tom crowe crowe forest management, llc 260-704-1655 toms...
TRANSCRIPT
The Big PicturePotential for Forestry
Economic Impact – 6 th largest industry in Indiana Social Impact – Jobs, Recreation Environmental Impact – water, air, wildlife, climate
Forest Landowners – Non Industrial Private Forests (NIPF) 4 million acres and 190000 landowners
Few Forest Landowners have a plan – (less than 15 – 20%) Productivity (most producing at half of potential – high graded or
overstocked or invasive species) Timber Markets – management needs markets - Indiana’s markets
are excellent whereas Colorado has lost most Forest Health – Early detection / control – SWCD’s eyes in the field Landowners need to work with a forester
Where to get information – SWCD – NRCS – Extension Lack of understanding
Cutting a tree is bad (Surely for that tree) but it may be the best thing for the forest if done right.
GOALS AND OBJECTIVES WILDLIFE HABITAT
RECREATIONAL OPPORTUNITIES
AESTHETIC APPEARANCE
HEALTHY PRODUCTIVE WOODS
CONSERVATION ETHIC
PERSONAL LEGACY
ECONOMIC RETURN
Long-term vs. Short term
EAB / PROPERTY TAXES / EXOTIC INVASIVES
Teachable moments
Better knowledge may change objectives
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Forest ManagementSystems Approach – All Aspects Soil, Water, Air, Plants, Animals – Primary purpose of developing a plan template
Speak the same language (SWCD/NRCS don’t need to be an expert, but need to know the concepts)
Healthy Forests – Healthy Ecosystem (soil health)
Stocking level – barn only holds so many cows.
Weed and Harvest the garden – grow rates, values, and maturity vary
Manage based on Potential not Value = Cull the herd
Regeneration – Future – should always be on your mind
Know the resources that are available.
(District, State Forestry, Private Consultants, etc)
Forest Health FactorsRed represents things we can change – green is how to change
Poor Harvesting Practices – Proper planning and advise High Grading Logging Damage – Normal vs. Excessive
Invasive Species – Brush Management / Control Natural Regeneration – Negative impact Growth Reduction - Allelopathy
Grazing – Long Term Negative Impact Stand Structure – Missing Populations Species Composition - Conversion
Taste – hickory, walnut Thorn – Honey locust, hawthorn
Damaged root systems Defects - Hollow - Quality Growth reduction
Over stocked - Too many cows in the barn/ Stress = increased susceptibility Forest Stand Improvement – Weeding or Thinning
Pathogens – Susceptible (some resistance to NATIVE PATHOGENS) Insects Diseases Environmental Stresses
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Forestry in Layman’s Terms Healthy Forests – Silviculture - Begins with a plan
Healthy Ecosystem – Healthy Soils
Stocking level – barn only holds so many healthy cows
Cull the herd – Get rid of your crap - don’t high grade
Every action – harvest should be an improvement - regeneration
Regeneration – it is the Future - species and quality
Gardening – Weed and Harvest - Values / Mature ages vary
Invasive Species – Slow moving wildfire – Put it out quick - NOW
Potential not value – What do you invest in – trees as stocks
Limited number of shares – trees
Return depends on the value & growth
Berkshire-Hathaway / Apple / Google / Radio Shack / Enron
MANAGEMENT TOOLS IN THE SHED
Planning
Planting
Weed Control
Harvesting
Tax Considerations
MONEY DOES GROW ON TREES - 2TREES = $50,000
