You "should" be able to find a small sawmill in your area. That would be your cheapest route. Oftentimes, these sawmills will have wood that is already air-dry seasoned. Look in your phone book yellow pages under "sawmill", or do a web search for "sawmills in __________". Many manufacturers of small mills will have sections with listings for their customers around the country who you can contact about buying lumber. In Minnesota, the DNR even has a site listing many sawmills. Also, web searches will return results that include numerous sawmills that will be listed in the phone book. There's even an ad in our local sales paper (what was around before Craigslist). ...And that's another thought is to check your local Craigslist.
If you want smoother, look for a bandsaw sawmill. If you would like rougher lumber, look for a circular mill; however, many newer circular mills also cut quite smooth! You may have to call and ask what kind of mill they have, as it may not be listed in the phone book. Also, you may run across folks who use a chainsaw sawmill, which will be very rough lumber.
Rather than paying for treated lumber, I would go the untreated route and then soak with oil.
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Today's Featured Article - New Life for an Old Allis - by Tyler Woods. My friend Jon, has an old '39 Allis Chalmers B. He thought it a marginal tractor that had long since served its time. She smoked terribly and never had much power but he couldn't afford another so he was limping along with what he had. Jon's Allis has a small front loader and though it doesn't carry much, it serves his needs. It was the hard starting and low power that made him think it was time to replace the old girl. Jon called me to help him discover why his tractor wouldn't start
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