Tree Farmer - November/December 2011 - (Page 44)

By Kazee tom Industrialstrength Asset Security lesser value in a timber stand; they cannot know the reputable buyers, loggers, and other vendors that we all rely on. If you conduct woodland operations — timber sales, harvesting, reforestation, road work — without the assistance of a forester working for you, your risk of financial crimes is increased. You can fill that role successfully only if you are a) lucky or b) have a great deal of experience in woodland operations. Please note: A forester or timber buyer working for a mill is not working for you. Procedures: Industrial organizations will be disciplined in their application of well-designed procedures. These include all manner of transactions. Two good examples are timber sales and timber harvesting: • Timber Sales: A forester working for an industrial business unit would lose their job if they sold timber without working through a reliable checklist. Common aspects of a presale checklist: A pre-sale cruise and valuation; a carefully constructed sale contract that must be reviewed prior to any agreement; sale boundRegistered forester Tom Kazee helps clients across the Southeast reduce the potential for financial crimes through his firm, Woodland Security, Inc., in Orange Park, Florida. Reach him at (904) 504-9489 or woodlandsecurity@gmail.com. woodland security 44 International Year of Forests, 2011 I’ll begin this column as I do most others: Almost everyone you work with is likely to be honest and conscientious. The rare exceptions, however, can be insidious and very expensive. In the most simple terms, I would consider the risk of financial crimes in woodland operations in three categories, from lowest to highest: 1. Industrial operations 2. Prudent private landowners 3. Other non-industrial landowners I would predict you are a member of the No. 2 demographic. You are reading this article and are likely a member of at least one association that endeavors to educate its members about a range of forest management issues. But here is the point: All private landowners are much more likely to be the victim of financial crimes in woodland operations, relative to industrial operations. My rationale for this opinion might illuminate several things you need to consider. of timberlands will almost always employ foresters for the long term. These men and women earn their living protecting that business from all manner of risk (fire, flood, insect, encroachment), so a healthy commitment and loyalty will normally result. A forester with a long-term commitment to a specific organization is expected to utilize all their talent to optimize short-term and long-term outcomes. This includes a keen and current knowledge of timber markets, how and when to conduct timber sales, and how to read all the warning signs associated with trouble. Private landowners may be brilliant in their fields of training and experience. But a brain surgeon or rocket scientist will not know what pulpwood is worth in your hometown. They cannot know the nuances that create greater or Why Your Risk is Greater I detail here my reasons why your risk of financial crimes is greater than that of a real estate investment trust (REIT), a timber investment management organization (TIMO), or a procurement organization. The Forester: Industrial organizations responsible for thousands of acres Tree Farmer NOVEMBER/DECEMBER 2011

Table of Contents for the Digital Edition of Tree Farmer - November/December 2011

Tree Farmer - November/December 2011
Contents
The Value of Certification
Markets Demand More Certified Wood
Tracking Through Chain of Custody
Farm Bill Progress Report
Corporate Policies Fuel Certification Efforts
Inspectors Explain Certification Goals
Certification: “Our Most Direct Impact”
Review Your Management Plan
Taxing Issues
Wildlife Matters
Woodland Security

Tree Farmer - November/December 2011

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