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CAPITAL IDEAS -- LIVE!
SEPTEMBER 2011
News Conference for Forest Owners
Sponsored by the Alabama Forest Owners' Association, Inc.
This Conference was recorded on September 21, 2011
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Hayes D. Brown
starting time: (00:00)
Comment |
Moderator
Hayes D. Brown, attorney and forest owner, will moderate this news
conference. Hayes' email address is
hbrown@hayesbrown.com.
Click Here to View & Hear Prior News Conferences.
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Thomas R. Brickman
(00:24)
Hear Conference
Comment |
Plain Talk about Forestland Investments
Tom Brickman helps people buy, sell and care for rural land through
the companies of
Land Smart
Resources. Tom is a member of the Association of Consulting Foresters, a
Certified General Appraiser, a Registered Forester, and a Real Estate Broker
in the State of Alabama. But the important reason we invited Tom to talk to
us today is his ability to think clearly. Tom is a no nonsense kind of guy
and it shows in a paper he wrote, entitled
Growing Trees For Money.
If you are going to buy forestland to grow timber, print out Tom's paper or
link to it from your iPhone so you will have it handy when looking at
potential purchases.
BRICKMAN' TIPS:
1. Start with land that has productive
soils
2. Avoid steep land
3. Loblolly pine is king
4. Planting trees is better than letting nature do it
5. Timely thinning of trees in a planted forest is critical
6. Before you sell timber . . .
7. Real estate is a big part of your timber investment
Phone: (205) 936-2160
Email:
tbrick@landsmartresources.com
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Dale Rouark
(03:44)
Hear Conference
Comment |
Mere Shelter It Is Not
Dale Rouark is
Regional Sales Manager for
Legacy Quest Outdoors,
LLC, a company founded with "the simple quest to fuel the passion of
every outdoor enthusiast, to involve their families in the outdoors and
support their desire to live a rustic lifestyle." When we saw an ad for
Legacy Quest Outdoors'
Rut Hut in a deer hunter magazine, we immediately thought of the
discussion on shelters we had at our 2011 Annual Meeting at Lakepoint
Resort. We remember one young lady describing the horrible "12' x 12'
windowless box" built by her dad to shelter his family on overnight stays at
their southwest Alabama woodland. He later laughingly told us the "box" cost
$6,000 and the windows required by daughter and wife added another $20,000
to the cost of the project. Legacy Quest Outdoors does not build windowless
boxes.
The Rut Hut "was designed and developed by Zac Guy, the president and
founder of Legacy Quest Outdoors, LLC. It is a turn-key camp that is designed and built for those who
enjoy and spend time in the great outdoors with family, friends, and
business associates. You can fully utilize it on
the 2nd night after delivery and set-up.
Whether you are entertaining clients, showing property, hunting/fishing, or
spending weekends with your family, you’ll be proud to be the owner of the
Rut Hut/complete retreat. The Rut Hut provides a place to meet, eat, and sleep. The
well-appointed interior includes an equipped kitchen, living area, bedroom,
bath, and sleeping loft. There are 2 porches, one of which has a field-stone
fireplace w/stainless steel insert."
Phone: (828) 627-0830
Email:
drouark@legacyquestoutdoors.com
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Dr. Jack Lutz
(07:11)
Hear Conference
Comment |
How Trees Grow
Jack Lutz
is
Principal and Forest Economist
of the
Forest Research Group.
He is also an adjunct faculty member at the forestry schools at the
University of Georgia and the University of Maine. Now we all know that
trees grow each year by adding a cylinder of wood all the way around last
year's wood (growth rings) and they also grow in height. Tree seedlings and
saplings don't add much wood volume each year and the growth of wood volume
in older, mature trees slows until the tree dies. If you try to reconcile
each tree growing in diameter and height with your forester's report that
your 40 acres of trees are growing at a rate of 5 tons per acre per year,
you might become confused. Jack thought that might happen, so he has written
How Trees Grow,
Forest Research Notes, Vol. 8, No. 2, 2Q11, to help us understand tree
growth a little better. He explains how a loblolly pine adds growth in
increments, very small at first with a great spurt of growth from years 6 to
12, and then declining for many years (see Figure 3). Read How Trees Grow
and become familiar with Mean Annual Increment (MAI), Annual
Increment (AI), and Periodic Annual Increment (PAI). You will
dazzle your forest owner friends with your new knowledge and vocabulary.
Phone: (978) 432-1794
Email:
jlutz@forestresearchgroup.com
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Dr. J. Thomas Chesnutt
(10:39)
Hear Conference
Comment |
Highway Signs Promote Agri-Tourism
Tom Chesnutt is a
Tourism Specialist with the
Alabama Cooperative Extension System.
His responsibilities include providing technical assistance to community
leaders, tourism associations, chambers of commerce, convention and visitor
bureaus, and related groups concerning tourism as a method of economic
development. A few weeks ago, Tom alerted AFOA to the passage of the
Agritourism Signage Bill (HB 188) which will be administered by the
Alabama Department of
Agriculture and Industries and the
Alabama Department of
Transportation. The law will allow the placement of highway signs to
alert travelers of nearby businesses such as pumpkin patches, u-pick fruit
orchards, hunting lodges, mountain bike flow trails, etc. To learn more
about agri-tourism, check out the
Alabama
Agritourism Trail Website. If you own a hunting lodge, OHV trail
park, or other ag or forestland tourism related business, we suggest you
become familiar with the process to apply for and post signs for your
business on state or federal highways.
