Authors: James T. Walters, former Extension Associate, Department of Forestry, College of Natural Resources, Virginia Tech and James E. Johnson, Associate Dean of Outreach, College of Natural Resources, Virginia Tech.
Publication Number: 420-144, posted March 2000
Chapter 1: Your Role In Sustainable Forest Management
There are many privileges associated with owning a tract of forestland. As a landowner, you generally have the right to use your property in any manner within the confines of state laws and local ordinances. You also have the right to earn money from various uses of your property. These privileges make up a large portion of the value of a property.
Along with the privileges of land ownership come several responsibilities. You are responsible for paying the property taxes assessed on your property, and you bear a great deal of liability involving your land. One important responsibility for you, as the owner of a forest property, is to be a good steward. Stewardship is the careful and responsible management of land entrusted to your care.
Although there are some laws that regulate the use of your property, ultimately you make all management decisions concerning stewardship. These decisions have a profound impact on the future value of your property. They can also affect the value of your neighbors' land. Therefore, these decisions should be considered and researched carefully. Gathering complete information about the impact of each choice will help you make better decisions. If you have hired a property manager such as a consulting forester, you should monitor the decisions he or she makes and insure that they reflect your intentions.
Landowners may be involved in forest management at different levels. Some landowners make all management decisions, utilize the forest products from their land, and live on the property. Other landowners live in a city away from the property and have hired a property manager to perform all forest management activities. Regardless of your current level of involvement, you have the opportunity to determine your ownership objectives, devise a forest management plan, use professional advice when necessary, and maintain good legal contracts with everyone who works on your property. You should focus your effort on these four important management strategies.
Strategy #1: Determine Your Ownership Objectives
As a landowner, it is important to decide exactly what you expect to get from your property before any management planning can occur. Different ownership objectives may require different management strategies. Carrying out management activities without considering long-term objectives leads to unnecessary costs and disappointment.
For example, consider Joe Smith, who owns a sizable tract of timber in Bland County. Joe wants to operate a wildlife preserve on his property and guide hunts for trophy whitetail deer. He also wants to harvest timber on a periodic basis to provide additional income from the property. The forest management plan under these objectives might be different if Joe were interested only in providing a scenic view from his mountain cabin on the property. It is important for landowners like Joe to decide what they expect to get from their forest.
Some landowners do not realize the total value of the forest and do not know exactly what to manage for. Other landowners recognize the slow rate of change in the forest and consequently put off making management decisions. This procrastination can cost landowners a great deal of money and keep them from realizing the true potential of their property. For example, if you plan on harvesting timber to pay college tuition for your children, then the income from that harvest is very important. If you do not make plans to maintain a healthy forest, an insect or disease outbreak could significantly decrease the value of the timber.
There are several activities that may help you decide upon the objectives for your property. These activities include investigating the options that are available for managing your property and scheduling a meeting with your heirs to determine long-term goals.
There are many different ways you can manage your property. Before you decide on your management objectives, it is a good idea to investigate the various possibilities. You may be surprised at the range and values of your management alternatives. There are several sources of information regarding markets for forest products and trends in forest management. Professional foresters and wildlife managers would certainly be valuable resources when investigating management alternatives. Some of the most common forest uses in western Virginia are timber production, providing wildlife habitat, producing non-timber products, recreation, aesthetic enjoyment, watershed protection, and investment.
A forester can give you an estimate of the value of your timber |
Timber production is a common objective of forest landowners. Although many owners may not harvest the timber on their property, they are still interested in increasing the value of the timber. Timber production is most often a secondary objective of landowners because the other values of the forest are more important to them. However, it is a good idea to know the value of the timber so that you can evaluate how important timber production is in relation to other forest uses.
Landowners manage the wildlife habitat on their property for a variety of reasons. Some landowners receive income from a hunting lease and are interested in increasing the value of that lease. Others want to have the opportunity to hunt on their own private land. Wildlife management may support a particular recreational interest of a landowner. For example, one landowner may manage for songbirds because he enjoys birdwatching on weekends. Wildlife can certainly have an aesthetic value on a forested property, particularly if the owner resides there. Finally, some landowners manage for wildlife because they feel an ethical obligation to provide a natural habitat.
Non-timber forest products are found in many of Virginia's forests, but their importance is often not recognized or appreciated. Examples include nuts, fruit, ginseng, mushrooms, and vines. Some of these products can be harvested and marketed. It is a good idea to check out local markets for these products.
Landowners are often interested in the diverse recreational opportunities that are offered in a forest. Examples include hunting and fishing, camping, hiking, mountain biking, boating, swimming, horseback riding, and off-road vehicle use. There seem to be an unlimited number of things to do in the forest. Forested properties are weekend getaways or vacation spots for some landowners. Regardless of the recreational use that a landowner gets from a property, recreational facilities and opportunities certainly add real value to a property.
