The New York Forest Owner - Volume 17 Number 6

Page 2 New York Forest Owner

Vol. 17 #6

THENEW YORK FOREST OWNERS

ASSOCIATION

Recording SecretaryLewis DuMond9 Grand St.

Cobleskill, NY 12043

TreasurerEmiel Palmer

5822 S. Salina St.Syracuse, NY 13205

Membership SecretaryHelen Varian204 Varian Rd.

Peekskill, NY 10566

IN THIS ISSUEP. 2. Welcome Our New Members

Dues: Directors

P. 3. President's Message ,Hypothermia, Sneaky Death

P. 4. The Fall Meeting.

P. 5. Kenaf! Newsprint's GoldenGreenstalk

P. 6. Appropriate Technology inResource Management ...A Round TableForest Resource in New Yorkby Neil Gutchess

P. 7. The Changing AdirondackEconomic Base, A CaseStudy by John W. Stock

P. 8 Economics of Forest Taxationby Francis A. Demeree

P. 9. NEWS: In the Mailbox

P. 10. Continued ...

P. 11. Statement on AppropriateTechnology in ResourceManagement of New York'sCommercial Forest Landby John B. Simeone

P. 12. Publications You ShouldKnow About:On The Calendar

WELCOMEOUR NEW MEMBERS

Published by theNEW YORK FOREST OWNERS

AssociationMorrell Burke

RD #2W. Winfield, NY

Ernest Bury206 Valley Rd.

Ithaca, NY

Walter S. Dickson, Jr.P.O. Box 11Glenfield, NY

Scott R. Finch182 Gate House, TR

Henrietta, NY

Kathleen E. PowellBox 194

DeKalb Junction, NY

Joe HomburgerRD #3

Cooperstown, NY

ANNUAL MEMBERSHIP DUES(Please underline choice)

1980 Annual Dues shall be asfollows:Junior Member, $3(Under 21 non-voting)Regular Membership $10Family Membership $15Contributing $15 to $29Sustaining $30 to $99Supporting Member $100 to $499Sponsoring Member $500 and up"Gift" Membership $8

(You may send your dues to Mrs. Varianwhose address is in the left column above)

FRONT COVER:HEIBERG FOREST in the 1950'sCourtesy of Dr. Howard Miller.

Evelyn A. StockEditor

PresidentROBERT M. SANDOdessa, NY 14869

First Vice PresidentHOWARD O. WARD

240 Owego St.Candor, NY 13743

2nd Vice PresidentROBERT L. EDMONDS

R#3, Box 99Marathon, NY 13803

3rd Vice PresidentPROF. ROBERT R. MORROW

Dept. Natural ResourcesFernow Hall, Cornell Univ.

Ithaca, NY 13852

DIRECTORS - 1980Robert Edmonds

Richard LeaBarbara PittengerWilliam S. PowersLloyd G. StrombeckHoward O. WardKenneth Williams

DIRECTORS - 1981Robert Demeree

Kenneth L. EberleyC. Eugene Farnsworth

David HanaburghJames P. LassoieRobert M. Sand

Frederick A. Umholtz

DIRECTORS - 1982Gordon L. Conklin

Art EschnerMary S. McCarthyRobert R. Morrow

Paul SteinfeldHardy L. ShirleyDavid P. Lum

~ .----------------------------------------------------------------------------~

New York Forest Owner Page 3

President's Message

This is the last issue of the ForestOwner for 1979. I'm sure you'll agreethat our Editor, Evelyn Stock has donean outstanding job in improving boththe appearance and the content thisyear. No one really knows, exceptherself, how many hours she has spentto provide us with this "new look." Weappreciate her outstanding efforts. Forus all, let me take this opportunity to ex-press to Evelyn our thanks for a greateffort on her part, and we are indeedfortunate to have her as Editor. TheForest Owner is a most important partof N.Y.F.O.A., and her responsibilityto put together for the printer six issueson a bi-monthly basis is one that we allvery much appreciate.

The increased 1980 dues structurewas approved by a great majority ofthose who voted on the proposed By-Law ammendment announced anddistributed with the last issue of theForest Owner. A few members werehesitant to make this change, butrealistic when we know that our finan-cial resources are limited almost 100%to the membership dues. At the annualmeeting in April, a raise of hands to in-crease the dues structure, indicated thatnear 90 % of those in attendance ac-cepted as necessary an increase andrecommended the change. Thanks tothis support by you, a viableN.Y.F.O.A. in the coming months isnow assured.

I have a personal plea to any of youwho might be willing to give a neededboost to N.Y.F.O.A. Our currentchecking account balance is in dire needof a temporary infusion. This isnecessary to carry us financially into thecoming calendar year without borrow-ing on several Certificates of Depositthat won't mature until January. Myproposal is simple. If some of you would

pre-pay your 1980 dues before '79ends, our Treasurer, Emiel Palmer willbe able to pay the incoming bills with nodifficulty. The 1980 dues are as follows:REGULAR MEMBER is $10.00;FAMILY MEMBERSHIP is $15.00;JUNIOR $3.00 and "GIFT" MEMBER-SHIP is $8.00. Please send all checkspayable to N.Y.F.O.A. to Mrs. HelenVarian at PEEKSKILL, N.Y. 10566with a memo "1980 dues." Your im-mediate response to this appeal will beappreciated.

Our Fall Field Trip at Old Forge, N.Y.coincided perfectly with the foliage colorat it's peak. We indeed are indebted tothe ADIRONDACK LEAGUE CLUBfor this opportunity to spend a beautifulafternoon on their holdings. KenWilliams, the League's "man on theground" and Consultant Forester, pro-vided an appropriate itinerary, and withhis vivacious wife, Jane, hosted nearly70 of our members and guests to a mostinteresting and instructive forest owner'sfield trip. Ken never did locate the fishhatchery-but we did end our day atopMcCawley Mountain via chair lift as aspecial treat. Thanks to Ken and JaneWilliams, September 29th. was a daywe'll long remember as a successful FallMeeting.

