Land Management Plan for the Hofmann Forest: Emerging Ecosystem Markets

Jamie BlackwellYuan Fang

Russell MyersChelsey Walden-Schreiner

Hofmann ForestHofmann Forest

• Located in costal NC

• Management plan for 12,046 acres out of 80,000 acres

Current ManagementCurrent Management

• Land allocations

• Current value of management options (current prices): $14,147,223.65

Current ManagementCurrent Management

Loblolly $ 7,491,295.18

Longleaf $ 3,295,752.72

Ag Leases $ 609,319.85 Wetland Mitigation Banking $ 2,750,855.90 Total BAU Value $14,147,223.65

Note: Timber prices from TimberMart South 1st Quarter, 2011

Current ManagementCurrent Management

•Current land use map

Planning ProcessPlanning Process

Planning Goals:–Generate at least business as usual revenues–Leverage underutilized resources –Encourage ecosystem services

Biomass HarvestingBiomass Harvesting

• Market Outlook– History of biomass harvesting in Hofmann– Craven Wood Energy (New Bern, NC)

• Considerations:– Logistics– Costs– Fire break

• Proposed Harvest Location (1350 acres)

Biomass HarvestingBiomass Harvesting

Potential biomass harvesting buffer map

Biomass HarvestingBiomass Harvesting

Potential Revenue

• 5 year understory harvest (15 tons/ac)– $20/ac net revenue

• NPV: $20,174.97

Stream RestorationStream Restoration

• Market Outlook– Camp Lejeune expansion– 18% growth rate

• Stream Restoration Potential:

10,570 linear feet

• Considerations– Land cover– Verifying impairment

Stream RestorationStream Restoration

Proposed Stream Restoration Locations

Stream RestorationStream Restoration

• Potential Revenue– Credit Price: $242/linear foot

• Total Value for 10570 linear feet– $2,559,208.4

• NPV– $2,122,049.00

www.tu.org

Hunting LeasesHunting Leases

Market Outlook

• Hunting lease precendent in Hofmann

• Hunting in high-demand in Onslow Co

www.ncfishandgame.com

Hunting LeasesHunting Leases

Varible Lease Sizes 120 acres – 2400 Acres

Hunting LeaseHunting Lease

Potential Revenue:

• Bidding Process– $5/acre average (11,839 acres)– SEV: $1,045,860.93

Adaptive ManagementAdaptive Management

Considerations for Adaptive Management:

• Biomass Harvesting– Tons/acre estimate and harvest rotation– Costs/demand

• Hunting Leases– Adaptation of bidding system (price, plot size)

SummarySummary

Proposed Land UseProposed Land Use

BAU Total Value

-$14,147,223.65

Increase in Value

-$3,188,085.11

Proposed Total Value

-$17,335,308.75

www.pinchot.org

ReferencesReferences