CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc.

Advocate for the Forest Owner June 2016 Vol. 35, No. 6

www.AFOA.org

Phone: (205) 987-8811

Fax: (205) 987-9824

E-Mail: RLL@AFOA.ORG

P. O. Box 361434

Birmingham, Alabama

35236-1434

CALENDAR OF EVENTS

June

July

August

JUNE 2016

June 2...Thomasville, Georgia. 8:30 AM - 3:30 PM

ET. Longleaf Pine Forest Restoration & Management

Workshop at Greenwood Plantation. Fee: $5. Call

David Godwin at (850) 893-4153 ext 261.

June 2...Autauga County 6 PM. Zika Virus/Lyme

Disease Seminar at the William B. Smith Agricultural

Center, 2226 Highway 14 West, Autaugaville. Topics

include: prevention, symptoms, and stopping the

spread of the Zika Virus, Lyme disease, and other tick

borne illnesses. Speaker: Patty Stadlberger, Alabama

Department of Public Health. Contact Autauga Forest-

ry & Wildlife Stewardship Council at (334) 361-0576.

June 4...Tallapoosa County 8:30 AM. Landowner

Field Day at Jerry Brown’s Property, 1030 Saxon

Road, Goodwater. The tour will feature forestry and

wildlife management practices with three guest

speakers. Catfish Fry lunch. Call Tallapoosa County

Extension Service at (256) 825-1050.

June 8-10....Milton, Florida. Longleaf Academy: Long-

leaf 101 at Coldwater Gardens, 7009 Creek Stone

Road. Topics will include: Use of fire in longleaf,

Stand management, Regeneration, Wildlife Manage-

ment, Diseases, Understory restoration, and more.

Fee: $150. Contact Casey White at (334) 427-1029.

June 8...Webinar Noon CT. Preserving Family Wealth:

Why Plans Fail and How to Fix Them presented by

The Family Business Consulting Group (FBCG). Fee:

$129. Call FBCG at 1-866-872-5840.

June 9...Rochelle, Georgia. Longleaf Management &

Productivity Field Day at Pope City Church. Learn

about making longleaf management decisions from

age 15 onward. Contact David Dickens at (912) 681-

5639.

June 9...Batesville, Mississippi 8:45 AM - Noon.

Hardwood Plantation Management Workshop consists

of a field tour through privately managed hardwood

forest sites. Wear outdoors appropriate clothing. Fee:

$25. Call the Tallahatchie County Extension Office at

(662) 647-8746.

June 10-12...Columbia, Missouri. Chestnut Growers

of America (CGA) Annual Conference at the Universi-

ty of Missouri. The Saturday morning program will

include a variety of presentations while the afternoon

will feature visits to orchards. Fee: $55. Contact CGA

at (360) 887-3669.

June 11...Mobile County 2 - 5 PM. Mineral and Alter-

native Energy Rights for the Landowner at the Renais-

sance Mobile Riverview Plaza hotel in Mobile. This

session is part of the Association of Consulting For-

esters National Conference. This one session is being

offered without charge to landowners. The course will

be taught by Gee Ogletree, Jr., Jeff Trotter, and

Ashley Harris ~ Adams and Reese LLP. Register by

contacting Jon at (703) 548-0990 and identify your-

self as either a landowner or AFOA member.

June 11-12...Talladega County. Women’s Handgun

Preparedness Workshop at the Civilian Markmanship

Program facility, 4387 Turner Mill Road, Talladega.

Fee: $50; Saturday lunch included. Contact Marisa

Futral at 1-800-245-2740.

June 12-15...Starkville, Mississippi. Wildlife Recrea-

tion Residential Camp for rising 6 - 12th graders.

Hands-on learning about wildlife and outdoor recrea-

tional opportunities, including fishing, archery, and

canoeing. This residential camp also offers the option

for certification in Hunter Education. Fee: $325; in-

cludes food and lodging. Contact Diane Weeks at

(662) 325-3174 or register online at http://

www.cfr.msstate.edu/wildlife/conservation_camp/

index.asp

June 14...DeKalb County 10 AM. Great Outdoors Day

at DeSoto State Park picnic area, 7104 DeSoto Park-

way NE, Fort Payne. The event will consist of live

animal education programs, and guided fitness and

nature hikes. Fee: $2. Contact Brittney Hughes at

(256) 997-5025.

June 14...Webinar 1 PM CT. Managing Soil Quality in

Forests will teach participants about how to help

protect your forest soil through different types of

management practices. Presenter: Eunice Padley,

USDA Natural Resources Conservation Service. For

more information email Holli Kuykendall at

holli.kuykendall@gnb.usda.gov.

July 14...Autauga County 6 PM. Hardwood Manage-

ment at the William B. Smith Agricultural Center,

2226 Highway 14 West, Autaugaville. Speaker: Jim

Jeter, Alabama Forestry Commission. Contact Autau-

ga Forestry & Wildlife Stewardship Council at (334)

361-0576.

June 14 & 16...Coffeeville, Mississippi. Ties to the

Land: Your Family Forest Heritage at Yalobusha Coun-

ty Multipurpose Building, 18025 Hwy 7. Are you

concerned about: Your land not receiving adequate

care due to lack of interest from the younger genera-

tion, Handing land over to family members with finan-

cial or other problems, The reality that your land will

someday be owned by the next generation, or Estate

planning preparations. This is a two session workshop

from 6:30 PM to roughly 9:15 PM both days. Fee:

$50; discount for couples. Call Kyle Jeffreys at (662)

675-2730.

