Hi Jim:
Well there are many variables to be taken into account preparing a knowledgeable response to your query. My son and I harvest logs on our own property, with our own equipment, and not counting our time, fuel, chainsaw costs, 4 wheel drive tractors, front end loader, it usually ends up that our own milled lumber costs in the neighbourhood of $200. per 1000bd ft milling costs. The sawing is custom done on a local band mill, and to produce 2000 bd ft it takes about 6 hrs more or less just to saw it out once it has arrived at the mill site. We harvest in the winter on the frost and snow to ensure clean logs, which is pretty hard to do in warm months. Does your friend have his own equipment, if not you can add on harvesting costs, on top of the sawing costs. Another factor is sawing out long material for the plates, which if producing from your own trees will mean long very heavy logs to cut and transport to the mill.. I think that it would be wise to sit down and do a proper cost study before coming to a snap decision on the way to go. It is not always cheaper to cut your own, but then again depending on the situation it might be.
good luck--NH