A BIMONTHLY MAGAZINE FOR THE FORESTRY COMMUNITY OF GEORGIA
Georgia
FORESTRY TODAY March | April 2012
Volume 8, Issue 2
First things First See story on page 8
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March | April 2012
Georgia Forestry Today
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On the Cover:
GEORGIA FORESTRY TODAY Printed in the USA
PUBLISHER: A4 Inc. EDITOR-IN-CHIEF Alva Hopkins ahopkins@a4inc.com
Landowners must be prepared to make full use of the opportunities that go with performing a harvest, especially the initial thinning or as it is commonly referred to a ‘first thinning.’ See story on page 8.
LAMAR CANTRELL
CAntrELL FOrEst PrODUCts inC.
We buy all types of timber. Bio-fuel producer cantrellforest@earthlink.net 1433 Galilee Church Road Jefferson, GA 30549 Office: (706) 367-4813 Mobile: (706) 498-6243 Home: (706) 367-1521
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PRODUCTION MANAGER Pamela Petersen-Frey p.frey@a4inc.com
EDITORIAL BOARD Wendy Burnett Alva Hopkins Jesse Johnson Stasia Kelly Sandi Martin Brian Stone Steve McWilliams
GEORGIA FORESTRY TODAY is published bi-monthly by A4 Inc., 1154 Lower Birmingham Road, Canton, Georgia 30115. Recipients include owners and subscribers of the Georgia Forestry Commission, as well as suppliers and manufacturers of forestrelated products and services. Opinions expressed by the authors are not necessarily those of the publisher, A4 Inc., nor do they accept responsibility for errors of content or omission and, as a matter of policy, neither do they endorse products or advertisements appearing herein. Part of this magazine may be reproduced with the written consent of the publisher. Correspondence regarding changes of address should be directed to A4 Inc. at the address indicated above. Advertising material should be sent to A4 Inc. at the e-mail address: pfrey@a4inc.com. Questions on advertising should be directed to the advertising director at the e-mail address provided above. Editorial material should be sent to A4 Inc. or to Alva Hopkins. GEORGIA FORESTRY TODAY 1154 Lower Birmingham Road, Canton, Georgia 30115
March | April 2012
Volume 8, Issue 2
March | April 2012
Georgia
FORESTRY TODAY P.08
First Things First
P.11
Message from the Georgia Forestry Commission Director
P.12
GFC News
P.13
Timber Sale Tales How to Make Sure Yours Has a Happy Ending
P.16
Warnell Alumnus on the Job
P.20
Southern Timberland Market A Windshield Assessment (part 2 of 2)
Georgia Forestry Today
P.22
Coming Soon: New Design Values for Pine Lumber Shifts in the resource mix suggest changes are needed.
P.24
Changes in Timberland Ownership
P.26
Background Check: Softwood Lumber Check-off
P.28
Georgia Forestry News
P.30
Georgia Forestry Today Directory of Products & Services
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March | April 2012
LiST of ADVErTiSErS American Forest Management ................................................30
International Forest Company..................................................6
Arborgen ................................................................................25
Landmark Spatial Solutions....................................................19
Beach Timber Company Inc...................................................30
Lanigan & Associates..............................................................27
Blanton’s.................................................................................19
Meeks Farm & Nursery.................................Inside Front Cover
Canal Wood LLC ...................................................................30
M&H Pinestraw.....................................................................27
Cantrell Forest Products Inc. ....................................................4
MorBark.................................................................................30
Davis - Garvin........................................................................23
Outdoor Underweiters ...........................................................23
F2M.........................................................................................4
Plum Creek ..............................................................................5
Farm Credit Association ...........................................................6
Prudential...............................................................................22
Flint Equipment Company ....................................................30
Rayonier...................................................................................7
Forest Resource Consultants...................................................19
Smith, Gambrell & Russell.....................................................27
Forest Resource Services Inc. ..................................................30
UPC .........................................................................Back Cover
Forestar ....................................................................................3
Vulcan on Board Scales.............................................................4
F&W Forestry Service ............................................................23
Weyerhaeuser .........................................................................10
Gillis Brothers ........................................................................30
Yancey Brothers..............................................Inside Back Cover
Hipp Enterprises ....................................................................24
Georgia Forestry Today
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s a landowner, you have patiently waited for your trees to be ready for a thinning. It doesn’t seem like that long ago you re-planted the back 40 acres. Fifteen years ago, you were dropping your daughter off at pre-k and just the other day you dropped her off at college. A subtle smile crosses your face as you think how thankful you are that you and your wife decided to invest in a real growing stock as opposed to the ‘can’t miss’ technology stock your friend suggested. Timber management, as most all forest landowners know, requires ample amounts of patience and optimism. Forest landowners’ manage their forests through droughts, fire seasons, and down timber markets. Therefore, once a landowner has successfully navigated these and other risks, they must be prepared to make full use of the opportunities that go with performing a harvest, especially the initial thinning or as it is commonly referred to, ‘first thinning.’
view of what landowners should consider since they oversee companies that are implementing the harvests. Also, for each one of them, first thinning harvests comprise a large percentage of their businesses. • Chris Beck, RF ~ Louisiana Pacific, Athens, Georgia. Procurement Manager • Kent Huff ~ Midway Forest Products Inc.; Lincolnton, Georgia. Procurement Forester • Jason Simmons ~ Middle Georgia Timber; Madison, Georgia. Co-Owner/Procurement Forester • Clark Snipes ~ Georgia Forest Products; Americus, Georgia. Procurement Forester Following is a list of items I developed after speaking with these forestry professionals. Mangement/Harvest Plan ~ The most common response was the need for landowners to have well thought out objectives for the property. Preparing a clear and concise management plan requires the
don’t think about residual tree counts and basal area until it is time to start cutting.” ~Jason Simmons Again, management plans are simply a landowner’s game plan for their property. Just like a game plan, a management plan will change as conditions in the field change. However, it is always better to approach any harvest or other forestry activity with a well thought out plan that highlights where you are going and how you are getting there. Contracts ~ Another, common response was that landowners should only enter into written timber agreements. A written contract provides the landowner with an agreement between them and the timber buyer that spells out the details of the harvest. For instance, some of the basics that are commonly included in timber contracts are: prices to be paid for the various timber products, residual tree count or basal area, performance deposit, and the length of the contract. Again, this is only a partial list of items often included in timber contracts.