June 15…Lake City, Florida. 10 AM to 3 PM ET.

Timber Sale Basics and Market Trends Workshop at

Columbia County UF/IFAS Extension Office, 971 West

Duval Street, Suite 170, Lake City, Florida 32055. Pre

-registration required. Contact Stan Shepard at (386)

243-6236.

June 16...Dale County 1 - 3 PM. Mushroom Work-

shop at 202 S. Highway 123, Suite D, Ozark. Shiitake

mushrooms grow very easily in logs. Learn how to

grow mushrooms by inoculating your own log to take

home. Fee: $10. Contact Lucy Edwards at (334) 774-

2329.

June 16-17...Lauderdale County. Wildlife School for

Landowners at Joe Wheeler State Park, 4403 McLean

Drive, Rogersville. Topics include: Managing hard-

woods in bottom/wetlands, Moist soil management,

Waterfowl ID, Beaver control, and more. CFE points

available. Fee: $40; $5 discount if paid by June 1.

Contact Katherine Patton at (205) 384-0606x101.

June 23...Lauderdale County 10 AM - Noon. Alabama

Clean Water Partnership (ACWP) Tennessee Basin

Stakeholder Meeting at Lauderdale Extension Office,

802 Veterans Drive, Florence. Call Jay Grantland at

(256) 773-8495. Editor’s Note: Folks who own for-

estland in CWP basins should stay aware of the hap-

penings at these stakeholder meetings.

June 23...Shiloh, Tennessee 5:30 PM. Tennessee

Forestry Association (TFA) West Regional Meeting at

Hagys Catfish Hotel Restaurant, 1140 Hagy Lane.

Topic: Forest Health. All the catfish, chicken, country

ham, and fixins you can eat. Speaker: Heather Slay-

ton, Tennessee Division of Forestry. Fee: $25. Con-

tact Dana Howard at (615) 883-3832.

June 26-July 1...Lee County. Forestry Camp on Au-

burn University Campus. Open to high school stu-

dents ages 15-18. “This hands-on camp will give

students an opportunity to get outdoors and learn

about forestry in Alabama and the importance of

forestry field measurements in making forest manage-

ment decisions.” Fee: $650. Two partial scholarships

available. Contact Dr. Becky Barlow at (334) 844-

1019.

JULY 2016

July 7 & 14...Senatobia, Mississippi 5:30 - 8:30 PM.

Ties to the Land: Your Family Forest Heritage at Tate

County Extension Office, #1 French’s Alley. Topics

include: Steps to Succession Planning, Goals for

Family Forests, Heir’s Interest, Legal Considerations,

Financial Impacts of Ownership Transfers, and more.

Fee: $55; $85 per couple. Call Tara Ferguson at (662)

562-4274.

July 11-14...Lee County. Teacher’s Conservation

Workshop for Teachers of All Grades at Auburn Uni-

versity School of Forestry & Wildlife Sciences. The

workshop will focus on forest ecology, management

and products through guest speakers, field trips and

hands-on activities. The goal is to demonstrate the

importance working forests have to the environment

and economy. Teachers pay small fee: ~$75. Forest

owners and forest products companies are urged to

sponsor a teacher -- cost is about $500. Contact

Ashley Smith at (334) 481-2133.

July 15-17...Jefferson County. Annual World Deer

Expo at Birmingham Jefferson Convention Complex,

2100 Richard Arrington, Jr. Boulevard North, Birming-

ham. The expo will have hunting products, apparel,

outfitters from all over the world, seminars, outdoor

celebrities, kid’s activities, and more. Fee: $10; kids

receive discounted admission. Call Channing Brown at

(205) 678-4141.

July 18...DeKalb County 8 AM. Alabama Certified

Prescribed Burn Manager Re-certification Workshop at

Sand Mountain Research & Extension Center, 13112

Alabama Highway 68, Crossville. Instructor: John

Stivers. Fee: $75. Limited seating. For more info call

John at (334) 253-2139. Attendees must register at:

http://classes.forestry.alabama.gov/cpbmclasses.aspx

Select the Re-Certify option.

July 19-22...DeKalb County. Alabama Certified Pre-

scribed Burn Manager Certification Course at Sand

Mountain Research & Extension Center, 13112 Ala-

bama Highway 68, Crossville. Instructor: John Sti-

vers. Fee: $125. Limited seating. For more info call

John at (334) 253-2139. Attendees must register at:

http://classes.forestry.alabama.gov/cpbmclasses.aspx

(CALENDAR OF EVENTS CONTINUED ON PAGE 5)

Page 2 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) June 2016

Dow-Jones Industrial Average: 17492.93

10-year Treasury yield: 1.840%

Dollar: 109.24 Yen; Euro: $1.1221

Oil: $48.08/barrel

Gold: $1,251.10/troy ounce

Source: The Wall Street Journal, 05/24/16

U.S. NEW HOME SALES HIT EIGHT-

YEAR HIGH, POINT TO FIRMING

ECONOMY. “...touching more than eight-

year high as purchases increased broadly...”

Source: Reuters, 5/24/16.

