[Cele]

That is by design. 

From the update thread:

Lumberjacking

• All craft skills now use boards instead of logs now! So you must mill logs to boards.
  
  
• Logs are milled at a rate of 2 logs per 10 seconds, but you get 2 boards per log now. 10 seconds of chopping + 10 seconds of milling will net you 4 boards in 20 seconds, = 1 board per 5 seconds. 
  
  
• You now have a chance of failure to mill logs into boards. This is based on skill level. Players with >60 skill should succeed 100% of the time.
  
  
• Max skill for reagents was previously 110, but since we don't go above 100 skill, I have lowered the max skill to 100 so that a player with GM skill consistently gets 2 per 10 seconds.