LATEST NEWS
Congressman LaMalfa Leads Effort to Block Biden Admin ‘Top -Down’ Forestry Plan
(Washington, D.C.) – Congressmen Doug LaMalfa (R-Calif.), Chairman of the Agriculture Subcommittee on Forestry, Dan Newhouse (R-Wash.), Chairman of the Congressional Western Caucus, and Tom Tiffany (R-Wisc.), Chairman of the Natural Resources Subcommittee on Federal Lands, introduced a bill to block the Biden Administration’s misguided proposed plan to hinder forest management activities that protect old and mature growth.
The USDA’s National Forest Plan Amendment the Biden Administration proposed would implement a unilateral approach to managing old growth forests to go over regional management without carefully considering unique local factors.
“Forest management activities should be spearheaded at the regional level, not decided from some top-down plan that was crafted by a DC bureaucrat that has never set foot in the forest in question. Regional voices should be prioritized, not ignored, and DC bureaucrats have proven time and time again that they are not willing to authorize the work needed to manage our forests and reduce wildfire risk, such as thinning projects and timber harvesting. We must block the Biden Administration’s irresponsible new plan that will tie the hands of those on the ground who are actively combatting this wildfire crisis,” said Congressman LaMalfa.
“The proposed Old-Growth Plan Amendment is out of touch with the needs of rural America. By limiting timber harvesting and proper forest management, the risk of catastrophic wildfires increases. I’m proud to join Western Caucus Executive Vice Chair LaMalfa on this important legislation to overturn this attack on common sense forest management and to ensure forest managers have access to the tools needed to do their jobs,” said Western Caucus Chairman Newhouse.
“Local land managers are the best stewards of the land—not bureaucrats a thousand miles away in Washington, D.C. The Biden administration's Old Growth Plan Amendment imposes a one-size-fits-all approach that sidelines local expertise and makes it harder to maintain forest health. This much-needed bill will block this misguided policy and ensure active wildfire mitigation,” said Congressman Tiffany.
Background:
In April 2022, the Biden Administration directed the U.S. Forest Service to define, identify, and assess the risks to “old-growth and mature” forests absent a Congressional mandate or existing authority to do so.
In December 2023, the U.S. Forest Service released a Notice of Intent to prepare an Environmental Impact Statement (EIS) that would amend all 128 forest plans in less than one year, in direct conflict with its own processes that require tailored approaches at the forest level.
On June 21, 2024, the draft EIS was published in the Federal Register, opening a 90-day public comment period.
A final EIS and record of decision for the amendment to all 128 National Forest system plans is expected at the end of 2024/beginning of 2025.
Congressman Doug LaMalfa is a lifelong farmer representing California’s First Congressional District, including Butte, Colusa, Glenn, Lassen, Modoc, Shasta, Siskiyou, Sutter, Tehama and Yuba Counties.
Bipartisan Coalition Introduces Fix Our Forests Act
The American Loggers Council fully supports the Fix Our Forests Act and is grateful for the bipartisan backing from the sponsors.
WASHINGTON, D.C., June 18, 2024 - House Committee on Natural Resources Chairman Bruce Westerman (R-Ark.) and U.S. Rep. Scott Peters (D-Calif.) introduced the Fix Our Forests Act, a comprehensive, bipartisan bill that will restore forest health, increase resiliency to catastrophic wildfires and protect communities.
"America’s forests are in jeopardy. Insufficient management driven by bureaucratic red tape and frivolous litigation have turned vast swaths of our federal forests into overgrown and unhealthy tinderboxes. The Fix Our Forests Act will revolutionize the way we manage our forests and support active and responsible management of federal lands with the best available technology and science, leaving them more resilient for generations to come." - House Committee on Natural Resources Chairman Bruce Westerman (R-Ark.)
"Wildfires are more intense, frequent, and widespread today because of climate change and over a century of poor land management. In California the eight largest wildfires on record have occurred during the last decade, and in just one year, California wildfires contributed more to climate change than the state’s entire power sector. Our bipartisan Fix Our Forests Act is a comprehensive approach to restore our forests and defend our communities from catastrophic wildfires. Our legislation meets the enormity of this challenge, gives forest managers the tools they need to conduct their work, and promotes scientifically backed land management methods that have been practiced by Native communities for centuries. Finally, we ensure that strong environmental protections are kept in place, while expediting the schedule of work and reducing the threat of frivolous litigation." - U.S. Rep. Scott Peters (D-Calif.)
Background
The Fix Our Forests Act is a historic and comprehensive package that will encourage active forest management and support community resiliency to wildfires by expediting environmental analyses, reducing frivolous lawsuits and increasing the pace and scale of forest restoration projects.
The bill will:
Simplify and expedite environmental reviews for forest management projects
Promote federal, state, tribal and local collaboration
Deter frivolous litigation that delays essential projects
Create a framework for prioritizing treatments in the forests at highest risk of wildfire
Encourage the adoption of state-of-the-art science and techniques for federal land managers
Encourage active management to improve the safety of powerlines and other infrastructure
Strengthen tools like Good Neighbor Authority and Stewardship Contracting
TimberPro President Lee Crawford Retires
The timber industry leader leaves a decades-long legacy of innovation and generosity.
After seven years as president of TimberPro, Lee Crawford has announced his retirement. This draws to a close Crawford’s nearly 40 years in the forestry machinery business, during which he consistently exemplified entrepreneurial spirit and a caring attitude.
Pat Crawford, Lee’s father, was a third-generation logger whose company — Shawano, Wisconsin-based Timbco — had become known for its popular line of levelling machines. But Lee never planned on entering the forestry industry, becoming an engineer at the Oshkosh Truck Company in 1982.
In 1985, however, Lee’s father asked him to join the family business at Timbco, where he started on the assembly line. “It gives you credibility with your people,” Lee said. “And you learn the products. You learn what needs to be changed.” After his assembly line shifts ended, Lee kept working, ordering parts and writing warranties.
Lee eventually become Vice President in 1992. In 2000, Timbco was sold to Partek, a Komatsu-owned company. The Crawfords bought back the wheeled division from Partek in 2002 to form TimberPro, which became recognized for its innovative track machine products. TimberPro was acquired by Komatsu in 2019.
