Managing the Forest from One Generation to the Next

Three generations of Neeley family foresters serving landowners, sustaining forests and looking to the future.

A shared passion for managing timberland, serving landowners and sustaining forested areas fuels the successful, full-service forestry management business owned and operated by three generations of the Neeley family in Camden, Arkansas.

Founded by patriarch Jim Neeley in 1972, Neeley Forestry Services provides timber management and real estate services to clients in Arkansas, Louisiana and Texas. Jim launched the business with the vision of, “Managing the forest from one generation to the next.” This ideal is the firm’s goal and mission statement still today.

The company has managed area forests for 46 years. Interestingly, their mission statement has taken on increased meaning as three generations of Neeleys now work side-by-side as foresters in the family business.

Father, son and grandson share another bond, as well. They love the outdoors, hunting and fishing, and sustaining forests for future generations.

Their History

The Neeley family settled in Ouachita County in the 1850s. The original homestead has been in the family for six generations.

As a child, Jim Neeley remembers his father Floyd, Sr. buying timber and working with regional sawmills. Jim earned his forestry degree from Arkansas Agricultural and Mechanical College (now The University of Arkansas at Monticello) – forging a path that both his son and grandson have followed. To assist his father, Jim says he began managing tracts of private timberland in college. He worked for major timber and paper companies upon graduation.

“In those early jobs I recognized that landowners could benefit from both representation and good advice,” Jim explains.

Seeing that need and knowing he could assist landowners led Jim to start the business with 25,000 acres of managed land. The company doubled by the time John David (J.D.) joined his father in 1985 after earning his own forestry degree from UAM. At that time, J.D. explains, the core of the business was timber management. By the late 1990s, J.D. had his real estate and appraiser licenses, allowing the business to further grow and diversify.

Today, J.D. serves as president and principal broker as well as a certified general appraiser, specializing in timberland, pastureland and recreational properties. Jim, founder and forester, maintains a full-time schedule of client visits and consultations as the business now manages more than 225,000 acres for clients.

J.D.’s son Daniel, forester and real estate sales, signed on in 2012. Following family tradition, he earned a forestry degree from UAM. He has an MBA from Southern Arkansas University and brings a strong set of GIS, real estate and technology skills to the company.

A cabin on the original Neeley homestead is the center of family gatherings.

Lindsey Holtzclaw | Farm Credit of Western Arkansas

“It’s in our Neeley blood,” J.D. smiles andexplains. “We love the land and have a traditionof following in our father’s footsteps.”

J.D. further explains that the Neeley family legacy includes giving back. He points to his late mother Rachel Daniel Neeley as a strong role model for how to treat others and give back to the community. He says her influence shaped who he is today.

“I admired my mother because she was always helping people,” J.D. shares. “We find great satisfaction in helping forest landowners achieve their goals.”

Generation To Generation

Managing timberland is a long-term process. A newly-planted stand of pine trees is first thinned at age 10 to 14, and might not reach final harvest size until age 25 to 35 years. The long growth cycle means the Neeleys have worked with several generations of the same families. In fact, Jim is currently working with a third-generation family member of one of his first clients from 1955.

The drone is a business tool for Daniel. It allows the company to more efficiently manage timber stands and provides aerial footage of property to potential buyers on the real estate side of the business.

Lindsey Holtzclaw | Farm Credit of Western Arkansas

Technology, And Beyond

Not surprisingly, technology is playing an important role in increasing the family’s business efficiencies.

Daniel is responsible for staying abreast of new, evolving technology that can better serve both their clients, and their business needs. He uses GIS (geographic information systems) to better manage timber stands and has implemented software that improves database management, allowing the company to more easily grow and diversify.

Most recently, Daniel earned his remote pilot’s license in order to handle small unmanned aircraft for business operations. The remotely piloted aircraft is used to survey timberland, market real estate and more.

“Out-of-state clients expect aerial footage of real estate today,” Daniel explains. “Drone footage captured from my quadcopter is a must on the real estate side, but it’s also saving us time as we manage timber tracts. It’s a game-changer for both our clients, and our business.”

J.D. says improved genetics is changing the timber industry, as well. Faster growing trees translates into a win for landowners who wait upwards of twenty-five years for harvest and a return on their investment.

“Timber is for the patient investor,” J.D. chuckles.