CLASSIFIED SECTION

“WEYERHAEUSER AND PLUM

CREEK completed their merger. It will be

interesting to see if this much acreage under

one ownership has any impact on markets

or on the way wood is bought and sold. I

don’t expect it to, simply because private

non-industrial landowners still own 67 per-

cent of the commercial forestland in the

U.S. South—something people tend to for-

get because the timberland news tends to

focus on TIMOs and REITs.” Source: F&W

Forestry Report, Spring 2016.

STANDING TIMBER VALUES

PINE Sawtimber

$ per ton

Power Poles

$ per ton

Alabama 1Q15 1Q16 1Q15 1Q16

North 24.54 24.36 47.74 50.28

South 25.05 26.84 48.11 48.51

Average 24.80 25.60 47.93 49.40

Pine Sawtimber — 15,000 lbs./1000 Board Feet (Scribner)

1st Quarter, 2015 (1Q15) and 1st Quarter, 2016 (1Q16)

from Timber Mart-South, University of Georgia.

For Timber Mart-South subscription details, call

(706) 542-4756 or visit M3 06/2016

STOCK MARKET REPORT

Company Name 05/15/15 05/16/16

Potlatch (PCH) REIT 35.63 35.00

Rayonier (RYN) REIT 26.03 25.72

Weyerhaeuser Co. (WY) REIT 32.34 30.97

Louisiana Pacific (LPX) 17.48 18.11

WestRock (WRK) N/A 39.63 Stock Market Report courtesy of Howard Sokol, Raymond James Financial Services, Birmingham, Alabama. WestRock 04/15/2015

price was not available since the stock didn’t start trading until 7/15. Plum Creek merged with Weyerhaeuser on February 19, 2016.

LUMBER & SHEATHING PRICES

Source: Random Lengths

MidWeek Market Report 05/20/15 05/18/16

2 x 4 lumber * $258 $323 7/16” Oriented Strand Board ** $197 $278 * 2x4 #2&Btr KD Western S-P-F (mill base price) (per 1000 board feet)

** 7/16” OSB (North Central) (f.o.b. mill prices) (per 1000 square feet)

YES, BUT…

“The United Kingdom is far and away the

primary destination for wood pellets from

North America, with almost three-quarters

of all U.S. wood pellet exports delivered to

the U.K in 2014…” Source: F&W Forestry

Report, Spring 2016.

“Tata Steel has announced an immediate

withdrawal from Britain, threatening 4000

steel working jobs, and 40,000 jobs in de-

pendent industries. The main reason given

for abandoning Britain, is the high price

Tata is forced to pay for energy, thanks to

Britain’s green energy policies.” Source:

Watts Up With That?, 3/31/16.