Lee considers everyone he works with his “TimberPro family.” Patrick Anderson, Product Supervisor, joined TimberPro at its founding, and called Lee one of the most compassionate people he knows. “As Vice President of the company, he went to fix a valve all the way out in South Dakota on Christmas Eve,” Anderson says. “He’s family-first, but he still goes out of his way to make sure you can spend time with your family.”
Established in 2002, TimberPro is a Wisconsin-based manufacturer of purpose-built forest machines and attachments, offering tracked feller bunchers and harvesters, forwarders, wheeled harvesters, and felling heads. Komatsu America acquired TimberPro in 2019 to strengthen their position in the full-tree-length market and enable them to offer a highly competitive range of logging products.
Joe Hardwick, Vice President of New Hampshire-based logging company D.H. Hardwick and Sons, has a similar story to tell. Two days prior to a logging expo in 2010, the engine of his machine died prematurely. The manufacturer wouldn’t help since the warranty had expired just a few hours prior. Hardwick met Lee at the expo and told him what happened to his machine. Lee, shocked that the company had done nothing, told Joe, “I will get you a new motor at no cost to you. The only thing I ask is the next time you buy a machine, you give ours a try.” Hardwick has remained a TimberPro customer since, and calls Lee a “great mentor.”
In retirement, Lee plans to stay involved in charitable giving with the Ruth and Pat Crawford Foundation, which has donated millions over the years to community organizations and food pantries. While the TimberPro family is sad to see Lee go, the legacy of the Crawford’s ingenuity and generosity will continue with Komatsu at the helm. “By taking Komatsu’s strengths and combining it with TimberPro’s, we can be a leading supplier. We’re really excited about the future,” said Doug Morris, Vice President, Forest Machine Business Division at Komatsu.
Lee feels safe leaving his companies in Komatsu’s hands. “Komatsu wants TimberPro to grow. Komatsu has the means and ambition to plan and grow our offerings over time,” he says. “My family was comfortable. Komatsu has the drive to get bigger and bigger and bigger. It’s going to be exciting.”
American Loggers Council Signs Historic Memorandum of Understanding with the USDA Forest Service
The American Loggers Council, the largest national timber industry association in the U.S., has entered into an historic Memorandum of Understanding (MOU) with USDA Forest Service. This MOU formalizes future collaboration and recognizes common areas of mutual benefit.
The MOU highlights the vital role and services that the timber industry has in supporting the Forest Service objectives of managing the national forests; along with the role that the Forest Service has in supporting America’s timber industry and the resource they provide for the essential wood products society depends upon daily.
“Loggers are on the front line every day, contributing directly to the health of the nation’s forests,” said Forest Service Chief Randy Moore. “Sustainably sourcing wood supports critical forest management activities that reduce the risk of catastrophic wildfires and make our forests healthier, while also creating jobs and strengthening local economies. This memorandum builds on our partnership with loggers to improve the health of the nation’s forests.”
There are many challenges threatening the future and health of the timber and forest products industries and the nation’s forests. The solution to addressing these challenges and threats is collaboration and cooperation between the timber industry, the forest products industry, and public forest managers. Each entity shares a common objective – healthy forests. The timber and forest products sector provide the tools and markets to enable; sustainable forest management practices; mitigate wildfire impacts; improve forest health; reduce disease and infestation; improve carbon sequestration; create rural employment; and support communities.
However, these goals and objectives require a concerted effort between the public and private sectors. All are dependent upon the other, and none can succeed without the other. This MOU formally recognizes a commitment to working together to sustain the critical infrastructure and the forests.
The American Loggers Council and the Forest Service have a history of collaboration and cooperation in areas of mutual interest and benefit. Examples include:
the $200 million Pandemic Assistance for Timber Harvesters and Haulers (PATHH) program;
the $10 million Biomass Transportation Incentive Project (BTIP);
and the $200,000 timber industry Public Image and Workforce Development Campaign.
Mike Albrecht, President of the American Loggers Council, emphasized “America’s loggers are the “boots on the ground” providing essential wood products while helping to protect and restore our forests to their fullest potential. We cannot do our job without a strong working relationship with the United States Forest Service. This memorandum will serve to strengthen that relationship as we focus on our common goals of healthy forests coupled with a healthy timber industry.”
USFS Temporary Bridge Funding Program Guidance for Loggers
WHAT IS IT AND WHAT IS THE OBJECTIVE?
An $8 million multi-year (through 2026) funding program designed to provide access to temporary bridges and/or bridge mats to loggers, forest products manufacturers, and other qualified users through state and tribal agencies (unless designated otherwise by the state agency). Its primary objective is to preserve water resources during forestry operations that necessitate temporary crossings over streams and other water bodies. The utilization of logging mats to traverse wet areas and safeguard water quality is deemed an appropriate practice under this program.
HOW DOES IT WORK?
Competitive grants of up-to $400,000 per year are available to State Agencies (or other parties designated by the State Forester – for example a state logging or forestry association, conservation district, or similar organization) to facilitate the purchase of temporary bridges. States will manage the program and develop systems to get temporary bridges and/or mats to users through one of these methods:
Rent-to-own program – users (loggers/facilities) rent bridges and pay for a share of the cost of temporary bridges/mats in a rental payment(s) to gain ownership* of and responsibility for the bridges. For example, if a participating State program has a 20% rent-to-own requirement, and a logger rents-to own a temporary bridge that cost $15,000, the logger would pay one or more rental payment totaling $3,000 and then own the bridge for their exclusive use.
No-cost rental – bridges are rented out to users at no cost for a specific project and then returned to the State after the project is completed.
Rental program – bridges are rented to users at a predetermined fee for a project and returned at the end of the project.
***Users who obtain ownership of a temporary bridge of $35,000 or less under a participating State rent-to-own program are exempt from federal interest in the bridge and title remains with the user. Such bridges must be used for the intended purpose of crossing streams and/or protecting water resources.***
TYPE OF BRIDGES ALLOWED:
State programs will specify what type of bridges are allowed/available. The only real restriction on the federal end is that bridges must be temporary and portable. Bridges may be made of wood or steel and may accommodate short or medium span crossings. A short or medium span bridge has no need of intermediate support. Mats are also acceptable.
Short and Medium Span Temporary Timber Bridge
Short and Medium Span Temporary Steel Bridge
Temporary Metal or Timber Roadway Mats
WHY WOULD I WANT A TEMPORARY BRIDGE, AND HOW WOULD I BENEFIT?
