woodland news

Volume No. 5 March 2013

WOODLAND NEWSA Publication of forestry facts by forecon, iNC.

Timber Markets…We have a pulse and it’s gettingstronger! Aswithall critical carepatients,wehopeand pray one day that the efforts of our care giverswillbe rewardedbyour full recovery toa“normal”

existence. Albeit,wemayhavetomakechanges toourdietorlifestyletoaccommodateour“newnormal”,butwemakethe adjustment and eventually feel better for having doneso. Thus is the stateof the timbereconomy. We lostmanystakeholders in the timber marketplace that deterioratedbetween 2008 and 2010. The rest hung on to keep themarket alive in 2011, continuing to adapt to their “newdiet”, and began the steady climb back to health in 2012.

As of this writing, markets for stumpage sales are solidacross all FORECON offices. We have seen the biggestimprovements in NY and PA in terms of both competitiononbid sales andonfinalbidprice. Makenomistakeaboutit;now is a good time to be selling timber! Whitewoodscontinuetobeindemandandatexcellentprices,theamountofstumpageinthemarketislimited,andcompetition is high.

As we reported in the last issue of the Woodland News,White Ashcontinuestodominateintermsofstumpagepriceappreciation.Wehaven’tseenthiskindofpricingsince1985-86.Wearefrequentlyaskedifitisbecauseoftheemeraldashboreractivity.Theanswerisno.Thisisasupplyanddemandmarket.Toomuchsupplywilldiminishtheprice.Currently,demand isout-stripping thesupply. If themarket is lookingforinexpensivewhitewood,thenashistheanswer…orwas.Whiteashstumpageisaveragingbetterthan$400/MBFinNYandPA,withbiddingfrom$500toasmuchas$680/MBF!Thishasbeenaconsistenttrendoverthepast2years,andqualityashbringstheabsolutebestpricesinthisstrengtheningmarket.

Hard Maple is really starting to hit its stride as well. Itcurrently averages between $500-$675/MBF in PA and NY,

respectively. An average value of $600/MBFholds true formoststandsofgoodqualitymaterialwithbiddingtakingsalesallthewayto$700-$800/MBF.Thisisamarkedimprovementfrom lastyear,alongwithan increase incompetition fromabiddingperspective.Softmapleisfollowingsuit,continuingtobringsolidpricessimilarto2011.Averagesoftmaplepricesrangefrom$250-$300/MBFbetweenNYandPA,respectively.

Red Oak sales have also been popular lately, with strongpricing on the best quality sales. We last reported averagepricing in the $500/MBF range; that is now at about $580/MBF. There are a multitude of companies reporting that$450-$500 is their price point for this species. Bidding,however, tells a much different story - recent sales ofgood quality material have brought more than $700/MBF,making this a good time to consider selling some oak.

Black Cherry is the species that everyone iswaiting for torecover.(Aswehavewitnessednow,overthelastfouryears,thecurrentcherrypriceshavestabilizedatthe“newnormal”).Thereisnosharpdemandforcherryinthenationalorglobalmarketplaceandmaynotbefortheforeseeablefuture.Cherrypricing has been steady in the market for the past severalyearsnow,evenwithalimiteddemandforit.Themarkethasadjusted and seems comfortablewith cherry stumpage salesranging from $700-$1,000 in NY and $800-$1,200 in PA.

There can be no question that “quality timber always brings the best price” and that it is accomplished througha competitive bidding process. The market pulse is strongand getting stronger. Prices are strong and so is thecompetition for stumpage. Have you been waiting for a“bettermarket” foryour timber? Well,waitno longer;now is the time to call FORECON for a free consultation and woodswalk to determine if it is truly your time to enter themarketplace. Put our market knowledge to work for you!

Timber Markets…We have a pulse and it’s getting stronger!By Brian Bullard, CF®, Director of Operations, Falconer Office

WOODLAND NEWS GOES GREEN

The Woodland News is now available online. If you would prefer to receive our annual newsletter by email, please send an email to Kacie Hetrick, at khetrick@foreconinc.com, and provide your preferred email address as well as your full mailing address so we may remove your address from the printed publication. If you would like to view current and past issues online please scan the QR code to the left with your smart phone! If you have moved and/or would prefer to be removed from The Woodland News mailing list, please also send an email to Kacie Hetrick at khetrick@foreconinc.com with “Cancel Subscription” in the subject line. Please also include your full mailing address so we can confirm the correct address removal.