CERTIFIED PUBLIC ACCOUNTANTS

JamisonMoneyFarmer PC Tuscaloosa, AL (205)345-8440 #432 11/15-10/16

Sheldon, Rogers & Bryan, PC Mobile, AL (251)345-1252 0463 06/16-05/17

CONSULTING FORESTER - Member: ACF

C. V. Forestry Services Clayton, AL (334)775-8345 #057 11/15-10/16

Melisa V. Love, RF, ACF Opelika (334)745-7530 #143 07/16-06/17

Joseph E. Rigsby, RF, ACF Georgiana (334)265-8200 #074 11/15-10/16

Larson & McGowin, Inc. Mobile, AL (251)438-4581 #016 02/16-01/17

Leh Bass, RF, ACF Opelika (334)749-0598 0259 06/16-05/17

Eddie Carlson, RF, ACF Montgomery (334)270-1291 #300 10/15-09/16

McKinley & Lanier Forest Res. Tuscaloosa 1-800-247-0041 #055 09/16-08/17

Arthur C. Dyas, RF, ACF Mobile, AL (251)331-4017 #353 05/16-04/17

Gibson Forest Mgmt., Inc. Aliceville, AL (205)373-6168 #207 08/16-07/17

Forestall Company, Inc. Hoover 1-800-844-0904 #007 10/15-09/16

John R. Stivers, RF, ACF, CF AL & GA (334)253-2139 #347 11/15-10/16

Sizemore & Sizemore, Inc. Tallassee, AL (334)283-3611 #062 03/16-02/17

J. Pat Autrey Fort Deposit (334)227-4239 #395 03/16-02/17

F & W Forestry Services LaFayette (334)864-9542 #167 08/16-07/17

M & W Forestry Consultants Ozark, AL (334)432-0467 #468 04/16-03/17

Bear Creek Consulting LLC Grove Hill, AL (251)744-4428 0475 11/15-10/16

Edward F. Travis Co., Inc. Mobile (251)633-8885 0142 04/16-03/17

CONSULTING FORESTER

Stewart Forestry Services, Inc. Decatur, AL (256)350-9721 #225 08/16-07/17

Midsouth Forestry Services, Inc. Gordo, AL 1-888-228-7531 #076 03/16-02/17

Forever Green, Inc. Leeds, AL 1-800-498-5821 #243 07/16-06/17

American Forest Mgmt. Prattville, AL (334)358-2345 #358 07/16-06/17

Southern Forestry Cnslt. Enterprise, AL (334)393-7868 #310 04/16-03/17

Eiland Forestry & Real Estate Trussville (205)655-0191 #097 06/15-05/16

Foster Land Management, LLC Central Ala. (205)826-7741 #437 11/15-10/16

www.ChesnutForestry.com Northeast AL (706)936-0699 #345 11/15-10/16

Lang Forestry Consultants, LLC Selma (334)375-1065 #454 04/16-03/17

Cliff A. Logan & Associates, Inc. Eutaw, AL (205)372-9321 #466 11/15-10/16

CONSULTING FORESTER - continued

Graham Forestry & Appraisal Butler, AL (205)459-2472 #158 04/16-03/17

Richard Crenshaw, RF Greenville, AL (334)382-3826 0473 05/16-04/17

CONSULTING WILDLIFE BIOLOGIST

David Runyan Quail Restoration (770)364-9802 0478 02/16-01/17

INSURANCE

Hunting Lease & Timberland Liability Group Policies

Alabama Forest Owners’ Association (205)987-8811

LAND FOR SALE

Tutt Land Company www.tuttland.com (334)534-1315 #266 02/16-01/17

Carlson Land Services Montgomery (334)270-1291 #300 10/15-09/16

Hudson Hines Real Estate www.hudsonhinesrealestate.com #321 12/15-11/16

AFM Land Sales, LLC Prattville, AL (334)358-2345 #358 07/16-06/17

Southeastern Land Group, Inc. 1-866-751-5263

Farm & Timber Land AL, GA, TN, FL www.selandgroup.com #329 09/15-08/16

Mossy Oak Properties Alabama Land Crafters (334)277-6501 #319 10/15-09/16

John Hall & Co. www.johnhallco.com (334)270-8400 0304 06/16-05/17

National Land Realty NationalLand.com (855)NLR-LAND 0479 08/16-07/17

Eiland Forestry & Real Estate Trussville (205)655-0191 #097 06/15-05/16

Larson & McGowin, Inc. Mobile, AL (251)438-4581 #016 02/16-01/17

Southeastern Realty & Auction Co John Hall (334)534-0525 #459 12/15-11/16

Longleaf Land Co. LLC longleafland.com (334)493-0123 #461 03/16-02/17

Mossy Oak Properties - Logan Land Co. 1-877-377-5263 #465 11/15-10/16

SouthLand Realty North Alabama (256)259-7868 #473 09/15-08/16

Target Auction Company All of 1-800-476-3939

Real Estate Auctions SE www.targetauction.com #273 11/15-10/16

United Country www.alalandforsale.com (251)744-4428 0475 11/15-10/16

McKeithen Land & Realty, LLC (251)974-5656 0416 12/15-11/16

LAND MANAGEMENT SERVICES

Scotch Land Management, LLC Fulton, AL (334)637-2128 #444 10/15-09/16

PINE STRAW

Wanted: Longleaf & Slash / Straw Harvest Prep Services 0480 05/16-04/17

CCS Pine Straw ccspinestraw@yahoo.com (706)527-0732

POND MANAGEMENT

Honey Hole Fisheries Ralph, AL (205)333-3665 #405 07/16-06/17

POSTED SIGNS

Alabama Forest Owners’ Association (205)987-8811

REAL ESTATE APPRAISALS

Larson & McGowin, Inc. Mobile, AL (251)438-4581

Graham Forestry & Appraisal Butler, AL (205)459-2472

TIMBER BUYER

Blue Ox Forestry, Inc. (334)875-5100

IndusTREE Timber, Inc. (334)567-5436

Ronny Wimberley Land & Timber Division 1-877-292-0056

Ideal Timber Company, Inc. 1-888-220-5591

TIMBER SALE ASSISTANCE

TIMBER BUYER LIST for your county. Printed on gummed

labels ready for mailing prospectus. Just tell us the county

in which your timber is located. $15 per county.

MEMBERS ONLY. AFOA , Box 361434, Birmingham, AL 35236

TREE PLANTING EQUIPMENT & SERVICES

Site Preparation & Tree Planting Services.

For a list in your county, call AFOA at (205)987-8811.

TREE SEED FOR SALE

LOUISIANA FOREST SEED CO. (318)443-5026

TREE SEEDLINGS FOR SALE

INTERNATIONAL FOREST COMPANY 1-800-633-4506

TECHNOLOGY THAT GROWS CONTAINER SEEDLINGS

ArborGen, LLC

Selma: 1-800-222-1280 or (334)872-5452

SUPERIOR TREES, INC. Lee, FL (850)971-5159

WHITE CITY NURSERY Autauga Co. (334)365-2488

Pines & Hardwoods for Forestry, Wildlife, Landscapes

Weyerhaeuser Company

Premium Pine and Hardwood Seedlings

1-800-635-0162

Pinecrest Forest Seedling Nursery - Georgia - (229)314-9445

Improved Bareroot Pine Seedling pinecrest1@windstream.net

Whitfield Farms & Nursery - Containerize Pine Seedlings

www.whitfieldpineseedlings.com

CLASSIFIED ADVERTISING RATES: First Line $85.00/year.

June 2016 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) Page 3

“THROWING SHADE” does not have

anything to do with planting an oak or ma-

ple along a suburban street. CNN tells us

that “Sanders’ campaign accuses DNC

chairwoman of ‘throwing shade.’” The Ur-

ban Dictionary says “throw shade” means

“to talk trash about a friend or acquaint-

ance, to publicly denounce or disrespect.”

Source: UrbanDictionary.com.

ONLY 7 TRACTS ARE LISTED for

lease on AFOA’s www.HuntingLand.bz.