Constructing temporary stream crossings can be costly and require placement of large quantities of aggregate, and the investment is tied to a single use. Secondly, larger streams may not be effectively crossed without spanning the stream with a bridge, or crossings may have endangered aquatic species downstream. Access to a temporary bridge may allow you to be more competitive on tracts that require such crossings, allow you to be more productive and not run out when the stream rises, and reduce expenses related to BMP mitigation work. Lastly, logging mats are more portable and may provide adequate water quality protection in many cases.
I WANT A TEMPORARY BRIDGE – HOW DO I GET ONE?
First, check with your state forest management agency or state association(s) to see if your state has a program in place. If they do not have a program in place, let your state agency know that you are interested. Communicating through your state associations and the American Loggers Council might be an effective method of communicating your interest in the program.
FREQUENTLY ASKED QUESTIONS
How do I report generated rental income?
Rental income generated should be used toward the operation of the temporary bridge program or maintenance of temporary bridges. The income must be tracked and reported on the Financial Status report (SF-425).
Who can establish a program within a State?
State Forestry Agencies or their equivalent forestry agency shall be the lead entity for State grants and should coordinate and collaborate with other State agencies and non-government partners that have an active interest in the use of temporary bridges. These entities may include Soil and Water Conservation Districts, State Timber Associations, State Forestry Associations, State Logger Education Programs, other State government entities, and State Recognized Tribes as appropriate.
State Forestry Agencies may delegate the grant recipient authority to a responsible entity within the state. A letter from the State Forester authorizing such action is required. Procurement of the temporary bridges and associated contracting must be done in accordance with the procurement and contracting regulations of each individual participating state. Any non-state government agency applicants would need to be registered in SAM.gov and follow the procurement regulations in 2 CFR 200.
Can funds be preapproved and received in advance of a bridge purchase?
A grant recipient may submit an application for advanced payment 30 days prior to the actual purchase of a bridge. An estimate for the bridge from the manufacturer must accompany the application.
How much funding can an applicant apply for under this program?
Regular funding requests are capped at $400,000 per application but larger funding amounts will be considered if sustainably justified in the application. It is suggested that an applicant discuss requests over $400,000 with WO Bridge Program Manager at jeffrey.c.high@usda.gov.
Besides a bridge purchase, what other expenses are allowed?
An applicant may include:
De minimis (10%) for indirect costs as a percentage of total modified direct costs which exclude equipment costs. - e.g. bridge costs or as specified on a Negotiated Indirect Cost Rate Agreement (NICRA).
15% of the total bridge costs for program administration for personnel and travel costs.
10% of total bridge costs for maintenance.
3% of total bridge costs for education and program marketing.
When can I apply?
The program has a rolling application period. Proposals are due the last Friday of the month in April, August, and December through 2026.
US Wildfire Smoke Impact: 27,800 US Deaths and $244-Billion Annual Spend by 2050
In the summer of 2023, the United States experienced an unprecedented heatwave and a significant increase in wildfire smoke. This combination led to air quality alerts and a thick orange haze covering large portions of the country, something that hadn't been witnessed by many in their lifetime. Unfortunately, experts warn that this could become a more regular occurrence as climate change continues to worsen.
According to the National Bureau of Economic Research, the impact of wildfire smoke could be devastating. By 2050, it is estimated that it could cause up to 27,800 deaths in the United States annually and result in a staggering cost of around $244 billion per year. While the primary source of the smoke in 2023 was from Canada, the warming and drying climate also pose a significant risk to US forests. This means that severe wildfire events, which were previously more common on the West Coast, could become a national phenomenon.
Recognizing the urgency of the situation, Congress is currently engaged in discussions regarding two bills aimed at better preparing the nation for severe wildfire emergencies. The first one, known as the Wildfire Smoke Emergency Declaration Act, would grant the President the authority to declare a smoke emergency and provide emergency assistance to affected communities under specific circumstances. The second bill, called the Smoke and Heat Ready Communities Act, would empower the Environmental Protection Agency to offer grants to air pollution control agencies. These grants would support the development and implementation of programs that assist local communities in detecting, preparing for, communicating about, and mitigating the environmental and public health impacts of wildfire smoke.
It is crucial for these bills to be carefully considered and swiftly enacted to ensure the nation is adequately equipped to handle the increasing threat of severe wildfires and their associated smoke. By taking proactive measures, we can better protect our communities and minimize the devastating consequences of these natural disasters.
Golden, Collins, Stauber, Pingree, King, Introduce Bipartisan Legislation to Support Loggers Harmed by Natural Disasters
WASHINGTON DC — Congressman Jared Golden (ME-02) and Senator Susan Collins (R-ME) today introduced the bicameral, bipartisan Loggers Economic Assistance and Relief Act, which would establish a new U.S. Department of Agriculture program to support loggers who have lost income due to natural disasters.
Congressman Pete Stauber (MN-08) is the lead co-sponsor in the House. Senator Angus King (I-ME) and Congresswoman Chellie Pingree (ME-01) are cosponsors of the legislation.
Current law excludes loggers from the kinds of disaster relief and assistance available to other industries, including fishermen and farmers, when natural disasters strike. Under the Loggers Economic Assistance and Relief Act, a disaster declaration from the president or respective governor would unlock federal assistance eligibility for logging businesses with at least a 10 percent loss in revenue or volume compared to the prior year. Covered damage would include high winds, fire, flooding, insect infestation and drought.
“Loggers have faced a series of unrelenting challenges in recent years, and uneven access to disaster assistance is among the most artificial,” said Golden, who authored the legislation. “These businesses are pillars for some of Maine’s most rural communities, and we simply cannot afford to lose them. Protecting these jobs ensures that future generations can continue to make a consistent living in the woods. I’m grateful to have so many of my colleagues join this important effort.”
“Throughout Maine’s history, our forest products industry has supported good-paying jobs, driven local economies and strengthened rural communities,” said Senator Collins. “Loggers were already facing significant headwinds due to a changing 21st century economy and recent price instability, and the recent damaging storms only compounded those challenges. This bipartisan legislation would provide much-needed financial support to loggers who have suffered losses as a result of natural disasters.”
