LATEST NEWS
Verso Announces Necessary Actions to Offset Unprecedented Market Decline Due to COVID-19
MIAMISBURG, Ohio, June 9, 2020 /PRNewswire/ -- Verso Corporation (NYSE: VRS) today announced that it is taking immediate actions to offset unprecedented market decline due to the COVID-19 pandemic and to reposition the company for future success.
Verso will indefinitely idle paper mills in Duluth, Minnesota, and Wisconsin Rapids, Wisconsin, while exploring viable and sustainable alternatives for both mills, including restarting if market conditions improve, marketing for sale or closing permanently. The decision to reduce production capacity is driven by the accelerated decline in graphic paper demand resulting from the COVID-19 pandemic. The stay-at-home orders have significantly reduced the use of print advertising in various industries, including retail, sports, entertainment and tourism. According to Fastmarkets RISI, North American printing & writing demand fell by 38% year-over-year in April, and operating rates are expected to drop well below 70% during the second quarter.
"It is critical that we maintain a healthy balance sheet and focus on cash flow, while balancing our supply of products and our customers' demand," said President and Chief Executive Officer Adam St. John. "After a comprehensive review of post-pandemic demand forecasts and capacity, we made the difficult decision to idle the Duluth and Wisconsin Rapids mills. We expect the idling of these facilities to improve our free cash flow. The sell through of inventory is expected to offset the cash costs of idling the mills."
Verso expects to idle the Duluth Mill by the end of June 2020, and the Wisconsin Rapids Mill by the end of July 2020, resulting in the layoff of approximately 1,000 employees. Verso will continue to supply graphic and specialty papers in roll and sheet form, as well as packaging papers and pulp.
"Decisions to idle facilities are always difficult because they impact employees, their families, and communities," said St. John. "Verso is committed to treating all of our affected employees with fairness and respect. As always, safety is our highest priority and will be our primary focus during this difficult time."
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Active Care Service Agreements
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Wallingford’s Announces Distribution of Veriga to North America Press release May 2020
Wallingford’s Inc. is pleased to announce a new partnership with Veriga, one of the largest global manufacturers of tire chains and forestry tracks.
Wallingford’s Inc., with its head office in Oakland, Maine has distribution facilities in New Hampshire and Edmonton, Alberta.
Founded in 1975, Wallingford’s is the largest wholesale distributor of logging supplies in North America serving nearly 3000 OEM, distributors, and dealers. John Wallingford, President of Wallingford’s Inc. stated “We are very excited with this new relationship with Veriga and look forward to bringing this great brand across the Atlantic.”
Established in 1922, Veriga has expansive production program and is a prominent European presence in the forestry industry. Wallingford’s Inc. is looking forward to marketing Veriga’s broad range of products across North America, adding new products to our line-up with European design and quality. They use the best raw materials and have an advanced manufacturing facility, including cutting edge heat treatment, resulting in products the user will find to be both functional and durable. New products include:
A full line of bogie and wheel tracks for forestry equipment
Forestry chains for skidders and CTL machinery
Snow/traction tire chains for trucks, tractors and heavy machinery
Tire protection chains for heavy machinery
With every passing year Veriga has enjoyed continued European success against its major track and chain competitors, and we expect the same here in North America as the brand name and demonstrated quality becomes known. Mitja Peterlin, CEO of Veriga, states “We are looking forward to our cooperation with Wallingford's Inc. We have been trying for quite some time to find the right partner to introduce our products to the North American market. We have enormous trust in Wallingford's, which has tradition and is a true specialist in the required field. Together we will make sure that we will give customers the best possible service, that they deserve.” To learn more visit: www.wallingfords.com, www.veriga-lesce.com or call 1-800-323-3708.
COVID-19 for Logging - Practical Advice
Marcy Harrington, marcyw@uw.edu, Pacific Northwest Agricultural Safety and Health Center, Ver. 5/28/2020
The news for COVID-19 and logging work does have its bright side - the work continues and is one of the lowest risk occupations! Although, now that we understand the persistence of this virus, and as activities in farming have picked-up, so has the spread of coronavirus to many rural communities. Loggers are a family, and the fabric of many rural American communities, so here we offer practical advice to keep your co-workers, family, and community safe.
Loggers are the safest profession when it comes to coronavirus risk. Source: New York Times calculated using O*NET, a database sponsored by the US Department of Labor.