First Things First
By Jesse Johnson, RF | Southern Land Exchange For a quick refresher, in Georgia the average planted pine stand typically receives its first thinning when the trees are 13 to 18 years old. It is common practice in Georgia for landowners who are interested in growing timber for solid wood products such as lumber or plywood, as well as those who are interested in improving wildlife habitat, to implement thinnings on their forestland. A properly implemented first thinning provides the landowner with intermediate cash flow, an increase in both solid wood production and wildlife forage while reducing the risk of pine beetle attacks. In order to prepare a list of things nonindustrial landowners may want to consider prior to performing a first thinning, I contacted several of my peers who are actively involved in the day to day timber harvesting side of the forest industry. I felt that these forestry professionals may have a unique 8
landowner to carefully formulate their goals for the property. A properly constructed management plan addresses how each stand of timber is to be managed. Therefore, when it comes time to perform the initial thinning, the logger and landowner will both be on the same page regarding the expectations of the harvest, which will lead to a better experience for both the landowner and harvester. “I purchase a fair amount of timber from landowners who have not taken the time to sort out what their objectives are for their property. Often the majority of my initial visit is spent finding out what their main goals are for the property. Helping them answer these questions ultimately leads to a more satisfied customer.” -Chris Beck. “I cut primarily for private landowners and most of the time I help them figure out their future plans for the property by asking a lot of questions. Most small landowners
“A written contract helps protect the land owner by allowing for recourse if logger accidentally tears down a fence or doesn’t repair a road.” ~Jason Simmons “Some people still work off hand shake deals but I don’t recommend this for the average landowner. It is not uncommon for timber buyers to have several tracts being harvested at one time and a written contract is always the best way to avoid any confusion between the buyer and the landowner.” ~Clark Snipes “In my opinion it is always in the landowner’s best interest to have timber agreements in writing.” ~Kent Huff. Landowners should know that there is no industry standard timber harvesting contract as there are real estate contracts. Landowners who are not familiar with selling timber should seek advice from a professional forester who is familiar with the timber sales process. March | April 2012
Landowners can gain valuable information from talking to the registered forester on the ground. (Pictured l-r, Jason Simmons, Procurement Forester; Richard Curtis, Landowner; Jesse Johnson, Registered Forester.)
Georgia Forestry Today
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Loading Dock Locations ~ One of the more specific recommendations was that landowners be open to working with the logger when selecting loading dock locations. “In this environment of high fuel prices we need to operate as efficiently as possible. A large part of keeping costs down is having well located docks that allow us to have reasonable skidding distances.” ~Chris Beck “First I always look for the previous dock locations. These areas have experienced the most compaction, and the tree growth is usually worse than the rest of the stand. By utilizing the previous docks the landowner keeps the compaction to one area of the stand.” ~Jason Simmons A general rule of thumb is that landowners should plan on at least one loading dock per 30 acres of first thinning. Following the harvest, loading docks are great places to locate food plots and other wildlife openings. These areas will require tillage in order to offset the compaction from the harvest. However, with a little effort these areas can be turned in to excellent food factories for the local wildlife. Debris ~ Prior to thinning, most landowners are not sure what they want to do with the logging debris. Do they pile or spread? Upon reaching the loading dock the trees are limbed and topped which tends to leave behind quite a lot of residual debris. Often prior to the loggers asking landowners have given little consideration of what they want to do with the debris. The debris can be either piled at the dock or spread back throughout the stand. “For the majority of landowners I recommend spreading the debris back out over the stand to replace the nutrients and pre-
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vent erosion. However, we will work with landowners who want to pile the debris in order to burn them. But this is something we need to know before starting the harvest.” ~Kent Huff “I recommend spreading the debris back out over the stand. I also recommend that landowner consider waiting a couple of years before they perform a controlled burn. The freshly added debris can result in a hotter fire which can lead to increase in tree mortality.” ~Jason Simmons The consensus answer was that landowners spread the debris back over the stand. Again, spreading the debris replaces the nutrients and prevents erosion. Spreading of the debris is done with the skidder; the grapple is filled with debris at the loading dock and then spread out as they go to get another load of trees. References ~ The final and most important of all is references. Landowners should attempt to get at least three references for each timber buyer before sending out bids or entering into negotiations. A reputable timber buyer should be able to provide you with several satisfied landowners whom they have worked with in the past. "Often landowners that are not familiar with timber harvesting will have questions about what the harvest will look like. Landowners should ask to go see some of a company’s previous thinning jobs and speak with those landowners too.” ~Chris Beck. “In the timber buying business as with most, a company’s best or worst advertisement is word of mouth. A reputable company should have a list of several other landowners who you can speak with for a reference. My company works hard to do a
quality job for landowners, and I am happy to provide prospective clients with the contact information of several other landowners we have cut for.” ~Clark Snipes Unfortunately, most forest landowners have heard stories about others who only found out after the fact that they chose to work with an unethical timber buyer or other forestry contractor. The majority of the time this can be prevented by seeking opinions from other forestry professionals, landowners or other individuals in the area. As the old saying goes, an ounce of prevention is worth a pound of cure. It is always best to do the proper research before you let any contractors perform work on your property. In closing, landowners would be wise to follow the advice of these forestry professionals when planning their first thinning. Georgia’s forest landowners can rest assured that there is a large network of reputable forestry professionals available to help them implement sound stewardship practices on their property. Below are several Web sites for landowners who are looking to gain further information about the topics discussed in this article: Georgia Forestry Commission: www.gfc.state.ga.us Georgia Forestry Association: www.gfagrow.org Society of American Foresters: www.safnet.org Association of Consulting Foresters: www.acf-foresters.org Warnell School of Forestry and Natural Resources: www.forestry.uga.edu v
March | April 2012
Dear GFT Reader, he Georgia Forestry Commission family has weathered a lot of change through the years, but the change we experienced on the last day of January is especially notable. Thirty-four year GFC veteran Alan Dozier handed the Chief of Forest Protection reigns over to Frank Sorrells, former Satilla District Manager. Being part of Alan’s retirement celebration at GFC’s Dry Branch aviation hangar was a real privilege and something to behold. Gathered elbow to elbow were directors and dignitaries from more state, regional and federal agencies, and organizations than I could count without losing count: Georgia Emergency Management Agency, U.S. Fish and Wildlife Service, Department of Natural Resources, The Conservation Fund, Okefenokee National Wildlife Refuge, Tall Timbers Research Center, Jones Ecological Center and fire chiefs from five southern states. Several former Georgia Forestry Commission Directors joined us, as did a host of colleagues and friends who enjoyed the retirement celebration that included a world class barbecue lunch cooked up by our own Rusty Brown. It was an amazing tribute that said a lot about the relationships Alan established and nurtured during his tenure at the Georgia Forestry Commission. Alan started his career as a patrolman in Burke County, worked as a forester, an equipment specialist, a Chief Ranger and Associate Chief, and Chief of Protection. In every position he held, in every corner of the state, Alan planted the seeds of relationship. Through the years, those ‘seedlings’ have grown into vigorous partnerships that are serving the state in big ways. There’s not enough space here to list every collaboration initiated by Alan, but without doubt, the Georgia Forestry Commission is in a better position to serve the residents of Georgia today because of his commitment to partnerships. Systems are in
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Georgia Forestry Today
Message from the Director place for the GFC and GEMA to readily join forces in response to floods, tornadoes, and ice storms in Georgia and the Southeast. We have a nationally certified and widely recognized Incident Management Team which has been deployed to the Olympics, G-8 Summit, Hurricane Katrina, and numerous weather and emergency events. We work closely with the Environmental Protection Division to manage air quality and smoke and retain our right to prescribed burning. Relationships fostered by Alan helped build
