2007 Forestry ANR Update Elizabethtown

1. 2007 Forestry ANR UpdateElizabethtown Jeff Stringer and Billy Thomas UK Forestry Extension

2. Overview • Current Markets • Timber Sales • Future Markets • Hardwood Production • Building the Need • Examples of County/Regional Forestry Programs • Sources of Forestry Assistance

3. Current Timber Market • Red oak – market flat to declining • White oak - stable, up slightly • Tie market - good (oaks) • Smaller diameter, many species used oaks predominate • Yellow-poplar - stable • Maple – moderate • High pricing of last several years is gone • Ash – shot to hell • EAB quarantined logs to the north, KY is next • Hemlock – HWA infestation • High oak prices lead to overproduction and overcapacity • Market correction – some mills will go out

4. Recommendations • High to Moderate Quality Red Oak - wait • High Quality White Oak – wait • Moderate White Oak - sell • Low Quality Oaks – sell or hold • Small diameter tie oaks - sell • Yellow-poplar – sell or hold • Maple – (market ?) large diameter sell • Ash – difficult decision – northern KY if the quality is high sell, other situations hold for now. • No immediate turn around in red oak predicted. Lumber inventories need to be reduced, housing market causing difficulties in this. • Market correction – some mills will go out – eventually production capacity will adjust

5. Green Lumber Pricing

6. Green Lumber Pricing

7. Timber Sales Recommendation • try to move client into management vs harvest KDF involvement • Advisement free of charge • Determine areas that need harvest ones • Areas that need to grow • Areas that need work • mark timber for nominal fee (pays for paint)

8. Timber Sales • Consulting Foresters • www.kacf.org • Any timber fair to good quality - sealed bid • Low value – negotiated • Let competition work

10. Normal Advise • KDF – Stewardship Plan and ID areas for harvest • KDF – Marks timber for revenue and sustainability • Consultant sells timber

11. Timber Production • Kentucky Potential High Value Hardwood Production • (pulp over seas) • US prediction through 2025– short on hardwood • Keep Species Diversity High

15. Timber Concepts • Diversity in historic high value species • Focus on high quality trees • Focus management on crop trees • Regenerate densely • Group openings • Release crop trees • Use improvement harvests

16. Group opening 1.25 acres Regenerate where needed Two age stands – open enough for regen.

17. Improvement Harvests Remove low value Release high value • (improve growing space increases growth) 4 - 12% rate of return

18. Carbon Payments – 3 yrs200 acre example Total Dollar Per 3 Years Carbon Payment $ Per Acre

19. Carbon Payments – 3 yrs200 acre example Total Dollar Per 3 Years $1,600 inventory cost Carbon Payment $ Per Acre

20. Carbon Payments – 3 yrs200 acre example Net Dollar Per 3 Years Carbon Payment $ Per Acre

21. Pros Revenue with no action Detailed Inventory Opportunity Cons Can not change use without penalty Short-term – emerging Possible additional inventory costs? Is This A Good Investment?

22. Use carbon to get a detailed inventory. Ask consultant to do at the same time Carbon biomass Timber Provide data summary AND gps map Take Stewardship Plan and Increase Detail Stands delineation $ timber per stand $ carbon payments Define Areas to Be Harvested Define Areas for Carbon Detail other Issues, Boundary Marking, Insurance, Tax, etc. If It Were Me

23. GIS based management data base you can use this to easily get information for any question you have Where is my timber and what is its worth? What is my annual growth and value increase? Do I sequester carbon, do I cut timber? What is my tax basis? If It Were Me

24. Certified MasterLogger Program Point of Harvest certification program for logging firms owned by KY-TN Master Loggers

25. Certified MasterLogger Program • Current Master Logger program certifies training for individuals (required by law in KY) • Currently 3,500 in KY approximately 1,500 in TN • CMLP – performance based certification system for logging firms • Putting into practice what is taught

26. Structure • KY Master Logger Office • 3rd Party Certifier – Rainforest Alliance SmartWood (SmartLogging Program)

27. Standards

28. Standards

29. Standards • BMP State BMP guidelines adhered to • Laws and Regulations OSHA, Workman’s Comp, Federal/State Water Quality, Child Labor Law, Federal/State Wildlife, Transportation, County Ordinances, Trespass, Hazardous Waste • Pre-Harvest Planning Written Harvest Contract, Written Harvest Plan • Harvest Operations Timber Utilization, Aesthetics, Residual Stand Damage, Extraction Records, Citizenry, Performance Improvement • Business Practice Business viability, workforce stability, ethics, written safety policy, insurance, business records • Silviculture • When not specified by timber owner – provides for sustainable harvest

30. Logger Advantages Reduced Workman’s Compensation Rate (?) Improved marketing for certified loggers Delivery bonuses ($1 per ton) $8,000 to $50,000 annual profit Preferred Supplier annually up to $10,000 to $50,000

31. Certified MasterLogger Program • A source of certified material for KY and TN industries • Increased competitiveness of KY and TN loggers • Improvement in logging expertise, business practice, sustainability • Model for the future?

