TOP TEN PRIVATE
FORESTRY ISSUES
2006-2007
NWOA is the only
national organization that conducts an annual survey of our affiliated
state forest and woodland owner associations for the purpose of
describing and ranking the top ten private forestry issues affecting
private landowners.
CONSIDERABLE DIVERSITY IN OPINIONS
The results of the survey always reveal the tremendous diversity among
private woodland owners throughout the U.S. This can be seen in the
range in rankings listed for each position. Still, all the issues are
quite closely grouped which is an indication that even with diversity
there is common agreement among landowners throughout the United States
over what concerns them the most. Especially noteworthy this year is
that Timber Markets, Biomass and Free Trade jumped from #6 to #3
position in the rankings.
1. FAIR INCOME, INHERITANCE, AND PROPERTY TAXES
(Ranking Range: 1 -
4)
The number 1 issue for 20 of the last 21 years: “Taxes”, continues to
receive top ranking by a comfortable margin. It has also become a major
concern in passing family woodlands on to the next generation. With the
passage in 2005 of the Sec. 631(b) legislation authorizing Capital Gains
tax rates for “lump sum” in addition to “retained interest” timber
sales, Congress resolved one of our main issues. Now the focus is a
permanent fix of the negative effect of inheritance taxes (“death tax”)
on intergenerational transfer of woodlands (passing it on to your heirs
to keep it in the family). NWOA works with the Forest Landowners Tax
Council to achieve this revision. A repeal has passed the House, and a
compromise bill with a threshold (i.e., $10 million) is under
consideration in the Senate. State affiliates have the lead in assuring
that state capital gains rules, as well as tax incentives, and land use
property tax rates encourage the practice of sustainable forestry on
private lands.
Now that good progress being made on income and inheritance taxes,
attention is turning to local property taxes, which become a problem
when raw land prices escalate above their value for growing trees and
ecosystem benefits. These are rising because of the recent and
unprecedented surge in rural land prices, including woodlands. As more
people move to the country, local governments are pressed to serve new
residents with roads, police, fire, hospitals and schools. Even with
lower land-use taxation rates favoring forestry, many are discovering
that their annual property taxes are getting too expensive to justify
the continuing investment in forestry.
NWOA BELIEVES THAT PROPERTY TAXES SHOULD BE BASED ON BENEFIT/COST
RATIOS, WITH APPROPRIATE RECOGNITION TO THE MARKET BENEFITS TO SOCIETY
(timber, wildlife revenues) AND THE NON-MARKET BENEFITS (clear water,
natural beauty, natural habitat). FEDERAL AND STATE INCOME TAX, AS WELL
AS INHERITANCE TAX LAWS SHOULD ENCOURAGE—NOT DISCOURAGE—LONG-TERM
PRIVATE INVESTMENT IN FORESTRY.
2. PRIVATE PROPERTY RIGHTS
(Ranking Range: 2 -
7)
NWOA has a long history of working for the recognition and respect of
Private Property Rights as fundamental to the American way of life.
Sixteen years ago NWOA developed the widely respected Private Property
Responsibility Code which in turn has been formally adopted by the
majority of our state affiliates. This code is our assertion of
responsibility for our private lands and our intention to protect the
bundle of rights that go with private ownership.
Property rights come into question most often when a public agency or
utility acquire private land for a public purpose (roads, power lines,
schools, etc.). This can be done legally without landowner consent
through a process called a “taking.” The owner can, however challenge
the price offered for the land…..something called “compensation.” The
question then becomes a determination of a fair price, often by a court
process. Subtle, or poorly defined, takings often result from logging
restrictions or other land use rules required by the federal Endangered
Species Act. Unfortunately, some courts have ruled that such a subtle
taking does not occur until a landowner has lost up to 80% of the value
of the property!
A most difficult aspect of this issue is that each case must be argued
individually by landowners, a process that can be expensive and with
limited good results. Although the Endangered Species Act has
technically “sunsetted”, Congress keeps it alive each year through the
appropriations process. NWOA continues to work with Congressional
committees for a new ESA law that provide better guarantees and
recognition of important property rights, but none of several bills
introduced have yet to win Congressional approval. Recent rulings by the
Supreme Court favoring societal benefits over individual rights have
resulted in the introduction of numerous bills at the state level, but
the Congress remains unwilling to address this issue. There are only 10
million woodland owners among the 275 million citizens that members of
Congress represent. As a result, it is just plain difficult to get the
attention that property rights deserve.
