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Betsy Bates

Housing Rebound Combined With Wet Weather Could Bode Well For Tree Growers In 2016

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While the housing market continues to make a slow but steady comeback, it hasn’t had much of an impact yet on timber stumpage (standing tree) prices, the head of one of the nation’s largest forest management reports.

“We still haven’t reached the “magical” number of 1.3 million starts—the number forecasters say is necessary to put real upward pressure on stumpage markets,” wrote Marshall Thomas, president of F&W Forestry Services, Inc., in the winter edition of his company’s newsletter.

But wet winter weather could give timber prices a much needed boost.

“Supply is certainly an issue in both the pulpwood and sawtimber markets. Our apparent oversupply of sawtimber-sized trees could be offset over the next few months by wet weather, resulting in a short term opportunity to sell sawtimber trees at a higher price,” Thomas said. “And what many believe is a “growing” shortage of pulpwood-sized trees could really be compounded by wet weather, driving already high (in some locations) pulpwood prices higher—and probably resulting in even more small sawtimber trees being cut for pulpwood.”

TO SEE THE FULL ARTICLE IN THE WINTER 2016 F&W FORESTRY REPORT, SUBSCRIBE NOW»

Betsy Bates

F&W Provide Guidance On Complying With New WOTUS Rule

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A federal Appeals Court in Cincinnati has put a hold on implementation of the EPA/Corps of Engineers controversial Waters of the U.S. (WOTUS) rule until it can review its impact on rural farmers and landowners, but this shouldn’t stop forest owners from understanding the potential perils from the new water and wetland rules.

“There is legitimate concern that the agencies have significantly expanded the limits of their regulatory authority to lands that have not been traditionally considered under their purview,” said John Godbee, manager of F&W Forestry Services’ Certification and Environmental Compliance Group, in the winter edition of the F&W Forestry Report.

“From a practical standpoint for forest landowners, the WOTUS rule expands federal CWA [Clean Water Act] jurisdiction over many landscape features including farm, ranch, and forest lands across the nation. As a result the lands where essential and commonplace farming, ranching, and forestry practices are conducted are considered to be Waters of the U.S.,” he said.

“Forest landowners have several options to minimize the risk of violating the CWA,” Godbee said. “It is essential that all forest management activities be conducted in full compliance with state and federal Best Management Practices for forestry. Landowners should also seek professional forestry advice when considering a land use change for property or are uncertain as to the extent of the silvicultural exemption.”

TO SEE THE FULL ARTICLE IN THE WINTER 2016 F&W FORESTRY REPORT, SUBSCRIBE NOW»

Betsy Bates

Listing Of Bat As ‘Threatened’ Creates Obligation On Forest Landowners

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The recent listing of the northern long-eared bat as threatened under the federal Endangered Species Act has serious implications for forest landowners carrying out management activities.

In its determination for listing the bat as threatened, the U.S. Fish and Wildlife Service concluded that forest management activities may be contributing to the bats demise. To address these concerns, the Service has established rules for landowners conducting forestry operations in order to avoid a regulatory taking of a bat.

The biggest challenge to forest landowners in complying with the rule is the unknown or unavailable information regarding the locations of the bats, specifically the bat’s hibernacula and maternity roost trees.

In order to assist clients in complying with the new rule, F&W has researched, compiled, and mapped the locations of a significant number of hibernacula and maternity roost trees throughout our operating footprint. Our area management foresters have access to this information and can provide assistance to landowners engaging in forest management activities.

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Betsy Bates

Chinese Company Looking To Build Pulp Mill In Arkansas

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A Chinese paper company is looking at the feasibility of building a new $1.36 billion fluff pulp mill in South Arkansas.

While on a trade mission to China in November, Arkansas Governor Asa Hutchinson signed a “letter of intent on investment cooperation” with Sun Paper Industry Joint Stock Co. Ltd., the largest privately-owned papermaking enterprise in China. The letter commits Sun Paper to studying the feasibility of building a pulp mill in Arkansas, with a final decision on the new facility expected by May 1, 2016.

The last “greenfield” pulp and paper mill to be built in the Southern U.S. was by Union Camp Corporation in 1985 at Eastover, South Carolina at a cost of around $600 million. International Paper, which purchased Union Camp in 1999, continues to operate the pulp mill and two paper machines at Eastover facility,

TO SEE THE FULL ARTICLE IN THE WINTER 2016 F&W FORESTRY REPORT, SUBSCRIBE NOW»