Dr. Greg Frey - Sustainably Utilizing Your Forest Resources

Sustainably utilizing your forest resources

Small Farm Family Conference November 1-2, 2011; Danville, VA

Greg Frey

Extension Specialist - Forestry Virginia Cooperative Extension

Virginia State University

Many landowners say:

I am continuously putting money into my forestland – taxes, planting, monitoring.

I want to be a good steward of the land.

Timber takes so long to grow.

How can I make money from my forests?

Statistics

• 79% of forestland in Virginia is owned by Non-Industrial Private Forest (NIPF) landowners.

• 89% have less than 50 acres.

• However, 67% of forestland is owned by 11% of the owners.

How can small farm/forest owners make money in this environment?

Source: Rose, A.K. 2009. Virginia’s Forests, 2007. USDA Forest Service.

Objectives

• Review some steps to get good information and make smart decisions.

• Give small farmers/landowners an overview of some options to make money from their woods, and discuss some advantages and disadvantages.

Step 1: Determine your objectives

• Stewardship

• Personal activities/recreation

• Total profits

• Annual income

• Low costs/investment

• Ease of management

• Ease of marketing

Photo Credit: Forest Landowner Education Program

Step 2: Consult a professional

• VA Department of Forestry County Foresters

• Consulting Forester

• VA Cooperative Extension

Photo Credit: Virginia Dept of Forestry

Step 3: Define your activities and/or products

• Timber

• Fuelwood

• Recreation

• Conservation

• Non-timber forest products

• Agroforestry

• Carbon

Photo Credits: Forest Landowner Education Program; http://shiitakemushroomlog.com/

Step 4: Plan and manage

• Would you start a garden without thinking about what you want to grow?

• Would start it without planting anything?

• Would you grow it without controlling weeds?

Step 4: Plan and manage

You can get support to help with the following:

• Land use plan

• Land Stewardship Plan

• American Tree Farm System

• CAP 106

For many activities, it is also beneficial to develop a business plan.

Step 5: Reduce your costs

• Land use tax rate, if available

• Tax credits and deductions

• USDA cost share programs (WHIP, EQIP, CRP, CSP, others)

• VA Best Management Practices loans and cost share

• VA woodlands improvement and health cost share

Step 6 & 7

• Keep records.

• Plan for your heirs.

Options for generating income with forest resources

Timber

What is it?

• Sawtimber

• Pulpwood


Timber

What are the advantages and disadvantages for small farms?

+ Timber can wait until you need it, or until prices are good.

+ Compatible with other products (e.g. recreation). + Low intensity management. - Long waiting time. - Competition with large landowners - There may be some unscrupulous loggers. - Markets for products like pulpwood are on the decline

in many areas.

Timber

What do I need to do?

• Contact a forester & create management plan

• Site prep, planting

• Competition control, release

• Thinning

• Work with a forester on timber sale

and cost-share programs

• Keep records

Photo Credit: Greg Frey

Fuelwood

What is it?

• Firewood

• Charcoal

• Biomass (chips/pellets)

Photo Credits: Forest Landowner Education Program; http://www.pine3.info/Charmake.htm

Fuelwood


+ Use material that would otherwise be wasted.

+ Very small to the medium or large scale.

- Prices are not high, but might be a source of side income.

Fuelwood


• Develop a management plan and a business plan.

Recreation

What is it?

• Hunting

• Fishing

• Hiking

• Camping

• Bird watching

• Other tourism activities

http://www.earlybirdies.net/ Photo Credit: Forest Landowner Education Program; http://www.earlybirdies.net/

Recreation


- For many leases, you need a relatively large area.

- Prices not high.

+ Management is not too hard, once you have the legal issues sorted out.

+ Annual income

Recreation


• Find an individual or group to lease your land, or seek bids.

• Work with a lawyer.

• Make sure you have the right insurance.

• Forest improvement for wildlife.

Conservation

What is it?

• Easement - Give away, or sell, your rights to develop a portion of your land, either permanently or for a set period of time.

• Undertake forest improvement practices.

• Claim numerous tax deductions or credits, or cost-share payments.


Conservation


- Terms can be flexible, but you forfeit some of your rights. Only do this if you absolutely do not want your land to be developed.

- Many conservation trusts don’t deal with small acreages.

+ Cost share and tax deductions from state and federal government.

Conservation


• Speak to a professional

• Appraisals will be done for the value of your land with and without easement


Non-Timber Forest Products

What is it? • Pine straw • Ginseng, Goldenseal, Cohosh • Ramps • Mushrooms • Honey • Crafts (Oak baskets, Holiday greenery) • Christmas trees • Many others

Photo Credit: Forest Landowner Education Program; N.C. Department of Agriculture and Consumer Services



+ Find a niche.

+ There are so many NTFPs, it is possible to find one to match your management objectives.

+ Can be “wild-cultivated” or managed.

- Marketing is time consuming.

- Requires willingness to experiment.



• Investigate NTFPs that would match your farm conditions and management objectives.

• Contact a professional or specialist.

• Develop a management plan and business plan.

Photo Credits: Forest Landowner Education Program; http://www.southernliving.com

Agroforestry

What is it?

• Forest farming

• Silvopasture

• Alley cropping

• Windbreaks and shelterbelts

• Riparian buffers

Photo Credits: Greg Frey; National Agroforestry Center

Agroforestry

What is it? Silvopasture example

http://www.youtube.com/watch?v=VJsKmBbtw7Q

0:00-5:18



Agroforestry


+ Diversification of income.

+ Annual income and long term “savings account”.

- Intensive management.

- Requires willingness to experiment.

Agroforestry


• Be willing to spend some time doing research and experimenting.

• Contact a professional or specialist.

• Investigate practices that would match your farm conditions and management objectives.

• Develop a management plan and business plan.

Carbon offsets

What is it?

• Trees capture carbon dioxide from the atmosphere.

• Some groups are willing to pay for this service, to offset their own carbon emissions.

• Driven by California’s climate program, the Climate Action Reserve (CAR)

Carbon offsets


- At present, the market in the US is virtually non-existent.

- For the foreseeable future, market will attract only large players, because of high cost of project design, and of monitoring and verifying emissions.

Carbon offsets


• Not much you can do since the US market is not very large, just wait, and do something else in the meantime.

Comparison Timber Fuelwood Recreation Conservation

Easy to market ++ + + +

Competition with large producers

-- + -- --

Annual income -- +/- ++ +/-

Management intensity

++ + ++ ++

Costs/Investment + ++ ++ ++

Profitability - - -- --

Comparison

Non-timber

Forest Products Agroforestry Carbon

Easy to market -- + --

Competition with large producers

++ +/- --

Annual income +/- ++ +/-

Management intensity - -- +/-

Costs/Investment - -- --

Profitability ++ ++ ?

Review

1. Determine your objectives

2. Contact a professional

3. Define your activities and products

4. Plan and manage

5. Reduce your costs

6. Keep records

7. Plan for your heirs

THANK YOU

Questions about this presentation:

Greg Frey – [email protected]; 804-524-6967

For more information about forest planning, and about cost share and other programs, visit your local County Forester (VA Dept of Forestry), Cooperative Extension office, or USDA Service Center

mailto:[email protected]

Date post:	22-Nov-2014
Category:	Education
Upload:	mjklin
View:	1,422 times
Download:	0 times