Will Roberts of our FORECON,Inc. Cortland office begancompeting in Timbersportscompetitions in college. In 2001he joined the ESF WoodsmenTeam at SUNY ESF. He begancompetinginthelumberjacksportandtheSTIHLTIMBERSPORTS®

Series in 2005 and won theCollegiate Championship. Totrain for events Will works onevent training and cutsfirewood.Will is a Staff Forester withFORECON, Inc and has been

with the company since 2010.Heenjoysspendingtimewithhisfamily, hunting, fishing, woodchopping and building rusticfurniture.Hewillbecompetinginthe Northeast Regional QualiferfortheSTIHLTIMBERSPORTS®Series on April 19th atFingerlakes Community CollegeinCanandaigua,NY

Interested in watching Will Compete? Head over to www.stihlusa.com/stihl-timbersports/schedules/ to view the entire 2013 schedule!

CONTACT US TODAY!FORECON, Inc. hasbeenbalancingtheneedsofpeopleandtheenviromentsince1954!WithofficesinNY,PA&WVwearecertainwehavealocationtomeetyourneeds!Contactustoday!

Falconer, NY (716) 664-5602Cortland, NY (607) 753-3113Hancock, NY (607) 637-4466Titusville, PA (814) 827-4254Smethport, PA (814) 887-8731State College, PA (814) 548-7148Elkins, WV (304) 636-9336Oak Hill, WV (304) 469-6950

E-mail:foreconinfo@foreconinc.comwww.foreconinc.com

TIMBERLAND REALTYAParticipatingBrokerwithCabela’sTrophyProperties(716)664-5602Ext.303or(716)962-9935E-mail:pbullard@timberlandrealty.netwww.timberlandrealty.net

FORECON, INC. EMPLOYEE TO RIDE IN THE2013 STIHL TOUR DES TREES TO BENEFIT THE TREE FUND

FORECON, INC. EMPLOYEEGAINS PROFESSIONAL RECOGNITION

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Balancing the needs of people and the environment since 1954.

THE AMERICAN TAXPAYER RELIEF ACT OF 2012 AND YOU

Wehaveheardtheterm“fiscalcliff”banteredaboutalmostadnauseamoverthelastfewmonths.This“cliff”iswhatmanysaidwewouldfigurativelygoovershouldtheBudgetControlActof2011,signedintolawinAugustof2011,actuallybetriggered.Certainautomaticfiscalactionsweresetinplacetooccur,designedtoprevent“sovereigndefault”fromoccurringforexceedingthedebtceiling.

TheAmericanTaxpayerReliefActof2012(ATRA2012),orthesupposed“fiscalclifffix”,waspassedbyCongressonJanuary1,2013andsignedintolawbythePresidentonJanuary2,2013.Ineffect,thisActpreventedtheBushtaxcutsfromexpiring,andalsoeliminatedthereinstatementofcertainoutdatedlawsandpolicies.

Asweallareaware,ourtaxlawsandpoliciesareinconstantfluxthesedays.Theknowledgeofavailableprogramsand the timingof forestryactivitiescanbeaveryimportantconsiderationifattemptingtoreducetaxliabilities.FORECON canwork in concertwith your tax advisor and/or attorney intheplanningof these forestry activities tomaximizeyour return from themanagementofyourlands.PleasecalltheFORECONofficenearestyoutodiscusstheseopportunities!

(Sources:PrivateLandownerNetworkwebsite,USDAForestTaxationwebsite. Thisarticle is forgeneralinformationonly,andnottobeconsideredtaxand/orlegaladviceinanyway.)

COMINGTHISSPRING

Withspringcomesfreshgrowth.Astheleaveswillsoonbebuddingacrosstheregion,changingwhitesandgraysofwintertothebrightgreensandrichcolorsofwarmermonths,sotoowillFORECONbemakingachange.TheFORECONwebsiteshaveservedourcommunitywellforseveralyears,butnowitistimeforafreshstart.

www.FORECONinc.com and www.TimberlandRealty.net are getting amajoroverhaul.Designedwithyouinmind,wearecreatingnewcapabilitiestobetterserveyourinterests.Bethefirsttoseetheregrowth!Signuptoreceiveourupdates,andtakeearlyadvantageoftheenhancedservices.Ourgoalistohelpyoumakethemostofyourvaluableresources.

Pointyourbrowsertohttp://Grow.FORECONinc.comandsignupforearlyreleases.