“In Minnesota’s Eighth Congressional District, our forest products industry has created good-paying jobs and driven our local economies,” Stauber said. “Unfortunately, this crucial industry is currently facing a wide variety of threats, from wildfires and drought to insect infestation. Minnesota’s loggers have supported our communities for generations and it is now our turn to support them. That’s why I am proud to introduce legislation with my friend, Congressman Jared Golden, to establish a new program through the USDA that will provide financial assistance to timber harvesting and timber hauling businesses that have seen their bottom line impacted by natural disasters. I look forward to seeing this legislation help ensure Minnesota’s forest products industry remains strong and resilient.”
Last December, Maine’s logging industry lost $2.6 million after particularly damaging winter weather. A survey released by the Professional Logging Contractors of the Northeast in January found that more than 90 percent of the industry’s businesses suffered damage to equipment or logistics from the December 18 storm alone. In total, Maine’s economy lost $5.5 million due to the loss in logging revenue and productivity.
“Logging has been fundamental to the success of our state for centuries — creating good jobs, supporting working families and providing essential economic activity across rural areas,” said Senator King. “The Loggers Economic Assistance and Relief Act would ensure that any disaster declaration by the President or Maine’s governor would unlock federal disaster assistance eligibility for these critical Maine businesses. As a new generation of Maine people consider careers in logging, and as we see the catastrophic impacts of these storms, this bill will ensure that the logging industry remains a stable source of income — and our state’s culture — for generations to come.”
“The logging industry is a critical pillar of Maine’s economy and history, supporting jobs and rural communities for centuries. Several recent devastating storms in our state highlighted the urgent need to address gaps in our federal disaster response and support for loggers,” said Pingree, a member of the House Agriculture Committee. “By establishing a new program within the Department of Agriculture to support loggers facing losses due to natural disasters, our bipartisan, bicameral Loggers Economic Assistance and Relief Act will help this vital industry survive whatever future storms or challenges may come.”
Logging industry leaders praised the bipartisan legislation:
Dana Doran, executive director of the Professional Logging Contractors of the Northeast: “Northeast logging contractors have been hit hard with an unprecedented series of weather challenges over the past eighteen months. This has triggered expanded state regulations, which impede harvesting and hauling for long periods of time. While this has created an environmental success story, it has also created an economic disaster due to no fault of the logging community. As a result of these challenges, we have discovered there is no federal relief for logging and trucking companies due to natural disasters. We want to thank Congressmen Golden and Senator Collins for leading this effort to secure relief for these hard-working small family businesses, and we urge swift passage to provide relief and finally treat logging and trucking the same as farming for the first time in history.”
Scott Dane, executive director of the American Loggers Council: “The timber/forest industry is a commodity-based sector similar to farming. Loggers are farmers of the forests. They are included in the U.S. Department of Agriculture, within the U.S. Forest Service. However, unlike all other agriculture-based commodities, loggers have no support when their “crop” is damaged or destroyed by natural disasters such as hurricanes, wildfire, floods, disease, and drought. This legislation will provide assistance to loggers impacted by natural disasters by providing the same type of assistance that all other agricultural sectors receive. The American Loggers Council commends Congressmen Golden and Stauber and Senator Collins for sponsoring and introducing this bipartisan legislation.”
Owl Policy Howler - By: Dan Shell - Timber Harvesting and Forest Operations
America’s relationship with its wildlife historically has been complicated, to say the least. The nation has been a global leader in wildlife protection laws, but the distant past has some dark eras: Whales by the thousands hunted to near extinction worldwide for meat, teeth and mostly blubber to use for oil. Millions of passenger pigeons were slaughtered to complete extinction so city folk could have cheap squab dinners. The Carolina parakeet vanished from the earth because fancy ladies needed fancy hats. And now, during the next 30 years the U.S. government is proposing to hammer 400,000 barred owls with shotguns to save the spotted owl from a bad evolutionary arc.
Wait, what?
Yep, you heard right. The same folks who managed to kill off hundreds of mills and tens of thousands of good family wage jobs by reducing timber harvests in the Pacific Northwest to save the spotted owl now say it’s not the mills that buy the timber or even loggers who cut it who are the spotted owls’ big threat. Instead, it’s the owls who are their own worst enemy.
Specifically, barred owls, the spotted owl’s well-traveled East Coast cousins with a highly adaptive lifestyle, are the problem, says the U.S. Fish & Wildlife Service (FWS). And there really is a FWS proposal out there to save falling spotted owl populations by pounding the barred owls. Way back in July 2022 the agency filed a “Barred Owl Management Strategy; Intent To Prepare an Environmental Impact Statement; Washington, Oregon, and California.” And one of the proposed management alternatives is the elimination of thousands of barred owls, up to 400,000 over 30 years, in various parts of Washington, Oregon and northern California.
And just like those loggers years ago, the barred owls gotta go, too. Turns out the FWS calls the barred owl an “alien species” because it migrated westward and wasn’t found at all in the Pacific Northwest until the 1950s.
Unlike their spotted cousins who are all hung up on old-growth reliant tree voles and wood rats and picky diets, barred owls eat the same things—plus a whole lot more, and also thrive in wider variety of habitats. The spotteds are also lazy on the nest, reproducing every two or three years instead of annually, which makes it even tougher to sustain populations in the face of barred owl competition.
There have been FWS pilot projects and fairly short-term studies, and I believe them when they say areas that have been “depopulated” of barred owls show less to no decline in spotted owl populations.
And, of course, this being the government the solution to save the owl has to be a big one. How big? Well, how about a pile 400,000 barred owls big? Using average sizes and weights, that’s roughly 300 tons of dead owls, and enough owls to stretch 113 miles if placed head to tail. Either way, it’s a lot of owls. And exactly how did they come up with 400K dead barred owls? If that’s good, wouldn’t 600K be better?
And that brings us to another point: logistics. Someone has to build that 300 ton pile, that 113 mile long line of dead birds owl-by-owl. Even an old timey market hunter used to filling skiffs with ducks might decide 400,000 birds is too much work, but the government evidently is not to be deterred.
Let’s do the math here. Over 30 years, that’s 13,333 owls a year, which works out to only 37 owls per day. But that’s every day, rain or shine, snow or dust. Every day, for 30 years. That means putting lots of boots on the ground and shotguns in the air.
The tongue-in-cheek one-liners just write themselves, but I don’t want to belittle government employees too much. Many are trying to do their best in fulfilling mixed mandates, through common sense (or not), or through management by court order.
