond application?
The sale prospectus and bond amount, your business and personal financial statements, equipment and crew capacity, logging history on similar sales, and the LTO license. Larger bonds get a closer look at financials, the same as a construction bonding line. We tell you up front what a given surety will need.
Commercial & Specialty

Related bonds

More bonds in the same family. New to bonding? See the types of surety bonds overview, or browse all commercial bonds.

Ready for your timber sale bond?

Get the right bond fast, with a real underwriter on your side.

Get a QuoteCall now