The holidays are fast approaching.From all of your Officers and Directorsof N.Y.F.O.A., we extend best wishesto all our members and their families fora most happy and healthful year end.

HYPOTHERMIA - A sneaky death

The majority of hypothermia cases(drop in the body core temperature) oc-cur at temperatures between 30 and 50degrees Fahrenheit, when the effects ofchill are less noticeable. Deaths have oc-cured at 40 degree temperatures with a30 m.p.h. breeze. The primary cause ofbody heat loss at these temperatures isconvection.

The body is constantly warming alayer of air near the skin. If this warm airstays close to the skin, the rest of thebody remains warm. If the warmth islost to the surrounding air (convection)the body temperature drops. A layer ofclothing retains this essential bodywarmth.

Wool clothing is especially effective inseasons when frequent rain occurs.Wool, unlike cotton, retains bodywarmth even when wet. Hikers will findthis property valuable on long tripswhen changes to dry clothing are notpossible.

Whether or not you think its warmenough to get by without a jacket orsweater, play it safe - they won't doyou any good hanging in the closet.

In Scotland where homes have littleheat, deaths from Hypothermia are notunusual expecially among the old andthe very young. So when trying to con-serve heat this winter remember thatHypothemia is a sneaky thing.

EISENHOWEREisenhower when asked in what way

he practiced religion answered. I pray asthough it all depends on God and Iwork as though it all depends on me.

NOVEMBERThe year lies dying in the evening light;

the poet musing in autumal woods;Hears melancholy sighs;Among the withered leaves.

No so - but like a spirit glorifiedThe angel of the year departs, lays down

His robes, once green in springOr bright with summer's blue;

And having done his mission on the earth,Filling ten thousand vales with rosy corn,

Orchards with rosy fruit,And scattering flowers around,

He lingers for a moment in the west,With the declining sun sheds over all

A pleasant, fare-well smileAnd so returns to God.

Page 4

The Fall MeetingAbout 65 of us met at the North-

eastern Loggers Forest Industries Ex-hibit hall at 10 a.rn . Saturday,September 29 for the Fall meeting.

There we met George Mitchell of theNorthern Logger's Association andGeorge Fowler, Editor of the NorthernLogger. Who gave us a short history ofboth. It seems a long time ago a ministerin the area took notes of the happeningsaround there and passed them out tothe loggers. In time the project becameso extensive that it was made into amagazine called the Northern Logger.As loggers affairs became more com-plicated the Northern Logger associa-tion was formed, eventually the buildingwas built and last year had 70,000visitors.

The building is as interesting as themany forest products exhibited there. Ialways thought the black keys on pianoswere made of ebony but found they arenot.

On the lower floor wall are someforest cartoons that bring a chuckle areasonable facsimile of one of themfollows.

New York Forest Owner

wm:um{ 10 lH!

roREST INDUSTRIES EXHIBIT HAll~£iRMlmsHoiIOUIHR!'-

l!1I'~\W:i~Wu&1~;\nWl~Wa\;~ism: ~1,,'~~~~~!g~~sfl'~';\!~cntHiP~Ta .HI'

mt ::: ;~a~~~t4\\'t}lft1m\tg<,i"lso ;~~ra~~m./~~:ml~~~~~~,,~t~H!ff~t.~u

UJ'lI' n~':l.ml:"·~r,i.l.! t~i••;iI\l :;),

Forest Industries Exhibit Hall. Old Forge.

,0\ L',t l.Lc Mor e,\:0-11)., Y' ;rhi.

Fore.t Ownen at the AdirondackLeague Clab.

After lunch we went to the Adiron-dack League club forest. The foresterfor the club, Ken Williams is also a direc-tor of the New York Forest Owner'sAssociation, and was instrumental inhelping Bob Sand obtain permission forour group (only the 2nd such group) tovisit the woods.

The forest covers 52,000 acres with6,000 acres of virgin forest. The clubhas 350 members and was formed in1889 by Bernard Fernow to preserveand protect the Adirondacks and pro-vide sanctuary for its members.

Some of the best maple grows hereand along with yellow birch are themajor species. The club maintains anextensive road system. Ken took usaround to various sites to show whathad been done, and we rode manymiles.

I hear that some people enjoyed aride on a ski lift, but I did not get to seeit. It was late in the day and I had head-ed home.

Bob Sand is to be commended forplanning such an interesting day. I amsure it took many hours of hard work onhis part. - Editor

New York Forest Owner

Kenaf!Newsprint's Golden

GreenstalkBy Donald N. Soldwedel*

"We marked a stalk, and nine dayslater the marker was 16" higher ... Itwas 14'3" tall just 120 days afterplanting!"

Recently I was approached by apublisher who wanted to know howsoon I felt he could start growing Kenafon his several-thousand-acre familyranch. You may ask, "Why Kenaf?Why such concern about a supplemen-tal pulp source?" Consider the follow-ing:

First, the increasing demand forwood in new as well as traditional useswill continue to drive supply down andprice-up.

Second, the future will bring con-tinued ecological demands for paperrecycling. Kenaf fiber may make asingularly superb pulp for this use.

Third, the freight cost factor innewsprint might be reduced if kenaffiber is developed, for it would makeregionalization of mills feasible."An average acre of kenaf will likelyyield more than nine times the pulpper acre as comparable forestland ... "

In the early 1950s the U.S. Depart-ment of Agriculture began studyinghundreds of plants as pulp sources.They settled on kenaf-Habiscus can-nabinus is its scientific name-a non-wood annual plant with long bast (innerstalk) fibers and short woody fibers. Atthe time kenaf pulp was assumed tobe-and was=-cheeper than woodpulp. However, the relatively low price

of newsprint then did not allow for areasonable return to the farmer and theproject was shelved.

