Forestry, at its heart, is Forestry, at its heart, is always a family issue.always a family issue.

The issue of ourThe issue of ourforests is one forests is one of culture,of culture,beauty,security,beauty,security,money.money.Decisions made Decisions made today effect the today effect the inheritance of inheritance of our children & our children & grandchildren.grandchildren.

Who is making decisions about Who is making decisions about many of our private forest many of our private forest lands?lands?

• WomenWomen

• WidowsWidows

• FamiliesFamilies

We are all ASSETS and Key Decision Makers for our forest resources.

decisions from our parents and grandparents...

As a private forest landowner, our forests are the result of

What do want from What do want from your FOREST?your FOREST?

A place to A place to enjoy wildlife ….enjoy wildlife ….

Or as a way to enjoy beauty...

To many people their forests are a source of income...

For others, their forest is a way to ensure clean water...

Many People want theirMany People want theirforest as a place for forest as a place for recreation, or thatrecreation, or thatspecial place to go special place to go and relax.and relax.

So….If our So….If our forestsforestsare that are that important,important,how do we how do we make decisions make decisions to ensureto ensurewe can get what we can get what we want from we want from them?them?

First you must know what First you must know what you want from your forestyou want from your forest

What do you want your forests to give What do you want your forests to give you?you? Mature trees

Mature trees

Young treesYoung trees

Habitat for WildlifeHabitat for Wildlife

Place to restPlace to rest

Income for my retirementIncome for my retirement

Improve Stream QualityImprove Stream Quality

Income for emergencies/ special needsIncome for emergencies/ special needs

Steady incomeSteady income

Recreational OpportunitiesRecreational Opportunities

Income to send my children or grandchildren to collegeIncome to send my children or grandchildren to college

A place to enjoyA place to enjoy

Income to send my children or grandchildren to college

Income to send my children or grandchildren to college

Food for my familyFood for my family

Reasons people sell timberUnexpected financial emergency.

Mortgage. Firewood. Absentee landowner Multiple landowners Right of way. Taken/public domain Sold by default Funeral/death Tuition Improvement of timber stand Development Pay for taxes

How can you keep your future How can you keep your future vision?vision?

Make a plan for what you want, so if emergencies arise you can take care of your family and still keep your vision.

Management

PLAN

Resources to help plan your visionService ForestersState Foresters - free service

How to find one: http://forestry.miningco.com/cs/stateforestry/

What they can do for me?•Help develop a management plan•Determine volume of wood and species•Mark your timber

How much is my forest How much is my forest worth?worth?

SizeSizeSpeciesSpeciesQualityQuality

Effected by...Effected by...

These combined factors effect the

actual amount you will receive from

your sale!

Location of timber relative to mill(s)Location of timber relative to mill(s)Ease of current access to timberEase of current access to timberTerrainTerrainTimber QualityTimber QualityTimber sale volumeTimber sale volumeMarket conditionsMarket conditionsSeason/weatherSeason/weather

Remember if you have your plan, you control the outcome of a timber harvest.

You can make sure best You can make sure best management practices are management practices are followed.followed.

Most of all you can make sure it will fit in with YOUR future vision!

What if you want to sell your timber because of financial need or part of your management plan, what should you do?

Contact consulting forester- often double the amount a landowner will receive from a timber sale.

Consulting foresters Consulting foresters can:can:

How to find one:How to find one:

http://www.acf-foresters.com/memberlist.cfm

• Tell you how much your timber is worthTell you how much your timber is worth

• Help you be able to claim capital gainsHelp you be able to claim capital gains

• Determine the quality of your timberDetermine the quality of your timber

• Obtained sealed bids for your timber saleObtained sealed bids for your timber sale

• Provide you with a written contractProvide you with a written contract

State foresterState forester Consulting foresterConsulting forester(Planning)(Planning) (Selling timber) (Selling timber)

• Help with plan (free)

• Mark your timber

(usually small fee)

• Determine volume of

wood & Species.

• Tell you how much your Tell you how much your

timber is worthtimber is worth

• Obtain sealed bidsObtain sealed bids

• Provide you with written Provide you with written

contractcontract

Consulting foresters charge Consulting foresters charge a small percentage of the a small percentage of the sale, but usually make sale, but usually make landowner money.landowner money.

