Reforestation of Timberlands Board Meeting Minutes
Morgan Lumber Company
Red Oak, Virginia
September 14, 2006
Ken Morgan welcomed the Board to Morgan Lumber Company’s facility. Members present: Chair-Ann Duff, Ken Morgan, Grant Cosner, Earl Pickett, Charles Rose, Cliff Somerville, James Kuykendall, and Mark Martin. Also attending from the Department of Forestry John Carroll, David Snyder, Greg Winston, Brad Williams, Ron Jenkins, Todd Groh, Dean Cumbia.
Ann Duff reminded the group of the Sherman Anti-Trust Act, which prohibits the discussion of prices and markets.
The minutes of the April 13, 2006 meeting were reviewed and approved.
John Carroll, Deputy State Forester presented the Virginia Department of Forestry update. VDOF faired well in General Assembly. Funding for potential State Forests in Sussex County and Washington County was not approved by the General Assembly. State Forests take lands off the tax rolls, but State Forests return 25% of timber sale revenues to the localities. The General Assembly approved funding for eight DOF water quality specialists. These positions are in the process of being filled. Three positions in be in SW Virginia, two in Salem, and one in each of the other DOF regions. DOF also received money for equipment replacement. This year, the General Assembly added funding to come closer to the full match for the forest products tax.
Water Quality Improvement Funds from the Dept. of Conservation and Recreation (DCR) has resulted in a cost share program for loggers -$250,000. Mr. Winston reported that 13 loggers in southside Virginia have participated so far. Logger must be Sharp Logger certified and the practices must be applied in watersheds of streams that are classified as impaired by DEQ. Funds can be used to cost share the purchase of temporary bridges, with a maximum of $4000 per logger. More funds may be available from DCR.
VDOF Nurseries: Hail storm at the Augusta Nursery this summer heavily damaged the one and two year white pine seedlings. The two year crop is considered a total loss. DOF has located 150,000 seedlings from Missouri (grown from Virginia seed) that will be available for landowners, with a focus on timberland tracts. One year seedlings were damaged, but not as severely. Hardwood seedlings were less severely affected. Financial loss will be approximately $300,000.
Loblolly seedling crop looks good. For the first time, DOF has separated seed from the top ten producing families, for additional $10 per thousand. Jamestown 2007 cherrybark oak will be available (two year seedlings/25,000 supply). The seedlings were grown from seed collected on Jamestown Island. These will be available for purchase through the seedling catalog in quantities of five. Some will be presented to legislators. Cherrybark oak is highly desirable tree, native to eastern Virginia.
Mr. Morgan asked about the supply of shortleaf pine. There will be a good supply of seedlings, but will likely sell out. VDOF is working on new shortleaf pine seed orchards. Mr. Pickett reported good success with shortleaf pine planting this season and better durability to storm conditions. Mr. Morgan reported that shortleaf pine produces a superior decking board.
VDOF is updating the “State of the Forest” publication and the “Virginia’s Forest, Our Commonwealth,” which contains economic information. A small summary brochure will also be available. There have been changes in five years since the last report. The Secretary of Forestry and Agriculture would like third party updated information as well. Ms. Duff complimented the Department’s new publications.
Mr. Groh reported that the Logger Flier, which describes the Products Tax, has been published. Ms. Duff asked if members could get a supply of these to distribute to their wood suppliers from out of state. They have been distributed to VDOF personnel for distribution to loggers. Mr. Morgan asked if there could be a check off on the notification form that would designate out of state operations. Mr. Rose suggested that the information be sent to consulting foresters to be used in timber sale fliers. Ms. Duff suggested that information be presenting to Society of American Foresters. Mr. Pickett suggested distribution to smaller sawmills. Ms. Duff suggested another mailing to all in the industry (approximately three years since this was done). Mr. Morgan is concerned about unfair competition and would like to see more pressure and enforcement of the law. John Carroll suggested speaking with a higher level person in the Tax Department to increase awareness and priority of the tax collection. Ms. Duff suggested a conversation with Carl Garrison, perhaps the Secretary, and then to approach the Tax Department.
