Not just any lumber will do for wood fencing. Exposed to the elements as it is, wood fencing needs to be made of rot-resistant lumber. That's why cedar is a popular material for outdoor projects, as is pressure-treated lumber. The wood should be painted or stained.
Posts are typically 4 x 4 lumber and at least 8' long (remember, some of that will be underground). Panels are typically 1.25" thick x 6" wide, with a length to match the height of the wood fencing. Lumber dimensions for the rails vary according to the style of wood fencing that you choose (in some cases, you'll be able to use the same lumber for the rails as you used for the panels).
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