VISIT US AT THESE UPCOMING EVENTS

March11-13,2013:WNYSports&TravelExpo,Hamburg,NY

April4-6,2013:11thAnnualPALandConservationConf.,StateCollege,PA

May10-11,2013:2013PrivateForestLandownerConference,Altoona,PA

August6-10,2013:WarrenCountyFair,Pittsfield,PA

August17-23,2013:CrawfordCountyFair,Meadville,PA

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Lori Brockelbank, of ourFORECON, Inc. corporatelocation inFalconer,NYwillbeparticipatinginthe2013STIHL®

TourDesTrees.Thetourisa585mile bicycle trek around LakeOntario to help raise funds fortheTreeResearch andEducationEndowment Fund (TREE Fund).Fulltourcyclistscommittoraising$3,500 in funds for theprogram.Theeventhasraisedmorethan6million dollars for scientific andeducationalprograms.Loriisour

Certified Arborist® and has beenwith the company since 2000.Sheenjoysspendingtimewithherfamily,readingandplantingtrees.

Interested in contributing to the TREE Fund? Head over to www.stihltourdestrees.org to sponsor Lori in her ride for TREE Fund!

Forest and agricultural landowners in Pennsylvaniamay be eligible for significant property tax reliefunder a popular program commonly known as“Clean and Green.” ThePennsylvania Farmland

and Forest Land Assessment Act of 1974 (also known as“Act 319”) is a voluntary program that provides qualifiedlandowners with significant property tax savings if the landremains in either agricultural use, agricultural reserve use,and/or forest reserve use. Under “Clean and Green,” landis taxed according to its current use value, rather than itshighestandbestuse(or“fairmarketvalue”).Thetaxsavings

benefits are particularly significant in areas where forest oragricultural land is experiencing development pressures.ThePennsylvaniaDepartmentofAgricultureisresponsibleforsettingthe“use”valuesunderthisprogram,determiningthelandusesubcategoriesandsubsequentlyprovidingcountyassessorswith“use”valuesforeachlandusesubcategory.Typically,thesesubcategoriesarebaseduponsoilclassifications.TheDepartmentofAgriculturehasuntilMay1stof eachyear toprovide thecounty assessors with these “use values” (the Penn State Dickinson Agricultural Law Resource and Reference Center).The general rule of the Clean and Green program is that

after land isenrolled, the landowner isobligated tocontinueusing the land in a qualified use indefinitely. Penaltiesincludingpayingroll-backtaxesandinterestapplyshouldthelandowner change the enrolled land’s original use, however,thesubstantial tax savings and general ease of complying with this Act make “Clean and Green” a very popular program. If you own10 contiguous acres ormore of landfalling into the categories of forestland reserve, agricultural,oragriculturalreserve,youmaybeeligible.Contact one of our Pennsylvania offices to find out how you can enroll and benefit from the “Clean and Green” program!!!

Forest and Agricultural Land Tax Relief for Pennsylvania LandownersBy Jason Wenrich, Regional Manager , State College Office

FORE

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APublicationonForestryFacts

Have you noticed any cream colored, fluffy, oblong shaped spotsmeasuringbetween½inchto1½inchesinlengthontheboleofyourtrees?Ifso,yourforestmaybesubjecttoinfestationbythegypsymoth.Thegypsymothisaleaf-eating,tree-defoliatingmachinethat

thoroughlyenjoysoak,mapleandahostofother treespecies inourregion.Femalemothslaytheireggmassesontreeboles,branches,vehicles,housesandotherstructuresstarting in the latesummer.Theseeggmassesarefilledwithhundredsofeggswhichover-winterundertheprotectionoftheeggmass.Theeggmasscoveringisactuallybellyhairfromthefemalethatinsulatestheeggsto-40degrees.Bymid-Aprilwhenthetemperaturesstarttoriseabove60degrees,thecaterpillarswillstarttoemergeandthefeedingfrenzyontreeswillbegin.

ThegypsymothwasintroducedfromEuropein1869byaccidentandbytheearly1900’sbegandefoliatinglargeareasintheNewEnglandstates,andEasternNewYork.ItwasfirstdiscoveredinPennsylvaniain1932andhassincespreadasfarwestasMinnesota,withpopulationoutbreaksevery5-10years.Duringthe1970’sand1980’smanyofthemountainridgesofPennsylvaniasustainedheavyinfestationsofthegypsymoth.Heavydefoliationandsubsequenttreemortalityofoakspeciesoccurred.ThepastseveralyearshaveshownlittletonogypsymothactivityinPennsylvaniaandNewYork,howeverpopulationsarenowincreasingandpredictedtogetworse.