Last week we listed a 100+ acre tract for an

absentee landowner. Within just a few

hours, she had received 37 emails and

agreed to lease the land. Her comments on

the results: “Wow. Just wow.” It’s easiest

to send your tract information by email, but

we’ll take it by snail-mail, fax, or phone,

t o o . V i s i t t h e w e b s i t e a t

www.HuntingLand.bz to see what kind of

information we need. Then send details to

RLL@AFOA.ORG.

ALABAMA ALLIGATOR HUNTERS

will be issued up to

260 tags in 4 hunting

zones beginning on

June 3. For lots of

d e t a i l s g o t o

www.outdooralabama.com/alligator-hunting-

season-alabama.

36,425 SPOTS OF COGONGRASS are

displayed on the Alabama Forestry Com-

mission’s map as of 5/24/16. “Two herbi-

cides, glyphosate and imazapyr, are effec-

tive against cogongrass,” but multiple treat-

ments are required and damage can be done

to nearby trees and other vegetation if appli-

cation is done incorrectly. See Eradicating

Cogongrass Infestations with Dr. Nancy

Loewenstein, Capital Ideas—Live!, January

2015.

R ea l Es ta t e F in an c in g fo r

www.AlabamaFarmCredit.com

(256) 734-0132

(256) 739-4071 fax

1-888-305-0074

Recreational and Timber Land

205± acres in Dallas County. Paved road front-

age, Merchantable Hardwood & Pine, and Utilities. Great Deer, Turkey, Dove, and Duck Hunting, located in the Black Belt minutes from Marion Junction. $1,685/ac.

Contact Clint Flowers, ALC at (251) 387-0787

National Land Realty NationalLand.com

Wellborn Cabinets in Ashland, Alabama, is a fam-

ily owned business that includes a sawmill and cabinet manu-

facturing facility on a two million square foot site. John Well-

born is part of the second generation of Wellborn Cabinets own-

ership. His father and uncle started the business in 1962 as an

offshoot of their father’s home building and remodeling busi-

ness. The sawmill cuts four million board feet annually of high

grade red oak, white oak, sweet gum, hickory, poplar, and beech

from Alabama and north western Georgia. What they don’t use

for cabinets, they saw and sell out. Railroad cross ties, for ex-

ample, are in high demand. Wellborn works directly with log-

gers who know what they’re looking for. Because cabinets use

such a variety of sizes and shapes, he says, “We have a vast

usage of different grade product that we can put through a pro-

cess, remove defects, and still get use out of that log.” It’s not

until the yield drops to around 20 percent that a log is unusable.

Seventy percent of the cabinets they manufacture are maple,

which Wellborn says overtook red oak in the 1980s as the pre-

ferred cabinet wood. A network of about fifty mills sends maple

and cherry from north and east of Alabama. The AFOA recently

toured the Wellborn facility, where guests watched blocks of

wood transform into cabinets over a three-mile walk.

FOREST PROFILES:

CONSULTING FORESTERS

by Jessica Nelson

FOREST PROFILES:

FOREST PRODUCTS MANUFACTURERS

by Jessica Nelson

Page 4 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) June 2016

Record Keeping

As a forest landowner, you must keep good records in

order to take maximum advantage of the special tax

treatments available for timber. At a minimum, you

should keep a tree farm journal that lists all activities,

costs, and incomes from the forest (see example below).

You also should have accounts for land, timber, and oth-

er capital assets. When setting up timber basis accounts,

it is a good idea to use Form T Forest Activities Schedule

as a guide. It may be required when claiming depletion of

the timber basis after a timber sale or loss. Claiming de-

pletion will reduce the taxes paid on a timber sale or al-

low a loss to be deducted.

Business owners and investors with recurring operating

costs, such as travel or equipment maintenance, may

want to have operating accounts for various categories.

The IRS does not require that records follow a certain

format. Agricultural Handbook 731 Forest Landowner’s

Guide to the Federal Income Tax* has an excellent ex-

ample of a double-entry bookkeeping system for a forest

owner. Inexpensive software programs like Quicken or

QuickBooks make it easy to set up and maintain busi-

ness records. Small operations, and especially investors

with small holdings, may be satisfied to keep records in

a tree farm journal.

How Long to Keep Records

Basis accounts for land and timber, including reforesta-

Date

4/3/05

6/1/05

12/1/05

4/5-8/06

6/5/06 to 6/18/06

tion and site preparation, should be maintained as long

as the property is owned, plus 3 years. Basis is the book

value of investment in a capital asset as recorded in a

capital account such as land, timber, or equipment. The

initial basis for a property depends on how it was ac-

quired... The basis increases as non-deducted costs are

capitalized into the account. The basis is reduced by use

of tax credits, amortization, depreciation deductions,

depletion, or sale of the asset. Initial basis should be de-

termined for the timber account and updated when tim-

ber is sold, lost, or invested in. If the property is deeded

to someone as a gift, these records should be passed on

to the new owners because they will need this infor-

mation to determine their timber basis.

Operating expense and income records should be kept

for at least 6 years. If you want to determine the eco-

nomic return from each forest investment, you may

want to keep records for each separate parcel or timber

stand. (A timber stand is a group of trees of similar size

and species that will be treated as a management unit.)