Aesthetic values are becoming more important as forested areas are developed for residential use. Aesthetic value is most important to a landowner living on the property. These landowners are often willing to absorb the lost income from not harvesting timber. An aesthetically pleasing property undoubtedly has greater real estate value than an unattractive one. Landowners who have not seen a timber harvest may not recognize the value of aesthetics. It is important to consider aesthetics as a secondary objective.
Forests provide clean water because they filter nutrients and slow runoff to prevent erosion and stream and lake siltation. This value is very important on some properties, such as those with springs or headwater streams. There are even laws forcing landowners to consider watershed protection as a management objective. However, watershed protection is very compatible with most other forest uses, even properly conducted timber harvests.
Forests can have great value as real estate and as a source of timber. Some investors have recognized this value and have diversified their portfolio by purchasing timberland. These investors are receiving a good return for the risk associated with forestry, particularly when investing in real estate for development. Investors must be careful managers, because improper management decisions can cost a great deal of money. Although many forest landowners are not primarily interested in their property as an investment, it is a good idea to stay informed about the value of your property and look for ways to increase that value.
One of the best ways to determine the ownership objectives for your forest property is to have a meeting with your children, heirs, or other future owners to discuss long-term plans for the property. The relatively slow development of forests makes it necessary to think about long-term goals. These goals should receive consideration as you formulate your own ownership objectives. This consideration and planning is a principal component of sustainable forest management.
There are several important issues when formulating a list of ownership objectives. If you live on the property, are you willing to do some of the management work yourself? Forestry work is not always complex, but can be labor-intensive. Will the management activities disrupt your lifestyle? Log trucks and chain saws are loud pieces of equipment and can become annoying. Do you have the money necessary to meet your objectives? Eventually, you will probably have to pay for some management activities as either investments or costs of ownership. Answering these questions will help you make realistic assumptions about what to expect from your property.
Do you wish to manage your property actively or passively? The best recommendation for some forest stands is to let them grow. Although it seems simple, this recommendation may best meet your ownership objectives. Some landowners are not willing to manage their property, but would rather let the forest change naturally. If you can count yourself in this group, then you may find that your management alternatives are greatly reduced. If, however, you are willing to actively manage your property, preparing and implementing your management plan will become major activities for you.
When you have considered these important factors, you can begin to formulate a list of ownership objectives. It is a good idea to write your objectives down on a piece of paper, think about them, and then decide which are the most important and which are simply things you would like to accomplish. Management objectives sometimes conflict, so assigning a relative importance to each is helpful.
When you have finished listing your objectives and their importance, put the paper away for several days. When you look at the list again, the relative importance of each objective may have changed, but you should still have the same objectives. If you have changed your objectives, it would be wise to review them and reconsider which are most important.
Strategy #2: Develop a Management Plan for your Property
A good plan is very important for managing a forest. It is a roadmap of the journey to meet your ownership objectives and will present a logical sequence of forest management activities for your property. A management plan saves you money in the long run because it discourages you from conducting management activities that do not correspond to your ownership objectives. Also, some of these activities, while providing income in the short run, can prevent you from ever realizing your goals because they are irreversible. For example, harvesting timber immediately adjacent to a trout stream may change the habitat in the stream and prevent you from establishing a strong population of native trout.
A good management plan will also allow you to work more efficiently with forest advisors. The plan should outline your ownership objectives and describe the resources available on your property. Your advisors will be able to quickly review the plan and save several hours, or even days, of preliminary work.
A forest management plan will demonstrate your commitment to managing your property properly and profitably. Lending agencies, such as banks, are much more willing to approve your loan application if a management plan is written and in effect for the property. The plan also allows you to illustrate that you have established your ownership objectives and are managing your property to meet these objectives.
Writing a forest management plan requires a fair amount of technical knowledge. You may be well qualified to write your plan, but most times it is better to get professional assistance in preparing a draft. You should still, however, have an important role in developing the plan because your objectives are its foundation.
There are several activities related to management plans that you, as a landowner, can complete. Specifically, the most important activities are to make certain that the plan is complete, see that the plan is followed, update the plan as necessary, and keep records of the management activities recommended in the plan.
The plan for your forest should contain complete information about managing the entire tract. If you get assistance in writing the plan, you should be sure that it includes several key components: a review of your ownership objectives, a description of the property, including a map, and a discussion of management recommendations.
The objectives section should provide a brief overview of your ownership objectives and describe the relative importance of each. This section is important because it will allow you to see why specific management recommendations are made for your forest.