“These are great days for forestry,” J.D. adds. “Industry techniques have evolved, we have the best genetics we’ve ever had, and better silvicultural tools to help us manage the forest for our clients.”

Lindsey Holtzclaw | Farm Credit of Western Arkansas

Offering Their Clients More

J.D. says it’s been important to grow and add more client services over time.

“A year ago, we added a certified biologist to our staff to provide wildlife management services,” J.D. explains. “In adding him to our knowledge base we hope to meet desires of landowners. Ensuring land attracts wildlife for hunting is important to recreational property owners. We continually diversify by recognizing and meeting client needs.”

Hunting lease management is an example of a service driven by client need. Lease income can often offset annual property taxes, J.D. says, making property more attractive to buyers. Arkansas land is some of the best and most affordable in the South, he adds.

From the sale and purchase of property, to the life-cycle management of forested land, to valueadded services like appraisal and hunting lease management, to, finally, the sale of timber to the mill, the Neeleys can manage and coordinate a client’s every need.

Jim points to their varied skills and how the three generations complement one another as one reason for their success and ability to grown and diversify.

“We all bring different talents to the table,” Jim explains. “That’s worked to our advantage.”

Consumer-Driven Needs

Consumers want wood and paper products from sustainable sources. This trend is driving the need for certified-sustainable timber. According to J.D., mills over the past ten years have been requiring a much higher percentage of wood to come from sources certified by sustainable forest programs. Timber certification means that the forest has an approved sustainable management plan and established chainof-custody from the trees to the final wood processer. The Neeleys have added certified management services to meet this demand.

While the Neeleys understand the emphasis on certified timber, they admit it is creating a logistical challenge.

“It is increasingly becoming more difficult to thin non-certified pine pulpwood,” J.D. says. “If we can’t get a forest thinned or cut at the right time, it disrupts the entire management plan. That, in turn, begins to impact a client’s income streams, especially if they have payments pending with a lender.”

As of August, Neeley Forestry now has an office in Shreveport, LA with Sam Crawford as the Louisiana manager. This expansion into northern Louisiana offers their clients and real estate services a much broader marketing base, J.D. explains.

Farm Credit has employees like long-time forester David Smith (left) who understand the industry and lending needs of timber customers.

Lindsey Holtzclaw | Farm Credit of Western Arkansas

Farm Credit’s Role

The Neeley’s began working with Farm Credit in 2011. Vice President Regional Sales Timber/Forestry David Smith and Vice President Rachael Godwin of the Arkadelphia branch office have both assisted them with financing needs.

“Farm Credit is a good fit for us,” J.D. explains. “We started financing with Farm Credit about the time we became more aggressive with purchasing our own large tracts of company land.”

“Long-term, competitive fixed rates are a big reason it makes sense for us to finance large tracts with Farm Credit,” he continues. “The fact that David and Rachael understand the nuances of the timber industry is another benefit. Many banks don’t understand timber, so we’ve come to appreciate how Farm Credit’s expertise simplifies the lending process for us.”

“I’ve known Jim and J.D. for years,” shares David, a long-time forester. “Our paths naturally crossed a number of times over the years and I already had a lot of respect for the Neeleys and their operation when we began discussing how Farm Credit might benefit their business.”

“They have a strong reputation in the timber industry,” David adds. “They are respected for their forestry management skills and trusted by their clients.”

“The Neeley’s make our job easy,” adds Rachael Godwin. “They have a clear plan when they come to us and their proven success speaks for itself. The fact that several generations of the same families trust and do business with them is testament to their character.”

Financing agribusinesses, like Neeley Forestry Services, is an example of what Farm Credit can do outside of traditional farm, livestock and rural home lending. As a financial cooperative, Congress created the Farm Credit System more than 100 years ago to serve the needs of rural America. Reliable, competitive lending for agribusinesses in rural Arkansas is an important part of that mission. Agribusinesses serve important needs and add to the local economy of rural communities.

With more than 60 years of professional forestry experience, Jim Neeley has an active role in daily business operations.

What The Future Holds

When asked about future plans, J.D. says working to expand markets for their clients is a continual priority. But above all, managing timberland for many more generations is their ultimate goal.

“We’re in it for the long-term,” he explains. “We’re proud of what we’ve accomplished. It’s the Neeley family legacy to give back to the land, promoting forest stewardship and conservation.”