Mr. Groh distributed a draft revision of the tax form. Mr. Groh and Mr. Cumbia recently met with Tax Department representative regarding these forms. The Form 1034 draft will require only entry of information once, not twice as the current from requires. The form is being proposed in an MS Excel spreadsheet and a hardcopy format, so that mathematical calculations will be done automatically for those with MS Excel capabilities and it can also be completed manually for those without MS Excel capabilities. Plans call for the form to be piloted with 15 – 20 users initially. Ms. Duff offered her company to test. Mr. Rose suggested a revision as well in the instructions for the form. Mr. Martin questioned the status of chips and when they are taxed.
Mr. Groh reviewed the 2005-06 RT program accomplishments. 48,575 acres were cost shared in the 2005-06 state fiscal year. Mr. Morgan questioned whether any Virginia Pine is being planted and why. John Carroll and Dean Cumbia responded that Virginia pine is sometimes the best suited species for a site, and has been planted under the RT Program.
The Forest Product Tax revenue is up again this year by approximately $80,000. Mr. Groh reviewed the 2005-2006 financial report and the projected budget for 2006-2007.
Mr. Jenkins indicated that projected costs for personnel services may not be as high as projected, which would mean more funds available for cost share. This would be positive for landowner incentive funds.
Mr. Groh shared interim project sign-ups for the 2006-07 season. Approximately 15,791 acres have been signed up to date, primarily release projects occurring in August and September.
Mr. Groh described the release program and spray contracts. A specific contract for white pine was conducted this year in southwest Virginia. Costs for this work were significantly higher this year. The cost share rate for white pine release was adjusted to help with this cost increase. Mr. Cumbia explained that a pilot aerial spray program was conducted in southeast Virginia, in which most of the operational work is done by the contractor.
The Board broke for lunch at a local restaurant. Ms. Duff expressed appreciation to Mr. Morgan for providing lunch.
Mr. Groh reviewed the new requirement for 80% planting quality to receive cost share, which will be implemented in the spring of 2007.
Mr. Cumbia distributed an updated copy of the RT code. Administrative changes in the code were made to reflect the change of the Department from the Department of Conservation and Recreation.
Mr. Groh discussed an issue paper from Regional Forester Ed Zimmer regarding BMP compliance and RT cost share. Mr. Kuykendall and Ms. Duff discussed the issue of full BMP compliance. Efforts to implement BMPs have increased. One hundred percent compliance is difficult standard. Mr. Cosner shared that the DOF inspections in place are currently checking these. Communication with the landowner is important if there are problems. Common sense and planning are keys here.
Mr. Groh discussed the white pine damage at the Augusta Nursery, and potential increase in RT cost share for planting white pine. Mr. Martin made a motion to increase white pine cost share for a two year period, due to the seedling failure. Mr. Groh brought up the fact that the code states that rates should only change once per fiscal year. Mr. Carroll suggested consultation with the Attorney General’s office regarding a mid-year change in cost share rate due to the white pine damage. Costs will be higher, perhaps double or triple, if landowners must get seedlings from commercial nurseries. Mr. Morgan stated that this would help to mitigate the catastrophe. The motion passed unanimously
Ms. Duff asked the current status with the Forest Council regarding revising the Code for updating and simplifying. Next meeting of the Council is October 26. Ms. Duff suggested that this be put on the agenda of that meeting. This was withdrawn. Mr. Morgan offered that the Virginia Forest Products Association would likely be reluctant to open the code. Ms. Duff suggested the continuation of the current information campaign, simplification of the form, etc. Next step would be to approach the Tax Dept. regarding better compliance and enforcement.
The next meeting will be March 22 at either the Appomattox-Buckingham State Forest or Cumberland State Forest, with a focus on current forest research. Mr. Morgan hosted a tour for the Board of Morgan Lumber Company operations, including the pine shaving and planer mill operations. The Board was very appreciative to Mr. Morgan for his hospitality.
Respectfully Submitted by John Carroll, Deputy State Forester
Last modified: Friday, 07-Mar-2008 19:13:51 UTC