Forest Management Alternatives for Private Landowners Forest management can be profitable if you decide how much money you can afford to (1) put in place the forestry practices need- invest, don't overlook the tax benefits and ed to meet your forest management goals; cost-share programs available to you. You (2) seek and follow the advice of a profes- may be able to afford more than you think. sional forester; (3) take advantage of tax Provisions to help you pay for or recover incentives and financial assistance programs; your costs include: investment tax credit for (4) use the proper marketing methods; and reforestation, the amortization recovery of (5) maintain good business records to guide reforestation costs, capital gains tax treatment, you in making financial decisions. depletion deduction, and cost-share programs. This publication will explain many of the forestry alternatives available to you. A Land-Use Considerations forester can help you choose the forestry practices best suited to your timberlands, but What is your primary ownership objective ­ you must make the business and financial to produce maximum income, improve decisions. Your Extension office has other wildlife habitat, increase recreational oppor- tunities, or all three? You can produce tim- publications that also may help you. Extension ber and still have wildlife and recreation, Publication 1250 Forestry Terms for Forest but you may not have all three uses on the Landowners will help you understand many same acre during certain times in the pro- of the forestry terms used in this publication. duction cycle. The management alternatives you choose will enhance some uses more Why Do You Need than others, depending on the method and Alternatives? intensity with which you apply them. If your ownership acreage is small, you may Forestry sometimes requires a long-term have to decide which forestry practice is best commitment of interest and money. Before suited to your primary ownership goal. The you make such a commitment, you should location and size of your forestland may consider your ownership goals. Why do influence which practices you choose. For you own timberland, and what are your example, the use of large equipment may be short- and long-term goals for these lands? too costly for small, inaccessible tracts of land. How interested are you in learning about forestry practices? Do you have the time and energy to take an active role in management? Management Plan Are your children interested in the land? A management plan is a thorough plan of cultural treatments during the life of a tim- Economic Considerations ber stand. It manages the existing stand as well as prepares for the next crop. Following Some forestry practices require heavy a management plan can reduce the cost of equipment or much labor and may be too good forestry because you can choose prac- costly for some landowners. You may be tices that fit your ownership goals, timber- able to achieve the same end result for less land conditions, and pocketbook without money by using another method. As you reducing timber production. Many landowners harvest their timber without fire in pine stands and tree injection before the final crop prior planning as it matures. The result may be a costly is harvested. If you do not remove competing vegetation clean-up before a new crop can be established. If you are before the final harvest, you may be forced to use expen- caught in this situation, you have only two choices: sive mechanical or chemical site preparation practices. spend a lot of money for mechanical site preparation The value of the seed tree may be more than the cost and tree planting, or do nothing. If you do nothing, you of artificial regeneration. You may lose several seed trees may end up with a low-quality, low-value forest. to lightning, wind, and insects before the new crop is There is no rigid set of forestry practices for every established and the seed trees are harvested. In such landowner to follow. A consultant can help you develop cases, you may be better off selling the seed trees and a management program especially for your timberlands. using the money to prepare the site for planting. Good Describe the management program you choose in a seed crops come every 2 to 5 years, so competing vege- written management plan that outlines the alternatives, tation must be controlled before the final harvest, and describes the current conditions and needs of your tim- possibly re-treated after the seed trees are released. This ber, provides a timetable for prescribed practices, and will increase the chances for successful seed germination estimates the costs and returns for anticipated products and seedling survival when a good seed year arrives. during the production period (called rotation length). Your ownership goals will determine the type and inten- Shelterwood System sity of prescribed management practices, the desired tree species and product, and the time, money, and protec- The shelterwood system is a natural regeneration sys- tion needed. tem in which a new crop is established under the protec- tion of 18 to 40 overstory trees. The overstory trees are removed in a series of two or more harvest cuts. The last Harvesting and Regeneration harvest removes the shelterwood after the new crop is Alternatives well established. During the preparatory thinnings, trees of sawtimber size are chosen, marked, and cut to favor A forester refers to the methods used to harvest and the better, dominant seed-producing trees that will shel- regenerate a forest stand as silvicultural systems. A pri- ter the new crop. vate landowner refers to these harvesting and regenera- tion methods as management alternatives. A silvicultur- The shelterwood system is the most flexible natural al system is a planned