Gypsymothcaterpillarspreferoakspeciesbutwillfeedonthefoliageofmanytree species, including some conifers. They typicallywill not feed on ash,

tulip poplar, dogwood and black locust. Defoliation by caterpillars occursinthespringastheleavesstarttodevelop.Oftentimesthetreeiscompletelydefoliated. Without their leaves the trees arenot able tomanufacture food.Thisweakensthetreeandmakesitmoresusceptibletoattackbyotherinsectanddiseasepathogens.Defoliationaloneisnotthecriticalblowtothetree;thecriticalblowoccurswhendefoliationisfollowedbyre-leafinginthesameseason.

Defoliationbeginswhentheleavesareabout1/3theirnormalsizejustafterbud-break. In aheavy infestation, the leaves are eaten faster than theycangrow, causing total defoliation. The tree respondsby sendingout a secondsetofleaveslaterintheseason.Thisusesstoredsugarsthatshouldbeusedforleaf-outthefollowingspring,therebyweakeningthetreeanddepletingitssugarreserves.Deciduoustreescannormallywithstandoneyearofdefoliationfollowedbyre-leafing,buttwoormoresuccessiveyearsmayresultinmortality.

Tocomplicatethisscenario,itisalsoimportanttounderstandtheotherstressesthat have been placed on a particular forest prior to the defoliation event.A recent timber harvest, years of droughty conditions, excessive moistureconditions,andothersituationswilldictatewhetherornotastandshouldbeprotected fromdefoliation by aerial spraying ofBacillusThuringensis (Bt),whichisanaturallyoccurringsporeintheforest.Athighconcentration,thisproduct is ingestedby thecaterpillarsas theyfeedon the leavesandcausesthem tocease feeding,permanently. Chemicaloptionsarealsoavailable incertainareasunderspecificcircumstances.

FORECON, Inc. foresters have been doing eggmass surveys over the pastfewmonths to assess areas in NewYork and Pennsylvania that have highpopulations.WearealsoincontactwithregisteredPesticideapplicators,andStateandFederalforesterswhoaresharingtheirinformationwithusastotheirtargetinfestationcontrolareas.

AerialsprayingwilloccurinsomeareasinMay,2013unlessvariousnaturalenvironmentalfactorsthathelpcontrolgypsymothaffectthepopulationthisspring.Adisease-causingfungusknownasEntomophagamaimaigacanaffectsome caterpillars through contactwith soil that is infectedwith the fungus.Thisfungusworksbestwhenthereisanabundanceofraininthespring.Anucleopolyhedrosisvirushasalsobeenknowntokillgypsymothcaterpillarswhenpopulationsarehighenough.Thepresenceorabsenceofthesebiologicalcontrolsisoftenunpredictableandmayoccurtoolate.

Aerialapplicationisgenerallymadebyairplaneorhelicopterafterthemajorityof theeggshavehatchedduringearlytomid-May,whenthecaterpillarsaresmall. The timing of application is generallyMay 15 to June 15 annually,dependingentirelyonweather conditions.Now is the time tobe inspectingyourforestforthepresenceoftheseeggmasses.Bepreparedandunderstandwhatmayormaynothappeninyourwoodsthisyear!Forfurtherinformationabouteggmasssurveys,aerialapplicationmethodsandproducts,oranoverallhealthassessmentofyourforestplease contact your local FORECON, Inc. office today!

The Return of The Gypsy MothBy Nancy McCloskey, CF®, Director of Land Management and Brian Bullard, CF®, Director of Operations

In many situations there are opportunities to get paid to keep yourtimberlandasawell-managedworkingforest.ThiscanbedoneinordertoprotecttheforestresourceortoprotectthehabitattheforestprovidesandisgenerallyaccomplishedbymeansofaConservationEasement.At

FORECONwehaveexperienceinmanyaspectsofconservationeasements.

WerecentlycompletedtwoprojectswiththeNaturalResourcesConservationService (NRCS) of the US Department ofAgriculture (USDA), where thelandownersreceivedmoneyinexchangeforaConservationEasement,whichincludedtheimplementationofaForestManagementPlan.Theprojectwaspart of the NRCS’s Healthy Forests Reserve Program (HFRP), which wasdesigned to assist landowners, on a voluntarybasis, in restoring, enhancingand protecting forestland resources on private lands through easements,includingeitherperpetualeasements,30-yeareasementsor10-yearrestorationagreements.ThestatedobjectivesoftheHFRPareto:promotetherecoveryofendangeredandthreatenedspeciesundertheEndangeredSpeciesAct(ESA);improveplantandanimalbiodiversity;andenhancecarbonsequestration.