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MANAGEMENT TOOLS IN THE SHED Planning
Forest Management Plan (CAP) or Forest Stewardship Plan
Planting
Tree or Shrub Planting
Natural Regeneration (depends on the planning and harvesting and TSI)
Weed Control
Brush Management – Invasive Species Control (Exotics)
Improvement Harvest
Forest Stand Improvement
Harvesting
Improvement Harvest
Regeneration Harvest
Others
Tax Considerations
Property Taxes – Classified Forest (Assessed at ~ $13/Acre = ~ $0.20/acre or minimum tax)
Forest Management Plan (80 % reduction –Agricultural rate / soil factor < $400/ac ~ $5/ac tax)
Capital Gains Tax
Cost Basis – Depletion
PRODUCTIVITY GROWTH RATE – VOLUME 2 to 5 % per year
UNMANAGED WOODS ARE UNDER PRODUCING
40 % OF CAPACITY according to Hardwood Dollars and Sense
150 to 200 BOARD FOOT PER ACRE PER YEAR according to Purdue and U.S. Forest Service publications
MANAGED WOODS ARE PRODUCING MORE
250 to 475 BD.FT./ACRE/YEAR IS CAPABLE IN 2/3 OF INDIANA WOODS according to Purdue Extension Report
350 BD.FT./ ACRE / YEAR AND AN INCREASE IN FINANCIAL RETURNS FROM $ 45/ ACRE / YEAR TO $160/ ACRE/ YEAR THRU MANAGEMENT according to Indiana Agricultural News article 12/95
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COMMERCIAL WEEDING IMPROVEMENT HARVEST
KEEP YOUR POTENTIAL/INVEST IN THE FUTURE
SELL TREES THAT DON’T HAVE POTENTIAL, POTENTIAL EQUALS 10 + % EARNING PER YEAR DEAD
DAMAGED OR DEFECTIVE – storm, livestock, tapping, etc
HIGH RISK – Dutch elm disease, Emerald ash borer, etc
POOR QUALITY – forks or persistent branches – genetics
POOR VALUE - cottonwood, willow, buckeye, etc
OVERMATURE – generally already defective
POOR GROWTH – hickory (overabundant due to grazing)
MATURE - WHEN POTENTIAL REACHED
SELL WEEDS FIRST – KEEP YOUR POTENTIAL WEEDS ARE LESSER TREES COMPETING WITH
BETTER TREES
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TOP 10 LIST FOR WOODS10) CROP MANAGEMENT – IT’S ALL THE SAME
(GROW QUALITY, GROW IT FAST, HARVEST WHEN RIPE)
9) LOW QUALITY TODAY – LOW QUALITY TOMORROW – CULL THE HERD
8) SIZE DOESN’T DICTATE ECONOMIC OR BIOLOGICAL MATURITY – It’s may just be big
7) VALUE DOESN’T MATTER - MANAGE FOR POTENTIAL – IF IT HAS NONE – MOVE IT OUT (Alternative Rate of Return)
6) POTENTIAL BEATS VALUE (DOUBLE DIGIT RETURNS ARE POSSIBLE
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TOP 10 LIST FOR WOODS5) ONE TREE IS NOT LIKE ANOTHER –
Know what your selling – THEY DOValues vary a lot
4) WEEDS CAN HAVE VALUES ($) TOO. Beats killing em!
3) A WEED IS STILL A WEED –If you can’t sell em, kill em!Grow quality, grow it faster.
2) MANAGEMENT PAYSWho else can sell your weeds, knows what potential looks like, and works for you
1) COMMON SENSE GETS MORE CENTSthat includes writing it down.
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ALL BUSINESS IS THE SAMELIVESTOCK OPERATION – CULL YOUR HERD
SELL THE LIVESTOCK THAT DOESN’T PRODUCE – DON’T KEEP FEEDING IT
KEEP AND BREED THE BETTER STOCK
STOCK MARKET – RATE OF RETURN RISK vs. RETURN HIGH YIELD – LOW RISK DON’T LOOK AND CROSS YOUR FINGERS
BUSINESS - PRODUCTION PRODUCE IT FASTER PRODUCE QUALITY - MARKETS ARE MORE STABLE DIVERSIFICATION – MULTIPLE PRODUCTS COST vs. BENEFIT – INVESTMENT PAYBACK
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2/6/2017 18Healthy Forests – Healthy Ecosystem
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