They will mark trees and use a formula to determine how much board feet by volume and species. There are markets for timber prices so it is simple to come up with a net value. The sawmill usually buys the wood and the landowner gets a percentage and the logger gets a percentage.
Some sawmills have their own foresters and perhaps sub out the logging operation. There are also independent foresters who do all the legwork and then present what they have to the mills to sale it. He handles dividing up the funds.
Bottomline is the landowner gets a percentage, typically 40-50 % of the total value. Just remember stump prices are a long way from what you buy finished product for. There are a lot of hands in the pot from cutting a tree to buying lumber at the lumber store.
I have had properties logged 4 times so I have a pretty good feel for the process. Remember the quality of the job is almost as important as the bottom line.