Two years ago, at the Anaheim Pro-duction Management Conference of theANPA/Ri, a roll of kenaf newsprint wasdramatically unrolled. It was made atthe Peoria Center on its paper makingmachine, and some of that same paperon which a portion of the Peoria (III)Journal Star of August 8, 1977 wasprinted. My copy still looks as good asthe day it was printed.

Wouldn't it be nice to deliver anewspaper to readers printed on papermade from a locally grown field crop?"We took four months to grow thecrop, another month to make it quitgrowing (as high as 17'), and anothertwo months to figure out how toharvest it!"

In the Yuma, Arizona, area and theImperial Valley of Southern California,

Page 5

it is theoretically possible to grow onecrop of kenaf on each irrigable acreeach year. This would supply nearly sixmillion tons of kenaf to the UnitedStates newsprint industry-its entirepulp needs for one year. But this wouldnot be practical, and I state it only toshow the tremendous productionpotential of this crop."The constantly higher demand forwood, and the consequent higherprices, have brought us to the pointwhere kenaf can be produced for asignificantly lower price-enough toattract a great deal of attention ... "

A 100-ton yield for 30 acres is notmuch, but Kammann lost about tenacres through experimental harvestingtechniques. The University of Arizonaexperimental farm at Yuma plantedsome small plots as the same time wedid, and reported a yield of more thanten tons per acre, but that seems a bithigh. It has been estimated that if wecube the harvest, the total yield from 50acres could be stored on just one acre,which should mean storage should notbe much of a problem. By dint of theforegoing, when our manufacturerwanted raw kenaf we had it forhim-provided we could get it out ofthe field! We got it out of course. Webaled some, chopped some, and cubedsome, and in toto got a ton of it to thenewsprint research facility. (By the way,chopped kenaf looks a lot like crushedshredded wheat, and in "cubed" formwe compressed it to 1x1x3".)

As an endnote-I propose thateveryone interested give a deservedvote of thanks to that still-unidentifiednewsprint company for the work it's do-ing on behalf of kenaf research!

The pulp yield from an acre of kenaf is expected to be nine times greater thanthe yield from an acre of comparable forest land.

Page 6 New York Forest Owner

Neil Gutchess-President ofForest Information Group Ad-dresses Round Table group.

The New York State AssemblyCommittee on Environmental Con-servation sponsored a roundtablediscussion on the subject of appropriatetechnology in forest resource manage-ment. Seeking guidance on how we inNew York can manage our bountifulforest resources to create employmentand promote a high quality of life. Theround table was held in the Moonlibrary Conference Room at the StateUniversity of New York at Syracuse,College of Environmental Science andForestry on September 14, 1979.

According to the United States ForestService 47% of the land area of NewYork State is commercial forest land,capable of growing crops for timberutilization. The people of the State ofNew York in public ownership own over800,000 acres of this land, the forest in-

Appropriate Technology InResource Management OfNew York's Commercial

Forest LandA Round Table

Maurice D. Hinchey, Chairman

dustry over 1,000,000 acres, and non-industrial private owners own some12,000,000 acres.Appropriate technology in forest

resource management means utilizingtechnologies which are non-polluting,environmentally sound and promotethe economic needs of New Yorkcitizens. Through the use of appropriatetechnologies, production seeks an anti-inflationary sustained yield while at thesame time providing forest land forrecreation, wildlife habitat, watershedprotection and aesthetic values.

Presentations were made on thefollowing in the private sector:- Economics of Forest Land Manage-ment - Curtis H. Bauer, President,New York Institute of ConsultingForesters.

- Economics of Forest Taxation - F .A.Demeree, Past Chairman New YorkState Forest Practice Board.- Employment and Growth Oppor-tunities in the New York Forest In-dustry.- Neil Gutchess, Past President, Em-pire State Forest Products AssociationPresentations were made on the

following in the public sector:- Managing New York's Public Com-mercial Forest, Where We Are, WhereWe Are Going - Daniel W. Weller,Principal Forester, Division of Lands &Forests.- Firewood Supplies and Sales, theProblems and Opportunities - RichardCipperly, Associate Forester, DEC,Chairman Society of AmericanForesters, New York Section.

Forest Resource in New York - by Neil Gutchess"The forest resource in New York is

one of our most important and probablyleast known assets, and the wisemanagement of that resource is one ofour most important yet probably leastunderstood obligations." There is adirect present and future connectionbetween the employment and com-merce potential in the New York forestindustry and the management of theforest resource.

New York is the heart of the so called"Northern Forest." Our forests, whichmake up about 50% of our total landarea contain more growing stocks ofsugar maple, yellow birch, basswood,beech and white ash than any otherstate. In addition New York forests con-

tain significant quantities of oak andcherry which are extremely valuablespecies.

Demand for products from our forestsis growing significantly. Not only aredomestic manufacturers shopping forour unique resource but also affluentEuropean customers have recognizedand are demanding household productsmade with forest resources originatingin New York. The United States ForestService estimates that prices for forestproducts will rise because of supply anddemand factors about 2% per yearabove the average of all prices over thenext 20 years or so.

Over the past two or three years thenumber of primary manufacturing

plants operating in New York has in-creased from 442 to 494. Even dis-counting firewood sales, withdrawalsfrom our forests have increasedsubstantially. It is becoming increasinglyclear that future growth in manufactur-ing and employment relate directly tothe intensity of professional manage-ment of our forest resource.

New York's timber based industriesemploy over 300,000 people, andalthough it is true that many of the forestresources that sustain this employmentoriginate from outside of New YorkState, it is also true that many of theresources of our forests are fabricatedinto products outside of New YorkState.

