1. What is Exemplary Forestry? Why Should Land Trusts Care?
Prepared for
A Day in the Woods
October 14, 2017 1

2. Maine Mountain Collaborative is working to create an Exemplary Forestry Fund to attract private investment capital to purchase timberlands that:
Would be held for the long term, which we defined as at least 60 years
Would be managed in an exemplary manner
Investment Thesis:
Marry philanthropy and private capital investment together.
Raise philanthropic dollars to purchase exemplary forestry easements assuring that lands will be managed to a high standard.
Revenue received from the sale of the exemplary forestry easements will be used to compensate investors for restoring the forest over time until it can produce substantial ongoing revenue from the harvesting of high quality forest products.
Expectation is that this investment approach will be of interest to individuals, foundations and institutions for that portion of their portfolio dedicated to longer term investments (possibly intergenerational) and/or a commitment to Mountains of the Dawn and/or exemplary forestry.

3. How did this project originate?
The New England Forestry Foundation wanted to define succinctly the forestry it aspires to practice and how it fits into the landscape
The Maine Mountain Collaborative wants to “accelerate the pace of conservation” in the Mountains of the Dawn
Keep forests as forests
Manage for the full range of forest values – particularly biodiversity

4. Why should Land Trusts care about Exemplary Forestry and the Exemplary Forestry Initiative?
Because they have been intentionally defined to enhance the conservation values Land Trusts care about most

5. In brief –EF is forest management that is positive for the full suite of forest values

6. The Essence of Exemplary Forestry forestry to achieve measurable metrics
Exemplary Forestry is management for landscape scale objectives including:
Growing the species best suited to each site
Stocking that fully occupies the sites, “B” line stocking
Growing and harvesting wood – an average of 0.5 cords/acre/year
A diverse size class distribution of 5-15% seedlings, 30-40% in saplings and poles, 40-50% sawtimber (with 10% in large diameter multi-storied stands)
Stand conditions which are well suited to the umbrella wildlife species
Maintaining wildlife trees – an average of 3-5 live but decaying trees per acre and >18” in diameter
Protecting soils, riparian and aquatic habitats
Protecting special habitats including habitats of species identified as having special needs not entirely met by the management outlined above and habitats which are critically important to more common species; including by way of example, deer wintering areas
A mix of management styles – the “Triad” approach may prove best

7. Special habitats and ecological reserves are protected
Exemplary Forestry assumes:
Special habitats and ecological reserves are protected
Eagle Lake Old Growth Forest. Source: MFS

8. Management for umbrella wildlife species
Exemplary Forestry includes:
Management for umbrella wildlife species
Den Trees
Closed Crowns
Big Reed. Source: MFS
Source: Conservation Foundation
The kind of habitat needed by American (Pine) marten

9. Exemplary Forestry includes:
Management for wildlife species that represent the full range of habitat needs
Dense spruce/fir regeneration to produce hares
Source:
Source: Maine Forest Service.
Habitat needed by Canada Lynx

10. A stand size class distribution recommended by ecologists
Exemplary Forestry includes:
A stand size class distribution recommended by ecologists
Sawtimber (40-50%)
Seedlings (5-15%)
Saplings & Poles (30-40%)
Source of all photos: Maine Forest Service

11. Exemplary Forestry includes:
Management that provides den trees, snags, and downed logs, as well as protects soils, water quality, riparian areas

12. Exemplary Forestry Includes
Increasing stocking on depleted sites while growing and harvesting more wood – a central idea

13. Exemplary Forestry includes increasing timber harvests at the same time that other values are enhanced

14. Growing better quality timber
Exemplary Forestry includes:
Growing better quality timber
Source: jeffjosephwoodworker.com.
In terms of stumpage, 2 cords of sugar maple or red oak veneer (approximately 1,000 bd ft) can equal the value of 40 cords of hardwood pulp
Increasing both growth and quality can make management more profitable

15. Exemplary Forestry includes:
Stocking that fully occupies the sites
Photo by Fred Field

16. Exemplary Forestry includes:
The results of 50 years of selection management on the Penobscot Experimental Forest
Harvesting that respects aesthetic and other values through progressive silviculture
This stand was managed selectively with light harvests every 20 years. The financial return from this management (measured as the net present value of all income and costs) is approximately $534.* (Photo: John Brissette, Northeastern Research Station)
* This is the financial return from what many consider the epitome of excellent forest management. Keep this figure in mind
This is a key to building public support!