the Prescribed Fire Council and develop Georgia’s Prescribed Burn Manager Program. We have a healthy partnership with GOAL, the Greater Okefenokee Association of Landowners, which has helped in a myriad of ways with fire issues around the swamp. And then there are regional, national, and even international level partnerships that Alan founded. He established the first Southern Regional Arson Task Force and chaired the Southern Wildfire Risk Assessment steering committee for the Southern Group of State Foresters, a program now being replicated nationwide. He has held numerous industry chairmanships and earned the National Silver Smokey award for Outstanding Service in Wildfire Prevention. I am really hoping the Dozier home has a lot of
extra shelf and wall space! The best part of this story is not that Alan will get to spend a lot more time fishing now, but that the Georgia Forestry Commission will continue to benefit from and build on these relationships. Taking the helm of our Forest Protection department is a man who has a lot of service hours fighting fire, running ’dozers, managing logistics and leading teams. Frank Sorrells worked with the Florida Division of Forestry in a variety of wildfire and supervisory positions before joining GFC 18 years ago. As Satilla District Manager he had a great deal of experience fighting fires, including the challenging events of 2007 and 2011. Frank is a man who knows fire, people, and the value of partnerships. After Action Reviews of the 2007 fires played a very real part in our ability to manage the 2011 blazes. Likewise, seven AAR’s of last year’s fires have led to 61 items on which we are taking action. Some are simple and some will take more time and cooperator assistance, such as modifying state and federal policies and cooperator agreements, cooperator training, and fuel treatment analyses and implementation. All will be addressed and all will fuel our future success. The National Interagency Coordination Center has predicted that Georgia will experience another severe fire season this year. The center’s track record is good; it called last year’s risk well in advance, and that headsup, along with the improvements we’d implemented from ’07, helped minimize losses from the fires. As Alan baits his fishing hook and the seasons transition in Georgia’s forests, I’m reminded that the only thing constant in life is change. It’s a good thing. Especially when you’re prepared for it, and you’re experiencing it with partners and friends. Sincerely, Robert Farris v 11
GFC News After 34 years of service with the Georgia Forestry Commission, Chief of Protection, Alan Dozier, retired in January. Dozier began his career in 1980 as a patrolman in Burke County, served as a forester in several other counties, then moved to GFC State Headquarters as Forest Specialist before assuming his current position. Dozier said he has “an aversion to planning” his retirement years, but suspects his wife, Arlene, has created a lengthy ‘honeydo’ list, and that the couple will spend more time near relatives in Seminole County. Eighteen year GFC veteran and former Satilla District Manager, Frank Sorrells, has been named GFC’s new Forest Protection Chief. e
The Southern Group of State Foresters has released a new report about forest certification in the South. “Forest Certification Programs: Status and Recommendations in the South” provides detailed information regarding the various certification systems, a comparison of the major systems, and recommended strategies for making educated decisions that affect forest productivity and sustainability. To see a copy of the report, visit www.southernforests.org. e
It’s not too late to purchase GFC tree seedlings and take advantage of a better than predicted planting season. While a sluggish economy and continuing drought may have discouraged some from planting, 2011’s fourth quarter yielded near normal rainfall, and GFC’s Reforestation Chief Russ Pohl reports good planting conditions and an ample supply of most species. According to Pohl, “Longleaf seedlings are running low now, but other pines and hardwoods are readily available from GFC and other nurseries. You can never make up for a missed growing season.” For a list of available GFC seedlings, visit GaTrees.org. e
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March | April 2012
Timber Sale Tales How to Make Sure Yours Has a Happy Ending By Stasia Kelly Eastern Georgia timber landowner Charlie McElroy (pseudonym) still has a bitter taste in his mouth from a timber sale gone bad. The year was 2010. McElroy and his siblings and cousins, with whom he owns a 91-acre tract of mature, natural pine and hardwoods that’s “been in the family forever,” needed money to pay taxes on the land. “We hired an independent forester to come out to mark the trees for harvest,” said McElroy. “He gave us a number, based on his cruise, and then put it out to bid. Unfortunately, only one bid came back, and that one wasn‘t even two-thirds of the original estimate.” McElroy and his family decided to reject the offer and regroup. Within a couple of months, his sister located an independent logger, whom McElroy said “talked a good game.” “We had a typical timber sale contract, and it was based on the weight of the wood hauled. Everything looked good and we commenced to cut timber.” It didn't take McElroy long, however, to get the feeling that things weren‘t quite right. “I went by a lot during the first few weeks, but the work had been subbed out to a logging crew and the contractor was never there,” said McElroy. “A lot of trees were cut that weren't marked, and I wasn’t getting weekly weight tickets from the mill. By the time we realized we had a problem, he was gone.” While McElroy did receive one payConsultants help landowners realize all values of their timberland. Georgia Forestry Today
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ment for the timber, it amounted to slightly more than half of the wood’s expected value. In hindsight, he said, he and his family did several things wrong. “We should have gotten references,” he said, “but we didn’t. Every time I spoke with the loggers, they promised to tell the contractor to get me the load counts, but they didn't, and they finally stopped taking my calls.” Efforts to prosecute through the local sheriff’s office and an attorney proved unsuccessful, and within a matter of weeks, the contractor declared bankruptcy and disappeared. “I don‘t know where he is now,” McElroy said. Haste can lead to havoc Looming tax bills are just one of the pressures that force landowners into making hasty timber selling decisions. According to James Johnson, Georgia Forestry Commission Chief of Forest Management, the timber sale process should only be undertaken after careful consideration. “Many landowners spend a lifetime growing trees and they don't need to make a thirty minute mistake when selling timber,” said Johnson. “A lot of timber buyers will use pressure tactics, but a legitimate offer should be good for awhile. Landowners have to take time to make a good decision.” The first good decision, according to Johnson, is to hire a registered consulting forester whose expertise is invaluable for the planning and sale of timber. (To find a registered consulting forester, visit GaTrees.org or the Association of Consulting Foresters at www.acf-foresters.org.) “Timber sales aren’t just about the harvest,” said Johnson. “The planning is just as important.” Ideally, a forest management plan will already be in place for the tract that will be logged. Properly managed forests yield more timber, have a higher net present value, suffer fewer environmental impacts, and provide richer wildlife habitat than non-managed forests. In addition, formal plans are also required for third-party certification, including the Sustainable Forestry Initiative (SFI), American Tree Farm System (AFTS), Forest Stewardship Council (FSC), and future markets, such as woody biomass and carbon sequestration. Local and national regulators routinely seek these documents when determining silvicultural exemptions. A clearly defined pre-harvest plan prepared by a consulting forester ensures a landowner’s forest management objectives and goals are not compromised. It reduces opportunities for misunderstandings between all parties and helps make certain the harvest will maximize financial returns, protect water quality, and maintain or enhance forest productivity. The preharvest plan should also clearly mark sale boundary lines to help ensure loggers don’t trespass on neighbors’ property or cut non-designated trees. Charlie McElroy experienced that problem first hand, as did central Georgia landowners Betty and Alan Frew (pseudonym). 14
“It was an experience,” remembered Betty Frew. “The man we hired took trees that were marked and unmarked. The piles of debris are still there and about five of our roads were damaged.” The Frews admit they made poor decisions in planning the 2009 harvest of 35 of their 160 acres of loblolly pine and hardwoods. “We were looking for income,” said Betty, “and he was cutting near us. We hadn't heard anything negative about him.” “He came and looked, and we signed a contract for a good price,” said Alan Frew, “but we had a difficult time cashing the checks we did receive because there were no funds to cover them.” “If we ever do this again,” added Betty, “we will definitely hire a forestry consultant.” How much do you pay for trust? Susan Brantley’s Hancock and Washington Counties timberland has been in the family for “quite a few years,” and she can't imagine managing it without the help of consulting forester Jim Alfriend, his son, Jamie, and their colleagues. “My sisters and I rely on them to give us great advice about timber sales,” she said, “but that's not all. They help us with all our management decisions—taxes, hunting issues, everything. We depend on them heavily.” Brantley admits she and her sisters are fortunate that their father and grandfather had established a relationship with the Alfriend family years ago. All those years and experience contribute to the family’s sense of security about land ownership.
