The Maryland Forests The Maryland Forests Association Association and and A Landowner’s A Landowner’s ConcernsConcerns

Maryland Forests AssociationMaryland Forests Association

MembershipMembership – – Forest land ownersForest land owners ForestersForesters LoggersLoggers MillsMills Hunt ClubsHunt Clubs individualsindividuals

Maryland Forests Maryland Forests AssociationAssociation

MissionMission:: ‘‘To promote the maintenance of a To promote the maintenance of a

healthy and productive forest landbase healthy and productive forest landbase so as to enhance the economic, so as to enhance the economic, environmental, and social well-being of environmental, and social well-being of all who live in the state.’all who live in the state.’

Maryland Forests Maryland Forests AssociationAssociation

EducationEducation – – LobbyingLobbying – legislature and agencies – legislature and agencies AlliancesAlliances with other organizations to with other organizations to

achieve missionachieve mission Maryland Master Logger ProgramMaryland Master Logger Program

Landowners’ Concerns Landowners’ Concerns

OrOr Will growing trees be an asset or liability Will growing trees be an asset or liability

for our children?for our children?

Trends – MD Forest AreasTrends – MD Forest Areas

TimberlandsTimberlands DecliningDeclining

Non-Non-commercial commercial IncreasingIncreasing

OverallOverall- - Forests Forests DecliningDeclining

Trends in Forest Land Area

0

1000000

2000000

3000000

1950 1964 1976 1986 1999

Acre

sTimberlandNon-commercialTotal Forest land

MD Forest LandownersMD Forest Landowners

Trend:Trend: Landowners Landowners

IncreasingIncreasing Acreage per Owner Acreage per Owner

droppingdropping Forest FragmentationForest Fragmentation

Forest Owners and Acres per Owner

0

30000

60000

90000

120000

150000

1955 1966 1976 1986 1999

Num

ber F

ores

t Own

ers

0

20

40

60

80

100

Avg

Acre

s per

Own

er

LandownersAcres/Landowner

Forest DynamicsForest Dynamics

Age Structure Age Structure ChangingChanging

Volume per area Volume per area increasingincreasing

Composition changingComposition changing

Average Volume per Acre

0

1000

2000

3000

4000

5000

6000

7000

8000

1950 1964 1976 1986 1999

Boa

rd F

eet

MD Forest IndustryMD Forest Industry

Mills in Maryland

0

200

400

600

1952 1965 1975 2005

Mills decliningMills declining Logger infrastructure Logger infrastructure

DecliningDeclining Loss of CompetitionLoss of Competition

Forest Land EconomicsForest Land Economics Lumber Price Flat Lumber Price Flat

Maryland Timber Competes on World Maryland Timber Competes on World MarketMarket

US Lumber Average Price 1995 - 2005

$0$100$200$300$400$500

Secondary Assets of Secondary Assets of ForestsForests

Hunting ActivitiesHunting Activities Niche marketsNiche markets

Mushrooms. Ginsing…Mushrooms. Ginsing…

Income variableIncome variable

Non-Market Benefits of ForestsNon-Market Benefits of ForestsRealized by the People of the StateRealized by the People of the State

Water QualityWater Quality Air QualityAir Quality WildlifeWildlife AestheticsAesthetics

A Landowner’s PerspectiveA Landowner’s Perspective

Concerns about Concerns about Timberland’s FutureTimberland’s Future

Critical Mass to Support FPI?Critical Mass to Support FPI? Lose of sustainable timberLose of sustainable timber

Competitive Markets?Competitive Markets?

Infrastructure?Infrastructure?

Regulations? Zoning? ESA?Regulations? Zoning? ESA?

Economics of Growing Economics of Growing TreesTrees

Plant seedlings, manage Plant seedlings, manage Harvest after 45 yearsHarvest after 45 years Return on Capital ~ 1% per yearReturn on Capital ~ 1% per year

Wall Street > 3-5+% per yearWall Street > 3-5+% per year

Incentives for Forest Incentives for Forest SustainabilitySustainability

Return on benefits realized by the Return on benefits realized by the peoplepeople

Right to Practice ForestryRight to Practice Forestry Equity with FarmsEquity with Farms

Credit for Buffer timber takingCredit for Buffer timber taking See Virginia tax creditSee Virginia tax credit

Tax reliefTax relief See Delaware Ag and Forests - zero taxSee Delaware Ag and Forests - zero tax

Incentives for Forest Incentives for Forest SustainabilitySustainability

Easements – Easements – similar to Agsimilar to Ag

Regulatory relief – Regulatory relief – similar to Agsimilar to Ag