This article directs you to guidance, reviewed and recommended through a cross-center collaboration of the NIOSH-CDC Agricultural Safety & Health Centers (our mission includes forestry too) and is in alignment with NIOSH-CDC and OSHA federal guidance. Each Center offers safety and health expertise that can help with COVID-19 response and your general workplace safety.
What are the personal risks and symptoms?
Previous health studies with loggers show a workforce with age and health risk factors for COVID-19. Workers should be aware of their own risk factors. Symptoms often include a fever, cough, or shortness of breath, or at least two of these: fever, chills, repeated shaking with chills, muscle pain, headache, sore throat, or new loss of taste and smell. It is now understood that people can commonly have COVID-19 and not show symptoms.
The virus is understood to spread:
Between people who are in close contact with one another (within approximately 6 feet). Duration of contact is also important; Loggers often have prolonged contract with co-workers which can increase risk for transmission.
Through respiratory droplets produced when an infected person coughs, sneezes, or talks. Transmission occurs through the air and through contaminated surfaces or objects, such as tools or equipment.
What are the best COVID-19 resources for logging management?
To respond to region-specific risks and rules, first refer to your state departments of health and labor for your area guidance and help.
Encourage each person to reduce transmission with these proven control measures: wash/sanitize your hands, avoid touching your face, and wear a mask in public contact.
The Forest Resources Association (FRA) COVID-19 website. This site includes:
A COVID-19 State Tracker Tool, providing state by state information to keep members up to date on the status of the forest products industry.
A COVID-19 National Page which lists and explains policy and resources at the national level that are available during the COVID-19 pandemic.
Logging Management - Assessment and Control Plan:
Conduct your worksite risk-assessment and develop your preparedness and response plan that works for your operation and location. Identify workers who may be at increased susceptibility for COVID-19 and consider adjusting their work responsibilities to minimize exposure.
Guidance on Preparing Workplaces for COVID-19 (Spanish). OSHA
Revised Enforcement Guidance for Recording Cases of COVID-19. OSHA
Guidance for Businesses and Employers Responding to COVID-19. CDC
Training & Guidance for Logging:
Coronavirus Basic Prevention Measures (fact sheet). AOL and PNASH Center
Loggers ultimate social distances, but not immune to COVID-19 (article). By Niels de Hoop for the Louisiana Forestry Association
Keep Your Logging Site Safe (poster). SWAG Center
Work Camps. For logging work camps, refer to CDC’s guidance for shared housing.
Transportation. WA Dept. of Labor and Industries:
Use alternative transportation arrangements to decrease use of a crew bus.
Decrease the number of riders on the crew bus to maintain social distancing.
Arrange or encourage workers to drive by themselves to the worksite.
Work with your timber landowner to ensure private vehicles are permitted on their land.
Using a facemask does not substitute for social distancing.
Stress Management:
The US Disaster Distress Helpline. Call 1-800-985-5990 or text TalkWithUs to 66746 to connect with a trained crisis counselor. A 24/7, 365-day-a-year, national hotline dedicated to providing immediate crisis counseling for people who are experiencing emotional distress related to any natural or human-caused disaster.
Related COVID-19 Guidance:
Industry-specific Guidance (farming and construction offer useful strategies for logging). CDC
N95 Alternatives for Pesticide Handling. CA Dept. of Pesticide Regulation
COVID-19 Spanish materials. Compiled by PNASH Center
If you have additional resources or a specific idea/solutions you would like to share, submit your solutions through this COVID-19 Practical Solutions Survey, or feel free to contact me at marcyw@uw.edu. We’ll be sharing these and other new resources back to you and the US logging community through your Associations and PNASH’s COVID-19 Resources for Forestry. As experience and science develops on this virus, so will public health guidance and recommendations.
Logger Relief Package: COVID 19 Economic Damage Relief Package for Logging & Trucking Companies in the Forest Products Industry
PLEASE URGE YOUR FEDERAL REPRESENTATIVES TO APPROVE THESE MEASURES (HR 7690 AND S.4233) BY SUBMITTING YOUR LETTER TO CONGRESS NOW!