New York Forest Owner Page 7

In the management of our forests weare concerned about both the volume ofour growth and the quality of thegrowth. Relating to volume, our forestsare producing at less than 50% of theirpotential. Relating to quality, we quotefrom the recently published 1979 NewYork Forest Productivity Reportsponsored by the Forest Industries Ad-visory Council, "The quality of sawlogson the State's commercial forest landbase is poor due to its history of use andmanagement. As the State continued togrow, demand for high quality timberalso grew and, as a result, the best treeswere cut. The poorer ones were left toproduce today's forests. The effects ofsuch cutting practices are evident."

We hear talk of forest management,firewood, selection cutting, sawlogs,pulpwood, clear cutting, wood forenergy, and biomass and we hear unitsof measurement such as board feet,tons, cubic feet, cords and face cordsand there is considerable confusion.

At the risk of oversimplification, withour forest resource we must think interms of relative values. If we give a treeor trees growing in our forests a relativevalue of 1 for use as firewood orbiomass, reasonably good qualitysawlogs have a relative value of 10.Employment and commerce are directlyrelated to the value added to a resourcefrom the raw material to the finishedproduct. Firewood or biomass increasesin value 10 times until it is consumed forenergy. The United States Forest Ser-vice estimates that forest resources in-crease in value by a factor of 25 beforebecoming a finished product in use by acustomer.

Wood is a material that is efficientlymade by nature using solar energy. Ifwe can use wood in its natural form, ithas about 25 times the value to us that itdoes if we reconvert it into energy.

Our generation has used up con-siderably more than its share of theearth's resources. To generate employ-ment and commerce for our generationand for our children, we must commitourselves to intensive management ofour State's forest resource and we mustmanage for the values that are uniqueto our resource. It is the height of folly topresently convert forest resources intoenergy that can presently or in thefuture be used for wood products.

If we are to squarely look our grand-children in the eye we must commitourselves to helping nature create aresource that will give future genera-

tions employment, comfort and shelter,and a high quality of life.

Over the past years we have learneda great deal about how our hardwoodforests respond to treatment by profes-sional foresters. We must rely on ourprofessional people and seek answersfrom them. We must also support theirefforts and commit ourselves to increasethe value, volume and quality of theNew York forest resource.

Specific recommendations relating toour forests made by the previously men-tioned New York Forest ProductivityStudy include the following:

1. We continue the States currentforest tax law and eventually modify thislaw so as to encourage more woodlandowners to participate.

2. We improve administration of theForest Incentives Program so allocatedfunds will be used more efficiently. (FIPis a federally funded, state administeredforest improvement program.)

3. We increase forest industry par-ticipation in developing compensationrates for FIP work.

4. We classify beech control as atimber stand improvement activity inexisting cost share programs. (Ourbeech is being killed by an insect andfungus combination. Bush like growthregenerates after death of the tree.)

5. We expand existing forestry infor-mation and educational programs, withincreased cooperation between forestindustry, educational institutions andState agencies.

The study indicates that tax policies,such as those governing land and in-heritance taxes, the long-term nature ofthe required investment, a lack of forestmanagement knowledge by land-owners, high labor costs for forest im-provement and a potential increase instate land-use restrictions are among theimpediments to more intensive forestmanagement activity.

EXCUSEWhen the Moors were at the height of

their cultural development this story was toldabout them. A Moorish farmer called at thehome of his neighbor and asked if he mightborrow a rope. "Oh, good and faithfulneighbor, I must regretfully request of youthis simple favor," spoke the man. "The ropeyou request cannot be given, for I use it to tieup my milk."

"But surely," replied the would-be bor-rower, milk cannot be tied up with a rope?"

"By Allah, the refuser said. "When onedoes not want to do a thing, one reason is asgood as another."

The Changing AdirondackEconomic BaseA Case StudyBy John W. Stock

There have been very few economicstudies of any depth at all of the Adiron-dack region. Dr. Charles Larson of theCollege of Environmental Science andForestry did one in 1956. In 1970 theTemporary Study Commission on theAdirondacks included some grosseconomic factors in the exhaustivereport. They recognized two hard in-dustries in the Park, Mining, and Forestproducts. The mining industry whichthen consisted of seven major sites andemployed over 2,000 people. Five ofthese sites have been more or less aban-doned and 1800 of the jobs have beenlost.The other hard industry, forest pro-

ducts, much larger and employing morepeople and being a user of a renewableresource may be going the same way.The problem is the economics of theownership of their resource base.

Ownership of forest land has alwayspresented too many economic prob-lems to be repeated here. I want to talkabout attempts to ameliorate theseproblems and the problems thesemeasures are themselves causing.

480A was an attempt to take some ofthe tax load off the owners of forest landto try and make such ownership areasonably sound investment. Most ofthe people here are familiar with this lawso I won't explain how it is supposed towork. I want to dwell on how it is work-ing in the first major parcel to be ac-cepted for inclusion under this act in theAdirondacks.

Page 8 New York Forest Owner

Big Wolf Club is a seasonal home set-tlement in the Tupper Lake area. Theyown something over 3,000 acres offorested land around Big Wolf Lake.Membership in the Club is somewhatrestricted and the summer hours are inthe 50-100,000 category. They haveplaced 3,000 of their acres under 480A.This is all their land except the shorelineacreage on which the summer homesare built. Their reduction in taxes thisyear will be in the neighborhood of$3000. This $3000 will be paid by theother tax payers in the Town. It wascontemplated, when the bill was writ-ten, that the forced harvesting under theforest management plan plus the TSIwork necessary would both help reim-burse the Town and School District forlost taxes and would act as a disincen-tive to anyone to use this as a taxshelter. The schedule of operations forthe next few years is interesting;

There is no TSI work scheduled until84/85 when there is 18 acres

In 85/86--------10 acresAnd in 87/88 10 acres.This is the entire TSI work to be done

for the first 15 years.The harvesting plan is also in-

teresting. To the year 1987 there is anaverage annual cut on 8lj2 acres of landfor pulpwood. In the fifteen yearmanagement plan there will be only 530acres of pulpwood harvested. In thesame time, if the tax rate stayed thesame, they would have had $45,000 oftheir taxes paid by the other people inthe Town.