The Georgia Forestry Commission offers a comprehensive brochure that details the timber-selling process. Access this brochure online at GaTrees.org/Resources/Publications or order one by calling 1-800-GATREES. March | April 2012
“They orchestrated our 2010 timber sale from beginning to end,” said Brantley. “They took care of the types and numbers of trees, the bids, the harvest, and the cleanup afterwards. Plus, they know about all areas of land ownership. We’ve actually been approached by several other consultants who would like our business, at a lesser cost. But we’re not interested, and really, how much do you pay for trust?” Trust is at the heart of another relationship the Alfriend family consulting foresters have earned with Atlanta businessman, Mac Peden. Peden inherited his father’s Hancock County timberland in 1993 and values the support he’s received from the Alfriends. With their help, he has grown his timber land investment six times over. “My consulting forester also happens to be my best friend since the time we were four years old,” said Peden of Jim Alfriend. Peden explained that he and Jim became buddies as a result of their fathers’ relationship, which centered around forestland management. Jim‘s son, Jamie, has followed in his father’s forestry footsteps and continues to establish and nurture relationships with Georgia landowners. Acting on a detailed forest management plan, Peden conducted his most recent pulpwood thinning in 2011. “This is where Jamie’s experience comes in,” said Peden. “He knows the best loggers. Jamie and Jim keep tabs on the loggers every few days and stay on top of things. They stay close to the process and make sure not to let the payments get behind. I just don’t see how anyone managing forestland could do it without the services of a consulting forester.” Reputable loggers understand the value of a consulting forester as well. He or she can keep favored crews busy in tough economic times. “A lot of loggers will go the extra mile for certain consulting foresters and contractors,” said GFC’s James Johnson. “They’re selling on an ongoing basis and they want to please
that person so they get called back again and again.” Consulting forester Mike Harrison of Harrison Forestry Co. LLC in Moultrie said he takes those relationships very seriously. Experienced loggers he hires understand the importance of excellent work, clean grading, picking up trash, and basic manners. “If I’m out there with the landowner, looking at the job, we want to talk. I expect a personal conversation,” he said. Forsyth landowner Franklin Freeman, a retired attorney, said his trust in the choices made by his forestry consultant, Joel Vinson of Vinson and Associates Inc., runs deep. “I need to know who’s on my property,” he said. “We can all do a good (forestry) plan, but one logger can come in and mess it all up.” Freeman said Vinson's knowledge of the forestry business and market conditions is critical to him, which Vinson said is a two way street. “It’s important for landowners to be educated too. When they are, they’re more willing to ask questions about management of the property and be more involved. That relates directly to your results—timber, recreation, and wildlife.” Mike Harrison emphasized that landowners reap rewards when consultants stay on top of market conditions and communicate effectively with timber buyers who supply the mills. “Buyers depend on me not to put them on property that has all kinds of liens and problems. I’m supplying them a good, clean product.” By knowing the type and amount of timber readily available on his clients’ property, Harrison can jump on opportunities when buyers are low on inventory. “Experience has taught us to adjust and stay in the game,” said Harrison. “The market isn’t what it was seven years ago. We’re working twice as hard for half the money! But we’re still in the forestry business and helping people make a profit.” v
Right-product-atthe-right-time transactions benefit sellers and buyers. Georgia Forestry Today
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March | April 2012
Warnell Alumnus on the Job By J.C. Griffin
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fter a rather interesting C-130 tactical landing to avoid enemy fire, my first sight of Iraq was at night. My first thought was how far I was from home, but a gaze upward revealed familiar stars and constellations. I felt relieved knowing that I was still indeed on planet Earth–even after traveling for 50 hours. I was on a military base surrounded by some pretty hostile territory and received immediate training on procedures to follow in the event of an Indirect Fire (IDF) attack. This was my welcome to Mortaritaville, a nickname given to Joint Base Balad (JBB) due to the daily barrage of IDF mortar and rocket attacks over the years. The next days were spent learning the base. It became clear that mitigating wildlife hazards was going to pose unique challenges. For instance, in the States, I never really concerned myself with sniper fire while working! But while in Iraq, the possibility always exists of stumbling upon Unexploded Ordinances (UXOs), fired rockets and mortars that failed to detonate. Don’t assume there is little wildlife here in this desert. The ancient Tigress River runs within a half-mile of the east perimeter fence, giving life to this desolate land. Agricultural fields dominate as far as the eye can see. Local Iraqis grow and survive on almost every fruit or vegetable imaginable but how they keep any of their grain crops for themselves, I cannot fathom. Tens of thousands of wood pigeons, rock doves, and collared doves relentlessly feed in those fields. And then there are the rooks, a migratory crow-like bird present here during the fall and winter months. When these birds leave and return to their Tigress River roost sites, there is no better term to describe the sheer number other than “biblical.” Imagine the devastating impact of a flock of over a million crow-sized birds. If this was occurring back home, Wildlife Services would be helping these farmers with the depredation. If allowed to travel outside the wire to conduct direct control activities, I would be helping farmers increase their harvest, Georgia Forestry Today
while managing wildlife/aircraft strike threats at the same time. Perhaps one day, but for now, such assistance is impossible. One cannot dwell on the dangers, or you could never appreciate this land’s beauty. It’s magical being in the birthplace of mankind. Lands surrounding Balad are an oasis in the desert; fertile soil grows lush green crops in fields divided by rows of eucalyptus and evergreen trees. I cannot imagine any place with more impressive sunrises and sunsets. At these special times, you forget that you are in a desert far from home. To help mitigate the bird strikes, I used both lethal removal and direct control activities, including dispersal using pyrotechnics, such as bird bangers and screamers. Education is also a vital part of any successful mitigation program. Flying squadrons were provided briefings and written advisories to increase their awareness of local hazardous wildlife activity. Joint Base Balad has all the ingredients for a
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hazardous flying environment. The flightline never sleeps -- F16s, C130s, C17s, C5s, and numerous other transient and surveillance aircraft are constantly arriving and departing. When you combine this busy day and night flying schedule with an airspace filled with birds, strikes are a constant threat.