(TAKES LESS THAN 5 MINUTES)
THE LATEST LOGGER RELIEF NEWS
July 26, 2020: Time to Act: Support the Logger Relief Package (HR 7690 and S.4233)
July, 22, 2020: Timber Industry Asks Congress for $2.5B in COVID-19 Aid
July 21, 2020: Collins, Golden Propose Bipartisan Plan to Help Loggers, Timber Haulers Weather COVID-19 Economic Crisis
LOGGER RELIEF PACKAGE
The American Loggers Council (ALC) and state logging associations are asking Congress to support the proposed "COVID 19 Economic Damage Relief Package for Logging and Trucking Companies” in the Forest Products Industry.
May 28, 2020 — Consuming mills have reduced their consumption as a result of reduced or lost markets during the COVID 19 pandemic. The ripple effect of that has been a reduction in the amount of wood fiber being sourced from the forest by the small, family-owned logging and log trucking businesses. According to Matthew Pellki, Professor at the College of Forestry, Agriculture and Natural Resources at the University of Arkansas at Monticello, “With the COVID-19 pandemic, housing starts have fallen 22 percent, which is the fastest one-month fall since March 1984. The Association of General Contractors (AGC) has reported that 40 percent of the construction workforce in the United States has been laid off due to project delays and cancellations. No construction means orders for lumber fall, mills saw fewer logs, and less standing timber is bought and harvested.” In his article, Professor Pellki goes on to say, “If the general economic recovery is V-shaped and reopening the economy in May and June is successful, and a relatively "normal" economy persists afterward, stronger markets for pine timber for landowners has been pushed back at least two more years.”
This amount of time will be a significant challenge for loggers and log truckers to survive and remain whole to continue their operations. Loggers and log truckers could go out of business and the entire value supply chain could be significantly disrupted as a result. With high operating costs, diminished markets and low returns on investments, logging capacity throughout the United States could be deeply reduced and new investments into the logging sector will be limited.
In order to sustain the supply chain, federal resources should provide a program for those contractors that harvested/delivered wood to various mills across the country in 2019. Contractors should be able to apply for relief through the USDA to assist them with their ability to continue business operations for the next twelve months while their markets attempt to recover, much like the assistance already given to other producers of agricultural commodities.
Funds could be used for business operating expenses such as equipment loan payments, maintenance costs, consumables such as fuel and oil expenses, required insurance payments and other fixed and variable costs not already covered in existing federal payment programs such as the Payroll Protection Program and other Pandemic Unemployment Assistance.
To receive the funds, a contracting company must provide evidence of gross revenue received for 2019. This evidence could be provided through payment statements received in 2019 from contracts with mills or providing a copy of 2019 business tax return forms that have been submitted to the Internal Revenue Service to substantiate the amount of funds a logging business will receive. A company can receive up to 10% of their gross revenue for operations in the first seven months of 2019 in the form of a grant, similar to the CARES Act Coronavirus Food Assistance Program already made available to other agricultural commodities.
This program is intended to ensure that contractors can have the opportunity to remain in business over the next 12 months and to adjust their operations as markets begin to stabilize.
This is not a state or regional issue, but a national issue that needs to be addressed to sustain the essential service providers of the timber harvesting and hauling industry. Members of the American Loggers Council stand ready and able to assist members of Congress and the Department of Agriculture as they consider all available options in helping to assist the small family-owned businesses that consist of timber harvesters and haulers that are critical to timber dependent rural economies across the United States and provide the fiber that has proven to be a critical resource for all U.S. citizens during the current pandemic.
Sincerely,
Daniel J. Dructor Executive Vice President – American Loggers Council
Representing State and Regional Logging Associations in 34 States across the United States including: Alabama Loggers Council Independent Logging Contractors of Alabama Northern Arizona Loggers Association Arkansas Timber Producers Association Associated California Loggers Southeastern Wood Producers Association – Florida/Georgia Associated Logging Contractors, Inc. – Idaho Green River Loggers Council – Kentucky Louisiana Loggers Association Louisiana Logging Council Professional Logging Contractors of Maine Michigan Association of Timbermen Associated Contract Loggers & Truckers of Minnesota Mississippi Logging Association Missouri Logging Council Montana Logging Association New Hampshire Timber Harvesting Council Northeastern Loggers Association – New York, Pennsylvania, Vermont, New England States Carolina Loggers Association – North Carolina Logging Standards Council – Ohio Associated Oregon Loggers South Carolina Timber Producers Association Southern Loggers Cooperative Texas Logging Council Virginia Loggers Association Washington Contract Loggers Association West Virginia Loggers Council Great Lakes Timber Professionals Association – Wisconsin
Best Estimates of Loss of Volume and/or Revenue used to Generate Request As Reported by State Logging Association Executives:
Alabama
2018 total severance tax tons in Alabama was 38,626,190.