program to establish a new crop regeneration system because you have many opportuni- of trees and enhance their growth. ties to market the old stand and regenerate the new crop. Trees can be removed in several thinnings over Do not think of harvesting and regeneration as sepa- time, depending upon regeneration and market condi- rate practices. The method used to harvest the final crop tions. The shelterwood trees must have enough volume plays an important part in starting a new crop. The final to make logging economical. If market conditions are harvest is not only the end of a production period, but bad, the growth rate and volume of the seed trees are also the beginning of a new production period. Do not sufficient to justify carrying them for many years. There confuse a final harvest with selective thinnings and should be enough seed distributed across a stand to improvement cuts, which are intermediate harvests. Inter- assure rapid regeneration. Since the new crop is estab- mediate harvests are used with all management systems lished under the old crop, there is no delay between the to improve the spacing and growth rate of crop trees. final harvest and the start of the new crop. In fact, the The practices for harvesting and regenerating timber new crop may be several years old before the high-value stands are classified according to the type of harvest cut- shelterwood trees are harvested. ting used. This includes artificial and natural regeneration. Single-Tree and Group Selection System Seed-tree System The selection system is a natural regeneration system in Mature trees are harvested in one operation, leaving 4 to which individual trees or small groups of trees are har- 12 dominant, seed-producing trees per acre. Seed trees vested to create small openings with enough sunlight to should have well-developed crowns and be good seed allow seed germination or root sprout development. producers. If you select seed trees several years before Group selection is actually clearcutting on small areas of the final harvest, you can prepare them during thinning no more than 1 or 2 acres. operations for seed production by giving them more The selection system can be used for pines or hard- growing space for crown development. woods. With the help of a forester, it can be a good alter- The seed-tree system is used for light-seeded species native for you because frequent thinnings can provide such as pine and ash. Prepare the site by uncovering bare periodic income and the cost of natural regeneration is soil and removing competing vegetation. You can sub- relatively low. The major disadvantage is that harvest stantially reduce regeneration costs by using prescribed volumes per acre may be low, which will increase log- ging costs. Improper use of the selection system can lead cuts the larger, quality trees and leaves the small, slow- to "high grading." High grading is the removal of the growing trees. Stands that are high graded several times most commercially valuable trees, leaving trees of poor will eventually have to be clearcut because only the condition and quality. Quality seed trees must be left in poorest trees are left. openings or around the edges to provide seed sprouts while the poorest quality trees should be removed to Site Preparation Alternatives provide space for the new crop. Site preparation can be the most expensive practice in Clearcutting System any harvesting and regeneration system. Site prepara- tion costs may tell you whether or not you can afford to Clearcutting is an even-aged silvicultural system in continue in forestry. With proper planning and a good which the old crop is completely harvested (cleared) at management program, you can reduce regeneration one time from a large area (generally more than a few costs by using timber stand improvement practices now. acres). Regeneration of pine stands is often done "artifi- For example, prescribed burning and cull tree removal cially" by planting or seeding. Natural seeding is possible before the harvest of a pine stand may mean you need from seed produced by trees around the clearing or seed no site preparation after a final harvest. The site would stored in the duff-litter layer on the forest floor. Hard- be ready to receive natural seeding or planted seedlings. wood stands regenerate naturally from seed and sprouts. In hardwood stands, cull trees can be removed to pre- A few hardwood species can be planted successfully, but pare for natural regeneration after a final harvest. (See they require intensive cultivation for many years. chart on next page.) Clearcutting is a valid management practice for species that require full sunlight for seed germination, sprout development, or seedling survival, such as south- Guidelines to Help Sell Your Timber ern pines, yellow poplar, oaks, and most commercially 1. Get help from a professional forester in preparing a important hardwoods. It is the only option in stands that timber sale. do not have enough of the right species for natural 2. Learn about market conditions, measurement units, regeneration. Clearcutting often needs expensive site and prices. preparation practices, but when properly used, it has 3. Follow a timber marketing procedure; don't merely several advantages over other silvicultural systems. sell your timber. Large harvest volumes reduce logging costs and 4. Know how much timber you have and where it is located. increase the landowner's income from a sale. Clearcutting followed by chemical or mechanical site 5. Bank "on the stump" until market conditions and preparation increases seedling survival and early prices are satisfactory. growth for timely, successful regeneration of the new 6. Obtain the best price by advertising for competitive bids. crop. Planting ensures the proper spacing for complete 7. Improve the condition of your timberlands with use of the growing space and improves the growth rate each harvest. of individual trees. 