Keeping JBB’s airfields free of birds helps pilots and other servicemen complete the mission and return home safely, which is vital for the success of Operation New Dawn and the future of Iraq. Wildlife Services is committed to our role in this enormous cause. When I joined Wildlife Services nearly
ten years ago, never could I have dreamed that there would be an opportunity such as this. This was a chance to serve my country and be a part of the fight. It was an opportunity to see and experience things that most will not. v
John (J.C.) Griffin (BSFR ’99, MS ’01) is a wildlife biologist at Moody Air Force Base in Valdosta, Georgia. After graduating from Warnell, he spent ten years specializing in wildlife damage in Florida and Georgia. Griffin focuses his work on reducing hazards and risks to military aviation by wildlife, especially birds. Last year, he volunteered for an assignment at Joint Base Balad, Iraq, to evaluate the dangers posed to aircraft on the base by wildlife. Joint Base Balad ranks in the top three every year with number of strikes and total cost from damaging strikes. He arrived in November 2010 and returned to the U.S. in March 2011.
John (J.C.) Griffin
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March | April 2012
Georgia Forestry Today
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Southern Timberland Market A Windshield Assessment (part 2 of 2) By W. Richard Humphries | Forest Resource Consultants Inc.
T
he Disconnect
As previously discussed, prior to this recent decade there was some positive correlation between timber prices and land prices when viewed over the long-term. Although always lagging, land prices rose or fell with timber prices, and did so modestly. However, the relationship between stumpage prices and land prices disappeared over the past ten years. As illustrated in Figure 3, on average southern pine stumpage prices have been in decline as compared to the prior decade of the 1990s. While timber revenues were declining, land was going up—effectively lowering projected financial returns from timber production. During the euphoric timberland buying frenzy, experienced analysts and long time experienced timberland operators were perplexed, often asking, “Why are land prices going through the roof when timber stumpage prices are declining?” This market behavior made no sense. The reason was there were numerous other factors in addition to stumpage prices that were influencing land values. Many consumers were motivated, not by timber production economics but by recreational interests, perceived opportunities for short-term speculation, and possibly by Mr. Twain’s counsel, “buy land, they ain’t making any more of it.” Also, commercial timberland investors were straying from valuations based on historical timberland investment models, given the ready market for smaller consumer size parcels. At the time, lower returns from timber production were being overshadowed by increased returns from speculative sales and ever-rising values for the land component of investors’ portfolios. The Correction The term ‘correction’ appears to be a euphemistic term often used on Wall Street to describe a notable market decline, which to 20
Figure 3
Figure 3: South-wide Pine Stumpage Price Changes - 1995 to present. Source: Timber Mart-South most stockholders is actually a negative event. This term appropriately describes changes in the real estate market over the past few years. Most sectors of the real estate market, including southern timberland pricing, clearly became irrational, overheated, and unsustainable. It was just a matter of time before the inevitable became obvious. Beginning in 2006, scattered development areas around the South began to experience a drop in buyer demand. The first feeble real estate markets appeared in coastal and resort areas where market demand was driven, not by consumer/users buying for second home use, but by short term speculators (not dissimilar to segments of the timberland market). In late 2007 and early 2008, it was apparent that the land development boom and associated housing markets were beginning a decline. Uncertainty was also growing among experienced land dealers, brokers, appraisers, forest investment analysts, and others regarding the future of the timberland market. A growing number of
market participants began anticipating a decline in timberland prices. By mid-2008, Freddie-Mac (FHLMC), Fannie-Mae (FHMA), and many banks were experiencing increasing defaults on loans as developers, high-risk residential borrowers, and land traders were becoming insolvent. Credit markets tightened, stock market declines were devastating many investment portfolios, and virtually all segments of the US real estate market were in a state of contraction by the fourth quarter of 2008. Meanwhile, a growing number of timberland buyers that purchased almost entirely for speculative resale purposes with borrowed funds were beginning to feel squeezed by the poor economy, declining land values, and timberland’s increasing illiquidity. To further exacerbate the problem, timber stumpage prices were continuing to decline primarily due to a stall in housing construction. Many buyers found the timber component of the asset to be worth less than they had paid just a year or two before. March | April 2012
At the onset of the decline in the consumer market in 2007, commercial buyer demand and prices initially remained more stable. As previously discussed, larger commercial timberland packages had been selling to a more diverse (sometimes uninformed) pool of buyers, which helped maintain competition and pushed underlying land prices higher. However, the decline in consumer tract sale activity began to reduce the number of active land dealers, small speculators, private investment groups, and other potential buyers. As a result of this reduction in competition for larger commercial timberland packages, the commercial buyer pool became more homogeneous, or ‘likeminded.’ Uncertainty also began to emerge among many commercial/institutional buyers as to whether previous, sometimes aggressive, valuation strategies were sustainable in light of the declining market for consumer tracts and declining stumpage prices. Other than a few timber companies and even fewer opportunistic investors (individuals and speculator groups), TIMOs appeared to be the predominant buyer for larger commercial timberland packages by 2008 to early 2009. The few large transactions that were occurring at this time were providing early evidence that transaction prices within this market segment were softening. Indeed, a downward adjustment in land prices was logical considering reduced consumer demand and decreased timber revenues. At present, timberland prices in all buyer segments have experienced notable price declines as compared to the market peak in 2007. Current market conditions indicate significantly fewer transactions, and marketing periods for consumer parcels are longer, 12 months or more in some regions of the South. Observed prices for many recent consumer transactions are 40 to 75 percent lower than prevailing prices during the market peak. Regions of the South that enjoyed the fastest and highest run-up in prices are now experiencing the greatest decline, proving the old adage—the higher you go, the harder the fall. In turn, lower demand and declining prices for consumer tracts (along with weak timber markets) have negatively impacted prices for commercial /institutional packGeorgia Forestry Today