Business owners must keep records of the time spent on

the forest business to prove material participation. These

time records can be kept in the tree farm journal or in a

business diary or calendar. They do not have to be pro-

vided to the IRS, but they may be required in case of an

audit. Investors are not required to keep records of time

spent on the forest investment.

* Ag Handbook 731 superceded Ag Handbook 718

Record Keeping for the IRS (and Yourself!) Adapted by Liz Jackson for Women Owning Woodlands, 2/12/16 from Timber

Tax Overview, Mississippi State University Extension Publication 2307, 9/06, by

Deborah A. Gaddis, Ph.D., Associate Extension Professor, Stephen Dicke, Ph.D.,

Extension Professor, and John E. Gunter, Ph.D., Professor Emeritus

Activity

Attended Miss. State Forestry Extension short course “Marketing Your Timber,”

Rankin Co. Extension Office; 10 hours; 64 miles travel @ $.405/mile standard

rate for January-August 2005.

Hired Trees-R-Us Forestry Consultants to cruise Grandpa’s Woods and establish

timber basis for property inherited 3/1/90; 3 hours walking landlines with con-

sultant; 36 miles travel @ $.405.

Miss. Forestry Commission prescribe-burned Grandpa’s Woods; 7 hours burning

time; 1 hour walking landlines; 36 miles travel @ $.405.

Marked Grandpa’s Woods for pulpwood sale; 30 hours work; purchased paint

gun and paint from Forestry Suppliers; 92 miles travel @ $.405.

Sold marked wood to Cutter’s Pulpwood Services for $8/cord, 150 cords; was

on site 2 hours each day to ensure security of sale; travel expenses of $208.26

(36 miles round trip, 13 trips, $.445/mile standard rate for 2006).

Income/(Cost)

$ (25)

(25.92)

(250)

(14.58)

(300)

(14.58)

(200)

(37.26)

1,200

(208.26)

Example: Tree Farm Journal—Business Owner

June 2016 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) Page 5

MEMBER SERVICE REQUESTS

[ ] I own 40 or more acres of forestland in Alabama and would like, at no cost to me, an

Initial Consultation with a member of the Association of Consulting Foresters.*

[ ] I am enclosing $15 for a Timber Buyer List for ______________________County.

[ ] Guidelines for Hunting Lease Agreement

[ ] Model for a Timber Sale Contract

[ ] Application for Hunting Lease Liability Insurance Coverage *

[ ] Application for Timberland Liability Insurance Coverage *

[ ] _____ 8” x 10” Posted Signs. Enclosed is 45¢ per sign plus $4.50 S & H

(“No Trespassing Hunt Club” - yellow) (“No Trespassing—Period” - orange) circle one

[ ] AFOA T-Shirt — Short Sleeve, $11 or Long Sleeve, $13.50 (call for colors and sizes)

[ ] AFOA Ball Cap: Pink, Black, Blaze Orange w/Camo, or Denim (circle choice. $13 each)

* This service is for landowners only. Hunters may only use the hunting lease liability

insurance policy under the membership of a landowner.

MEMBERSHIP FEES

(1st class postage will cause your newsletter to

arrive several days earlier than bulk rate)

1 YEAR

[ ] Regular Member - Bulk Rate Postage $16

[ ] Regular Member - 1st Class Postage $28

[ ] Sustaining Member - 1st Class Postage $160

2 YEARS

[ ] Regular Member - Bulk Rate Postage $31

[ ] Regular Member - 1st Class Postage $55

[ ] Sustaining Member - 1st Class Postage $320

3 YEARS

[ ] Regular Member - Bulk Rate Postage $46

[ ] Regular Member - 1st Class Postage $82

[ ] Sustaining Member - 1st Class Postage $480

SEND APPLICATION & PAYMENT

TO:

AFOA, Inc.

P. O. Box 361434

Birmingham, AL 35236

MEMBERSHIP APPLICATION

(Mr.)(Mrs.)(Ms.) ___________________________________________________________________________

Name of Landowner (person, family, partnership, corporation, LLC, etc.)*

(Mr.)(Mrs.)(Ms.) ___________________________________________________________________________

Name of Person Representing Landowner (optional)*

___________________________________________________________________________

Mailing Address

___________________________________________________________________________

City State Zip Code

___________________________________________________________________________

Telephone: home Telephone: work

___________________________________________________________________________

Telephone: fax E-Mail Address (we do not share)

___________________________________________________________________________

State(s) and County(ies) Where Forestland Is Located — Please List.

Select the Certify option.

July 20…NATIONWIDE 10:00 AM (CT). CAPI-

TAL IDEAS - LIVE! 30-minute Telephone News Con-

ference for Alabama Forest Owners. Listen on your

phone or later on the web. Locations for some Dinner

& Discussion events the day after the webcast have

not yet been reserved.

July 21...Shelby County 6 PM. Dinner and Discus-

sion at Nino's Italian Restaurant, 2698 Pelham Park-

way, Pelham. Enjoy dinner, listen to AFOA’s July

News Conference, and argue about the issues with

other landowners. Dutch Treat dinner at 6 PM with

30 minute program starting about 6:45 PM. Limited

seating. Walk-ins may not have a seat. To attend,

RSVP AFOA at (205) 987-8811.

July 21-22...Athens, Georgia. Introduction to ArcGIS

at Warnell School of Forestry & Natural Resources.

Attendees should have taken a basic GIS course or

have some familiarity with GIS prior to this course.

