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2032A(e)(7) would require recent leases, foreseeable within the
5-year average. This is relatively easy in row crop valuation,
but generally eliminates the use of this section in timber land
valuation."
Timber leases are made between the land owner as lessor and
a lessee who desires timber or timber products. The lessees are
typically timber companies or paper companies that use wood
products in their basic business. Among other rights, timber
leases give the lessee the right to enter the property and
harvest timber for a specific period of time. Because of the
long growth cycle of timber, timber leases are generally long-
term leases. Leases of 30 to 60 years are not uncommon. A
typical 60-year timber lease would generally allow the lessee to
grow and cut the timber two to three times during the term of the
lease.
The typical timber lease in effect in western Alabama
between 1987 and 1991 was entered into in the 1950's, 1960's, and
early 1970's and was a long-term timber lease. In the typical
situation, the lessor sold the existing timber by separate
transaction to a buyer (generally, the buyer was the same as the
lessee but was not required to be the same) and then rented the
land by timber lease. Rent paid by the lessee was calculated on
a dollar per acre per year basis. Some of the timber leases had
rent escalation clauses which increased the rent per acre per
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