The most common and most likely answer to this crossword clue is the 7 letter word COPPICE
I've seen this crossword clue in The Times
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More clues leading to the result COPPICE
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The straight part
We know that "Cut wood" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case cut wood = coppice.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does COPPICE mean?
COPPICE noun- A grove of small growth; a thicket of brushwood; a wood cut at certain times for fuel or other purposes, typically managed to promote growth and ensure a reliable supply of timber. See copse.
- To manage (a wooded area) sustainably, as a coppice, by periodically cutting back woody plants to promote new growth.
- To sprout from the stump.