Fee: $295. Contact Ingvar Elle at (706) 583-0566.

July 23-25...Jekyll Island, Georgia. Georgia Forestry

Association (GFA) Annual Conference & Forestry Expo

at Jekyll Island Convention Center. Fee: $575; $100

discount if paid by July 8. Call (478) 992-8110.

July 26-27...Athens, Georgia. Wildlife Management at

Flinchum’s Phoenix, Whitehall Forest. Wildlife-habitat

management techniques for three primary game spe-

cies in the Southeast — white-tailed deer, wild turkey,

and bobwhite quail. Fee: $296; $51 discount if paid

by July 5. Contact Ingvar Elle at (706) 583-0566.

July 31 - August 3...Nebraska City, Nebraska. North-

ern Nut Growers Association Annual Meeting at Lied

Lodge and Conference Center. The conference is open

to all people with an interest in nut trees. Fee: $84.

Contact Grant Glatt at grant_40@juno.com.

(CALENDAR OF EVENTS CONTINUED FROM PAGE 1) July 31 - August 3...Lawrenceburg, Indiana. Annual

Walnut Council Meeting at DoubleTree by Hilton. The

meeting will include field trips, indoor presentations,

question and answer session, and awards banquet.

Fee: $175. Contact Liz Jackson at (765) 583-3501.

AUGUST 2016

August 4...Autauga County 12 - 1 PM. Protecting

your Property from Wildfires. Presenter: Brigetta Giles,

Autauga County Forester. Bring a sack lunch. Drinks

provided. Call Mallory Kelley at (334) 361-7273.

August 6...Elmore County 6 PM. Wild Game Cook-Off

Finals at the Alabama Wildlife Federation Headquar-

ters. Attend the cook-off and enjoy live music, door

prizes, youth activities, and sample wild game recipes.

Fee: $TBD; Youth 15 and under free. Call the Ala-

bama Wildlife Federation at 1-800-822-9453.

August 8...Lee County 8 AM. Alabama Certified Pre-

scribed Burn Manager Re-certification Workshop at

Auburn University Forestry & Wildlife Sciences Build-

ing. Instructor: John Stivers. Fee: $75. Limited seat-

ing. For more info call John at (334) 253-2139. At-

t e n d e e s m u s t r e g i s t e r a t : h t t p : / /

classes.forestry.alabama.gov/cpbmclasses.aspx

Select the Re-Certify option.

August 9-12...Lee County. Alabama Certified Pre-

scribed Burn Manager Certification Course at Auburn

University Forestry & Wildlife Sciences Building. In-

structor: John Stivers. Fee: $125. Limited seating. For

more info call John at (334) 253-2139. Attendees

must register at: http://classes.forestry.alabama.gov/

cpbmclasses.aspx Select the Certify option.

August 13...Ocean Springs, Mississippi. The Southern

Christmas Tree Conference at Gulf Hills Hotel & Con-

ference Center. This conference is for established

growers and landowners considering growing Christ-

mas trees. Fee: $TBD. Contact Michael Buchart at

(225) 505-6335.

August 19-21...Andersonville, Tennessee. Deer Stew-

ard Module: Habit Enhancement will be led by Dr.

Craig Harper, University of Tennessee. Topics include:

hack and squirt, girdling, prescribed burning, seasonal

disking, use of herbicides, site evaluation, and more.

If you want to shape and design a property for deer

hunting, then do not miss this learning opportunity.

Fee: $550. To register call QDMA: 1-800-209-3337.

August 22 & 29...Winona, Mississippi 5:30 PM & 6

PM, respectively. Alternative Sources of Forest In-

come Short Course (2 day course) at Montgomery

County Extension Office. Topics include: Specialty

wood products, Recreational leases, Managing for

utility poles, Raking pine straw, Agroforestry, Christ-

mas trees, and more. Fee: $45; $70 per couple. Call

Amy Ware at (662) 283-4133.

August 26-27...Starkville, Mississippi. Mid-South

Forestry Equipment Show. Longest-running live log-

ging/biomass event in the country and only such

venue located in the heart of the South's forest indus-

try. Fee: $20; $5 discount for advance registration.

For additional information call (662) 325-2191.

August 30 - September 1...Amelia Island, Florida.

Florida Forestry Association (FFA) Annual Meeting at

the Omni at Amelia Island Plantation Resort. Fee:

$370; $30 discount if paid by August 1. Call FFA at

(850) 222-5646.

…

Always Call Ahead to Confirm Program Details

Alabama Forest Owners’ Association, Inc.

Officers & Board of Directors

Ben F. Black, President

Andrew B. E. Kyle, Vice President

William C. Yeargan, Secretary

Jon R. Ingram, Treasurer

Hayes D. Brown, General Counsel

R. Lee Laechelt, Exec. Vice Pres.

Henry Barclay, III

Harvey Lester Barnett, Jr.

Mafus R. Bird, Jr.

Eleanor Espy Cheatham

Michael C. Dixon, Sr.

Susan P. Dooley

William L. Forbes

William A. Freise

James W. Gewin

Henry A. Long, Jr.