In the same town there are over50,000 acres of forest land in the samecondition. What would be the result ifthey followed the same pattern. Howwould the other taxpayers cope with thetax shift.

This is an example of a method thatforest landowners are using to enablethem to hang on to their land. Here isanother case and another method.

A conservation or scenic easement isa method where the landowner gives tosomeone, either the State or theAdirondack Conservancy, certain of therights that he has as a landowner. Hemay say that he will not allow anybuildings to be built, will not cut anytimber, and will let the State have hisland for nothing at the end of a certainnumber of years. In exchange for givingup these rights, the IRS will allow him toclaim a deduction on his income tax andon his inheritance tax of as much as90% of the value of the property. There

are about 80,000 acres of forest land inthe Adirondacks that are under or are inthe process of going under such a con-servation easement.

Because of the real tax implications ofthis approach to individual protection offorest ownership, the grantors havelargely said that they were not going todo anything about getting tax relief fromtheir real property assessment, eventhough they had given up a large per-centage of the market value of theirland. That is up to now.

One landowner, an individual, whoconveyed such an easement to the statehas asked for a reduction in his assess-ment. He has been refused. He doesnot know whether he will take any legalaction or not at this point.

One case is getting to the courts. Anowner gave up all his building anddevelopment rights, all his rights toharvest timber, and allowed public ac-cess to all his land under the easement.He claims that there is little if any"Marketable value" left to his land.What would anyone want it for. Thisland forms such a major part of the taxbase of the Town that the assessors can-not reduce the assessment. This is goingto be a protracted legal battle.

The whole question ties in somewhatwith the current Adirondack perceptualproblem with c1earcutting. There is agroup that is reacting with horror at thethought of clear cuts because as one ofthem put it, "after a c1earcut there willbe no payroll generated by this land fora long time. After a conservation ease-ment there will be no payroll generatedby this land forever."

The Adirondack Park Agency is vital-ly interested in this problem and hassuggested legislation that wouldameliorate the condition when the Stateis the beneficiary of the easement.When the beneficiary is a tax freegroup, the solution becomes more dif-ficult.

It is something the legislature mustaddress.

Economics of Forest TaxationFrancis A. Demeree

Past Chairman of The New YorkState Forest Practice Board

Good morning. It is a very deeply ap-preciated privilege to participate withyou in this effort to become informed asto the best ways to guide New YorkState in maximizing the employmentand growth opportunities afforded byour vast forested areas. Your committeeI understand, has investigated someconstructive forest management andharvesting as well as utilization of someforest products. I also understand thattime and location did not afford youviews of destructive harvesting methodsand the terrific adverse effect that theycan have on our forest lands. Thankful-Iy, destructive harvesting is lesseningand good management of our woodlands is increasing. Danger of ruinationof this great renewable forest resourceof ours, however, is not over.

Three major adverse factors remain,and if they attack a forest at any timewithin the 60 to 100 years that it takesto produce a forest crop, ruination canresult.

Number one - destruction by fire(we have come to control that prettywell in New York State).

Number two - destruction by insectsand disease. This is always a real dangerand a constant worry. We have seenwhole species of trees destroyed just inour life time. We lost the magnificentand valuable Chestnut and we arelosing our Elms and now the Beech isdying. Some progress is being made inthis field but much remains to be done.

And thirdly, destruction induced byexorbitant and confiscatory taxation.My presentation this morning will try tovery briefly and factually deal with thissubject.

Overall, we of course, must considerthe importance of all taxes that affectthe forest owner - estate and in-heritance taxes, real estate taxes, in-come and capital gain taxes and when

Continued on P. 10

New York Forest Owner Page 9

You and others in your organizationare to be congratulated for puttingtogether a smoothly run, two day pro-gram. I benefited from a renewedperspective of the ways in which ex-isting laws impact the private landownerand influence the timber harvesting in-dustry. It is regrettable that theAssembly's Conservation Committeewas not fully represented during thepresentations by timber harvesters,DEC foresters, small woodlot owners,and researchers.

Thanks again to you and the NewYork Forest Information Group for pro-viding food for both body and thought.

Sincerely,Robert J. ConnorMember of Assembly

WASHINGTON STATE COUPLENAMED OUTSTANDING

TREE FARMERSWASHINGTON, D.C. - Albert

and Ella Deishl of Otis Orchards,Wash., who receive a major part of theirretirement income from managing thetimber growth on their 990-acre TreeFarm, have been named national TreeFarmers of the Year by American ForestInstitute (AFI).

Mr. and Mrs. Deishl were chosen torepresent the best of the 38,000 treefarmers with 80 million acres of produc-tive timberland who are members of theAFI-sponsored American Tree FarmSystem.

The nation's forest products industrysponsors the Tree Farm program to en-courage and assist private landownersin managing their forests as a renewableresource.

Deishl, 69, manages the timbergrowth on his land to sustain an annualharvest of up to 300,000 board feet -enough wood to build 25 houses - ona perpetual basis. To do it, he puts in alonger, tougher day than most peoplehalf his age.

"I personally select and mark eachtree to be cut," he said. "We leave theones that are growing best - we're try-ing to get an inch of diameter growthevery four years. Some trees justnaturally grow faster than others, andmanagement helps them do better bygiving the best ones the space they needto grow."

The 1979 award will be presented tothe Deishls at a major forest industrymeeting in November.

Maurice Hinchey AddressesRound Table.

September 20, 1979Mr. Neil Gutchess, ChairmanNew York Forest Information GroupP.O. Box 585Cortland, New York 13045

Dear Neil:On behalf of the Assembly En-

vironmental Conservation Committee, Iwant to thank you for arranging the il-luminating look at New York's forest in-dustry. The day was most enjoyableand informative.

