Presentation on theme: "Forestry, at its heart, is always a family issue. The issue of our forests is one of culture, beauty,security,money. Decisions made today effect the inheritance."— Presentation transcript:
Forestry, at its heart, is always a family issue. The issue of our forests is one of culture, beauty,security,money. Decisions made today effect the inheritance of our children & grandchildren.
Who is making decisions about many of our private forest lands? Women Women Widows Widows Families Families We are all ASSETS and Key Decision Makers for our forest resources.
decisions from our parents and grandparents... As a private forest landowner, our forests are the result of
To many people their forests are a source of income...
For others, their forest is a way to ensure clean water...
Many People want their forest as a place for recreation, or that special place to go and relax.
So….If our forests are that important, how do we make decisions to ensure we can get what we want from them?
First you must know what you want from your forest
What do you want your forests to give you? Mature trees Young trees Habitat for Wildlife Place to rest Income for my retirement Improve Stream Quality Income for emergencies/ special needs Steady income Recreational Opportunities Income to send my children or grandchildren to college A place to enjoy Income to send my children or grandchildren to college Food for my family
Reasons people sell timber Unexpected financial emergency. Mortgage. Firewood. Absentee landowner Multiple landowners Right of way. Taken/public domain Sold by default Funeral/death Tuition Improvement of timber stand Development Pay for taxes
How can you keep your future vision? Make a plan for what you want, so if emergencies arise you can take care of your family and still keep your vision. Management PLAN
Resources to help plan your vision Service Foresters State Foresters - free service How to find one: http://forestry.miningco.com/cs/stateforestry/ What they can do for me? Help develop a management plan Determine volume of wood and species Mark your timber
How much is my forest worth? Size Size Species Species Quality Quality Effected by...
These combined factors effect the actual amount you will receive from your sale! Location of timber relative to mill(s) Location of timber relative to mill(s) Ease of current access to timber Ease of current access to timber Terrain Terrain Timber Quality Timber Quality Timber sale volume Timber sale volume Market conditions Market conditions Season/weather Season/weather
Remember if you have your plan, you control the outcome of a timber harvest. You can make sure best management practices are followed. Most of all you can make sure it will fit in with YOUR future vision!
What if you want to sell your timber because of financial need or part of your management plan, what should you do? Contact consulting forester- often double the amount a landowner will receive from a timber sale.
Consulting foresters can: How to find one: http://www.acf-foresters.com/memberlist.cfm Tell you how much your timber is worth Help you be able to claim capital gains Help you be able to claim capital gains Determine the quality of your timber Determine the quality of your timber Obtained sealed bids for your timber sale Obtained sealed bids for your timber sale Provide you with a written contract Provide you with a written contract
State forester Consulting forester (Planning) (Selling timber) Help with plan (free) Mark your timber (usually small fee) Determine volume of wood & Species. Tell you how much your timber is worthTell you how much your timber is worth Obtain sealed bidsObtain sealed bids Provide you with written contractProvide you with written contract Consulting foresters charge a small percentage of the sale, but usually make landowner money.
How you sell your timber can greatly affect how much taxes you will pay on a sale: IMPORTANT Bid Type Can Claim Actual Amount Amount of Offer Capital Gains After Taxes $20,000 Cut on the sharesNo$14.400 $80,000 Cut on the sharesNo$57,600 $80,000 Lump SumYes$64,000 $80,000 By the unit (cord, tonYes$64,000 bdft) bdft)
What is lump sum? You receive a set dollar amount for all your marked timber. What is on the shares? You receive a check from the mill and the timber buyer gets a check from the mill.
What does a capital gain mean? A way to think about a capital gain is that your capital (trees) has gained some value or a profit and that this profit is taxable. For income sales to qualify as capital gains: You must have owned the timber for 12 months You must release your interest in the timber when it is cut
Sell timber in a way that will allow you to claim capital gains. Bid Type Can Claim Actual Amount Amount of Offer Capital Gains After Taxes $20,000 Cut on the sharesNo$14.400 $80,000 Cut on the sharesNo$57,600 $80,000 Lump SumYes$64,000 $80,000 By the unit (cord,tonYes$64,000 bdft) bdft)
A word on contracts... Contracts protect you the landowner as well as the logger. You should put your concerns in the contract, if you want roads to be retired so they can be hiking trails… put that in the contract. Remember you are in charge of the process and can put exactly what you want to be followed in the contract.
Walk your land, know what you have. Walk your land, know what you have. Decide on what you want to get from your land in the future. Decide on what you want to get from your land in the future. Contact a service forester and make a management plan. Contact a service forester and make a management plan. Contact your neighbors to avoid boundary problems. Contact your neighbors to avoid boundary problems. When or if you decide to sell your timber, contact a consulting forester, who can help you When or if you decide to sell your timber, contact a consulting forester, who can help you Checklist for landowners… Get multiple bids Ensure your future vision is not lostEnsure your future vision is not lost Have a contractHave a contract Make sure to retire all roads properly after the saleMake sure to retire all roads properly after the sale
talk with a friend, make a quilt with your group that can be used to teach others, show this lesson to youth and create a poster contest, create a heritage day, put on a play, write an article for a newsletter, make your own educational pamphlet for women in your county, send a letter to the editor, offer to present at upcoming meetings of groups you belong to, have a public meeting for landowners, use with existing training currently happening with groups, share with 4-H clubs, share at a PTA meeting, contact someone going through the process and ask if they would share their experiences in a demonstration. Methods you can use to share what you have learned: