Abstract:The framework of timber price in this country,after the original Soviet form,has been fixed for about thirty years since 50‘ and has never been changed essentially.The fundamental deficiencies of this form are as follows: 1) The stumpage price is based merely on labor costs of which the stumpage costs are formed.Factors like land and building are to be served as no charges and therefore no costs to be counted at all.The result shows that the returned costs might not be able to compensale the drains of production, even could not make up the wages they ought to offer,let alone the long range development of forest management. 2) Stumpage cost is twelve percent barely enough to the factory price of timber and two percent to the timber price of free market.The difference in percentage between stumpage cost and the price of free market is so large that any other commodity could not never be compared with. 3) The averaged increasing rate of timber price is only two percent, while the price index in this country has increased several times higher within the same thirty years. 4) The price has divorced from the use-value, the lawful purchasing prices of dimension stocks are abnormally lower than that of non-dimension stocks and fuelwoods. 5) The policy of timber price in this country has born no relation with the prices of international markets since 50‘. In order to improve the current situation,the prime work we should do is to reform the framework of costs.Evidently,forest management must have an insurance and all the insurance must be counted into costs,and land rent as well.But,at present,we should better choice the model of "calculating price"according to the details we suggest above,then graduate into a model of "limited price" which is formed by the goal price of similar assortment prescribed by "International Commodity Contract of Timber",taking it as the upper limit of the price of timber and the calculating cost of the calculating price mentioned above as the lower limit. By means of this model,not only can we apply it to improve the managed level of our enterprises,but also can resettle the relationship between supply and demand and create a favourable condition for the lumber we held to enter into international.