Estimate loggers have lost 15% of their tons. This would be 5,793,928 tons.
Estimate loggers lost $20.00 per ton. So total losses for Alabama loggers due to shut downs and stay/shelter at home emergency orders is $115,978,560.
California
1.6 billion board feet of timber harvested statewide in 2018.
Revenue for Loggers, Log Truckers, Forestry road builder and biomass producers is estimated at $250/mbf (mbf = thousand board feet)
Logging is a very seasonal trade with available working days in most areas approximately 150 working days per year. Since March of 2020 many Logging business have lost 15-20 working days due to Covid 19. This results in a 10% to 13% reduction in income for their businesses.
1.6 billion board feet * $250/mbf = $400,000,000.
Using 10% for the average reduction in days worked it can be assumed that this directly correlates to income for the affected Business. Therefore, California Logging, Log Trucking, Forest Road Building and Biomass Businesses have a direct impact of $40 million dollars.
Florida
As reported by the Southeastern Wood Products Association, assuming the trend is production is off 17 loads per week at 30 tons per load, for the last 2 months (9 weeks) lost production would be 4590 tons time $30/ ton equaling $137,700 per company and $52,188,300 total for 379 companies reported operating in Florida.
Georgia
As reported by the Southeastern Wood Products Association, assuming the trend is production is off 17 loads per week at 30 tons per load, for the last 2 months (9 weeks) lost production would be 4590 tons time $30/ ton equaling $137,700 per company equaling $99,419,400 total for 722 companies reported operating in Georgia.
Idaho
The State of Idaho Board of Scaling Practices estimates that the scaled harvest volume will fall 7.5 % to an estimated 875 mmbf from a 2019 level of 941 mmbf. This is an early estimate.
In 2019 harvest, transportation, and manufacturing of wood products in Idaho contributed $ 2.2 billion to Idaho’s Gross State Product.
Louisiana
Small three man crews and one man hauling operations have lost between 33%-40% production since the beginning of March. From each region: North West Louisiana shows reports of loss production of approximately 40% or 6,000 tons per week, North East Louisiana is showing a loss of nearly 33%, and mid-south Louisiana is seeing an upward of approximately 37% decrease of production.
Maine
12.3 million tons of timber harvested statewide in 2018. 10% harvest reduction would equate to 1.23 million tons.
According to a February 2019 study conducted by the University of Southern Maine, an average of 1 job in the logging industry is supported by the harvesting/trucking of 3,925 tons of wood, inclusive of sawlogs, pulpwood, and biomass (Maine Center for Business and Economic Research, USM, February 2019). As a result of the loss of 10% of harvesting volume (1.23 million tons), it is expected that up to 313 logging/trucking jobs will be impacted/eliminated directly.
Michigan
COVID-19 has resulted in a 10% reduction in log and pulpwood production.
Over a two month period in 2020 there has already been an estimated loss of 183,300 tons of production.
Minnesota
The Minnesota Department of Natural Resources, Division of Forestry, reports a 40% decrease in state timber scaling receipts for the month of March and April compared to the historical average during this period.
Recognizing that Minnesota harvests and utilizes approximately 2.5 million cords annually, a 40% reduction is 1 million cords.
At a delivered wood rate of $90 per cord (including stumpage cost, harvest costs and transportation), the direct economic loss in Minnesota would be $90 million annually.
Mississippi
The three year harvest average in Mississippi is 10,804,638 tons of wood fiber. The estimate 2020 volume will be 10,007,817 tons, a 7.34% shortfall.
North Carolina
With the guidance of the Carolina Forest Service and NC State, we were able to survey our membership with a strong and significant response from all corners of the state; North Carolina loggers' production has taken a 30% to 35% reduction.
Oregon
Approximate average 4.0 Billion Board feet of timber harvested in “normal year” reduced to estimated 3.4 Billion Board feet in 2020 with a 40% loss in volume occurring in 2nd Qtr. 2020 (15% loss of annual harvested volume)
South Carolina
Due to the Coronavirus impact in SC, there has been a decrease of 15% of delivered tons to wood receiving markets which equates to 4,380,000 tons on an annual basis. Because the wood receiving markets are still very fluid with wood deliveries and the changes occurring because of the pandemic impacting the markets finished products, there is ample reason to believe the slowdown will last well into the remaining of this year and potentially have carry over into next year. Based on an average blended per ton delivered price for all wood delivery products to wood receiving markets, the COVID-19 induced slowdown has the economic impact to the timber harvesting and timber trucking segments of South Carolina's wood supply chain at $ 153,300,000 for 2020.