And the government’s record on these kinds of things, like the nation’s relationship with its wildlife, is decidedly mixed. I know I’m mixing spotted owl apples with biomass oranges but in Arizona the past decade-plus, the government has come up about 80% short on a contract to treat several hundred thousand acres in danger of wildfires—and the acres aren’t even moving targets, they just sit there.
Then again, at least the barred owls have a fighting chance…to fly away, maybe to a nice wooded suburb with less gunfire and a bunch of bird feeder fattened squirrels. Unlike the Pacific Northwest’s loggers, who were sitting ducks for what was evidently the FWS’ misguided policy 30+ years ago, when the spotted owl was listed as threatened in 1991.
The Dismantling of the American Timber Industry: American Loggers Council Warns of Consequences
WASHINGTON DC (March 25, 2024) — It seems like every time a forest product mill or plant shuts down (monthly if not weekly) it’s viewed as a singular isolated incident. But viewed collectively, the cumulative impacts and magnitude become more focused and apparent. The individual incidents are all symptoms of a larger serious condition that diagnosed properly reveals and represents an unhealthy state of the U.S. timber and forest products industries.
Forest products mill/plant shutdowns directly impact the mill workers and community, but they also impact the logging sector that sustained that facility, although it is typically not addressed in these announcements. Tracking these shutdowns can serve as a barometer revealing the impacts and losses to logging companies. When mills close, logging companies close, and forest health suffers.
While there has been some new mill construction and expansion, this cannot be assumed to be an equal offset. A mill opening 150 miles from where a mill closed, or that uses different species and wood specifications, does not equate to a net zero exchange. So, to merely compare lost production volume to new or expanding production outputs and ignore the geographic displacements or different timber specifications is not reflective of the direct losses and impacts.
The brief summary of U.S. forest products mill closures below may not be all-inclusive, but it does document nearly 50 closures, reductions or curtailments, and it clearly represents an alarming trend during a short period of time (15 months), directly (mill workers) and indirectly (loggers) resulting in ten thousand or more jobs lost.
While U.S. forest products mills and facilities close, the U.S. is now the leading global importer of softwood lumber as depicted by these pine products from New Zealand in a U.S. big box store. According to the World Bank, the U.S. imports over $40 billion in wood products from Canada, China and Brazil.
In economic development it is easier to maintain your economic base rather than replace it. Supporting the existing forest products markets should be the first objective.
However, many contributing factors leading to the decline of the U.S. timber and forest products industries are government policy, regulations, restrictions, unfair trade practices, federal timber supply constraints, and incessant litigation.
First rule of medicine – Do No Harm
Many current government practices are harming the forests, environment, and economy. The good news is that there is a prescription and treatment to cure the disease. The U.S. needs to be willing to take the medicine, follow the treatment (literally forest management treatment) and promote the utilization of all wood fiber removed from the forests. With forest treatments and wood utilization the health of the economy will be better, the health of the environment will be better, the health of the timber and forest products industries will be better, and the health of the forests will be better. But Congress and the Administration must write the prescription (policies and legislation) to cure the situation, or they can practice “skillful neglect” (the “professional” term for doing nothing) and perpetuate the continued decline of rural jobs and forest health, signing the death certificate.
The forest-based bioeconomy can help replace the lost legacy markets and transition to renewable fuels, renewable energy, renewable chemicals, renewable industrial wood pellets, renewable building products, all produced from renewable timber.
The Renewable Fuel Standard (RFS) was developed to support much of this transition, yet the EPA has failed to fully implement many aspects of the RFS. The EPA misinterpretations, delayed processing, and self-imposed restrictions have impeded full implementation and leveraging of this opportunity. The U.S. needs to administer the Renewable Fuel Standard as intended by Congress in order to facilitate the renewable energy transition. Forest-based biomass feedstock can provide the input material for renewable natural gas, hydrogen, Sustainable Aviation Fuel, electricity, coal conversion, and steel / concrete production.
The U.S. has not followed the rest of the developed nations with recognizing the carbon neutrality aspects and reduced greenhouse gas emissions of renewable biomass feedstock when replacing fossil fuels. The rest of the world has. The U.S. is out of step with the accepted global science of biomass feedstock for energy production to address climate change. The U.S. needs to develop a domestic bioeconomy market and policy just as the rest of the developed world has.
Support of the timber, forest products, and bioeconomy sector’s growth will demonstrate a commitment to revitalizing America’s rural economy, communities, and ailing forest health, while developing and transitioning into renewable forest-based bioproducts. Forest health and the timber industry share a symbiotic relationship that is interdependent and mutually beneficial.
Otherwise, the U.S. can continue to add to the list below.
Jan 2023: West Fraser Announces Indefinite Curtailment of Perry Sawmill in Florida, 126 jobs lost.
Feb 2023: Georgia-Pacific closing facility in Texas, 166 jobs lost
Feb 2023: Canton N.C,'s Evergreen Packaging scales back production
Mar 2023: Pactiv Evergreen closing mill in Canton, North Carolina, 1000 jobs lost
Mar 2023: Sonoco Hutchinson, Kansas Paper Mill closes, 116 employees laid off
Mar 2023: Clearwater Paper closing Georgia facility, 150 jobs lost
Mar 2023: Jay Pixelle paper mill stops making paper, 230 jobs lost
Mar 2023: R.R. Donnelley closing Plainfield, Indiana facility, eliminating 79 jobs
Mar 2023: ND Paper Old Town mill shutting down for extended period
Apr 2023: Billerud temporarily idles Escanaba, Michigan mill
Apr 2023: ReEnergy BioMass, Fort Hood, N.Y., 28 jobs lost
May 2023: Cascades to Close Underperforming U.S. Tissue Plants, S.C., OR, 350 jobs lost
May 2023: WestRock to Close Paper Mill in North Charleston, South Carolina, 500 jobs lost
May 2023: Cascades: Permanent closure of a paper machine at the Niagara Falls mill, 40 jobs lost
May 2023: PCA idling Wallula, Washington mill, 300 laid off.