The property description should contain ownership information. A legal description that refers to deedbook, tax parcel, and acreage of the tract should be the first part of the property description. Physical features such as topography, soils, climate, streams, and access should also be addressed. An inventory of timber, wildlife, recreational opportunities, and other resources should be included. The timber inventory breaks the property into stands based on types of trees, tree age, volume of timber products, and value of the timber. The wildlife inventory will identify species found on the tract and distinguish different habitats. The recreational inventory should list trails, campsites, and other recreational sites. Finally, the property description should include maps that highlight special features of the tract, such as rare or endangered species and habitats, or special historical or archaeological sites. These maps are generally based upon topographic maps that are available from the government and local sporting goods stores.
The management recommendations should consist of specific activities that can be performed in your forest over the planning horizon. Your planning horizon could be twenty-five years, or even as much as fifty years, but the recommendations should focus on the next five to ten years. A timeline should be included to clearly identify where and when each activity should occur.
A forest management plan is not very useful if it is not implemented. As the landowner, it is ultimately your responsibility to see that management activities are completed. Therefore, it is useful if you are familiar with the recommendations that have been made and when management activities should occur. A simple calendar with management activities would serve to remind when activities are due. It is important to follow recommendations to maximize the effectiveness of your plan and reduce costs. For example, a management plan may recommend planting trees during the year following a timber harvest. Failing to follow this recommendation would increase reforestation costs because the tract would be harder to plant later.
Forests are certainly dynamic; they are always changing. Although trees grow slowly, fires, hurricanes, insect and disease outbreaks, and other disasters have profound and sudden impacts on the forest. Additionally, your ownership objectives may change over time. Therefore, it is important to update your management plan periodically to reflect changes in the forest's condition and your objectives. The period over which the plan should be updated varies from property to property because of differences in management recommendations and tract size. A good rule of thumb is to update your management plan every ten years. You probably can't update your plan too often.
Good forest management records are important because they allow you to review results of past forest management activities, update tax accounts, and plan future management activities. Two primary types of records are of interest: management records and financial records. Management records focus on the results of your management activities. Financial records track revenues and expenses associated with managing your property. Financial records are very important when filing your annual tax return with the Internal Revenue Service. It would be wise to discuss these records with your tax advisor every year so that you can make plans to pay tax on income from your forest.
It is a good idea to store your records with the forest management plan. Some landowners place these materials in a three-ring binder so that everything is easily accessible and well organized. This also allows all of these materials to be transferred to your accountant, forester, logger, or management contractor.
Strategy #3: Seek Professional Advice when Necessary
Landowners frequently make decisions that will have an important impact on their forest. These decisions sometimes involve common-sense choices that landowners can make on their own. Some decisions, however, require a thorough understanding of a particular resource. In these situations, it is wise to seek advice from a forester, wildlife biologist, or other natural resource professional.
For example, a game biologist has a good knowledge of wildlife species such as whitetail deer, wild turkey, and black bear. If you wish to manage for these species, it would be a good idea to talk with a game biologist. Likewise, a consulting forester knows about current markets for timber products and has local industry contacts. Contacting a forester about a timber sale would be a prudent decision. Special equipment may be required to carry out a management activity such as planting food plots or conducting a prescribed burn. Contracting with professionals who are equipped to offer these services can save you money and avoid potential problems.
There are many sources of professional assistance for forest landowners. These sources can be divided into four general categories: government agencies, private service providers, industry programs, and private organizations.
The Virginia Department of Forestry (VDOF) is a state agency that offers many services for forest landowners. Foresters with knowledge of local forests and timber markets are assigned to each county. These foresters offer management advice and other services such as writing forest management plans, monitoring water quality, administering financial assistance programs, arranging for reforestation and prescribed burning, helping to prevent damage from insects and disease, and preventing and controlling wildfire. County foresters are not able to appraise your timber or administer a timber sale on your property. The telephone number and address of the VDOF forester in your county can be found in your local telephone book.
The Virginia Department of Game and Inland Fisheries (VDGIF) is responsible for managing native fish and wildlife of the state on both public and private lands. The VDGIF offers services to landowners through county game wardens and regional wildlife biologists. Examples of the programs currently offered by the VDGIF include the Quail Management Program, the Deer Management Assistance Program, and the Damage Control Assistance Program. Biologists provide technical advice on habitat management (fish and wildlife), wetlands restoration, pond development, and population management. Department staff assist other state and federal agencies with management planning guidance. County game wardens can also help you uphold hunting regulations and prevent trespassing on your property. You can contact your game warden or district biologist for further information about the programs offered by the VDGIF.
Virginia Cooperative Extension (VCE) of Virginia Tech is another state agency that can assist you in managing your forest. VCE is primarily responsible for offering educational programs, many of which focus on forest and wildlife management. The content of these programs ranges from property and income tax issues to wildlife damage control to plantation silviculture. VCE also develops and distributes educational materials. Your county Extension Agent can provide you with local knowledge and can direct you to Extension Specialists on particular topics.
Consulting foresters are private service providers who can offer you a wide range of services, some of which are also offered by the Virginia Department of Forestry. Consultants are generally more intimately involved with management of a property than a county forester because they are able to spend more time with the landowner. Services offered or arranged by a consultant might include timber inventory and valuation, timber sale administration, forest management planning, tree planting, site preparation, herbicide and fertilizer application, real estate appraisal, estate planning, and more specialized services. Consultants generally help you develop your management plan and then assist you in carrying out the management recommendations.
A consulting forester can help you with many forest management activities. |
The consultants operating in Virginia have very diverse backgrounds. It is important to choose a consulting forester carefully, much as you would a family lawyer or doctor. The VDOF county forester can give you a list of consultants in your area. You should check the credentials of each forester and interview several before making a choice. A good consultant will understand your concerns and be willing to work with you to achieve your ownership objectives.
Contractors provide services that you may not be able to complete on your own. Examples of these services include site preparation, tree planting, timber harvesting, prescribed burning, and road building. Your county forester or consulting forester can arrange work on your property by these contractors. They know the reputations of the contractors operating in the area and can help you in overseeing contracted work.
The primary industry program for assisting forest landowners is the landowner assistance program. Most large forest products companies have established programs with foresters who provide services such as management planning and administering management activities. Landowner assistance programs usually operate in areas near a company's mill or timberlands.
There is generally a contract between a landowner and the forest products company. The contract often states services that the company will provide and gives the company the "right of first refusal" of timber sold from the property. This means that when you sell timber, the company has the right to make the last bid on the timber or match any prior bids. However, you do not have to accept the company's bid on the timber if you can receive a higher price from another buyer.
Timber buyers from some mills can also offer services when a landowner decides to harvest timber. The forester can arrange for road building and sometimes provide assistance in reforestation. Type and availability of assistance varies widely. Checking with local timber buyers to determine if these services are locally available is a good idea.
Landowner associations are private organizations composed of people like yourself who own forestland. These associations can be a good source of educational opportunities and sound advice. Landowner associations regularly have meetings where there are speakers on topics related to forest management. These meetings are a good place to make contacts with landowners and professionals who offer forestry services.
In Virginia, there are both local and statewide associations. The Virginia Forestry Association (VFA), founded in 1943, is the oldest, largest, and best-known. Headquartered in Richmond, the VFA offers conferences, educational programs, publications, and a quarterly magazine dealing with forestry and natural resources. The VFA also represents forest landowners and industry in political issues.
Landowner associations are a good source of recommendations when choosing professionals to assist you in managing your property. Members of these associations often have experiences with local foresters and wildlife managers. Furthermore, other landowners can recommend forest operators such as loggers, road contractors, and tree planters.
Other private organizations can provide you with information that is valuable when you are making decisions about your forest property. These organizations are often more specialized and can be very helpful when you have decided upon your ownership objectives. Examples of these organizations include the American Tree Farm System, The Nature Conservancy, the Izaak Walton League, the Wild Turkey Federation, the Ruffed Grouse Society, Ducks Unlimited, and the National Wildlife Federation.
Strategy #4: Maintain Good Legal Contracts
Legal contracts are important to you for a variety of reasons. They can reduce your liability when another person is on your property. Contracts assure you that people who work for you will do the work they promise in a specified manner. A good contract may cost money in the short run, but can save you legal expenses and personal stress in the future. Most importantly, legal contracts help to assure that your good intentions are carried out and that the best results for your property are achieved.
A complete discussion of legal contracts would be very complex and is best left to you and your lawyer. However, there are several activities you can perform while managing your property that can help in all your legal agreements.
An experienced forester has developed a good understanding of the items that need to be in a contract. Therefore, a forester is a good resource when you start developing your contract. Some foresters even have a general contract that can be tailored to meet your particular needs. It is wise to review your final contract with your forester because there may be technical issues that are missing or need to be specified.
Relying on written contracts with people and companies that work on your property is a good idea. You should even have a contract with your forester - many will require a service agreement before they will work for you. Some people may be hesitant about working with you if you require a contract. You should carefully consider whether you really want to deal with someone who is not willing to sign a contract to signify competence and intent.
A forester is a good source of technical information when preparing your contract. It is always a good idea, however, to review each contract with your lawyer. A lawyer will be able to identify legal technicalities in the contract and will be better prepared to enforce the contract if necessary. Working with a lawyer may be expensive, but will be well worth it if you can prevent problems or be in a better position if a dispute should arise.
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