ages. Commercial investors appear to be returning to more traditional timberland valuation models, which serve to cap the upper price limit for commercial timberland properties. Reportedly, most of the established TIMOs have a sizable amount of capital to invest. Thus, if reasonable demand continues among commercial buyers, and the supply of available large timberland offerings continues to remain low, the drastic price decline experienced by small consumer tracts may be softened for commercial investors. “Prediction is Difficult—Especially About the Future.” Neils Bohr, Danish physicist 1885-1962 The Future Looking into the past and describing what happened is easy. Predicting the future is next to impossible. However, a few things can be said with reasonable certainty. Forest products consumption is not a fad. Forest products remain a fundamental building block in our economy and will again resume its rightful place in a growing economy. First stability, then moderate growth will eventually re-appear in the timberland market. Even so, a few conditions must exist for this to happen. First, a healthy respect for the free market economy must prevail. Businesses, not governments, grow and sustain an economy. Politically motivated, government-subsidized growth is artificial, misleading, unsustainable, and disruptive to the natural development of products, commerce, and services. Secondly, general economic conditions have to improve nationally and globally before investor confidence is restored. An improved economic outlook must be present to re-stimulate residential markets and the consumption of forest products. When these things occur, stumpage prices will begin to return to a normal, healthy level to encourage and sustain production from our forests. Stability in timberland markets will eventually improve after the supply of stressed properties, particularly small consumer size tracts, is absorbed. A number of economists believe that it may well be after 2012 before conditions begin any notable improvement—and even
then, recovery will probably be slow. A period of at least five years will probably be required before south-wide stumpage markets begin to see any meaningful price recovery. Thus, it is quite conceivable that timberland values over the next ten years will remain below the peak level that developed during the last decade. Admittedly, our analysis centers on local influences and is therefore inadequate in its analysis of the overall forest products market. The forest products market is affected by a host of additional influences, including value of the dollar, world demand for forest products, as well as political influences in other developed and developing countries. Even so, a few things have clearly changed in the South that suggest a return of more stable prices, although lower than experienced over the past decade. The exuberance that led to the southern timberland market frenzy no longer exists. Tight credit markets and the depressed economy have severely reduced consumer demand for land. Also, speculative trading no longer influences the market and is unlikely to return to its previous level in the foreseeable future. Irrational buying has been replaced by more caution and prudence. A generation has learned that the market can be brutal when deviating too far from fundamentals. The next decade will likely see a return, especially by commercial timberland buyers, to the fundamentals of analyzing properties based on timber production economics, biological growth, sustainable land prices, and more stable financial returns consistent with our long history of southern timberland. Mr. Twain was and still is right ~ “They aren’t making any more land.” However, its value still remains dependent on what it produces. It appears that the southern timberland market may be returning to this fundamental, which was all but forgotten by many over the course of the last decade. v Richard Humphries is Vice President and Senior Appraiser of Forest Resource Consultants Inc.(FRC) in Macon, Georgia. To contact him, phone (478) 745.4910 or e-mail rhumphries@frcemail.com. This article was originally published in Timber Mart-South, 3rd Quarter, 2011. 21
Coming Soon: New Design Values for Pine Lumber Shifts in the resource mix suggest changes are needed By Eric Gee | Southern Forest Products Association
T
he pine forests of the South are changing. And the lumber industry is taking steps to assure those dependent on one of Georgia’s most abundant agricultural crops that their Southern Pine timber produces a strong, reliable construction material for decades to come. Design values are assigned to six basic properties of lumber. Architects, engineers ,and other building professionals use design values to calculate the performance of a structural system. The lumber industry conducts ongoing testing and invests millions of dollars to provide the most accurate and reliable design values for structural lumber. Comprehensive lumber testing is conducted as new technology becomes available or as warranted by changing resource data. Design values have changed multiple times over the years based on available test data. The first significant lumber tests began back in the 1920s, resulting in design values based on the strength of small clear-wood specimens. The last major change occurred in 1991. Today, design values for structural lumber go through a rigorous approval process. As the rules-writing agency for Southern Pine lumber, the Southern Pine Inspection Bureau (SPIB) is responsible for developing and publishing design values for Southern Pine. All testing and data analysis must be completed in accordance with approved standards. Agencies responsible for other softwood lumber species—from timber grown in other parts of the U.S. and Canada —are currently in different stages for evaluating their respective design values. SPIB and Timber Products Inspection selected full-size No.2 grade 2x4 samples for destructive tests, breaking full-size lumber pieces to determine limits to bending, tension, and stiffness properties. As of June 1, 2012, new design values for visually graded No. 2 and lower grades of 2x4 Southern Pine lumber will become effective. 22
Now underway, the Southern Pine industry is testing other grades and sizes of Southern Pine lumber. SPIB and Timber Products are conducting destructive tests to collect the latest data on the mechanical properties of lumber from today’s forests. Testing is scheduled to be completed later this year, when the approval process can begin. Southern Pine will continue to be monitored on an annual basis with destructive
tests. Resource sampling covers the full region of Southern Pine’s vast growing region, a geographic belt extending from East Texas to Virginia. Test results assign values according to the lowest common denominator found in all samples collected. Today’s timber and lumber characteristics reflect management choices made many years ago. Decades of improved Southern Pine silvicultural methods may be partially responsible for the transition to new design values. However, even though we’ve learned how to grow sawtimber-sized trees in a shorter period of time, the sustainability and health of our forests improves. The industry continues to produce quality lumber from a resource which is abundant and available. Southern Pine remains strong, reliable Timberland owners can rest assured: Southern Pine lumber remains one of the best construction products on the market today. It is the only lumber species that has been monitored annually since 1994, making it the most tested wood species in America. Southern Pine’s strength remains comparable to other softwood species used in residential and commercial construction. The strength and superior treatability of Southern
March | April 2012
Pine lumber against decay and termites continues to provide a great value for manufacturers, designers, builders, and consumers. The extensive testing protocols used assure that everyone involved in the specification, sale, and use of Southern Pine lumber has the most current information about how it can be used confidently and economically. Truss manufacturers, treaters and design-build professionals have many Southern Pine product options available to them. These customers can achieve the product performance they need by identifying a particular design value, choosing from a number of visual grade selections or specifying their choice of mechanically graded lumber. For more information about new design values for Southern Pine lumber, visit www.southernpine.com.