We all gained an increased under-standing of the complexities of forestmanagement from the tour and discus-sions. I know the first-hand experiencewill be helpful in deliberating theseissues in the future. I speak for theCommittee in commending the well-organized presentations on the tour.Rarely is official business so interestingand pleasureable.

I am sympathetic to your point ofview that New York's forests are aprecious renewable resource whichshould be developed consistent withsound conservation practices. I amcommitted to working with the Depart-ment of Environmental Conservation,private and industrial foresters, andothers in the wood products industry tomaximize the use of public lands (out-side the forest preserve) and privatelands, wherever feasible, to promotethe development of timber resources.

Again, I wish to thank you and theNew York Forest Information Group forthe kind hospitality and informativepresentations. I look forward to pursu-ing in greater detail some of the topicswe touched upon in our recent meeting.

Sincerely,Maurice D. Hinchey, ChairmanEnvironmental ConservationCommittee

Thanks so much for the interestingand informative tour of this state's forestregion.

I believe the tours and lectures werevery informative and helped enhancemy knowledge of forest managementand wildlife. An increased awarenessand understanding of this subject matterwill certainly help me make wiser deci-sions as a member of the EnvironmentalConservation Committee.

Again, thank you for your considera-tion and for enclosing a copy of yourpresentation.

Cordially,Joseph T. PillittereAssemblyman

POEMSNOVEMBERo Wild West Wind, thou breath of Autumn's

being,Thou, from whose unseen presence the

leaves deadAre driven like ghosts from an enchanter

fleeing,Wild Spirit, which art moving everywhere,

Destroyer and preserver, hear, or hear!The trumpet of a prophesy! 0 Wind,

If Winter comes, can Spring be far behind.Shelley

DECEMBERAnd after him came next the chill December,

Yet he, through merry feasting which hemade

And great bon-fires, did not the coldremember;

His saviour's birth his mind so much didglad;

Upon a shaggy-bearded goat he rode,The same where with Dan Jove in Tender

yeares;They say, was nourisht by th' loean Mayd;And in his hand a broad, deep bowl he

beares,Of which he freely drinks an health to all his

peers?Spenser

September 24, 1979Dear Mrs. Stock,

It was a pleasure meeting you at thecommittee meeting. It gives me a goodfeeling to know that many professionalsare concerned about the future offorestry in New York.

If I can ever be of assistance in anymanner please feel free to contact me.

Respectfully,Christian Gearwar

Page 10 New York Forest Owner

Economics of. . . Continuedforest tax laws are taken advantage of,stumpage or cutting taxes.

However, for our purpose here, weprobably, in the time allowed shouldonly zero in on real estate taxes. Theyare the ones that affect every forestowner, they are the ones that cometwice every year and ordinarially repre-sent the largest share of operating ex-penses involved in the growing of forestcrops.

Actually exemptions and exclusionsare being raised now at both Federaland State levels on inheritance taxes asyou know, and in most cases this willremove the great dangers we werefacing in the breaking up of forestholdings to pay these levies. Also the in-come tax is helped by the treatment offorest product sales as long term capitalgains. So, if real estate taxes had con-tinued to be levied in a historical man-ner and had only increased in line withinflation, there would really be nojustification for my presentation herethis morning.

Actually however, vast changes inthis process have taken place in the lastten years which unless checked andreversed will spell out destruction of ourvitally needed forest crops instead of in-stilling the improved management andprotection that our forests must have ifthey are to provide the wood and fiberwe are increasingly going to need fromthem.

Let us briefly explore the highlights ofthese changes.

First and foremost we must keep inmind that the law and directives in NewYork State presently call forassessments and taxes based on"highest and best use values."

Historically, present use and highestand best use on forest lands went handin hand. Land was bought and sold forforest growing purposes. The incomefrom this land was predicated on thegrowth and selling price of forest pro-ducts. The returns were most moderatedue to slow growth and long, long termmaturities plus the prevailing low pricefor stumpage. (standing timber in thewoods.) So, the land sold at very lowprices, assessments were also low andtaxes amounted to about 30< to 70< peracre per year.

Some years ago major changesstarted taking place. Due to increasedpopulation, increased incomes, and in-creased leisure time, some of theselands began to be sold for development

or recreational purposes at prices thathad nothing to do with their productivitybut rather were based on the incomeand capital the buyers derived fromcompletely outside sources. The resulthas been that, except in some rarecases, no land has been bought for thegrowing of forest crops in late years.

Now, to carry this one step further.Highest and best use values in our stateare mainly based on the amount a will-ing buyer pays a willing seller for likeproperty. The sales, for recreational ordevelopment uses, although they weremany, represent only a small percent-age of our open space lands but - theywere the only comparative salesavailable to the assessors and thereforethis trend started sending forest landassessments and taxes upward fast.

Next step coming up. In late yearscourt decisions mandating assessmentof real property at full value have beenand are being handed down thus start-ing to move assessment proceedures inline with the laws that were on thebooks but not enforced before.

And now for the final blow. In 1970good legislation was passed, updatingassessment training and proceedures,calling for the creation of County TaxDepartments and mandating completeCounty wide real estate re-assessment.So - the professionals move in andthey obey the law. Assessment ofupstate open space lands sky rocketed-from $10.00 to $30.00 per acre to up to$150.00 to $400.00 per acre and totalyearly real estate taxes soared from 30<to 70< per acre per year up to $3.00 to$10.00 per acre per year!

The question immediately arises,O.K. where does all this extra moneygo? Re-assessment doesn't actuallychange the need for tax income a bit.The rates therefore must go down.They do, or else the tax bite for theforest owner would be even more hor-rendous. The big change however,came in the valuations and taxes on in-dustry and business owned real estate.The assessors, and I have been one ofthose much maligned individuals,historically assessed industrial andbusiness property heavily. It was feltthat they represented going concernswith good incomes and they could han-dle the resulting taxes. Under re-assessment by trained people however,all real estate is treated equally and the10% to 20% resulting tax savings whichactually accrues on the high value in-dustrial and business real estate, whentransferred to the low value open space

lands makes a terrific impact.I hope the above brief synopsis will

explain, to those of you who our foresttax committee bothered so much, whythe State Forest Practice Board andmany, many others, who could see thissituation shaping up, made such effortsto help get a fair and equitable forest taxlaw in place in New York State. It willserve no purpose to dwell on this ForestTax Law, Section 480A as it is referredto, today except to mention in passing,that it is not perfect, it may be, with afew changes, the best we can do, andthe need for some such law, at least fornow, is evidenced by the fact that prac-tically every forested state does havesome kind of favorable forest tax law onthe books.

Over the long run soaring taxes onforest lands forecast serious loss to theeconomy and beauty of our state andactually serious losses to the local taxingjurisdictions (short term gains possiblybut long term losses surely). The forestowner faced by a tremendous taxburden must immediately or eventuallyrealize that he cannot justify holding thisland for forest production. When he, inmost cases sorrowfully, comes to thisdecision, his first logical step will be tohave whatever forest crop he has on theland butchered off and then break uphis holdings into whatever sized parcelswill sell and unload at the best price ob-tainable. Much of this is going on today.In Chenango County, where we havegone through the re-valuation process,"for sale" signs blanket our rural land-scape.

These smaller parcels, with the dwell-ings that will appear on most of them,will admittedly pay more taxes than the$1. 25 to $1. 75 per acre per year thatthe forest owner can now pay at today'slevel or prices but whereas the forestlands require practically no public ser-vices, the smaller developed plots willneed and demand services far in excessof the tax increases their ownershipgenerate. The net tax result will not be again but rather an operating loss for thetownship, county, the school district,fire district and perhaps other neededservice districts. Probably the mosttragic loss is that that area will neveragain be a productive forest and all theassets productive forests give all of uswill be forever lost.

Thankfully we can list a few items onthe favorable side that offer hope.

Number one - you, the Conserva-tion Committee of the New York State

Continued on P. 12

.New York Forest Owner Page 11

Statement on AppropriateTechnology in Resource

Management of New York'sCommercial Forest Land

Mr. Chairman and members of theN.Y. State Assembly Committee on En-vironmental Conservation: Let me firstexpress my appreciation to you andyour committee for spending this daywith us and for providing this opportuni-ty for us to share our thoughts ontechnology related to forest resourcesmanagement in New York State. Mypersonal input is offered as chairman ofSUNY College of EnvironmentalScience and Forestry's Department ofEnvironmental and Forest Biology, withteaching and research interests in thebasic sciences underlying forest produc-tivity, and as a professional interest inresources protection against biologicalagents such as insects and diseases.

As was emphasized by many speak-ers this morning, the practice of forestryin New York State is expensive: landcosts, taxes, labor, interest in invest-ment, all of these must be recoveredfrom vegetable and animal productsand a host of other benefits we derivefrom the forest. To these costs we mustnot neglect to add indirect losses due tophysiological and genetically inferiorgrowing stocks and the direct losses dueto insects and diseases. As we approachthe next decade of the eighties, those ofus who spend some time in the forestare noting a dramatic turnaround in thepotential economic value that canaccrue to New York State from itsforests. Increasing utilization of poorquality wood products for energy andother purposes, better genetic lineagesin the more desirable species and moreintensive management practices ingeneral will dictate not only increasedproduct values per se, but inflation intime will dramatically compoundvalues. If this is an accurate picture, andmany agree that it is, the need for effec-tive, environmentally acceptable protec-tion against losses is more imperativethan ever before.

At the same time that we recognizethese enhanced values for the forests ofNew York, we are experiencing newenvironmental regulations and publicconcerns which will require a newscrutiny of our methodologies of protec-tion. It is timely, for the public good, tobring into practice new methods beingdeveloped in the biological sciences,particularly in forest entomology and

forest pathology. Practices of the pasthave been based heavily on chemicalmethods borrowed from agriculture.We at one time reached a point whenless than $1.00 per acre would controlsome of our important pests withpesticides. However there are severalaspects that made that practiceundesirable. Unlike agriculture, inwhich a $1.00 expenditure for pest con-trol is immediately recoverable, in forestpractice, this cost, particularly when ex-pended during the early life of the tree isnot recovered for decades or even half-centuries and, when compounded atcurrent interest rates, constitutes a verycostly practice. Furthermore, withrestrictions imposed by the U.S. En-vironmental Protection Agency and theN.Y. State Department of Environmen-tal Conservation, chemical controlshave effectively been limited to prob-lems where their costs, risks andbenefits could be balanced favorably.

This has led to the modern practice inpestology called "Integrated PestManagement." In theory, this approachincorporates known aspects of eachhost plant or commodity vs. pest com-plex, so that the most cost effectiveand most environmentally acceptablepractices of biological, cultural andchemical methodology can be broughtto bear upon a problem. There aremany known elements of such systemsalready in practice or in the scientificliterature that can be assembled at onceand brought into practice through publiceducation. On the other hand, there areimportant pests for which majorelements of knowledge are wholly orpartly lacking. We need to proceedaggreSSively toward filling in these gaps.We need to enhance productivitythrough better understanding of plantgrowth and plant resistance, for exam-ple, and to develop and evaluatemodern tools of protection such asbiological control and behavior-modifying chemicals. In the latter case,it is potentially possible to dispense syn-thetic mimics of natural chemical pro-ducts in nanogram amounts rather thanin pounds per hectare, resulting, ob-viously, in the slightest possible effectson the environment.

