Transcript
The Industry of Maryland’s Forests
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Rural Action Assembly Ripken Stadium, Aberdeen
October 17, 2013
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The Industry of Maryland’s Forests
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• Forests are the largest single land use in Maryland, comprising 40% of the land cover and an integral part of Maryland’s landscape, environment, and economy.
• Forests provide socioeconomic benefits otherwise generated artificially at great cost.
• Maryland’s forests provide critical services such as clean air, clean water, plant and animal habitat, biological diversity, and carbon sequestration and timber and other wood products essential to the economic viability of Maryland’s citizens.
The Industry of Maryland’s Forests
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• 40% Forested
• 2.4 million acres
• 155,000+ owners
• Average Woodlot is 17 Acres
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2.0
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1940 1960 1980 2000 2020
Are
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lio
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s)
Year
Timberland
Forest land
Area of timberland and forest land by year.
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Forest Ownership A paradigm shift with implications.
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• Most forests are family owned.
• Any work done in forest will need to meet their goals.
• Their goals are very different from the large landowner.
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More owners → Smaller
woodlots
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Top 5 Ownership Goals
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Shifts in Forest Resource High Quality + Ample Supply = Opportunity
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0.0
0.5
1.0
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1940 1960 1980 2000 2020
Are
a (
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cre
s)
Year
Large
Medium
Small
Area of timberland by stand size class and year.
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0
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Forest Type Group
Large
Medium
Small
Area of forest land by stand size class for top
six forest-type groups, 2008-2012.
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Standing Inventory
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2/3 of sawlogs are highest
quality!
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$3mm/yr***
$12mm/yr***
***estimated, simple and rough
NO MARKETS ≠ NO MANAGEMENT
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Forests growing older, growing bigger
$$$ Opportunity
Need more of this
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ECONOMIC IMPORTANCE
OF MARYLAND’S
FOREST PRODUCTS INDUSTRY
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Logging & Timber Management
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Primary Industry: lumber, piling, paper,
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Secondary Industry: furniture, pallets, cabinets, chemicals.
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Renewable Resource Based Industry Ranking
• Seafood and Misc. Animal Processing industry contributed just under $900 million to the state economy (5.5% of the RBI total)
• Forestry and Wood Derivatives industry, contributing
$4 billion to the state economy (28.4% of the RBI total)
• Agriculture industry was the largest, contributing $8 billion to the state economy (48.4% of the RBI total)
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• Maryland’s Forest Industry is a $4 billion.
• Provides over 40,000 jobs.
• Secondary wood manufacturing provides the most employment opportunities.
• Primary wood-manufacturing sectors have higher employment multipliers.
• Primary wood-manufacturing sectors are, on average, higher than other average multipliers of industries in the state.
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MARKETS FOR PRODUCTS enables MANAGEMENT.
FOREST MANAGEMENT is good for COMMUNITIES:
• Timber harvests in every County.
• Over 70% of felled fiber stays in MD for further processing.
• Value-added from stump to lumber is 5x.
• Maryland’s Forest Industry was over $4 billion in 2010.
• 10,000 direct jobs; 40,000 indirect/induced jobs.
• For every 1,000 acres private forest, 15 jobs are supported.
• Each acre forest yields $14 taxes and $478 GDP.
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WOOD FLOWS As Consumers of Forest Products, Marylanders:
• Consume 5 million cords of wood per year
• Rely on 2.4 million acres in-state, and 7.4 million acres outside the state to build homes, use paper, etc.
• Are 20% self-sufficient
As Producers of Timber and Forest Products:
• About 35% of Maryland’s fiber is transferred out-of-state for processing
• At the same time, Maryland’s industry relies on out-of-state fiber for 52% of its needs
• Net Import Dependence is 38%
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• Forest fragmentation in extent and ownership
• Transition from “Rural” to “Urban Forests”
• 20 - 70 persons per sq mile threshold
Population Density as a Predictor of Sustainable Commercial Forestry
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MAJOR GOAL: elevate the importance of “working forests” to Maryland’s economy and environment in every county of the state.
A contribution to that goal is “certifying” our 211,000 acre State Forest System.
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How many people have heard of Forest Certification?
• Do you know of any other Certification Programs?
• Electronics – UL (Underwriters Laboratories)
• Good Housekeeping
• Medical – AMA
• Marine Products – Marine Stewardship Council
• Accounting - CPA
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Major Forest Certification Programs
• Sustainable Forestry Initiative (SFI)
• American Tree Farm System (ATFS)
• Forest Stewardship Council (FSC)
• Canadian Standards Association (CSA)
All contain a set of standards
– Written Documentation
– On the ground Practices
Independent Third Party Verification
– Auditors insure compliance with standards
– Issue certificates
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Forest Certification
• Applies to field operations and land management
– SFI has a Procurement System certification
• Acts as a “seal of approval” for forest products
• Designed to ensure sustainability
Chain-of-Custody Certification
• Applies to manufacturers, processors and distributors
• System to track raw materials from certified forests through the production process
• Allows for labeling or trademarks
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Certified Product
Sustainable but not
certified Product
Chain of Custody
Certified Mill
Certified Fiber
Non Certified, but
Controlled Fiber;
no wood from
Controversial
sources
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Manufacturer CoC Merchant/Printer CoC
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• Certification = social license
• Certified forests require a balanced approach of harvest/retention/non-financial goals.
• Often find we’re not harvesting enough.
• State lands fed mills thru tough times when private markets retreated from stumpage market.
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A major goal is to lead by example:
– State actively invests in forest management.
– By extension, State actively participates in local forest markets.
– Procurement policy should enable local markets.
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Green Building
(Demand)
Forest Certification
(Supply)
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Problem(s):
• Maryland Green Building Council only recognizes
LEED as the “Green Building” certification in Maryland
• LEED only recognizes and gives credit to Forest
Stewardship Council (FSC) grown wood for use in it’s
rating system
• The vast majority of Maryland forest landowners cannot
obtain FSC certification because it is cost prohibitive
• Current state law and MDGBC policy put Maryland
grown and processed wood at a distinct market
disadvantage relative to in-state construction projects
seeking LEED/Green certification
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• Good progress on “supply side”.
– Over 211,000 acres State Forests dual certified under SFI and FSC.
– Over 135,000 acres family forests in ATFS.
• Need to work on “demand side”.
– LEED most popular, but only recognizes FSC.
– This excludes Maryland forests.
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Certified Wood on Private Lands (MD Forest Service Cooperators – MD Tree Farm System)
• 1,101 Family Forest Landowners
• 135,834 ATFS acres
• ATFS – no inspection/certification fee (annual random sampling) – Inspection fees associated with determination of
participating tax abatement program compliance • FCMA - $100/5 yrs
• WAP - $100/3 yrs
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Embracing the Future • Keep forests as forests:
– Forest Preservation Act of 2013. – Financial assistance to private landowners expanded through WIP, EQIP, and
TaxMOD.
• Secure sustainable practices: – Certify 100% of State Forests. – Provide plans for 50% of all state-owned forests. – Expand ATFS membership. – Grow ranks of Master Logger professionals.
• Expand markets: – Identify and remove barriers to existing business. – Partner with ‘like-minded’ agencies such as MARBIDCO and DBED. – Improve State policy to favor local products.
• Emerging markets: – Wood energy. – Thermally modified wood. – Nano-technology.
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Thank you for your attention.
Steven W. Koehn
Director/State Forester
Maryland Forest Service
SKoehn@dnr.state.md.us
www.dnr.maryland.gov/forests
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