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Changes in Timberland Ownership By Sara Baldwin | Editor | Timber Mart-South
P
rivate timberland ownership in the United States has changed structure over the past ten years. More than 40 million acres of U.S. timberland have shifted ownership in approximately 600 large transactions since 2000. The global timberland investment community gathered in March at Reynolds Plantation, Georgia, for the 2011 Warnell Center for Forest Business Timberland Investment Conference to discuss the current timberland investment climate and challenges ahead. Jacek Siry, who is with the center, presented “Private Forestland Ownership Change in the U.S.� He summarized findings from his new book, US Timberland Markets: 2000 to 2010, which was jointly authored with Tom Harris and Sara Baldwin of Timber Mart-South. Siry included some of the following points: In 2000, forest products companies owned approximately 20 percent of privately owned US timberland, of which 36 million acres were in the U.S. South. By the end of 2010, much of these Southern U.S. timberland holdings had changed hands, some more than once, and most of the rest had moved to different ownership structures. The top ten companies owned 38.7 million acres in 2000. Today, after a historic divestiture by nearly all of the large forest products companies, private corporate timberland ownership in the U.S. is more diverse and less integrated. The top ten forest products company owners hold only 21.5 million acres and four of the top five are Real Estate Investment Trusts (REITs), tax advantaged entities with timberland/real estate as their principal business. Timberland Investment Management Organizations (TIMOs) purchased many of the acres sold by the forest products companies. Only one TIMO, Hancock Timber Resources Group, held more than three million acres under management in 2000. In 2010, the three top TIMOs each held more than three million acres, and the top ten TIMOs held more than 20 million acres. 24
In general, timberland appears to have been traded more frequently than in the past. Transition activity peaked mid-decade. The timberland acreage sold per year in large transactions increased from about one million acres in 2000 to peak at about seven million acres in 2006. By 2010, sales had fallen back to 2000 levels. Timberland prices also increased over the period. Prices averaged around $800 per acre nation-wide from 2000 through 2004, peaked in 2007 at almost $1,800 per acre in
2007, and fell back by 2010. However, prices only returned to 2006 levels. REITs and TIMOs are widely thought to manage their land held for timber production in a similar manner to industrial owners. However, portions of the land may be managed less intensively or set aside for environmental purposes. Sales of non-core timberland and acquisitions that compliment holdings can be part of the business model. One implication of forest industry divestiture of timberland is that more wood is now sold on the open market. This trend has increased the role of consulting foresters in timberland management. Further, there are new market dynamics for both buyers and sellers. Supply chain instruments such as supply agreements and timber leases have become prominent parts of timberland transactions. Wood supply chain efficiency has changed but how the new relationships affect wood flow and costs are still under scrutiny. To learn more about the new book or to order, please visit our Web site at http://www.timbermart-south.com or contact Sara Baldwin by phone at (706) 542-4760 or by e-mail at sbaldwin@warnell.uga.edu . v
Helping Grow Your Future
www.hippenterprises.com Todd Hipp Eric Hipp Chad Hipp
(803) 924-0978 (803) 924-4131 (803) 924-5940
todd@hippenterprises.com eric@hippenterprises.com chad@hippenterprises.com March | April 2012
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Background Check: Sowood Lumber Check-off Information provided by the Southern Forest Products Association
I
n June of this year the softwood lumber industry voted in a USDA held referendum to approve the creation of a check-off to fund a unified softwood lumber promotion program This first-ever national forest industry check-off takes advantage of a provision in the 1996 Farm Bill that provides the opportunity for a check-off program with crossborder equity with respect to financial contributions, process, and governance. Check-off programs have been used by agricultural commodities—beef, pork, egg, etc.—in the U.S. for 50+ years with strong records of perception-changing success. Check-off programs—which must be agreed to by a majority of industry—are governed by industry but enabled by government. Government involvement assures funding stability over time, which has been a major shortfall of past voluntary softwood marketing programs. The Softwood Lumber Board (SLB) was appointed by the Secretary of Agriculture in late October, 2011, and held its first meeting on November 29th in Chicago, Illinois, to launch the softwood lumber check-off. “I am gratified and encouraged by the commitment of this new board to the goal of working progressively together to build a better future for the industry,” said Jack Jordan, executive vice president of Jordan Lumber & Supply Inc., in North Carolina, who was elected to serve as the board’s first chairman. Duncan Davies, president and CEO of Interfor in Vancouver BC, elected First Vice Chairman, added, “The Board is committed to funding projects that have strong potential to grow markets and that will bring a significant return on the investments made by companies contributing to the check-off.” Other officers and executive committee members elected at the meeting include Marc Brinkmeyer, Chairman of the Idaho Forest Group, Idaho, Second Vice Chair; Steve Zika, CEO of Hampton Affiliates, Oregon, Secretary; Mike Case, CEO of Westervelt, Alabama, Treasurer; and Hank 26
Scott CEO of Collum’s Lumber, South Carolina, At-large. David Gray, CEO of Mill & Timber, British Columbia, was elected to fill the role of Immediate Past Chair. The board voted to create four standing committees: • Executive Committee will oversee day to day operations of the check-off; • Programs Committee, to be chaired by Hank Scott, will oversee market research, research and promotion programs, and evaluations; • Finance Committee, to be chaired by Mike Case, will oversee financial affairs; • Governance and Industry Relations Committee, to be chaired by Steve Zika, will oversee annual nominations and industry communications. The main portion of the meeting was devoted to a discussion of program criteria and guidelines. The SLB’s direction to the Programs Committee included advice to focus as much of the funds as possible on market development initiatives. Clear metrics to measure and evaluate the direct impact of these initiatives will be a pre-requisite for funding. Programs will need to demonstrate a significant ROI (based on margin dollars) to the softwood lumber industry through activities that: • Increase demand, generate sales, or improve market conditions; • Protect and maintain softwood lumber markets (such as code and standards work); • Develop new uses and applications for softwood lumber. “This is a historic and game-changing investment in the future growth of softwood lumber markets,” said Marc Brinkmeyer, Chairman of the Idaho Forest Group. “This check-off truly is a unified effort to significantly grow markets for softwood lumber and improve cross-border cooperation.” Other matters addressed by the SLB: • In order to minimize administrative expenses, avoid permanent overhead costs, and comply with an eight percent ceiling
•
•
•
•
on administrative expenses, the board voted to outsource all staff and service functions. Two executive positions were established and filled: Steve Lovett was appointed Chief Executive Officer and Cees de Jager as Chief Marketing Officer. Service functions will be handled by an association management company whose scalable staff and services offer the most efficient use of industry funds. The Executive Committee will review the operational model in 12-18 months to ensure it is consistent with the aims and objectives of the organization. The board recommended to USDA that the board collect assessments on imports directly from importers of record, in lieu of having assessments collected at the border by U.S. Customs and Border Protection.