Inoursituation,variouslandownerswerecontactedbytheNRCSbecausetheirforestedpropertieswerewithinapredetermineddistanceofaknownIndianaBathibernaculum,whichisafederallyendangeredspecies.Thelandowners’propertieswereconsideredtobeprimesummermaternitysites.Afterinitialdiscussions between the landowners and NRCS officials, the landownersexpressedaninterestinfurthernegotiations.

Following the enrollment by the landowners in the HFRP program, theNRCSretainedFORECON,Inc.toperformatimberinventorytogetherwithan appraisal of the subject property. In this situation, the appraisals weretobe threepartassignments; thefirstbeinganappraisalofeachproperty inits current condition before the conveyance of the proposed ConservationEasement. The second stepwas an appraisal of eachproperty immediatelyaftertheconveyanceoftheConservationEasement.ThethirdandfinalstepwastocalculatetheimpliedvalueoftheConservationEasementbysubtractingtheaftervaluefromthebeforevalue.ThisdifferencewasthenthevaluetobepaidtothelandownerforagreeingtothetermsoftheConservationEasement.

Allexpenses,includingthetimberinventory,managementplan,appraisalandsurveywerepaidbytheNRCS.

Conservationeasementscanbeverycomplexandareoftenperpetual(butcanalsobe foraspecified term),and legaladvice indevelopingone isstronglyrecommended. In the situations described above, the easements generallyrestricted further development or subdivision of the property and placedrestrictionsonforestmanagementactivity. Meanwhilethelandownerswerepermittedtohuntontheproperty,restrictaccesstothepublicandmanagethetimberresource,subjecttothetermsofaForestManagementPlandevelopedbytheUSDA.While this is a unique example, there are often local, regional or nationalConservation Organizations or Land Trusts that are looking to preservemanagedworkingforests.Whiletheseeasementsarenotforeveryone,theymaybesomethingthatyouandyourfamilywouldliketoconsider.Formoreinformationfeelfreeto contact FORECON to discuss your situation.

Are Conservation Easements For Me?By Rick Constantino, Senior Biologist/ECO Services Manager

NewYork landowners have been participating in a “wait and see”processforalmostfiveyearsnowwiththemoratoriumonhighvolumehydraulicfracturing(HVHF).UnderNewYorkStateenvironmentalreviewlaws,theDepartmentofEnvironmentalConservation(DEC)

haduntilNovember29thof2012tofinalizeregulationsorissuepermits,butuponreachingthedeadlineGovernorAndrewCuomochargedtheDepartmentof Health (DOH) with reviewing public health concerns over the drillingprocesscommonlyreferredtoas“fracking.”Thiscreateda90-dayextensiononcompletingthedrillingregulations,duetoconcludeonFebruary28,2013.WhenitcomestofrackingtheStateisfacedwithtwochoicesthisSpring:1)issuepermitsunderthecurrentdraftregulationsor,2)resettheclock(again)pendinghealthreviewconclusions.

MembersoftheWestern New York Oil and Gas Consortium(Consortium)andothersimilargroupsacrossthestatehavebeenfrustratedwiththislengthyprocess.Thoughwesharethisfrustration,wealsorecognizetheneedtodo

thisright!DuringtheState’sreviewprocesswehavebeencontactedbymanylandowners and have increased the Consortium membership to well over30,000 acres. Additionally, the oil andgas industry is sensing that the endoftheprocessisnear,aswehavehadnumerousdiscussionsonbehalfoftheconsortium’sinterests.

InterestintheConsortiumhasbeenincreasingduetoourproximitytoexistinggasandoilplaysandouralreadywell-developedpipelineinfrastructure.TheMarcellusShaleplaystartedalongthenortherntierofPennsylvania,butsincethattimemuchoftheindustryhasmovedwesttoeasternOhioinaformationknownas theUticaShale. Todate, over 500permits havebeen issued inother statesand240wellshavebeendrilled in theUticaShale. PermittingcontinuestoheadinanortheasterndirectiontowardsnorthwestPennsylvaniaandsouthwestNewYork.

