Presentation to the AVICC (April 2013)—Private Managed Forest Land and Our Coastal Communities:
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Presentation to the AVICC (April 2013)—Private Managed Forest Land and Our Coastal Communities:

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A PowerPoint presented by PFLA Executive Director, Rod Bealing, to a group of delegates at the Association of Vancouver Island Coastal Communities' AGM and convention in Sooke, B.C., April 12-14, ...

A PowerPoint presented by PFLA Executive Director, Rod Bealing, to a group of delegates at the Association of Vancouver Island Coastal Communities' AGM and convention in Sooke, B.C., April 12-14, 2013. The AVICC represents local government on Vancouver Island, the Sunshine Coast, Powell River and the central coast.

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Presentation to the AVICC (April 2013)—Private Managed Forest Land and Our Coastal Communities: Presentation Transcript

  • 1.  Private forest operations are a small but significant part of the B.C. landscape, economy and rural communities.
  • 2. Provincial Land Base Crown PrivateCrown land: Private Land:91 million hectares 4 million hectares95% of BC forest land 5% of BC forest land90% of BC timber harvest 10% of BC timber harvest
  • 3.  About2 million hectares, or 2 per cent, of the provincial land base • Approximately 50 percent is designated as managed forest land 10% of the provincial harvest (6 to 9 million cubic meters) more than 20,000 landowners
  • 4. Managed Forest Program History Originates from 1940‟s Common policy tool across Canada and United States Similar principles to farm class assessment Object is to encourage private owners to manage their land for the benefit of all British Columbians Partnership between owners and government Owners make investments in land and husbandry, take associated risks Government offers some stability regarding carrying costs, forest practices rules
  • 5. Managed Forest Program Role of Provincial & Local Governments Forestry is a consistent provincial priority Forestry investments are long-term and require stability Local government priorities are more dynamic – land use rules change regularly MF rules provide stable operating climate across B.C. Similar to „Right to Farm‟ legislation on farm land Access to MF restricted – limited areas of managed forests within municipal districts Local government controls underlying zoning density and determines development options
  • 6. Managed ForestsLeaders in BC private forest land management Represents 50 percent of all private forest land with legal requirement to reforest; rest of private land is largely unregulated Managed forest lands are: • Forestry certified • Regulated to protect water supply, fish habitat, reforestation, critical wildlife habitat, soil conservation • Subject to penalties, audits and public reporting
  • 7. Private Forest Landowners Assn Advocates for responsible forest managementThe PFLA represents: Individuals Families Investors .Over 70% of MFs are smaller than 400 hectares (size of coastal woodlot licence)
  • 8. Focus onVancouver Island 1881 CensusPopulation: 17,292Per square km: 1.8
  • 9. Focus onVancouver Island Private Managed Forests Trade: $400m Jobs: 3,500 Logs: 5M m3
  • 10. Focus onVancouver Island 2011 Census Population: 759,366 Per square km: 23.9 (…multiplied by 44 times since 1881…)
  • 11. Focus on Vancouver Island Metropolitan Population Core city Area (2011 Census)Capital Regional 359,991 Victoria DistrictGreater Nanaimo 98,021 Nanaimo Comox Valley 55,213 CourtenayCowichan Valley 43,252 DuncanCampbell River 36,461 Campbell River Oceanside (Parksville- 27,822 ParksvilleQualicum Beach) Alberni Valley 25,465 Port Alberni
  • 12. Stewardship of Private Forest Land• Responsible forest stewardship means Key Challenges economic activity and investment, but is increasingly complex and costly• World class log prices are necessary to support world class forest stewardship• Our #1 source of revenue is log sales
  • 13. Focus on Regulation & Stewardship 1881 1973 2013 Fisheries Act Wildlife ActLegislation & Fisheries Act Migratory Birds None Regulation Taxation Tree Farms Species at Risk Act Water Act PMFL Act Sustainable Forestry InitiativeThird Party None None CSACertification ISOProfessional Engineers, Biologists, Engineers, Biologists, None Oversight Foresters, Foresters, Geoscientists. Voluntary PFLA BMP Program None NoneCommitments Watershed Assessments Ministry of Environment Fisheries & Oceans Canada PMFL Council Regulatory Ministry of Forests (scaling, None Ministry of FLNRO Oversight and wildfires) Fisheries & Oceans Canada Environment Canada