32. Status • 50 logging firms initially involved • 42 remain (1/2 of first audit cycle completed) • Industry Support in 2008 • Developmental Program for undecided loggers • Pursuit of reduced workman’s compensation • Revision of standards after pilot program

33. Questions

34. Rationale for Forestry Programs • Kentucky woodlands are mostly owned by private individuals—many of which may already be clients • Economic Impact ($5 to $8 billion industry, over 35,000 jobs) • Ecosystem Services • Good to be GREEN • The level of knowledge on woodland issues is relatively low allowing for easy and quick educational impacts

35. Building the Need • General complacency of woodland owners • Why the complacency? • long growth cycle of Kentucky’s woodlands • woodlands taken for granted because they have “always been around” • However, once people understand the value and options available from their woodlands they often become much more interested

36. Forestry Program Examples

37. Timber Management and Sales Seminars • 2-3 hr evening program • Could save clientele big $ if they are considering a sale • Topics Include: • Forest Management • Forestry Laws and Regulations • Taxes, Trespass, Selling Strategies • Sources of Help

38. Woodland Owners Short Course • Regional—3 programs each in East, Central, and West • Agents play a key role! • 2008 WOSC Plans • Woodland Management • Wildlife Management • Where Your Product Goes (Wood Industry Tours)

39. Master Logger Programs • Agents can be involved in recertification classes • Topics • Locations • Logistics • Contact Jeff Stringer if interested

40. Tree Identification Workshop • Reasons for Tree ID • Fun • Timber Management • Recreational Benefits • Wildlife Benefits • Can be indoor and/or outdoor • Good intro forestry program • We have materials and contacts to help.

41. Exotic InvasivePlant Control Workshops • Invasive plants are a SERIOUS threat. • Billions are spent every year in the US on their control. • Like an opinion…everyone has one (or more). • Lot’s of resources to help with programs.

42. Non-Timber Forest Products • Annual income • Compliment existing practices • Can have wide appeal

43. Local Forestry Organizations • ‘Grass Roots’ Driven • Can help in forestry programming • Support from state level organizations • UK Forestry • KDF • KWOA • KDC • KFB • KFIA

44. Sources of Forestry Assistance • Kentucky Division of Forestry • http://www.forestry.ky.gov/ • Kentucky Association of Consulting Foresters • http://www.kacf.org/ • Kentucky Department of Fish and Wildlife Resources • http://fw.ky.gov/wildbiol.asp • Kentucky Woodland Owners Association • http://www.kentuckywoodlandownersassociation.com/ • UK Cooperative Extension Service • http://www.ukforestry.org

45. Kentucky Division of Forestry Assistance • Meet with landowner and discuss objectives • Inventory property • Can mark trees to be harvested - species and volume are recorded. • Identify any woodland management problems • Connect landowner with Private Lands Biologists • Develop a management plan • Cost-share assistance

46. Timber Sales Timber Marking and Cruises Timber Appraisals Timber Trespass Forest Management Consulting Forester Services

47. Kentucky Department ofFish and Wildlife Resources • Meet with landowners and discuss objectives • Technical Assistance on wildlife mgmt. • Cost-share Assistance • Seed and Herbicides • Equipment Loans

48. Forest Industry Services Ex. Weyerhaeuser (aka Trus Joist) • Meet with a landowner to determine forest management interests • Conduct an inventory and develop a multiple use/sustained yield forest management plan   • Follow-up services include writing prescriptions for recommended silvicultural practices, flagging interior treatment area boundaries and advice on timber sale administration.  • Where appropriate refer landowners to SAF Certified foresters and Kentucky Master Loggers • East of I-75, Contact Grant Curry @ (606) 436-8906 or grant.curry@weyerhaeuser.com

49. Thoughts on Forestry Programs and County Agents • Interest is as important as experience • Consider multi-county or regional forestry programs (strength in #s) • We can help in a variety of ways… • Ideas/Suggestions/Feedback • Lining Up Speakers • Impact Data (sometimes) • Advertising • County Level Mailing Lists • County Agents section on www.ukforestry.org

50. THANK YOUfor the WORK you do! Questions