May 2023: Canton paper mill bell sounds for final time, signaling an end after 115 years
Jun 2023: Graphic Packaging to close Auburn, Indiana site, 70 jobs lost
Jun 2023: Western Forest Products to Temporarily Reduce Lumber Production Due to Weak Market Conditions
Jun 2023: Roseburg Forest Products to close Mississippi plant, 100 jobs lost
Jul 2023: Paper Excellence's Catalyst Crofton Mill Shuts Down for July
Jul 2023: Essity to close manufacturing facilities in New York, impacting hundreds of workers, 300 jobs lost
Jul 2023: WestRock to close St. Louis facility, 52 jobs lost
Aug 2023: WestRock Announces Plans to Close Tacoma, Wash., Paper Mill, 400 jobs lost
Aug 2023: WestRock plans to close Indiana facility, 100 employees to lose their jobs
Sep 2023: Georgia-Pacific closes mill in Green Bay after 122 years, 170 jobs lost
Sep 2023: Billerud's Escanaba Mill to temporarily layoff employees in October
Sep 2023: Georgia-Pacific to permanently close Foley Mill in Florida, 535 jobs lost.
Sep 2023: WestRock packaging company to close Louisville, Kentucky locations
Sep 2023: WestRock closing Fridley, Minnesota facility, laying off 70 employees
Sep 2023: Menasha Packaging cutting 66 Madison County, Illinois jobs
Oct 2023: Graphic Packaging to permanently remove K3 CRB machine at Kalamazoo mill in Michigan
Oct 2023: Hood Container cutting 88 jobs, closing N.C. facility
Nov 2023: Boise Cascade to curtail lumber production in Chapman, Alabama, 80 jobs lost
Nov 2023: Bristol Lumber, Vermont, 40 jobs lost
Dec 2023: WestRock closure in Charleston, SC. 500 jobs lost.
Jan 2024: WestRock facility in Washington is closing, laying off 87
Jan 2024: Hampton Lumber closing in Banks, Oregon, 58 jobs lost.
Jan 2024: WestRock to close Lexington, N.C. facility, lay off 153
Jan 2024: Graphic Packaging to close Grand Rapids-area plant, laying off 111 workers
Jan 2024: Graphic Packaging to close Charlotte facility, lay off over 100 employees
Jan 2024: Soundview Putney, Vermont paper mill to close, putting 125 people out of work
Jan 2024: PaperWorks Industries to cut 74 jobs in North Carolina as it closes facility
Jan 2024: West Fraser to close one sawmill, curtail another due to high costs and soft markets (Florida & Arkansas), 219 jobs lost
Feb 2024: Domtar to Curtail Paper Operations at Arkansas Ashdown Mill
Feb 2024: Mohawk Fine Papers shutdown leaves nearly 100 jobless
Feb 2024: Interfor Announces Lumber Production Curtailments in Oregon, 100 jobs lost.
Feb 2024: Cascades closing two facilities in Ontario, one in Connecticut, 310 jobs affected
Feb 2024: DPI Michigan and Ohio. 200 jobs lost.
Feb 2024: Alleghany Wood Products closes in West Virginia, 800 jobs lost.
March 2024: Pyramid Mountain Lumber, Montana, 100 jobs lost.
March 2024: Roseburg Forest Products, Montana, 150 jobs lost.
Note: Prolonged mill quotas (timber delivery supply limits and restrictions) have been imposed by some southeastern mills reducing volume to levels unable sustain cashflow/debt service for loggers.
Sources:
Global PaperMoney, Closures and Cutbacks in 2023, 2024
Public News Media
World Bank, World Integrated Trade Solutions (WITS), Imports by Country 2021
U.S. International Trade Commission, Forest Products 2020
Observatory of Economic Complexity, Lumber Softwood, 2022
LBM Journal, Report: U.S. Increasingly dependent on overseas lumber, January 2021
TIMBER-ONLINE, Shift in global softwood lumber trade flows, 2021
Extension of Certain Timber Sale Contracts; Finding of Substantial Overriding Public Interest
With over 50 mill closures over the past 14 months and other challenging factors, the American Loggers Council was pleased to assist with securing the USFS Substantial Overriding Public Interest (SOPI) declaration that allows for rate redeterminations and extensions on USFS timber contracts that meet certain criteria.
DEPARTMENT OF AGRICULTURE
Forest Service
Extension of Certain Timber Sale Contracts; Finding of Substantial Overriding Public Interest
AGENCY: Forest Service, Agriculture (USDA)
ACTION: Notice of rate redeterminations and contract extensions.
SUMMARY: The Chief of the Forest Service, Department of Agriculture, has determined that it is in the substantial overriding public interest (SOPI) to redetermine pulpwood rates and extend up to two years certain National Forest System timber sales and sale of property stewardship contracts. This finding applies to timber sale and sale of property stewardship contracts that were awarded before March 13, 2024, and, upon award, to contracts with a bid opening prior to March 13, 2024, subject to specified exceptions. Contracts with 20 percent or more of the included product listed as pulpwood with required removal will qualify for a pulpwood rate redetermination and may qualify for an extension under this SOPI finding. The SOPI determination is due to a combination of factors impacting the national economy and the pulp, paper, and chips markets. The intended effect of pulpwood rate redeterminations and extensions of certain timber and sale of property contracts is to allow timber purchasers and contractors time to navigate through the market conditions; to minimize contract defaults, mill closures, and bankruptcies; to sustain employment opportunities, and to minimize the time-consuming and often difficult process of collecting default damages. Without a vibrant forest products industry, the Forest Service cannot manage the land to meet the multiple forest management and restoration objectives nationwide as intended and funded by Congress.
DATES: The SOPI determination was made on March 8, 2024, by the Chief of the Forest Service, Department of Agriculture.
FOR FURTHER INFORMATION CONTACT: Kraig Kidwell, Contracts and Appraisals Group Lead, at 541-961-2614 or by email at kraig.kidwell@usda.gov, or Mike Spisak, Assistant Director Forest Management, at 910-975-0114 or by email at michael.spisak@usda.gov; 1400 Independence Ave. SW., Mailstop 1103, Washington, DC 20250-1103. Individuals who use telecommunications devices for the hearing impaired may call 711 to reach the Telecommunications Relay Service, 24 hours a day, every day of the year, including holidays.