  • 14. Managed Forest Myth-Busters1. Private Land Standards vs. Public Land Standards2. Property Taxation3. Private Land Log Export Restrictions4. Land Sales
  • 15. Managed Forest Myth-Busters1. Private Land vs. Public Land Standards•PMFL Act goal is to find balance between environment,economy & private property rights, recognizing that % ofprivate forest land is small.•Requirements for protecting fish habitat and water qualityvery similar. The approaches are different but the privatemodel is working.•Crown land regulatory model seeks to manage for abroader range of values.•Private forest owners seek to be good neighbours, but donot seek the same level of intensive consultation as publicforest lands.
  • 16. Managed Forest Myth-Busters2. Managed Forest Property Tax Incentive• Common policy tool in forestry jurisdictions.• Key cost and competitiveness factor.• Farm class for growing trees.• Property tax & land carrying costs are very significant dueto especially long forestry time frames.• Split class assessments & harsh participation rules deterabuse.• Growth of MF program & tree planting is a success story.
  • 17. Managed Forest Myth-Busters3. Private Land Log Export Restrictions:• Have not protected mills (60? closures since 2001)• Massive public land undercut (> 30mm m3 / year)• Domestic log market manipulated, artificially low and dysfunctional (why are international prices higher?)• No-bid BCTS sales (domestic market lower than logging costs)• Community, First Nations, Woodlot agreements floundering (lack of viable markets)• Depressed revenue from public forests (MoFR ministry costs exceed public land revenue)
  • 18. Why is the export log trade so important?• Lifeline. Domestic markets not viable, or have disappeared.• Landowners invest decades to grow trees. Better prices allow for greater reinvestment in land and environment.• Like any business, we need to diversify markets and get best price for products.• Thousands of forestry and mill jobs depend on export trade. • Some stands only become economical to harvest if there is the ability to sell some logs at true international prices.
  • 19. “Exporting a log is exporting a job” Facts: • Log exports keep tree planters, nurseries, forest management crews, loggers, truckers and log handlers working • Most stable jobs on the BC coast over the past ten years have been on private land • Domestic log market has collapsed - export opportunities are a lifeline to operations • If unable to export some logs many stands would be uneconomical to log
  • 20. Log Export Myth:“Workers and communities don‟t benefit” Timber harvesting &Facts: haulage Forest protection & forest management Replanting & silviculture Dumping, sorting, towing, sc aling etc Property taxes "stumpage" to owner*Where the revenue from log sales goes *(includes cost of land, ownership costs, insurance, overhead, interest)
  • 21. “There is a log shortage in B.C.” 2 85Private Log Exports vs. TimberBC Public Land AAC exported BC from public private land AAC forest land (in millions of cubic metres, 2012)
  • 22. “There is a log shortage on the coast” Log Availability*: 24 Mill Capacity: 16.5 Surplus: 7.5 Exports: 5.5 (*million cubic metres, 2012)
  • 23. Log Export Myth: “Customers will have no choice but to buy our lumber if we refuse to sell them logs” 0.4% USA 14.4% RUSSIA 36.2% 15.7% NEW ZEALAND CANADA GERMANY 33.3% Japan Log Imports 2008, by Source
  • 24. Log Export Myth: “Profitable mills = Healthy Forests ” * Hemlock Log & Lumber Price Changes in % 60.0 Feb 2012 - 2013 50.0 40.0 Hem Gang 30.0 logs % 20.0 2x4 # 2&Btr 10.0 0.0 -10.0 Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb
  • 25. Managed Forest Myth-Busters4. Land sales and land conversion.
  • 26.  Private forest land is a small but important component of the BC forest sector and our communities. Managed forest owners are responsible neighbours who provide substantial benefits to BC.  The future will be different than the past.  We can expect more challenges & opportunities.  We are all in this together.  We need to look to the future and move with the times.  We need your support.