NWOA BELIEVES THE PRIVATE PROPERTY OWNERSHIP IS FUNDAMENTAL TO THE
AMERICAN WAY OF LIFE, AND RELATED RIGHTS AND RESPONSIBILITIES SHOULD BE
CAREFULLY PROTECTED AND NOT GRADUALLY ERODED. COMPENSATION FOR NECESSARY
TAKINGS SHOULD BE AT LEAST 50% OF FAIR MARKET VALUE AND MORE WHEN
JUSTIFIED.
3. TIMBER MARKETS, BIOMASS AND FAIR TRADE
(Ranking Range: 1 -
9)
This position jumped from #6 to #3 in voting this year. NWOA has always
been an advocate of free trade with a minimum of government
interference. But we also support diversity and honest competition in
the timber market that, in this period of mergers, often require
oversight by government through anti-trust laws and market price
manipulation. Not many forestry organizations venture a position on
trade issues. The few that do tend to support import protections while
opposing any export penalties. While popular with their members, it is
not a realistic public trade policy. The long running softwood lumber
trade dispute with Canada was publicly resolved in early 2006 along
guidelines that NWOA advocated, but by mid year that agreement is in
question. To help landowners know more about current log prices in their
area, NWOA has joined with the National Forestry Association in support
of a nationwide wide site: www.logprice.com
With the advent of recent increases in the cost of oil and natural gas,
there has been great interest in the production of ethanol as an
alternative, and domestic, energy source. Although most of the attention
is focused in the near term on ethanol from corn, it can also be derived
from woody biomass, a much cheaper raw material source. NWOA has been
recognized by the 25x’25 Initiative as “A leader and partner in efforts
to provide 25% of the National’s energy from renewable sources by 2025.”
NWOA recommends that all forest resources be made available to the
emerging bioenergy market on a equitable market footing with other
bioenergy feedstocks, and that such resources not be limited to forest
residues not currently in demand by other sectors of our economy.
Multiple buyers (American mills and exports) and competitive markets are
essential to the success of private forestry enterprise. Many NWOA
members voluntarily allocate a portion of their timber sales for local
mills to help assure the continued availability of multiple markets.
AMERICA HAS A WORLDWIDE ADVANTAGE IN TIMBER GROWING AND IS A PROVEN
LEADER BY EXAMPLE OF SUSTAINABLE FORESTRY. NWOA SUPPORTS FAIR ACCESS
(EXPORTS AND IMPORTS) TO WORLD MARKETS, APPROPRIATE MEASURES TO MAINTAIN
PRODUCTIVITY AND DIVERSITY OF DOMESTIC MILLS, AND THE 25X’25 NATIONAL
RENEWABLE ENERGY INITIATIVE.
4. RIGHT-TO-PRACTICE FORESTRY
(Ranking Range: 1 -
7)
Always one of the Top Three issues, the Right-to-Practice Forestry
dropped #4 this year but is still an issue of major concern among state
affiliates. NWOA remains concerned that those state without appropriate
laws on the books put woodland owners a risk of not being able to manage
their land and profit from their forestry investments.
Many woodland owners cannot imagine a law being enacted that would
prevent them from cutting their timber if they decide to do so, but it
can and does happen. This is a local/state issue, but for years NWOA has
played a role in sharing information and encouraging all state
associations to make it a priority before it is too late. Once local
jurisdictions have asserted authority to regulate forest practices on
privately owned woodlands it is difficult to get them to relinquish
control!
NWOA STRONGLY ENCOURAGES THE ENACTMENT OF STATE AND LOCAL LAWS THAT
CODIFY THE BENEFITS OF GOOD FOREST STEWARDSHIP, TRUMP RESTRICTIVE LOCAL
ORDINANCES, AND RECOGNIZE THE LONG-TERM INVESTMENTS OF LANDOWNERS IN THE
PRACTICE OF FORESTRY.
5. EXTENSION
EDUCATION AND SERVICE FORESTRY
(Ranking Range: 1 -
9)
Investment in forestry education (e.g. Master Woodland Managers) through
the Extension Service and cooperating state and local agencies (who put
up $5 for every federal $1) yields a good return to society through
improved forest health and productivity. In NWOA’s opinion: “Forest
Education beats Forest Regulation every time!” It is more cost effective
and certainly makes more sense in the long run.
Woodland owners benefit from multiple sources of forestry advice,
including consulting foresters, state service foresters, industry
landowner assistance, and Extension forestry. Putting landowners in
touch with trained foresters is important, and in 2005 NWOA joined in
support of www.findaforester.com. In spite of the impressive
achievements attributed to both Extension and Service Forestry, cash
strapped states continue to single out these programs for continuing
budget cuts. One governor proposed the elimination of forestry extension
altogether, but reconsidered after a strong response from landowners
generated by the state affiliate.
NWOA SUPPORTS ANNUAL APPROPRIATION FOR THE RENEWABLE RESOURCES
EXTENSION ACT (RREA) AND OTHER RELATED PROGRAMS. PUBLICLY FUNDED SERVICE
FORESTRY ADVICE THROUGH STATE AGENCIES IS ENDORSED, AS WELL AS INDUSTRY
AND CERTIFIED PRIVATE CONSULTING FORESTERS (i.e. ACF and SAF-CF).
6. WILDFIRE AND FOREST HEALTH
(Ranking Range: 1 -
9)
Wildfires present the potential of destroying a lifetime investment of
work and money in one day. The disastrous wildfires of the first four
years of the 21st Century, particularly the Southern California
conflagrations, have focused landowner attention on the issues involved.
Overstocked forests (especially those on federal lands), declining
forest health, the arrival of highly inflammable invasive species, and
inadequate initial attack are all contributing factors. Unfortunately,
with the exception of Oregon, fire control priorities give buildings a
higher priority for protection than forestlands, often resulting in much
larger acreage burned with long lasting damage to water and plant
resources and well as timber and wildlife.
Implementation of the Healthy Forests Restoration Act has resulted in
focused funding for stand improvement, fuels reduction and increased
detection and fire readiness. The National Fire Plan is providing a
focus on wildfires nationwide and is leading to improved performance.
However too much attention continues to be placed on protecting new
homes constructed in fire prone areas at the expense of woodlands
burned.
As NWOA has told Congress: “Small landowners can only afford small
fires!” Detection failures (fires larger than one acre when first
reported) have been an important part of the problem. Some NWOA members,
in cooperation with local fire districts and the Forest Fire Lookout
Association are now volunteering to restaff closed lookouts. In fact,
more lookouts across the U.S. are now staffed with paid and volunteer
observers than any time in the last 15 years.
Invasive species and new disease and insect outbreaks (i.e. emerald ash
borer) are posing a growing threat to woodlands. Control measures must
be on a landscape basis, including all ownerships.
NWOA RECOGNIZES THE DIFFICULT CHOICES FACING FIRE FIGHTERS IN DEAD
AND DYING FORESTS, AND WITHIN THE URBAN HOUSING INTERFACE. WE ARE
CONCERNED THAT HOMES BUILT IN INAPPROPRIATE AREAS ARE BEING PROTECTED AT
THE EXPENSE OF LARGE EXPANSES OF PUBLIC AND PRIVATE FORESTS. CONTROL OF
INSECTS, DISEASE AND INVASIVE SPECIES SHOULD BE A TOP PRIORITY.
7. CERTIFICATION OF LOGGERS, FORESTERS & FOREST PRACTICES
(Ranking Range: 3 -
10)
Certification of
loggers and foresters is a confirmation that they practice under a Code
of Ethics and receive periodic training to a higher standard.
Certification of a forest practice results from a review by an
independent qualified third party of actual forest practices on the
ground.
Professional foresters
are certified through membership in the Association of Consulting
Foresters and/or the Society of American Foresters. Such individuals are
authorized to display the initials “ACF” or “CF” behind their name.