17. Exemplary Forestry includes:
Harvesting that respects aesthetic and other values through progressive silviculture
Before thinning
After thinning to reduce mortality and increase growth on the most desirable trees
Source of photos: Jake Maier and the Cole Bros

18. The triad approach to management
Exemplary Forestry could include:
The triad approach to management
Reserves (modest proportion)
Intensively managed area (modest proportion)
Ecological forestry (most of the area)
Reserves unmanaged or lightly managed areas
Intensive management: Early commercial thinning in spruce
Ecological forestry: Regenerating spruce-fir by shelterwood
Big Reed Forest Reserve.
Photo: Lee Burnett
Spruce-fir selection management. Source: MFS

19. HENCE, WE NEED NEW BUSINESS MODELS
The Essence of Exemplary Forestry forestry to achieve measurable metrics
Exemplary Forestry is management for landscape scale objectives including:
Growing the species best suited to each site
Stocking that fully occupies the sites, “B” line stocking
Growing and harvesting wood – an average of 0.5 cords/acre/year
A diverse size class distribution of 5-15% seedlings, 30-40% in saplings and poles, 40-50% sawtimber (with 10% in large diameter multi-storied stands)
Stand conditions which are well suited to the umbrella wildlife species
Maintaining wildlife trees – an average of 3-5 live but decaying trees per acre and >18” in diameter
Protecting soils, riparian and aquatic habitats
Protecting special habitats including habitats of species identified as having special needs not entirely met by the management outlined above and habitats which are critically important to more common species; including by way of example, deer wintering areas
A mix of management styles – the “Triad” approach may prove best
NOTE: FOLLOWING THESE STANDARDS DELIVERS THE DESIRED CONSERVATION VALUES REDUCES AND CAN DELAY TYPICAL FINANCIAL RETURN
HENCE, WE NEED NEW BUSINESS MODELS

20. An alternative is careless forestry
The results of 50 years of diameter limit cutting on the Penobscot Experimental Forest
This stand was managed using a diameter limit (all trees above a given diameter were harvested). The financial return from this management was $976* (net present value). (Photo: John Brissette, Northeastern Research Station)
* This $976 is the financial return (net present value) from harvesting trees when they become merchantable. Remember the $534 from 20 year selection management? Despite the fact that the selection management is producing superior annual timber returns now (50+ years after management began), standard financial analysis concluded that it is not as profitable as diameter limit cutting. This is a fundamental problem for practicing good forestry – superior annual timber returns are possible, but it requires patience.

21. Remember, in comparison, Exemplary Forestry can:
Improve wildlife habitat
Protect biodiversity
Protect other environmental values, e.g., water quality
Minimize adverse impacts to, if not improve, visual quality
While producing more and better quality wood – to meet our own needs locally
BUT IT NEEDS NEW BUSINESS MODELS

22. New Business Models
Remember, Exemplary Forestry reduces and can delay returns. So, we need to:
Find investors willing to take a lower return and/or be patient.
Find public or philanthropic funds to support Exemplary Forestry (e.g., purchase of Exemplary Forestry easements), and in essence write down investment cost
Partner with land trusts and jointly fund forest acquisition

23. Productive Land Trust Strategies
Land Trusts could buy Exemplary Forestry easements while others buy the lands to practice Exemplary Forestry
Land Trusts could buy lands and practice Exemplary Forestry to generate funds for stewardship or buying more lands or easements
Land Trusts could contribute timber rights on lands they own in exchange for shares in an Exemplary Forestry fund and receive income over time

24. These approaches could provide:
A win for the environment!!!!!!!
Enhancing what land trusts value highly: environmental values from water quality to climate mitigation, most specifically improving wildlife habitat and protect biodiversity
Producing more and better quality local wood
Increasing the supply of wood as an alternative to concrete, steel, aluminum and plastic (all having greater environmental impacts?)
A win for land protection!!!!
Generates revenue needed to increase conservation efforts

25. Help us advance forest conservation in New England!