Forestry Cooperatives: What ANREP members need to know E. Sagor 1 , C. Blinn 1 , P. Jakes 2 , M. Rickenbach 3 , K. Zeuli 3 , D. Smith 1 and M. Sisock 3 1 University of Minnesota 2 USDA Forest Service, North Central Research Station 3 University of Wisconsin

Notes to self This presentation worked well at ANREP 2004. 30 minute time slot, including questions. It came out a bit long and had a couple of rough spots but worked well.

This presentation worked well at ANREP 2004. 30 minute time slot, including questions. It came out a bit long and had a couple of rough spots but worked well.

Overview Introduction The 2003 satellite conference About forest landowner cooperatives Opportunity and challenge Relevance to ANREP members Future directions

Introduction

The 2003 satellite conference

About forest landowner cooperatives

Opportunity and challenge

Relevance to ANREP members

Future directions

Introduction Nonindustrial private forests: 60% land & timber Parcelization 9.3 million owners Timber secondary to other values Co-op growth: one more way to reach a large and diverse group?

Nonindustrial private forests:

60% land & timber

Parcelization

9.3 million owners

Timber secondary to other values

Co-op growth: one more way to reach a large and diverse group?

2003 Satellite conference Purposes: Review context and trends in FLC development Help NR and co-op development professionals evaluate possible roles

Purposes:

Review context and trends in FLC development

Help NR and co-op development professionals evaluate possible roles

Satellite conference case studies Blue Ridge Forest Landowner Co-op (VA) Western Upper Peninsula Forest Improvement District (MI) Massachusetts Woodlands Cooperative (MA) Sustainable Woods Cooperative (WI) Family Forest Foundation (WA)

Blue Ridge Forest Landowner Co-op (VA)

Western Upper Peninsula Forest Improvement District (MI)

Massachusetts Woodlands Cooperative (MA)

Sustainable Woods Cooperative (WI)

Family Forest Foundation (WA)

About forest landowner cooperatives Cooperative structures and functions Independent service providers or integrated business? Purposes: wood processing, marketing, equipment sharing, education Currently 7-10 in the US, mostly in Midwest

Cooperative structures and functions

Independent service providers or integrated business?

Purposes: wood processing, marketing, equipment sharing, education

Currently 7-10 in the US, mostly in Midwest

About forest landowner cooperatives Relationship with other landowner programs Technical assistance, cost-share, Extension Cooperation vs. cooperative Cooperative development process Intensive, long term, requires local leadership

Relationship with other landowner programs

Technical assistance, cost-share, Extension

Cooperation vs. cooperative

Cooperative development process

Intensive, long term, requires local leadership

Opportunities for today’s forest landowner co-ops Community connections Access to equipment and labor Reduced-cost certification Advantages of joint processing and/or marketing

Community connections

Access to equipment and labor

Reduced-cost certification

Advantages of joint processing and/or marketing

Challenges for today’s forest landowner co-ops Administration (formation and management) Extremely competitive markets: Business planning Resource management Committed local leadership Capital

Administration (formation and management)

Extremely competitive markets: Business planning

Resource management

Committed local leadership

Capital

Recent success and failure MA Woodlands Cooperative $500,000 grant Sustainable Woods Cooperative closure Most Midwestern cooperatives currently emphasizing education, not market benefits

MA Woodlands Cooperative $500,000 grant

Sustainable Woods Cooperative closure

Most Midwestern cooperatives currently emphasizing education, not market benefits

Recent success and failure THIS SLIDE SEEMED REPETITIVE. NEED TO EXPLAIN WHY IT’S HERE. MA Woodlands Cooperative $500,000 grant Sustainable Woods Cooperative closure Most Midwestern cooperatives currently emphasizing education, not market benefits

THIS SLIDE SEEMED REPETITIVE. NEED TO EXPLAIN WHY IT’S HERE.

MA Woodlands Cooperative $500,000 grant

Sustainable Woods Cooperative closure

Most Midwestern cooperatives currently emphasizing education, not market benefits

Relevance to ANREP members Potential Extension fit But, role is critical Vision and leadership MUST come from members Extension: advise on resource management, make connections, instruct at events, help secure funding, etc.

Potential Extension fit

But, role is critical

Vision and leadership MUST come from members

Extension: advise on resource management, make connections, instruct at events, help secure funding, etc.

On-site evaluation: How will you use conference info? “ I do not see gov't or landowner attitudes changing enough to favor co-ops.” “ Good information on steps to beginning a co-op that may prove beneficial to my clientele.” “ I will be wary of cooperative endeavors.” “ I now have a better understanding of co-ops, so if someone asks me about them, I have a better handle on what is involved and if it is really something they want to do.”

“ I do not see gov't or landowner attitudes changing enough to favor co-ops.”

“ Good information on steps to beginning a co-op that may prove beneficial to my clientele.”

“ I will be wary of cooperative endeavors.”

“ I now have a better understanding of co-ops, so if someone asks me about them, I have a better handle on what is involved and if it is really something they want to do.”

On-site evaluation: Audience barriers to co-op work “No local examples of success.” “Difficulties on propagating distributed benefits to the communities.” “Landowner interest and motivation!!!” “Similar needs in landowners. Most landowners are very independent.” “Lack of a niche market in the South”

“No local examples of success.”

“Difficulties on propagating distributed benefits to the communities.”

“Landowner interest and motivation!!!”

“Similar needs in landowners. Most landowners are very independent.”

“Lack of a niche market in the South”

Possible research questions Strengths and weakness of the F.L.C. model compared to others Will existing groups survive? Do co-op members manage differently? Do co-ops engage new landowners?

Strengths and weakness of the F.L.C. model compared to others

Will existing groups survive?

Do co-op members manage differently?

Do co-ops engage new landowners?

Conference proceedings General Technical Report Conference website: http://www.wisc.edu/uwcc/forestcoops/

General Technical Report

Conference website:

http://www.wisc.edu/uwcc/forestcoops/

Eli Sagor (612) 624-6948 [email_address]

Eli Sagor

(612) 624-6948

[email_address]