Virginia
The Virginia Department of Forestry has examined its records for us for the periods of March 10 through May 10 for years 2016, 2017, 2018, 2019 and 2020. They conclude that our harvests are down by 25% during COVID-19 period when compared to the previous four years.
Washington
The annual timber harvest averages about 3 billion board feet. A 10% reduction in the annual harvest would result in 300 million board feet of lost production.
West Virginia
West Virginia has experienced a rapid decline in logging activities in the second quarter. the impact of slowing domestic markets for flooring, pallets, paper, and OSB has diminished markets by at least 15%, possibly much more . According to a recent West Virginia University Study, West Virginia Forest Products Industry provides $2.9 billion in economic contributions to the State, of which 12% is the logging sector.
Please click link below to submit your letter to congress. ALC would like to thank Healthy Forests Healthy Communities for creating the online submission letter.
The American Loggers Council exists to represent professional timber harvesters and log truckers. Membership helps to preserve the future of logging in our great country. Working together we can shape the future of logging.
BLM Proposes Expedited Review of Timber Salvage Projects
Proposal would allow agency to address threat posed by catastrophic wildfires to forest health and public safety across millions of acres in the West
The Bureau of Land Management today announced a proposal to establish a new categorical exclusion (CX) under the National Environmental Policy Act, which would streamline the agency’s review of routine timber salvage projects and operations. This proposal would contribute to rural economies, accelerate reestablishment of native resilient forest tree species and reduce future wildfire fuel loads, while diminishing hazards to wildland firefighters, the public and infrastructure from dead and dying trees.
“The Trump Administration takes the threat of wildfire seriously. At Interior, we are doing everything we can within the law to aggressively prepare for wildfire season,” said Deputy Secretary of the Interior Katharine MacGregor. “This proposed measure would significantly cut back on the time it takes to allow commercial timber operators into a landscape devastated by wildfire to remove marketable trees while also reducing or eliminating hazard trees that pose a danger to firefighters and infrastructure. Fostering timber jobs while reducing wildfire risks is a win-win.”
“We have to give our land managers the tools they need to reduce fuel loads and the threat of catastrophic wildfires in an environmentally sustainable manner. This proposal will allow us to increase the health and resilience of the landscape for both wildlife and people,” said William Perry Pendley, BLM Deputy Director for Policy and Programs.
The proposed CXs is part of a larger national wildfire reduction strategy guided by President Trump’s Executive Order 13855 – Promoting Active Management of America’s Forests, Rangelands, and Other Federal Lands to Improve Conditions and Reduce Wildfire Risk, as well as Secretary’s Order 3372 – Reducing Wildfire Risks on Department of the Interior Land through Active Management. The two orders direct Department of the Interior (DOI) to implement policies to improve forest and rangeland management practices by reducing hazardous fuel loads, mitigating fire risk and ensuring the safety and stability of local communities through active management on forests and rangelands.
From 2000 to 2017, wildfires burned an average of 6.8 million acres annually in the U.S. For BLM-managed forests, fire has affected an average of 279,630 acres annually from 2009 to 2018. The threat of wildfires is accelerated by the presence of dead and dying timber. Insect and disease survey data collected in 2015 by the Forest Health Protection Program of the U.S. Forest Service identified 70 different mortality-causing insects and diseases across 5.2 million acres in the conterminous United States. The BLM assembled data from the U.S. Forest Service Aerial Detection Survey from 2008 to 2017 and found nearly two million acres of forest mortality were observed over that period on BLM lands.
Given the threat of wildfires across millions of acres of forests – and the threat this poses to native wildlife and the lives and livelihoods of people and communities across the West – the BLM has identified that establishing a new CX for the actions is necessary to expedite the removal of dead and dying timber to reduce fuel loads and the threat of catastrophic wildfires.
NEPA requires Federal agencies to consider the potential environmental consequences of their decisions before deciding whether and how to proceed. The appropriate use of CXs allows NEPA compliance, in the absence of extraordinary circumstances that merit further consideration, to be concluded without preparing either an environmental assessment or an environmental impact statement.