To illustrate briefly, at the College ofEnvironmental Science and Forestry,we are on the threshold of offering apackage for the integrated managementof American elm against the Dutch elmdisease. Once implemented by com-munities, the system should permit us to

enjoy this magnificant species with eachtree offering 100 years of shade in addi-tion to wood products at maturity.

Similar success is being achieved inbiological control through the release ofinsect predators and parasites in NewYork and in neighboring states. TheState of Pennsylvania where a vigorousprogram of rearing and releasing insectparasites over a period of 5 years hasbeen especially successful and hasgrossly reduced needs for the chemicalcontrol of the gypsy moth. We in NewYork State need to launch a similar ef-fort in modern biological control to fitour conditions. To some extent, we inNew York have applied biological con-trol in the form of microbial pesticides;but attempts to raise, release andunderstand the basic interactions ofparasites and predators are laggingbehind.

For the State of New York, we envi-sion the development of rather complexsystems of integrated pest managementthat take into account the dynamics ofplants vs. other organisms. In practice,it well-trained practitioners on behalf ofpublic and private interests to imple-ment these complex systems overregions, plant distributions, insect anddisease distributions. Such problems arebetter solved holistically than by smallownerships. While we do not anticipatedenying individual ownerships theprivilege of implementation of variouscontrol or preventive measures, thenew methods, controlling pests overbroad areas will, in the long run provemore acceptable both economically andenvironmentally.

In summary, new methodology is fastbecoming available that should makeNew York State a good place in whichto establish, grow and protect forestsand forest products. We look to yourCommittee for the needed scrutiny,understanding and support of programsthat will benefit both private and publicforest ownerships. The College of En-vironmental Science and Forestry is wellsuited to lend its talents and scientificresources to help in the development ofappropriate technology towards thesepurposes.

I thank you again for this opportunityto speak before your committee.

John B. Simeone, ChairmanDepartment of Environmentaland Forest Biology

Page 12 New York Forest Owner

Evelyn A. StockEditor

5756 Ike Dixon Rd.Camillus, N.Y. 13031

Non profit org.bulk rate

U.S. POSTAGEPAID

Nedrow, N.Y.13120

Permit No. 37

Publications YouShould Know About

NEWTIMBERTAXJOURNAL AVAILABLEVOLUME15, 1979

An invaluable research guide fortimber owners, attorneys, foresters,educators, accountants and managersin associated timber products industries.

The Timber Tax Journal is the in-dustry's definitive, single-volumesourcebook which deals with the prob-lems and issues of timber taxation, par-ticularly with the effects of capital gainstaxation on timber growth and woodproduction.

Volume 15 of the Journal retains theregular features of past volumes andreports the 1978 developments. But, inaddition, includes a new chapter on ad-ministrative developments whichreports on new Treasury Regulationsand rulings of the Internal Revenue Ser-vice.

The current and previously unavail-able rulings dealing with timber taxationare summarized in Volume 15 andthose of particular significance areprinted in full.

Correspondents wishing only ageneral summary of the new law maywish to consider purchasing the sixthedition of Tax Treatment of Timberwhich continues to be available havingbeen published as part of Volume 14 ofthe Journal.

Available from Forest IndustriesCommittee on Timber Valuation andTaxation, 1250 Connecticut Avenue,N.W., Washington, D.C. 20036.

Economics of. . . ContinuedAssembly, are taking of your busy timeto study our bountiful and renewableforest resources in order to maximizeemployment and growth opportunities.

Number two - we have a Real EstateStudy Commission at work in our statewith a mandate to come up with betterways to handle our tax needs and tax.levies and - other groups interested in.the economic well being of our state as. ',well as energy related interests 'aTE~"seriously concerned with our forest:resources, its related problems and op-portunities.

In closing may I repeat that ourrenewable forest resources representone of the greatest of our state) assetsbut superlative legislative action and ad-ministrative wisdom is and will continueto be needed to help insure' its futureand its continued and improved pro-ductivity which will be so vital to oureconomy and well being in the yearsahead.

ON THECALENDARMembers New York Forest Infor-

mation Group:On November 13, at 1:30 p.m., we

will hold a meeting in Syracuse, NewYork at the College of EnvironmentalScience and Forestry Campus in Room324 of Bray Hall. The purpose of themeeting will be to briefly review our pastprojects, including the forest tour heldfor legislators in September, and tooutline our program for 1980. Also, wewill be selecting a new chairman for theNew York Forest Information Groupand perhaps a small working commit-tee.

Neil Gutchess, Chairman

37th Annual Meeting ofForest Industries Committe onTimber Valuation and Taxation

The next Annual Meeting of theForest Industries Committee onTimber Valuation and Taxation hasbeen called for November 7-9, 1979 atThe Arizona Biltmore, Phoenix,Arizona.

The meeting will include a criticalreview of two pressing legislative mat-ters of major importance: (1) reforesta-tion incentives and (2) estate taxation.In addition, it will provide an opportuni-ty for individual taxpayers to attend aworkshop on their timber tax problemsunder both income and estate tax rules.

The American Paper Institute andthe National Forest Products Associa-tion announces that EnvironmentalForum VIII will take place on Thursdayand Friday, November 29 and 30, atthe L'Enfant Plaza Hotel in Washington,D.C. As our featured luncheon speakerfor Thursday, November 29, we haveInvited the Honorable Luther Hodges,Jr., Under Secretary of Commerce.

The tentative list of issues for En-vironmental Forum VIII is as follows:

November 29:(1) Water - The BAT /Toxics

Indicator Policy(2) Solid Waste - Government

Control of Hazardous Wastes(3) Air - Issue Options for New

Air AmendmentsNovember 30:

(4) Water -/Section 404Regulations

(5) Pesticides - Industry Use andthe Public Eye

(6) Chemicals - National Policyon Chemical Regulation