The Forestry Source - March 2011 - (Page 1)
News for forest resource professionals published by the Society of American Foresters
March 2011 • Vol. 16, No. 3
Timberland Ownership: A Sound Future Investment
A Conversation with J. Brian Fiacco, Author of The Timberland Blog
I N T H I S I S S U E
2011 SAF Leadership Guide The SAF Leadership Guide appears annually in The Forestry Source so that the Society’s members can more readily contact SAF leaders and representatives. Contained herein are the members of the SAF Council, and the chairs of SAF task forces and committees, state societies, and working groups. Page 8. First annual NESAF-NY student conclave a success On the weekend of October 15–17, 2010, forestry students from Paul Smith’s College, the University of Maine, and the University of Connecticut gathered in Petersham, Massachusetts, at the 2010 New England SAF (NESAF)–New York Student Conclave to meet and discuss the state of their SAF student chapters. Page 10. New insecticide approved for pest control in conifers and hardwoods In December, the Environmental Protection Agency approved the use of emamectin benzoate for the “control of mature and immature arthropod pests of deciduous, coniferous, and palm trees. Page 12. Field Tech: Safety gear can save your life—if you use it According to the Centers for Disease Control and Prevention, every year about 36,000 people are treated in hospital emergency rooms for injuries from using chainsaws. In 1999, the US Consumer Product Safety Commission put the number at more than 28,500. Page 13. Here’s how to identify southern pine, pine engraver, and Ips beetles When prolonged drought occurs in the east Texas piney woods, an increase in Ips, or pine engraver, beetle activity is likely to occur. Page 14.
By Steve Wilent or US timberland owners, it is fair to say that the last decade has been tumultuous. Integrated forest products companies such as International Paper, Georgia Pacific, and Champion International sold most or all of their holdings to timberland investment management organizations (TIMOs), real estate investment trusts (REITs), and other investors. Transactions peaked in 2007, when more than seven million acres changed hands. See “Merrill Lynch: Investors Bullish on Timberland,” November 2007; and “Timberland: A Safe Haven in a Global Financial Crisis?” November 2008. As the nation and the world recover, slowly, from the financial crisis, many investors continue to view timberland as a safe and sound investment. Nonetheless, many questions remain about the strength and endurance of future economic growth, energy resources, global trade, and other factors. I recently discussed these issues with J. Brian Fiacco, author of The Timberland Blog (http://thetimberlandblog .blogspot.com) and owner of Timberland Strategies LLC (www.timberlandstrate gies.com), a consultancy focusing on timberland valuation, sales, and resource analysis, including the impact of the use of woody biomass for energy production (See “Timberland” page 3)
The GS50-Index is the cumulative accrual factor for growing stock volume since base year 1950. The F50-Index is the change in total forest area since base year 1950. The P-Index is the proportion of annual net growth needed to provide for domestic timber production in a given year. The C-Index is the proportion of annual net growth that would be needed to provide for domestic wood-products consumption in a given year. The gap between the C-Index and P-Index represents imports. Reserved is the reserved forest area as a proportion of total forest area for a given year since 1950. Plantations is the plantation area in the United States as a proportion of total forest area for a given year since 1950.
Forest Service Marks Weeks Act Centennial
ne hundred years ago, on March 1, 1911, Congress passed the Weeks Act, sometimes called the Weeks Law, which authorized the secretary of agriculture, and, by extension, the US Forest Service, to “purchase such forested, cutover, or denuded lands within the watersheds of navigable streams, as in his judgment may be necessary to the regulation of
the flow of navigable streams or for the production of timber.” Over the next five decades, the agency did so, primarily in the eastern United States, thus establishing 52 national forests encompassing more than 25 million acres in 26 eastern states. Much of the land had been so degraded that it was (See “Centennial” page 4)
Forest History Society, Durham, NC
Big Changes in Federal Income and Estate Tax Laws
D E PA RT M E N T S
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Editor’s Notebook Letters Industry News Society Affairs Science and Tech Continuing Ed. Calendar Classifieds
The Weeks Act authorized the US Forest Service to purchase degraded lands, such as this logged and burned-over area in the Allegheny National Forest in Pennsylvania, shown as it was in 1926.
By William L. Hoover he focus on long-term forest and timber management makes it hard to tolerate constant changes in tax rules, but you’d better get used to it. Forestry professionals can expect even more frequent changes in tax law as Congress and the Obama administration decide what to do about provisions ending in 2012 and more broadly adjust tax policy through what may turn out to be the largest fundamental change in the economy since the post–World War II era. How we participate in this process is debatable. For the last several rounds of changes, we’ve at least retained our forestry-specific provisions. My position is that it’s not the right time to ask for more. Those working closely with Congress are best positioned to determine how vocal we should be in defending our provisions. But the talk about lowering corporate and business tax rates by eliminating selected deductions is unsettling. Many of the changes discussed in this article are tied to new health care provisions, kicking down the road decisions on income tax rates, and the definition of “wealthy” when assets are transferred to (See “Tax Law” page 5)
Data: Brad Smith, US Forest Service Forest Inventory & Analysis
Table of Contents for the Digital Edition of The Forestry Source - March 2011
The Forestry Source - March 2011
2011 SAF Leadership Guide
First Annual NESAF-NY Student Conclave a Success
New Insecticide Approved for Pest Control in Conifers and Hardwoods
Science and Tech
Field Tech: Safety Gear Can Save Your Life—If You Use It
Here’s How to Identify Southern Pine, Pine Engraver, and Ips Beetles
Continuing Ed. Calendar
The Forestry Source - March 2011
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