The proposal would affect only routine timber salvage projects smaller than 5,000 acres that normally do not require more extensive environmental analysis. While wildfire affects hundreds of thousands of acres of BLM-managed lands each year, current BLM regulations only allow for use of a salvage harvest CX that may not exceed 250 acres. This additional CX will increase the agency’s flexibility to respond to disturbances across larger areas.
The BLM has completed a review of scientific literature and previously analyzed and implemented actions and found no evidence that salvage harvest at the levels proposed would have a negative effect on forest health. To the contrary, removing dead and dying trees can accelerate forest succession and benefit native wildlife species that rely on successional habitat, while reducing the potential for catastrophic wildfires
The BLM is opening a public comment period on the proposed CX that closes 30 days after the proposal publishes in the Federal Register. The BLM will provide additional information about when and how to comment when the proposed rule is published.
For more information on the BLM’s forest management activities, visit https://www.blm.gov/programs/natural-resources/forests-and-woodlands
Background
The Department of the Interior has implemented an aggressive strategy to more effectively manage, treat, and prevent wildfires, reducing wildfire risks on more than 1.4 million acres of Federal lands in 2019. This was the largest fuel load reduction in a decade. More information is available online.
What They are Saying
“In recent years, catastrophic wildfires have devastated the communities of the Sierra Nevada. Frivolous lawsuits and failed public land management policies have intensified these deadly blazes. The result is mortal danger to our citizens and devastation of our local economies as dead timber is left to burn.” said U.S. Congressman Tom McClintock (CA-04). “Scientific land management can restore resilience to our forests, health for our economy and most important, safety for our communities. I applaud Secretary Bernhardt, Deputy Secretary MacGregor and BLM Acting Director Pendley for recognizing that the current process is badly broken and taking actions that will save lives, restore our forests and watersheds and boost our local economies.”
“I appreciate the Trump administration increasing the tools in our toolbox to improve our forest management. In 2017, wildfires consumed over one million acres in Montana, threatened livelihoods, and destroyed wildlife habitats. Fire season is getting longer and more severe,” said Congressman Greg Gianforte (MT-At Large.) “Today’s announcement from the Bureau of Land Management boosts common-sense, smart fire prevention measures, rehabilitation efforts, and timber jobs in Montana. By removing dead and dying timber on the front end, we can reduce the likelihood and severity of wildfires on our public lands.”
“Members of the American Loggers Council support the BLM's proposed expedited review of timber salvage projects. While the use of the proposed categorical exclusion will allow land managers to reduce fuel loads caused by insect, disease and wildland fires in order to accomplish forest restoration work in a timely manner, it also allows commercial timber harvests to take place before the dead, diseased and dying timber has lost its commercial value generating not only revenue for the BLM, but also supporting rural infrastructure and jobs in timber dependent communities,” said Daniel J. Dructor, Executive Vice President, American Loggers Council.
“The frustration of not being able to salvage timber from dead and dying trees before wildfires can occur and before the timber becomes unmerchantable, is always painful,” noted Eric Carleson, Executive Director, Associated California Loggers. “But at a time when wildfires in California have destroyed an unprecedented number of acres, loss of salvage timber is a two-fold tragedy. Rural communities and firefighters alike are threatened by dead trees, and by wildfires that could have been prevented with streamlined salvage rules in place. Unmerchantable timber is a liability. This proposed Categorical Exclusion is the right solution at exactly the right time.”
"Current NEPA requirements delay any meaningful actions to remove hazardous snags and fuels left after wildfires. The resulting hazards pose long term risks to the public, elevate the dangers faced by firefighters and cause future fires to burn even more severely. This new CX authority will help land managers reduce those risks. We have seen countless wildfires sweep over the same burned landscapes that were not treated. These recurring incidents are far more damaging to the ecosystem than the first. This new CX authority will permit land managers prompt action to remove hazardous snags and fuels along roadways and create fuel to protect the land when the next fire comes," said Javier Goirigolzarri, Executive Director, Communities for Healthy Forests, Inc.
“A welcomed, commonsense change to more effectively allow BLM to respond to the forest health crisis in the West. This new proposal will provide BLM the opportunity to be a better neighbor to private and state forest lands and offer more protection for the environment,” said Idaho state Representative Judy Boyle, Chairman of the Western Legislative Forest Task Force & Co-chair of the federal lands committee on federalism.
