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

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

Percent forestland by county

Timberland by forest type

Timberland area by region

Timberland ownership,

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

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

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

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

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

Income tax Major elements : $ income $ expenses $ reforestation

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

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

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

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

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

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

Land Grant Universities Extension Education Training Applied research

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

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

ResourcesResources forestry.msu.edu/extension/ /