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In this study, we examine the determinants of market prices of bare forestland and pre-merchantable timber stands in Southwest Alabama and Southeast Mississippi. Applying a spatial hedonic pricing model to forestland sale data from 2001 to 2007, we find that road access, topography, land productivity, and population density are the main determinants of bare forestland prices, while land productivity, potential for higher and better uses, and age of plantation are determinants of pre-merchantable timber stand prices. In particular, the value of a pre-merchantable stand increases along with the age of plantation by $56 per acre per year, and compared with a tract with only one use in timber production, an identified higher and better use makes its value increase by $736 per acre or 45 percent