Best Management Practices and Timber Harvesting in the Southern US

BMPs are non-regulatory, but:

• Failure to apply voluntary BMPs could lead to mandatory forest practice laws later.
• Help maintain “public license.”

Voluntary BMPs are effectively mandatory in many states because of:

• Forest certification (SFI, SFC, Tree Farm)
• Professional certifications (Georgia master timber harvester)
• Tax incentives programs
• Timber sales on public land
• Water quality laws

SMZs:

• Perennial streams: 50 sq ft. basal area and 50% canopy cover.
• Intermittent streams: 25 sq ft. basal area and 25% canopy cover.

Influencing factors of productivity and cost:

Tree size: bigger trees = higher productivity because of higher volume

Tract size: larger tract = increased productivity = decreased cost. Fixed costs are spread over a larger volume.

Volume/ac: available product is high so more availability for production. Thinning costs increase and clearcutting costs decrease.

Scale of operation: more vehicles and employees does not effect profitability, likely due to product quotas.

Extraction distance: skidding/forwarding/yarding distance – costs increase proportionally with extraction distance until limits of skidder are met…then cost increase dramatically because it forces the loader and other equipment to sit idle waiting on the skidder.

Special constraints: DEF fluid, weather, BMPs, road work, aesthetics

• Regulated at State law, not federal law.
• Employers with 3 or more employees required to buy worker’s compensation in GA.

• Employees injured on the job receive payments for:
  • Reasonable medical expenses
  • Lost wages
  • Vocational rehabilitation and training

How employers buy insurance:

• Purchased through independent agencies.
• Assigned risk pool.
• Self-insure = approval process through state of GA.
• Rates are quoted as actual cost per $100 of payroll.

Premium = Base rate x MOD (experience modifier) x Payroll

Minimizing workers compensation insurance:

• Maintain good safety record = lower premiums.
• Safety training for employees.
• Zero tolerance for unsafe work practices.
• Minimize worker turnover – new workers most likely to be injured.
• Mechanize as much as possible.
• Shop around for best insurance premiums.

Legal document that conveys something of value from one party to another. Provides protection for both buyer and seller.

• Types:
  • Purchase Contract = tangible property changes hand (Timer sale contract, timber deed, wood supply agreement).
  • Service Contract = a service is provided, but no property changes hand (cut and haul contract, tree planting contract).
• Timber sale contract:
  • Gives right to cut standing timber.
  • Ownership of timber passes to buyer when the timber is CUT.
• Timber deed:
  • Transfers title of the timber to the buyer when executed.
  • Must be recorded with register of deeds.
• Importance of timber sale contract:
  • Legal protection.
  • What, when, where, and how of the timber sale.
  • Describes remedies in the event of a dispute.

Designed to ensure competition among sellers to provide consumers lower prices, higher quality, more choices, and greater innovation.

Sherman Anti-trust Act:

• Prohibits “every contract, combination, or conspiracy in restraint of trade”.
• Per se violations (illegal): price fixing, dividing markets, bid rigging.

Types of Agreements:

• Per Se Agreements
• Rule of Reason Agreements:
  • Legality is judged by justification given by lawyers.
  • Courts decide based on the best case.

Federal Trade Act:

• Bans unfair or deceptive acts or practices.

Clayton Act: Mergers and acquisitions.

Price Fixing:

• An agreement among competitors that raises, lowers, or stabilizes prices or terms of competition.

Bid Rigging:

• Coordination among competitors to undermine the process and can be illegal.

Market division or customer allocation:

• Agreements among competitors to divide sales territories or assign customers are almost always illegal.

• Landings: pinch points, danger trees, unstable decks, flying metal objects (saw teeth from slasher saw).
• Harvest area: poor felling techniques, hang-ups, distance between fallers, widow-makers.
• Roads: Sight distance, mixed traffic, road condition, road width.

How has it changed over time? How does it compare to other regions?

• Most Southern loggers produce at least 100 loads.
• Increased from only 2% to more than 50% of companies.
• Southern loggers harvest about 70,000 tons/year whereas Northern loggers harvest 10,000-25,000 tons per year.

How does this compare to other regions?

• Increased by 71% over time to a median of $899,000 and median investment in other regions is less than $250,000.

How does this compare to other regions?

• Feller-buncher, skidder, and loader = 6-8 year.
• Trucks = 10 years.
• Equipment in other regions is older.

• GA and SC = whole tree – feller buncher/grapple skidder.
• WI = Cut-to-length / harvester.
• MN = Whole tree /swing to tree.
• ME = whole tree / swing to tree.

What percentage of loggers use tree-length systems in GA, SC, ME, WI, and MN?

• GA – very few.
• SC – very few.
• ME – 53%.
• WI – 33%.
• MN – 33%.

Loads per week for tree-length system? How does this compare to whole tree systems?

• Tree-length = 81 tons/week.
• Whole tree = 306 tons/week.

How much capital invested in tree-length?

• Less than $250,000.

Are tree-length systems becoming more or less common?

• Less common, mostly used in Northeast.

What percentage of loggers use cut-to-length?

• GA – Practically none.
• SC – practically none.
• ME – 10%.
• WI – Majority.
• MN – less than 20%.

Loads per week for cut-to-length?

• 10 tons/week.

Capital investment for cut-to-length? New vs. used?

• $223,000.

Cut-to-length more or less common?

• More common.

What obstacles discourage adoption of cut-to-length in GA and SC?

• Product specifications of mills.