SUPPLEMENTARY INFORMATION: The Forest Service sells timber and forest products from National Forest System lands to individuals and companies pursuant to the National Forest Management Act of 1976, 16 U.S.C. 472a (NFMA); the Stewardship End Result Contracting Projects Act, 16 U.S.C. 6591c; and implementing regulations in 36 CFR Part 223. Each sale is formalized by execution of a contract for the sale of property between the timber purchaser or stewardship contractor and the Forest Service. The contract sets forth the terms of the sale including such matters as the estimated volume of timber to be removed, the period for removal, price to be paid to the Government, and road construction and logging requirements. The average sale of property contract period is approximately 3 to 4 years, although some contracts have terms up to 10 years. The contract term is established by the Forest Service based on the estimated time an average prudent timber contractor would need to mobilize and complete the timber harvest under the conditions of the contract. Paragraph 14(c) of NFMA (16 U.S.C. 472a(c)) provides that the Secretary of Agriculture shall not extend any timber sale contract period with an original term of 2 years or more unless the Secretary finds that the purchaser has diligently performed in accordance with an approved plan of operations, or that the ‘‘substantial overriding public interest’’ justifies the extension. This authority is delegated to the Chief of the Forest Service through Forest Service Manuals 2404.11 and 2453.17, referencing 36 CFR 223.32, and 36 CFR 223.31.
Background
When members of the timber industry must decide whether to harvest timber during severely depressed markets and times of high inflation, or risk defaulting contracts, such decisions can and have led to bankruptcies, loss of infrastructure, and loss of jobs. This adversely affects stability in rural communities and the future management of National Forests as important opportunities and outlets for material disposal are lost. Providing additional contract time during significant market downturns allows timber purchasers additional flexibility to navigate the crisis and sustain long-term business viability.
On December 7, 1990, the Forest Service published a final rule (55 FR 50643) establishing procedures in 36 CFR 223.52 for extending contract termination dates in response to adverse conditions in timber markets. These procedures, known as Market Related Contract Term Additions (MRCTA), authorize extensions of timber contracts when qualifying market conditions are met. Subsequent amendments have provided that the total contract term may be extended up to 10 years as the result of MRCTA when specified criteria are met. When the MRCTA procedures were established, experience indicated that the type and magnitude of lumber market declines that would trigger market related contract term additions generally coincide with low numbers of housing starts and substantial economic dislocation in the wood products industry. MRCTA procedures were adopted by the Forest Service to avert contract defaults, mill closures, and associated impacts to dependent communities when there is a drastic decline in wood product prices (36 CFR 223.52).
In promulgating the MRCTA rule, the Department determined that a drastic reduction in wood product prices can result in a substantial overriding public interest sufficient to justify a contract term extension for existing contracts, as authorized by NFMA (16 U.S.C. 472a(c)) and existing regulations at 36 CFR 223.115(b). Most Forest Service timber sale contracts over 1-year in length include MRCTA procedures. Salvage sales and sales of products not covered in a Bureau of Labor Statistics producer price index (PPI) used to determine when MRCTA triggers are examples of contracts that do not include a MRCTA provision.
Market Conditions
The U.S. pulp and paper industry accounts for upwards of 30 percent of the global pulp and paper production (https://www.fortunebusinessinsights.com/north-america-pulp-and-paper-market-106617), producing 46.66 million metric tons of pulp for paper in 2022 (https://www.statista.com/statistics/1276346/annual-pulp-production-united-states/). Globally, consumption of pulp for paper has tripled since the 1960s with 197.17 million metric tons of consumption in 2022, although several notable drops in consumption having occurred and recovered through this period (https://www.statista.com/statistics/1177457/consumption-of-pulp-worldwide/). There is a corresponding increase in the global consumption of paper and paperboard, estimated at 414.19 million metric tons and almost a 75 percent increase from 1990 levels (https://www.statista.com/statistics/270319/consumption-of-paper-and-cardboard-since-2006/). Although global consumption has increased, domestically the long-term trends show a 30 percent decline in use of paper and paperboard since 2000, with consumption dropping from 93.4 million metric tons to 65.76 million metric tons in 2022 (https://www.statista.com/statistics/252710/total-us-consumption-of-paper-and-board-since-2001/).
During the same period, the PCU3211133211135 producer price index (PPI) used to value pulp and paper has continued to trend upwards with only a few significant drops in the market that initiated market-related contract term additions or emergency rate redeterminations on Forest Service contracts, most recently during the 2009–2013 period. See PPI industry data for Sawmills-Wood chips, excluding field chips, not seasonally adjusted from the U.S. Bureau of Labor Statistics at https://data.bls.gov/cgi-bin/dsrv?pc. Following the COVID-19 pandemic, increases in paper use combined with the slow downsizing of the pulp and paper industry over time through mill closures and reductions in output have helped maintain the producer price index at high values. The preliminary January 2024 PCU3211133211135 producer price index from the U.S. Bureau of Labor Statistics is currently 143.926, down slightly from 20-year highs.
The three Bureau of Labor Statistics producer price indices the Forest Service currently uses to gauge most market conditions include Hardwood Lumber 0812, Softwood Lumber 0811, and Chips (not field chips) PCU3211133211135, per 36 CFR 223.52. However, these indices are not able to address all forest products and market conditions. For example, biomass material, which is a large component of many stewardship contracts, is not covered by these indices. Because the indices are national in scope, they may fail to address drastic declines in local markets or products and, more importantly at this time, local and regional markets affected by mill closures, raw material delivery quotas, and reductions in finished product outputs at facilities.
As one measure of the overall timber and forest products market, beginning in the fourth quarter of 2021, the Softwood Lumber producer price index declined enough for applicable contracts to qualify for relief under Market Related Contract Term Addition (MRCTA) provisions. This trend has continued, with contracts based in the Softwood Lumber PPI qualifying for MRCTA in 9 of the last 12 consecutive quarters. In addition, contracts based in the 0811 Softwood Lumber PPI and awarded in 19 of the previous 40 months have triggered for emergency rate redeterminations, with many contracts triggering more than once. A purchaser may apply for an emergency rate redetermination if the producer price index identified in the contract has declined by 25 percent since the award date or last rate redetermination.
A similar downward trend has occurred in the Hardwood Lumber PPI beginning in the second quarter of 2018, but contracts did not begin to qualify for MRCTA until September of 2022. Since then, the Hardwood Lumber PPI has qualified for MRCTA in six consecutive quarters. In addition to the MRCTA, the Hardwood Lumber PPI met the criteria for emergency rate redeterminations for nine consecutive months in late 2021 into 2022. The hardwood market has stabilized somewhat since and not triggered additional emergency rate redeterminations, although contracts are still qualifying for the MRCTA through the most recent calendar quarter.