How you sell your timber can greatly affect how much taxes you will pay on a sale:

IMPORTANT

Bid Type Can Claim Actual AmountBid Type Can Claim Actual AmountAmount of Offer Capital Gains After Taxes Amount of Offer Capital Gains After Taxes $20,000 Cut on the shares$20,000 Cut on the shares NoNo $14.400$14.400$80,000 Cut on the shares$80,000 Cut on the shares NoNo $57,600$57,600$80,000 Lump Sum$80,000 Lump Sum YesYes $64,000$64,000$80,000 By the unit (cord, ton$80,000 By the unit (cord, ton YesYes $64,000$64,000

bdft)bdft)

What is lump sum?You receive a set dollar amount for all your marked timber.

What is on the shares?You receive a check from the mill and the timber buyer gets a check from the mill.

What does a capital gain mean?What does a capital gain mean?

A way to think about a capital gain is that your capital (trees) has gained some value or a profit and that this profit is taxable.

For income sales to qualify as capital gains:For income sales to qualify as capital gains: You must have owned the timber for 12 monthsYou must have owned the timber for 12 months You must release your interest in the timber when it is You must release your interest in the timber when it is

cutcut

Sell timber in a way that will Sell timber in a way that will allow you to claim capital allow you to claim capital gains.gains.

Bid Type Can Claim Actual AmountBid Type Can Claim Actual AmountAmount of Offer Capital Gains After Taxes Amount of Offer Capital Gains After Taxes $20,000 Cut on the shares$20,000 Cut on the shares NoNo $14.400$14.400$80,000 Cut on the shares$80,000 Cut on the shares NoNo $57,600$57,600$80,000 Lump Sum$80,000 Lump Sum YesYes $64,000$64,000$80,000 By the unit (cord,ton$80,000 By the unit (cord,ton YesYes $64,000$64,000

bdft)bdft)

A word on contracts...A word on contracts...

Contracts protect you the landowner as well as the logger.You should put your concerns in the You should put your concerns in the contract, if you want roads to be contract, if you want roads to be retired so they can be hiking trails… retired so they can be hiking trails… put that in the contract.put that in the contract.

Remember you are in charge of Remember you are in charge of the process and can put exactly the process and can put exactly what you want to be followed in what you want to be followed in the contract.the contract.

Walk your land, know what you have.Walk your land, know what you have.

Decide on what you want to get from your land in the Decide on what you want to get from your land in the

future.future.

Contact a service forester and make a management Contact a service forester and make a management

plan.plan.

Contact your neighbors to avoid boundary problems.Contact your neighbors to avoid boundary problems.

When or if you decide to sell your timber, contact a When or if you decide to sell your timber, contact a

consulting forester, who can help youconsulting forester, who can help you

Checklist for landowners…Checklist for landowners…

• Get multiple bidsGet multiple bids

• Ensure your future vision is not lostEnsure your future vision is not lost

•Have a contractHave a contract

• Make sure to retire all roads properly after the saleMake sure to retire all roads properly after the sale

talk with a friend,talk with a friend,

make a quilt with your group that can be used to teach make a quilt with your group that can be used to teach

others,others,

show this lesson to youth and create a poster contest,show this lesson to youth and create a poster contest,

create a heritage day, put on a play,create a heritage day, put on a play,

write an article for a newsletter,write an article for a newsletter,

make your own educational pamphlet for women in your make your own educational pamphlet for women in your

county,county,

send a letter to the editor, send a letter to the editor,

offer to present at upcoming meetings of groups you offer to present at upcoming meetings of groups you

belong to,belong to,

have a public meeting for landowners, have a public meeting for landowners,

use with existing training currently happening with use with existing training currently happening with

groups,groups,

share with 4-H clubs, share with 4-H clubs,

share at a PTA meeting,share at a PTA meeting, contact someone going through the process and ask if contact someone going through the process and ask if

they would share their experiences in a demonstration.they would share their experiences in a demonstration.

Methods you can use to share what you have learned: