1. Non-Industrial Private Forests Karen Potter-Witter Department of Forestry

2. MichiganMichigan 19.2 million acres of forestland 18.6 million acres of timberland ~ ___% of Michigan?

3. Percent forestland by county

4. Timberland by forest type

5. Timberland area by region

6. Timberland ownership, 1955-93

8. BackgroundBackground 312,000 NIPF owners in Michigan own 54% - 8.6 million acres of forest 40 % of ownerships are 1-9 acres 32% acquired from 1970-1979

10. FragmentationFragmentation 8 counties with >15% growth and 50% forest area Chippewa19% Crawford30% Grand Traverse17% Kalkaska23% Missaukee21% Montmorency19% Otsego20% Roscommon21%

11. TrendsTrends More demand for recreation use and amenities from forests More objection to timber harvests More reliance on private lands for timber More fragmentation and accompanying ecosystem challenges

12. Why have private lands policy? to promote sustainability to encourage investment to increase production to minimize negative impacts

13. Major instruments Financial Incentives Taxes Cost sharing Technical Assistance In the field Educational programs Applied research

14. Income tax Major elements : $ income $ expenses $ reforestation

15. Federal Income Tax $ Income - Capital Gains $maximum tax rate lower than for other income $ Expenses $ reduces the net cost to the taxpayer

16. Reforestation Amortization & Tax Credit reduces the net cost of tree planting for timber through deduction, plus: an investment tax credit

17. Property taxes Reduction in mileage rate, special classification or separate from ad valorem Ad valorem - most non-industrial

18. Commercial Forest Program $1.10/acre per year public access for hunting and fishing required minimum of 40 acres

19. Private Forest Reserve Program a few farm woodlots 160 acres or less ½ in active agriculture up to 40 acres can be in PFR assessed at $1 per acre 5% yield tax

20. Technical assistance – federal+state+local+private DNR or other foresters and resource professionals Cooperative Forest Management in MI A few Soil Conservation District Foresters left County foresters in some states (e.g. Minnesota) Industry foresters

21. Land Grant Universities Extension Education Training Applied research

22. Regulation – federal, state, local ESA Clean Water Act BMPs Zoning

23. Cost sharing – federal+state ACP – Agricultural Conservation Program CRP – Conservation Reserve Program FLEP - Forest Land Enhancement Program Forest Stewardship Program Many others – Wildlife (WHIP), T&E species

24. ResourcesResources www.timbertax.org/ forestry.msu.edu/extension/ www.reeusda.gov/nre/forestry/ www.na.fs.fed.us /