Reforestation of Timberlands Board Meeting Minutes
Morgan Lumber Company
Holiday Lake 4-H Center
March 22, 2007

Ann Duff, Chair, opened the meeting and welcomed the members. Members in attendance were Cliff Sommerville, Jim Kuykendall, Grant Cosner, Earl Pickett, Mark Martin, Ken Morgan, Charles Rose. For the Department of Forestry, Carl Garrison, John Carroll, Ron Jenkins, Todd Groh, Dean Cumbia, Greg Winston, Greg O’Donnell.

Mr. Duff reminded members of the Anti-Trust requirement. Minutes of the September, 2006 meeting were reviewed and approved.

Mr. Garrison reviewed the recent session of the General Assembly. VDOF followed approximately three dozen bills that pertained to forestry.

• Del. Abbitt introduced, and the governor has signed a bill pertaining to the Cumberland and Appomattox-Buckingham State Forests and the requirement to pay the counties 25% of timber sale revenues in lieu of property taxes. Intent of the bill was to divide these funds between general revenue to the county, and money that VDOF will devote to improving recreational opportunities on the State Forests. Projects may include connecting and improving trails.
• A bill that allowed VDOF to make State Forest Hunting stamps available through the internet, through the Department of Game and Inland Fisheries web site passed.
• Sen. Ticer introduced a bill regarding division of funding categories through the Virginia Land Conservation Foundation that was approved. Once general funds in VLCF exceed $10 million, the forestry and agriculture funding categories will be separated.
• A legislative tracker was made available on the VDOF web site.

Mr. Garrison discussed a recent meeting that he had with the Commissioner of the Virginia Department of Taxation. The purpose of the meeting was to address level of participation by producers in paying the tax. VDOF has a list of producers that has been supplied to the Tax Department in the past, but there was difficulty in matching this with those paying the tax. By Code, the Tax Department cannot share the list of forest products taxpayers with the VDOF. VDOF has a new information system that may aid the Tax Department matching the two lists. The Tax Department reports that approximately 215 forest products tax returns are filed each quarter. If names can be identified for entities that did not file, the Tax Department will send a letter to inquire and inform them of the forest products tax. This was a positive meeting and VDOF will follow up with information to the Tax Department.

Mr. Martin suggested sending information to loggers that haul timber outside of Virginia. The SHARP logger and VDOF logger lists may provide information. Ms. Duff suggested building a module into the SHARP logger training program. Mr. Morgan indicated that it is more than border counties. Ms. Duff requested an update of progress from the VDOF at the next meeting. Mr. Rose indicated that good record keeping by his company is important.

Mr. Groh shared information about the tax form revision and simplification. The form is now in an Excel format, in which the taxpayer can enter data. The taxpayer enters the product code, locality, and amount. Tax amount calculations are automated. The protection and reforestation portions of the tax is also automatically calculated.

Mr. Groh discussed the program budget for the 2006-2007 RT year. Several factors have allowed more funds to be allocated for use. This includes allocating escrow funds, lowering the projected shortfall between the Budget Bill and actual collections, and lower VDOF personnel funding from RT. Use of the portion of funding set aside for lands under conservation easements has been light. Mr. Cumbia suggested to continue the practice as an option, but without a special allocation. Mr. Garrison suggested that we continue to track this closely. Mr. Groh reviewed 2006-2007 Regional allocations and amount. The program seems to be covering the needs this year. Mr. Groh reviewed the current level of sign-ups.

Mr. Martin questioned the use of RT for pre-commercial thinning. Mr. Garrison shared that that federal southern pine beetle program is currently covering most of the need.

Mr. Morgan suggested that in an effort be made to encourage shortleaf pine in ice-prone regions and for high quality timber. Landowner education is an element and encouraged the VDOF to increase education in the initial landowner contact. VDOF is making efforts to encourage shortleaf planting. Mr. Cumbia outlined the need for further development in planning for this. Mr. Morgan suggested developing fact sheet and other landowner information. Mr. Garrison and Mr. Jenkins addressed the use of RT funds for educational materials, and indicated that this is an appropriate use of funds. There was discussion about increasing the cost share rate for planting shortleaf pine to encourage more planting. Mr. Rose expressed the issue of fairness of the rate, where loblolly is best suited. Mr. Carroll outlined the relative costs of planting various species, including much higher costs for longleaf and white pine, and a slightly higher cost for shortleaf pine. Mr. Morgan suggested that we need to encourage sustaining a variety of species and what is best for the long term.

Mr. Cumbia suggested that the VDOF examine the total usage of the program this year and setting rates for 2007-2008 that are appropriate. VDOF will communicate these to the Board. Mr. Cumbia and Mr. Carroll suggested the need to increase the RT cost amount devoted to the Tree Improvement Program. RT has traditionally funded approximately 50% of the program, but RT contribution has remained level for several years, while tree improvement cost have increased Mr. Winston offered that planting labor cost may increase The Board agreed to the concept of raising rates based on thorough VDOF analysis.

Mr. Groh reviewed general information regarding other cost share programs available, bioenergy and biomass, as well as collaborative efforts with the Division of Natural Heritage in the longleaf pine restoration.

Ann Duff suggested that the next meeting be held on September 13 in southeast Virginia, in the Waverly area

VDOF Gary Heiser, State Forest Manager, Wayne Bowman, VDOF Research Forester, and Terry Brennen, Appomattox-Buckingham State Forest introduced the State Forest system and led a field trip featuring seed orchards and shortleaf pine.

Last modified: Friday, 07-Mar-2008 19:13:52 UTC