Loggers are trained and often accredited by state Logger Training
Programs in cooperation with state forestry associations and agencies,
the Extension Service, the Forest Resources Association, and the
American Loggers Council. NWOA is continuing its effort make the names
of trained loggers available through www.findalogger.com.
Forest Practice Certification--which may offer a price premium for
timber--is available from three providers. The two largest programs are
the Forest Stewardship Council, and the better known American Tree Farm
System (recognized by the forestry industry’s Sustainable Forestry
Initiative--SFI). The Green Tag Forestry program, developed for private
landowners, is available through NWOA and the National Forestry
Association.
NWOA RECOMMENDS THE USE OF CERTIFIED LOGGERS AND FORESTERS AS
ADDITIONAL CONFIRMATION OF QUALITY SERVICES, AND CO-SPONSORS A
NATIONWIDE SOURCE: www.findaforester.com and www.findalogger.com. FOREST
PRACTICE CERTIFICATION PROGRAMS CONFIRM ADHERANCE TO A STATED LEVEL OF
SUSTAINABLE FOREST PRACTICES.
8. COST-SHARING
AND INCENTIVES
(Ranking Range: 3 -
10)
NWOA has long endorsed cost sharing for forest practices (federal, state
and private), as well as other types of incentives (taxes, zoning,
easements) as proven programs in getting good forestry on the ground. In
recent years, there has been a trend away from cost sharing (which
tended to benefit a relatively small number of landowners) with more
emphasis on alternative incentives. NWOA believes there is justification
for continuing both approaches with periodic performance reviews to
determine the most effective and appropriate programs. Emerging cost
share initiatives focus on integrated resource management (water
quality, wildlife habitat, stewardship plans, etc.) over timber (tree
planting, stand improvement). A new area of significant tax incentives
for sustainable forestry through the application of conservation
easements is emerging at the state and federal level.
NWOA SUPPORTS THE FOREST STEWARDSHIP PROGRAM, FOREST LAND ENHANCEMENT
(FLEP), AND THE FOREST LEGACY PROGRAM (EASEMENTS). EACH STATE IS
ENCOURAGED TO DEVELOP PROGRAMS TO ENABLE THE CONTINUED PRACTICE OF
SUSTAINABLE FORESTRY ON PRIVATE LAND.
9. LANDOWNER LIABILITY
(Ranking Range: 3 -
10)
At one time ranking as high as #4, this issue now has dropped to #9,
partly because of the availability of low cost and high quality vacant
land liability insurance that took NWOA a six-year effort to develop.
With more people moving into rural areas, private landowners are
experiencing increased trespass, dumping, and unwanted public use of
their property. Individual landowners may be held liable for injuries
related to both authorized and unauthorized use of their property.
Liability risk is governed by state rather than federal law, and those
laws vary in each of the 50 states. NWOA now offers $1 million/$2
million coverage vacant woodland liability insurance policy—available in
all 50 states--at a reasonable rate ($195/year for up to 500 acres).
NWOA ENCOURAGES ALL STATES TO ENACT REASONABLE LANDOWNER LIABILITY
STATUTES THAT SHIELD PROPERTY OWNERS FROM NUISANCE LAWSUITS. INSURANCE
COMPANIES ARE ENCOURAGED TO OFFER FIRE INSURANCE TO RURAL HOMEOWNERS AT
RATES BASED ON RISK MANAGEMENT INCENTIVES.
10. FORESTRY ON WETLANDS—BEST MANAGEMENT PRACTICES
(Ranking Range: 5 -
10)
Timber production is a compatible and appropriate use on the majority of
privately owned woodlands. Section 404 of the federal Clean Water Act
recognizes silviculture as an appropriate practice. All 50 states have
adopted Best Management Practices—BMPs which, when followed, help assure
the protection of wetlands as well as all woodlands. There continues to
be disagreement and difficulty in recognizing and defining those lands
which are wetlands and those which are not.
NWOA RECOGNIZES FORESTRY AS AN OFTEN-COMPATIBLE USE OF WETLANDS.
WETLAND DEFINITIONS MUST BE CLEAR AND REASONABLE TO BE EFFECTIVE. NWOA
ENDORSES THE CREATION AND APPLICATION OF STATE BEST MANAGEMENT PRACTICES
(BMPs) NATIONWIDE.