Helen Crow Mills Pittman

Austin L. Rainwaters Ira W. Rhodes Jack Rhodes

John A. Screws

Emmett F. Thompson

Jan S. Witt

Capital Ideas & AFOA Staff

R. Lee Laechelt, Editor, Capital Ideas

Eyvon S. Laechelt, Office Manager

W. A. Laechelt, Business & Tech. Manager

Brandie R. Floyd, Member Records

Susan Poe Love, Executive Assistant

Brenda Singleton, Executive Assistant

Martha L. Powell, Executive Assistant

Tiffany Dixon, Clerical Assistant

Mark Long, Clerical Assistant

Ann Garrett, Clerical Assistant

Twin City, Georgia (912) 682-4948

Container Grown Pine Seedlings Longleaf & Loblolly

www.whit f ie ldpineseedl ings.com

Page 6 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) June 2016

DIVERSITY. That was the take-away mes-

sage we received when talking with several

timber buyers and sellers last month. Be-

cause most mills have a good supply of

wood on hand, their loggers are “on quota”

and are limited in the amount of wood they

are allowed to deliver each week. So if a

logger is operating on a tract with only one

type of timber, pine pulpwood, for example,

and he reaches his quota on Wednesday, he

has no alternative other than to shut down

the equipment and send his employees

home. A timber sale with more diversity—

sawtimber and pulpwood, hardwood and

pine — allows the logger who reaches his

pine pulpwood quota to haul wood to a

hardwood sawmill, etc. Right now sales

with diversity are in demand. Listen to T.R.

Clark’s May 18 Stumpage Report at http://www.afoa.org/CILive/CI1605.htm

THE GOOD NEWS displayed by the

above map is that Chronic Wasting Disease

is not present in Alabama or any of our

neighboring states. That’s good news for

hunters who clean and eat harvested deer,

and for landowners who lease land to deer

hunters. USGS Map updated 4/16.

TEACHERS WANTED to attend work-

shop. See page 5, July 11-14. Call Ashley.

THE WORKING FORESTS CAUCUS,

formed in the U.S. House in April, is a bi-

partisan group whose purpose is to advocate

for working forests across the U.S. All U.S.

House members

from Alabama were

listed as members

except for Congress-

man Palmer. Not

directly related to

the caucus, but of

importance to private

forest landowners,

was Reed Watson’s

May 18 Capital Ide-

as—Live! interview

on Reducing the

Federal Estate. Find

it at www.AFOA.org.

HUNTING INSUR-

ANCE RENEW-

ALS will be sent to current users of

AFOA’s group policy on or about June 1. In

order to prevent a lapse in coverage, we

urge you to return your renewal application

before August 1, when the current policy

expires. If you plan to begin using AFOA’s

policy this year, the application form will

b e p u b l i s h e d o n l i n e a t

www.HuntingInsurance.bz on about June 1.

WOODLAND OWNER PROFILES have

been developed for each state by the Sus-

taining Family Forests Initiative and the

U.S. Forest Service. We found some differ-

ences and some similarities between New

York and Alabama forest owners that might

be of interest to you. For landowners with

50 and more acres: average land tenure in

Alabama is 26.4 years and in New York,

26.1 years. Among the reasons for owning

woods, Alabamians listed Investment as

number 2, while New Yorkers listed Invest-

ment as number 10. Interestingly, both

groups listed Property Taxes at or near the

top of their concerns. Source:

www.engaginglandowners.org.

BARRED OWLS

DID THE RECESSION DO IT? Experts

have reported that timber harvests, especial-

ly clearcuts, have been reduced since the

recession began because of the drop in de-

mand for lumber. And other experts have

reported that turkey and deer populations

have been down for several years, begin-

ning about the same time as the recession

hit. And last week while visiting a clearcut

on my land, I saw more deer and turkey

tracks than I’ve seen in several years. Is it

possible that the recession caused deer and

turkey numbers to drop? Solution to every-

one’s problems: Build more houses.

“AS TO THE COMPANY’S FUTURE,

and any plans for expansion or investment,

the family is quick to respond: ‘We’re wait-

ing to see how the election turns out!’”

Source: Southern Loggin’ Times, 5/16.

PRSRT STD U.S. POSTAGE

PAID MONTGOMERY, AL

PERMIT NO. 275

Alabama Forest Owners’ Association

Post Office Box 361434

Birmingham, AL 35236-1434

Return Service Requested

www.larsonmcgowin.com Main Office: Mobile, Alabama 251.438.4581

Over five decades and millions of acres

of experience

Complete Land and Timber

Management Services

McKinley & Lanier Forest Resources, Inc. 507 Energy Center Boulevard, Suite 303

Northport, Alabama 35473

www.mckinleyandlanierforestresources.com 1-800-247-0041

Alabama SuperTree Nursery producers and sellers of hardwood and genetically

improved pine seedlings.

SuperTree Seedlings

Selma: (334) 872-5452

Toll free 1-800-222-1280

Fax (334) 872-2358

Madison, FL / Office / 850-973-2967

C.J. (Jay) Blanton III / Cell 850-566-1884

Jason M Blanton / Cell 850-566-7175

C.J. Blanton Jr. / Cell 850-673-7421

Email: blantonsnursery@earthlink.net

Blanton's Longleaf Container Nursery / 6" Containerized Pine Seedlings

Improved and Natural Stand Longleaf / Improved Slash and Loblolly

.

Growers of Deep Plug Pine Seedlings

Steve Meeks 877-809-1737 Linc: 18*14655

www.meeksfarms-nurserys.com

1-800-579-5471