8. Maintain good records of timber sale volumes, Some landowners clearcut their timber because they incomes, and costs. do not know about other choices. After a clearcut you 9. Use both a forester and an attorney in drafting a have two choices: (1) spend a lot of money to prepare timber sale agreement or contract. the site and replant, or (2) do nothing. Clearcutting is an 10. Check your tax situation before you make a timber sale. alternative for a private landowner only if you can afford the cost of site preparation and planting or seeding, and if you are willing to wait 12 to 15 years for the next income. Financial Assistance Alternatives Site preparation costs can be reduced or eliminated Two cost-sharing incentive programs that will pay up to if timber stand improvement practices such as pre- 50 percent of the cost of approved forestry practices such scribed burning and cull tree removal are used before as site preparation, tree planting, timber stand improve- clearcutting. If site preparation costs are kept low, the ment practices, and practices for natural regeneration cost of tree planting or direct seeding are reasonable. are the Forest Resource Development Program (FRDP) However, the proper use of selective thinning and other and the Forest Incentive Program (FIP). Contact your timber stand improvement practices can eliminate the local Mississippi Forestry Commission, Farm Services need for clearcutting in some forest stands. Agency, or Natural Resources Conservation Service office for more information about these programs. Diameter Limit/High Grading Diameter limit cutting, or high grading, is the harvesting Tax Alternatives of all trees larger than a certain diameter. Diameter limit You may be able to recover some of your site prepara- tion and reforestation costs through special federal and Mississippi taxpayers who establish a new forest on state tax treatment. Private landowners who are planting Mississippi land. The credit is for the costs of site prepa- trees for commercial timber production may deduct up ration and reforestation. You can take this credit in addi- to $10,000 per year in such costs. All costs over $10,000 tion to the federal deductions on the same practices. per year are amortized (deducted over time according to This credit allows you to reduce your Mississippi taxes a set schedule). You can recover the costs of both artifi- by up to 50 percent of the cost of approved practices. cial regeneration (planting seedlings) and natural regen- The Mississippi tax credit program has a lifetime limit of eration through the special tax treatment. $10,000 per taxpayer. In addition, several federal cost-share programs and To find publications on the federal and state tax pro- one state program are available. These programs share grams for reforestation, contact your local Extension the cost of site preparation with the government. Apply office or visit http://msucares.com/forestry/ and click for these programs through your local Mississippi on Timber Taxation. You can learn the basics of timber Forestry Commission office or the local Natural taxation by attending a Timber Tax Fundamentals Short Resource Conservation Service. Course. Check with the local Extension office to find a The state of Mississippi has a special tax credit for short course nearby or to request more information. Site Preparation Alternatives Site Preparation Description-Application Relative Cost Practice 3- to 5-year intervals in pine stands to reduce wildfire hazard and kill Prescribed fire small, undesirable hardwoods; for site cleanup following logging and very low mechanical site preparation. Usually applied in winter. Tree injection Herbicides injected into undesirable trees through a cut surface on trunk. Applied in late summer to mid-winter. low Herbicide pellets Used in pine stands to kill undesirable hardwoods and on pine sites and granules for site preparation prior to planting or seeding. medium Herbicide sprays Applied from the air and from the ground for site preparation of pine sites. Basal sprays used on individual hardwood stems for pine medium release. Non-selective herbicides present a drift hazard. A large, rolling drum pulled by a dozer. The heavy drum has sharp Mechanical chopping blades for uprooting, cutting, and compacting woody vegetation. medium Can be used on relatively steep slopes with minimum soil disturbance. Disking Use on pine sites where woody vegetation is small and soil will not erode. Hardwood plantations are disked for several years after planting. medium Used to remove a large number of undesirable trees too large for Shearing and KG blading drum chopping. Shearing blades are angled or V-shaped with very high toothed edges and have a "stinger" for splitting large trees. Usually follows shearing to remove large roots and debris. Root raking and piling Considerable topsoil ends up in windrows, and soil between the windrows is compacted from repeated trips by the heavy dozer. medium Should not be used on steep slopes and erodible soils. Prepared by Thomas A. Monaghan, Ph.D., retired Extension Forestry Leader, and Andrew J. Londo, Ph.D., Associate Extension Professor and Extension Forestry Coordinator, Mississippi State University Extension Service. Mississippi State University does not discriminate on the basis of race, color, religion, national origin, sex, sexual orientation or group affiliation, age, disability, or veteran status. Publication 1337 Extension Service of Mississippi State University, cooperating with U.S. Department of Agriculture. Published in furtherance of Acts of Congress, May 8 and June 30, 1914. VANCE H. WATSON, Interim Director (POD 10/05)