“Timber salvage after a wildfire is a race against the clock. This CE will greatly improve the department’s ability to salvage timber after a wildfire. Removing the timber while it still has value allows for post-fire restoration to occur expediently and at a significantly reduced cost. This helps rural communities and environments rebuild after a catastrophic wildfire,” said Shaun Crook, 2nd Vice President, California Farm Bureau Federation.
“We need regulations that will allow more large scale, aggressive fuels management to improve forest health. In addition to improving safety and wildlife management, active managing fuels is the key to managing water yield and quality. Current scientific studies illustrate that those benefits may be the most important contribution of active fuels management,” stated Bill Mulligan, Idaho Forester, Trinity Consulting.
“We have been hit hard with wildfires in southwestern Oregon for the last ten years; those fires have caused economic and health hardships for the counties and citizens. Leaving dead and dying timber to fuel future fires is both dangerous for the forest and a waste of economic resources. Speeding up salvage operations by cutting bureaucratic red tape is a good first step in bringing sound forest management back to the BLM-managed timberlands,” said Douglas County Oregon County Commissioner and President of the Association of O&C Counties Tim Freeman.
“It is vital that the Bureau of Land Management turn their minds to the enormous timber salvage harvesting task that lies ahead to reduce fuel loads and the threat of catastrophic wildfires across millions of acres of forests,” said Dan Johnson, Idaho State Senator. “Communities and forests will benefit greatly by an expedited review of timber salvage operations that are part of a sustainable forest management program.”
“I applaud the Bureau of Land Management for their proposal to establish new categorical exclusions under the National Environmental Policy Act that will give resource managers the ability to streamline review of routine timber salvage projects”, said Julia Altemus, executive director of the Montana Wood Products Association. “This proposal is consistent with other federal efforts to address the need to streamline salvage opportunities and will help align cross-boundary federal and state responses to rehabilitate landscapes after wildfire and mitigates insect and disease outbreaks and spread.”
Contact: BLM_Press@blm.gov
USDA to Provide $1 Billion in Loan Guarantees for Rural Businesses and Ag Producers
WASHINGTON, D.C., May 22, 2020 – U.S. Secretary of Agriculture Sonny Perdue announced that the Department is making available up to $1 billion in loan guarantees to help rural businesses meet their working capital needs during the coronavirus pandemic. Additionally, agricultural producers that are not eligible for USDA Farm Service Agency loans may receive funding under USDA Business & Industry (B&I) CARES Act Program provisions included in the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
“Under the leadership of President Trump, USDA is committed to being a strong partner to rural businesses and agricultural producers and being a strong supporter of all aspects of the rural economy,” Secretary Perdue said. “Ensuring more rural agricultural producers are able to gain access to much-needed capital in these unprecedented times is a cornerstone of that commitment.”
In addition to expanding eligibility to certain agricultural producers, the changes Secretary Perdue announced today allow USDA to:
Provide 90 percent guarantees on B&I CARES Act Program loans;
Set the application and guarantee fee at two percent of the loan;
Accept appraisals completed within two years of the loan application date;
Not require discounting of collateral for working capital loans, and
Extend the maximum term for working capital loans to 10 years.
B&I CARES Act Program loans must be used as working capital to prevent, prepare for or respond to the effects of the coronavirus pandemic. The loans may be used only to support rural businesses, including agricultural producers, that were in operation on Feb. 15, 2020.
USDA intends to consider applications in the order they are received. However, the Department may assign priority points to projects if the demand for funds exceeds availability.
USDA announced the expanded B&I authorities in a notice published on page 31035 of the May 22 Federal Register (PDF, 315 KB). The Department will begin accepting applications for B&I loan guarantees on May 22, 2020. Applications must be received no later than midnight Eastern Daylight Time on June 22, 2020, or until funds are expended. Program funding expires Sept. 30, 2021.
Eligible applicants may contact their local USDA Rural Development State Office in the state where the project is located.
USDA is developing application guides for lenders and borrowers on the B&I CARES Act Program. The Agency also will host two webinars to provide an overview of program requirements.
To register for the webinar on Wednesday, May 27 at 3:30 p.m. Eastern Time, visit globalmeet.webcasts.com/starthere.jsp?ei=1322642&tp_key=7a700acddd.