The last qualifying quarter for MRCTA with the PCU3211133211135 producer price index was 2013 and the last qualifying month for an emergency rate redetermination was in 2012. Due to consistent reduction in domestic paper usage and an increase in recycling, pulp and paper producers appear to be “right sizing” with mill closures and output reductions to keep the market resilient. The recent mill closures, and delivery quotas due to the subsequent raw material supply surplus, appears to reflect the continuous decline in pulp and paper consumption over the past 20 plus years and accelerated by inflationary pressures. Paper mills that also have historically used large quantities of new pulp fiber are now sourcing more from cheaper recycled material and very low-cost mill residuals. As noted, the gradual downsizing of the industry combined with post-pandemic increases in packaging and shipping paper has helped maintain the producer price index and finished goods markets while reducing raw material intake. This SOPI will provide a rate redetermination to offset the post-pandemic inflation costs, provide time for qualifying purchasers and contractors whose operations are disrupted by mill closures and delivery quotas, and allow time for raw material supplies to stabilize.
Rate Redeterminations and Contract Extensions
Pursuant to this SOPI, and as discussed herein, contracts with 20 percent or more of the Included Timber in A(T)2 identified as “pulpwood” at award or included through modification or agreement and appraised with product codes 02, 08, and 14, will qualify for pulpwood rate redetermination and may qualify for an extension under this SOPI finding. Extensions will be granted upon written request of the contract holder, except under the following conditions: (1) the contract holder’s request includes timber and forest products in urgent need of removal due to forest health conditions or to mitigate a significant wildfire threat to a community, municipal watershed, or other critical public resource, or (2) included timber is designated by diameter and a delay in harvesting may change the treatment required under the contract because of trees growing into or outside of the specified diameter range(s). Contracts that are in breach will not qualify for relief until such breach is remedied. The percentage of included product and percentage of the contract completion is determined by the Forest Service as of the date the written request is received by the Contracting Officer. Relief will be provided to qualifying contracts in the manner described below.
Contracts that have removed 75 percent or more of all included volume. These contracts may receive a rate redetermination for the pulpwood product only. Rates will not be adjusted upward, only downward if a rate redetermination shows a decrease. Rates cannot be redetermined below base rates and base rates will not be adjusted. No additional time will be added to these contracts under this SOPI. Contract term extensions may be granted upon the written request of the purchaser and at the discretion of the Contracting Officer in contracts that contain provisions for contract term extension.
Contracts that have removed 50 percent or more and less than 75 percent of all included volume. These contracts may receive a rate redetermination for the pulpwood product only. Rates will not be adjusted upward, only downward if a rate redetermination shows a decrease. Rates cannot be redetermined below base rates and base rates will not be adjusted. Contract termination dates may be extended up to one year from the current termination date. Downpayment amounts will be recalculated, and periodic payments will be extended an equal amount of time. Timber sale contracts may be extended beyond the 10-year contract term limitation with this SOPI determination. Future Market Related Contract Term Additions may be granted following contract procedures, except that contracts will not qualify for Additions if they are extended beyond a 10-year contract term under the SOPI, pursuant to 36 CFR 223.52.
Contracts that have removed less than 50 percent of all included volume. These contracts may receive a rate redetermination for the pulpwood product only. Rates will not be adjusted upward, only downward if rate redetermination shows a decrease. Rates cannot be redetermined below base rates and base rates will not be adjusted. Contract termination dates may be extended up to two years from the current termination date. Downpayment amounts will be recalculated, and periodic payments will be extended an equal amount of time. Contracts can be extended beyond the 10-year contract term limitation with this SOPI determination. Future Market Related Contract Term Additions may be granted following contract procedures, except that contracts will not qualify for Additions if they are extended beyond a 10-year contract term under the SOPI, pursuant to 36 CFR 223.52.
Contracts that have received Diligent Performance Extensions in the previous 12 months will have the extension time granted under this SOPI, if any, reduced by the length of time granted for the Diligent Performance Extension. Integrated Resource Timber Contracts may require modification to mandatory stewardship projects if the rate redetermination reduces current contract value below that needed to pay for the projects. If the rate redetermination results in a deficit appraisal on the pulpwood product, the deficit will not be offset with positive value species and the rates for pulpwood will be base rates with no change to rates for positive value species.
Chief’s Determination of Substantial Overriding Public Interest
The Government benefits if timber contract defaults, mill closures, and bankruptcies can be avoided by granting rate redeterminations and extensions. The forest products industry is critical to addressing the wildfire crisis and meeting forest management and climate change objectives nationally, while supporting hundreds of thousands of meaningful jobs throughout the country. Having numerous economically viable timber purchasers increases competition for National Forest System timber contracts, results in higher prices paid for such timber, and allows the Forest Service to provide a continuous supply of timber to the public in accordance with the Organic Administration Act. In addition, by extending contracts and avoiding defaults, closures, and bankruptcies, the Government avoids the difficult, lengthy, expensive, and sometimes impossible process of collecting default damages.
By preventing defaults, better utilization of various forest resources (consistent with the provisions of the Multiple-Use Sustained-Yield Act of 1960) will result if contracts can be extended beyond 10 years because of this finding. Therefore, pursuant to 16 U.S.C. 472a(c), and subject to specific conditions and exceptions, I have determined that it is in the substantial overriding public interest to redetermine pulpwood rates and extend, up to two years, certain National Forest System timber sale and sale of property stewardship contracts that were awarded before March 13, 2024, or had a bid opening date prior to March 13, 2024, but have not yet been awarded.
Total contract length may exceed 10 years because of an extension under this SOPI determination. Downpayment amounts will be recalculated and any periodic payment due dates that have not been reached, as of the date the Contracting Officer receives a written request for a SOPI extension, shall be adjusted one day for each day of additional contract time granted.
To receive an extension and periodic payment deferral pursuant to this SOPI, purchasers must make a written request and agree to release the Forest Service from all claims and liability during the extension period if a contract extended pursuant to this finding is suspended, modified, or terminated in the future. The Forest Service shall continue to monitor market conditions to determine if additional relief measures may be needed in the future.
Randy Moore - Chief, Forest Service