TheUticaShale isof interestbecause it isnotonlyahighvolumeresource

butitisalsocapableofproducingnaturalgasliquidsor“wetgases”suchasethane,propane,andbutane.Oilisacommonby-product.Theseproductsofnaturalgasarefetchingahigherpriceinthemarketcomparedtomethane,andtheindustryisnowfocusedinthisdirection.SincenearlyallofWesternNewYorkisunderlainbytheUticaShale,ourlandownersareinprimepositiononceleasingbeginsagain.

FORECONhasbeenfollowingthisactivityclosely,aswellastheregulationsthatarecurrentlybeingwrittenandreviewed.Wearecommittedtoprovidingour consortium members with a competitive lease that also protects yourinterestsanddeliversthebestleasepriceandroyaltyrateavailable.Thereisstrengthinnumbers.IfyouwouldliketolearnmoreabouttheWestern New York Oil and Gas Consortium, please give us a call at our Falconer,NYoffice(716)664-5602,orvisitourwebpageatwww.foreconinc.com.

Is the Wait Over for Gas Drilling in New York?By Rick Constantino, Senior Biologist/ECO Services Manager

Improve Your Woods and Your TaxesBy Craig Vollmer, CF®, Falconer Office Manager

Are you a New York woodland owner? Do you own 50 acres of woods or more? Would you like to reduce your property taxes? Are you committed to caring for your woods? Are you willing to invest in your woods? Are you planning to own your woods for a long time and/or pass it on to your family? If you answered “Yes” to these questions then your property

might be a good fit for the NYS Real Property Tax Law 480a Program.

The program is pretty straight forward: manage your woods well and get a tax break. The savings can be significant, and there are several other benefits to managing your woods and enrolling in this program:

•Theassessedvalueofyourwoodedacreswillbereducedby80%,loweringyourtaxes.•Yourtaxsavingswillreducethefinancialburdenofowningyourproperty.•Yourtaxsavingswillleaveyouwithmorecashinyourpocket.•Yourtaxsavingswillleaveyouwithsomeworkingcapitaltoinvestinyourownpropertyformanagement,maintenance,andenhancement.•Yourwoodswillbecaredforandimprovedforthebenefitofyouandyourheirs.•Yourmanagementplanwillhelpyouknowwhattodo,whentodoit,wheretodoit,andwhattoexpect.•Youwillreceiveprofessionalforestryadviceateverystepoftheway.•Yourmanagementplanwillqualifyyouforotherprogramsthathelpfundwoodlandpractices.•Yourtimberassetwillimproveinquality,increaseinvolume,andincreaseinvalue.•Sustainablymanagedtimberproduceslong-termsustainableincome.

To help put the benefits of this program into perspective, we offer the following example of a real property that has been enrolled in the 480-a program:

•198acrestotal(woods,pasture,brush,andfield)•148acreseligiblefor80%reductioninassessedvalue•Ownership goals include: hunting, hiking, horseback riding, wildlife habitat management, timbermanagement,sourceofincome,passtochildrenasaninvestment,etc.•Totalassessedvalueofland:$137,000•Yearlytown,county,andschooltaxespriortoenrollmentin480a:$5,030•Yearlytaxesafterenrollment480a:$2,025•Totalyearlytaxsavings:$3,005(60%reductionintotaltaxes)•15YearTaxSavings:$45,075(probablyhigherastaxratesarenotlikelytostaythesame)•TotalTimberValue:$99,500

The tax savings are considerable, paying for nearly all the upfront costs within the first year to inventory the timber and draft a management plan for enrollment in 480a. Typically it takes about two years of tax savings to do this.

The bulk of the woods on this property are mostly young pole timber and some areas were mismanaged in the past. Most of the management work for the first 10-15 years will involve thinning work versus the harvest of valuable timber, and the management costs are projected to be an investment of about $17,000 spread out over this period. Although the owners will see limited revenue from this work, they can expect these revenues to cover about 50% of the management cost, minimizing their out of pocket investment. The remainder of their investment is more than covered by their tax savings. Projections suggest that they will benefit from this work through the harvest of some valuable timber after the initial 10-15 years of management work, which will generate more significant revenues.

Over the first 15 years of their management program, their timber volume is projected to increase by approximately 50% from improved growth and ingrowth. Likewise, timber value is projected to nearly double over this same period of time from increased volume, improved timber quality, and increased market prices.

Between the net tax savings, increased timber asset value, and anticipated revenues, the return on investment from this property is significant, making this a worthwhile program for the owners of this property to pursue.

If you are interested in improving your woodlot and saving taxes, contact our Cortland, Falconer, or Hancock office to find out more!