To register for the webinar on Wednesday, June 3 at 2:00 p.m. Eastern Time, visit globalmeetwebinar.webcasts.com/starthere.jsp?ei=1324161&tp_key=6067315417.
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.
If you’d like to subscribe to USDA Rural Development updates, visit our GovDelivery subscriber page.
Lumber Prices Move Sharply Higher on Rising Demand & Supply Constraints
Rising demand stemming from a surge of do-it-yourself projects from consumers working at home coupled with restricted supply due to lumber mills operating at a diminished capacity have led to a recent upsurge in lumber prices. The latest Random Lengths Framing Composite Price for the week ending May 15 rose by 6.3% to $406 per thousand board feet — the first time the index topped $400 since March 20, 2020.
Framing lumber prices have increased 13% since May 1 — the largest two-week increase in over a decade and the first increase greater than 10% since the start of the U.S.-Canada Softwood Lumber Dispute in early 2017.
This recent increase in lumber prices comes at a time when the government reported backward-looking data that shows building material prices posted a record decline in April — during the height of the pandemic and before many states rescinded stay-at-home orders and began phased re-openings of local economies.
Related factors driving this recent increase in lumber prices include:
Rising demand from big box retailers — driven by do-it-yourself activity and the fact that building supply stores have been designated as “essential businesses” across the nation — has limited the supply available to traders, wholesalers and distributors; and
Slowing mill production as home building activity dropped sharply during the early weeks of the outbreak.
The recent price increase has been especially acute in Southern Yellow Pine (SYP) dimension lumber, with SYP 2×4 prices climbing nearly 50% since mid-April. The four-week increase is the largest in at least 25 years (weekly data first became available in 1995), topping the prior record of 30% set in 2003.
Lumber demand tends to be a reliable leading indicator of residential construction activity, thus the recent price hikes due to increased demand coupled with reduced mill capacity should be viewed as a sign that mills must ramp up production as the home building industry continues into the spring home buying season.
Meanwhile, builders should prepare accordingly and expect that the lumber price rebounds during the past couple of weeks are likely to continue.
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Richard P. Vlosky, Ph.D. Crosby Land & Resources Professor of Forest Sector Business Development Director, Louisiana Forest Products Development Center Room 227, School of Renewable Natural Resources Louisiana State University Baton Rouge, LA 70803 Phone: (225) 578-4527; vlosky@lsu.edu
USIPA: Wood Biomass Given All Clear by Europe’s Highest Court
By U.S. Industrial Pellet Association | May 13, 2020
The U.S. Industrial Pellet Association on May 11 welcomed an order from the European Court of Justice dismissing a case against wood biomass. The court ruled the applicants, a group of six individuals and NGOs, lacked standing to challenge the EU’s inclusion of wood biomass in the bloc’s Renewable Energy Directive.
“We welcome the court’s ruling, which removes unnecessary uncertainty over the future of renewable energy in Europe,” said Seth Ginther, USIPA executive director. “Although this was a procedural ruling this was the right overall result, as the arguments put forward in the case had no value. The European institutions carried out an open consultation to gather scientific and environmental advice and considered these during the legislative process. The result was a revised Renewable Energy Directive that set out rigorous standards for the inclusion of sustainable biomass in the European energy mix.” Including the UN IPCC’s latest Special Report on Climate Change and Land, the body of academic research, studies and papers documenting the climate and forest benefits of wood biomass continues to grow.
Wood biomass, derived from the forest products industry, is the EU’s largest single source of renewable energy, and is a key technology for achieving the bloc’s climate goals set out in the Green Deal. It enables European power generators to repurpose existing coal-based infrastructure with a renewable alternative that reduces the carbon intensity of electricity generation by up to 85 percent on a life-cycle basis.
Last year the U.S. exported nearly 6 million metric tons of biomass to the EU, primarily from its Southeastern states. This region has been the center of America’s forest products industry since the early 20th century, and is one of the largest and most sustainably-managed wood baskets in the world.
According to the USDA, wood volume in this region has increased by 21 percent since 2000, and southeastern landowners are currently growing 43 percent more wood than they remove every year. Independent analysis shows this trend is also consistent within the local sourcing areas surrounding multiple biomass production plants.
As noted by forest economists, forest stocks have been increasing in the US Southeast because markets for wood products, like biomass, provide financial incentives for private landowners to keep investing in the continual cycle of thinning, harvesting and replanting trees.