Shipments will be subject to assessment beginning January 1, 2012, but will not be invoiced for payment until the end of the first quarter 2012. In January 2012, the board will send detailed procedures to each softwood lumber manufacturer and importer of record, and request documentation of multiyear shipment volumes. Companies that regularly ship or import less than 15 million board feet annually will be issued a certificate of exemption, and will not be invoiced for assessments. Certificates of exemption must be renewed annually, and any amounts domestically shipped or imported in excess of 15 million board feet in any calendar year will be subject to assessments. The SLB will be providing regular updates on its efforts and programs. These updates will be communicated to the industry directly and available on the organization’s Web site: www.softwoodlumberboard.org. The board is next scheduled to meet in February 2012. For further information contact the Softwood Lumber Board, 401 North Michigan Avenue, Suite 2200, Chicago, Illinois 60611, telephone 1-(312) 321-5131. v March | April 2012
About the SLB: The Softwood Lumber Board has 19 directors, all softwood lumber CEOs and industry leaders appointed by USDA Secretary Tom Vilsack in late October 2011 under the provisions of the Commodity Promotion,
Research, and Information Act of 1996. Representation on the board is proportional to regional production, and domestic manufacturers and importers of a variety of soft-
wood lumber products from a broad range of size and type of company are represented. A copy of the secretary’s appointments can be found on the SLB’s Web site. v
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Georgia Forestry Today
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Local Communities Preparing for Wildfire Season Persistent drought conditions in north Georgia combined with debris from the tornadoes of last April have the Georgia Forestry Commission and its partners preparing for another potentially severe wildfire season. A team of fire prevention specialists from the GFC, Florida Forest Service, National Park Service, U.S. Fish and Wildlife Service, and local fire agencies will soon deploy a team of fire prevention specialists to help residents in Catoosa, Dade, and Walker counties prepare their properties for potential wildfires. “The wildfires of 2011 went down in the record books as one of the worst in our state’s history,” said Frank Sorrells, Chief of
Forest Protection for the Georgia Forestry Commission. “Unfortunately, wildfire conditions have not improved in north Georgia, and analysts expect another active fire season this year. Our goal is to empower individuals in these counties with the knowledge they need to take proactive actions now to help protect themselves and their communities this wildfire season.” The multi-agency fire prevention team will work with homeowner associations, city and county officials, and local fire departments to educate individuals in the affected counties about the elevated risk of wildfires this spring. The team will also give advice for protecting lives and
properties in the event of a wildfire through the National Fire Protection Association’s Firewise program. "The Firewise program teaches people how to adapt to living with wildfire and encourages neighbors to work together and take action now to prevent losses,” said Sorrells. “Helping people learn to take appropriate actions before a wildfire will go a long way in protecting lives and properties if or when a wildfire happens.” The Georgia Forestry Commission provides detailed information about wildfires, fire risk conditions, Firewise, and Georgia’s forest resource at GaTrees.org. v
US Forest Service Announces Strategy to Replace Large Airtankers for Wildfire Efforts The U.S. Forest Service announced today a strategy, developed with input from the Department of the Interior, to replace the fleet of aging air tankers used to battle wildfires with a next generation of newer, faster, more cost-effective large airtankers. “We need a core fleet of the next generation large airtankers to supplement our boots-on-the-ground firefighters for what we know will be longer and more severe wildfire seasons in years to come,” said Forest Service Chief Tom Tidwell. “Not only will these newer, more effective airtankers help us keep fires contained and communities safe, they will also protect our brave men and women on the fireline.” Although no large airtanker has been
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built specifically for firefighting, several aircraft were designed to handle similar stresses. Recommendations for the next generation of airtankers include: • Capabilities of carrying a minimum of 1,800 gallons of mixed retardant with more than 3,000 gallons preferred.
eral airtanker bases. • Forest Service contract structural integrity program requirements must be met.
• Powering by turbine engines, which are more reliable, more fuel efficient, and require less maintenance than older aircraft piston engines.
“The effectiveness of airtankers on a wildfire is directly proportional to its speed and load capacity,” Tidwell said. “Large airtankers can be effective in thick forest canopies and areas of dense brush or timber. A larger load capacity also allows large airtankers to split their retardant loads to support different parts of a fire without delay of returning to base.”
• Capabilities of operating from most fed-
To learn more, visit www.fs.fed.us.v
• A minimum cruise speed of 345 mph for quick fire response over long distance.
March | April 2012
US Forest Service Releases 2011 Tax Guide for Forest Landowners The Forest Service recently released the 2011 edition of Federal Income Tax on Timber: A Key to Your Most Frequently Asked Questions, a quick-reference guide to timber tax laws impacting woodland owners. Since the first income tax Form 1040 appeared in 1913, many timber tax provisions have been added to encourage management and stewardship of private woodland. More recently, sweeping tax law changes have included major provision important to woodland owners. These include the temporary extension of the favorable tax rate applicable to timber, gen-
erous depreciation deduction, as well as the brand new tax form required by the IRS affecting timber sale reporting. For more than 20 years the National Woodland Owner Survey has indicated that taxes are a top concern for private woodland owners and are major costs, yet many tax professionals do not specialize in timber tax. Federal Income Tax on Timber, complete with a current update of the new tax law changes, provides timely tax reporting information for woodland owners and their advisors. It’s written in plain easy-to-understand language and includes examples.
Some of the questions that are answered in the 2011 edition of Federal Income Tax on Timber are: • Does my timber sale qualify for the favorable capital gain rate? • How do I claim a loss on my return for timber damaged by fire or storms? • How do I qualify for capital gains for the cutting of standing timber? Visit the US Forest Service at usda.gov for a free PDF of the 2011 Guide. v
Sheriffs to Work with GFA on Timber Theft On January 24, representatives from the Georgia Forestry Association addressed a meeting of the Georgia Sheriffs Association (GSA) seeking better outcomes when working timber theft cases in Georgia. “We’re here to start a conversation,” said GFA president Steve McWilliams. “Without the cooperation of local sheriffs’ offices we will not be able to improve on our ability to help landowners who are victims of timber theft, so today we are asking you to partner with us.”
GFA Board member Bill Guthrie from Weyerhaeuser in Savannah spoke of the plight of timberland owners who suffer losses when their timber is stolen. “Often a landowner will harvest his timber once or twice in a lifetime,” noted Guthrie. “A stolen tract of timber can’t be replaced like a row crop—once it’s gone, it’s gone.” Guthrie said that landowners need a clear and reliable path toward resolution of timber theft cases.
Following the presentation, GSA president Scott Berry, Sheriff of Oconee County, appointed a five-person working group to participate in discussions with the forestry community to develop a better understanding of timber theft and to develop recommendations for improving the investigation of timber theft cases and the apprehension of the criminals. A joint task force from GSA and GFA is expected to meet in the next several weeks. v
forestry Calendar MArCH 29
MAY 30 – JUNE 1
JULY 7-9
Longleaf Classic 2012 Hawkinsville, Georgia Southern Hill Golf Club Contact: Carla Rapp, Director of Forestry Education, GFA (478) 992-8110 or carla@gfagrow.org
2012 National Conference of Private Forest Landowners Ponte Vedra Beach, Florida Sawgrass Marriott Ponte Vedra Beach Resort & Spa Hotel Registration Deadline: April 30 Registration: www.forestlandowners.com
Georgia Forestry Association Annual Conference Savannah, Georgia The Westin Savannah Harbor Golf Resort and Spa Registration Deadline: June 6 Contact: Judy Couch, Director of Events, GFA
MAY 08 Prescribed Fire Certification Columbus, Georgia Columbus State University Contact: Susan Smith, (706) 507-8329
Georgia Forestry Today
JUNE 18-22 Georgia Teacher Conservation Workshop Charlie Elliott Wildlife Center Registration Deadline: April 30 Contact: Carla Rapp, Director of Forestry Education, GFA (478) 992-8110 or carla@gfagrow.org
If you have a forestry event you’d like to see on our calendar, please contact Alva Hopkins at ahopkins@a4inc.com with the subject line ‘Calendar Event.’
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GEORGIA FORESTRY TODAY DIRECTORY OF PRODUCTS & SERVICES
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March | April 2012
Georgia Forestry Today
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