Farm Bureau Policy Development Fact Sheet No. 13 — 2014
FORESTRY PROBLEMS AND ISSUES FORESTRY IS AGRICULTURE According to Arkansas law, forestry is still considered separate from agriculture. During the last legislative session the timber industry gained full tax exemption on equipment purchases; this exemption puts Arkansas on a level playing field with our neighboring states. It also gives timber some of the same exemptions that agriculture currently enjoys, which provides an opportunity to change the law to include forestry as an agriculture product. This would make it easier for forestry to participate in future tax exemptions. Related Policy: Forestry 109, Taxes 153, Definition of Agriculture N-148 1. Should Farm Bureau policy support changes to tax code that considers forestry an agriculture product? FOREST CERTIFICATION - LANDOWNERS Over the last few years the concept of certification has become increasingly popular. Landowners have likely heard the terms Tree Farmer, Forest Stewardship Council (FSC), Sustainable Forest Initiative (SFI), and a host of others. The difference between the certifications has more to do with paperwork than with management differences. The unfortunate thing for landowners is that each of these certifications are independent of the other. The benefit for landowners being certified is that it opens up additional markets for their wood and can in some instances bring a premium. Related Policy: Forestry 109, Private Forestry N-527 1. Should Farm Bureau support landowners creating a management plan on their timber and work to promote all certification processes to its membership? 2. Furthermore; should Farm Bureau support a particular certification process, if so which? FOREST CERTIFICATION – BUILDING PRODUCTS As companies and governments strive to be more “green” they are looking for ways to verify products are grown sustainably. As the Europeans take the lead on this there has been a big push to get wood and paper products that are Forest Stewardship Council (FSC) certified. Additionally, some companies are looking to build buildings that are Leadership in Energy & Environmental Design LEED certified. The Clinton Library and Heifer International are examples of LEED certified buildings in Arkansas; neither has a significant amount of wood from Arkansas as a very few products we produce meet
LEED standards. Instead, wood products we imported from foreign countries that met LEED standards. Related Policy: Forestry 109, International Trade N-252 1. Should Farm Bureau seek legislation requiring government construction to source products locally before going out of state or internationally? 2. How can Farm Bureau help educate consumers about what these certifications mean to local economies? EXPANDING MARKET OPPORTUNITIES As the housing market turns around, some timber companies are considering expanding their operations. Additionally, foreign companies are looking at the timber resources in Arkansas and trying to figure how they can provide Arkansas products to their home country. If one or two new processors were to open or reopen in Arkansas landowners would see their prices go up due to competition in the market. Related Policy: Forestry 109, International Trade N-252, Forestry research 110 1. What types of incentives should Arkansas Farm Bureau support from state and local governments to ensure these plants come to Arkansas?
If you need additional information on these and other issues concerning the Forestry Division or if you desire assistance with your county policy development meeting, contact Matt King, Forestry Division Coordinator at (501)228-1297 or via e-mail at matt.king@arfb.com.