Phone: (334) 844-3517
Email: chesnjt@auburn.edu
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Tom Sauret
(10:29)
Hear Conference
Comment |
Guidance for Mountain Bike Trail Builders
Tom Sauret became the first
Executive Director of the
Southern Off-Road Bicycle Association
(SORBA) in 2000, an organization with more than 4,000 members. Since
then SORBA has merged with the
International Mountain
Bicycling Association (IMBA), based in Boulder, Colorado. AFOA
learned about IMBA when we read an article in The Wall Street Journal,
7/27/11 (Watch
the video and read, down about 7 paragraphs from the end, "At
Oregon's Sandy Ridge, 25,000 visitors a year use a 6.5-mile network of flow
trails constructed since 2009, Bureau of Land Management officials say.
Previously, the undeveloped trail area hosted as few as 500 visitors a
year."). "Trail
Solutions is IMBA's professional fee-based trail consulting program.
We offer trail services that range from trail planning, design, and
construction to trail management, education and volunteer teamwork. ... Our
organization excels at careful and diligent planning and collaboration to
create trail systems that provide high-quality experiences for diverse
visitors, minimize environmental impact and user conflict and require less
maintenance over time. We are experienced with trail master planning, risk
management planning, community collaboration, GPS/GIS mapping and more."
Trail Solutions and
Managing Mountain Biking are two IMBA publications that you will
find useful.
Phone: (770)654-3291
Email: tom@sorba.org
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Dr. John L. Greene
(17:00)
Hear Conference
Comment |
Benefits of Qualifying Forest Management as
Business
John Greene is a
Forest Economist with the
U.S. Forest Service,
Southern Research Station. Each year about this time, John and Dr.
Linda Wang publish Tax
Tips for Forest Landowners, so when we received our copy last
week, we asked John if he would highlight something in the Tax Tips
that he thought might be especially useful to forest owners. He suggested we
discuss the benefits for forest owners to qualify as a "material
participant" in their forest management activities. He said that "a
material participant can fully deduct forest management expenses and
depreciation year-by-year as they occur, but an 'investor' can only
deduct them on Schedule A, as 'miscellaneous itemized deductions' that you
only can take if they are over 2% of your adjusted gross income. Material
participants also can take deductions that investors aren’t even eligible
for, like the section 179 deduction for the cost of equipment and
machinery, and for non-casualty losses." John sent us a 1 page paper
entitled The Passive Loss Rules
which lists 6 IRS "tests," one of which must be met by a landowner to
qualify as a material participant. John said, "Forest owners who do
most of their own work can qualify pretty much every year by using tests 2
and 5. In years that not much work is required, you use test 2, that you
and your spouse do substantially all of the work. In other years you use
test 5, that you qualified under test 2 in at least 5 of the last 10 years."
Phone: (919) 549-4093
Email: johnlgreene@fs.fed.us
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Dr. Scott Enebak
(19:34)
Hear Conference
Comment |
Soil Fumigant Changes May Affect Bareroot Seedling Costs
Scott Enebak
is the
Director of the
Southern Forest Nursery Management Cooperative,
so when we heard that the long expected phase-out of tree nursery soil
fumigant methyl bromide was almost upon us, we went to Scott for the
facts. Methyl bromide is a soil fumigant that nursery managers use to kill
weeds and other pests in nursery beds. Without a good soil fumigant, the
cost of growing bareroot seedlings could increase. We asked Scott about the
current status of methyl bromide and its use in tree nurseries and we asked
what Auburn University's School of Forestry and Wildlife Sciences is doing
to find a replacement for methyl bromide. Will the loss of methyl bromide
raise the cost of bareroot seedlings and push forest owners into planting
more expensive containerized seedlings, or will a replacement product be
found?
"Methyl bromide (MeBr) is an odorless,
colorless gas that has been used as a soil fumigant and structural
fumigant to control pests across a wide range of agricultural sectors
[including tree nurseries which produce bareroot seedlings]. Because
MeBr depletes the stratospheric ozone layer, the amount of MeBr produced
and imported in the U.S. was reduced incrementally until it was phased
out in January 1, 2005...Allowable exemptions to the phaseout include 1)
the Quarantine and Preshipment (QPS) exemption, to eliminate quarantine
pests, and 2) the Critical Use Exemption (CUE), designed for
agricultural users with no technically or economically feasible
alternatives." Source: EPA's
The Phaseout of
Methyl Bromide
"EPA is requiring important new safety measures for soil fumigant
pesticides to increase protections for agricultural workers and
bystanders." Source:
Soil Fumigant Mitigation Factsheet: Implementation Schedule
Phone: (334) 844-1028
Email: enebasa@auburn.edu
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Tim Capps
(23:03)
Hear Conference
Comment |
Timber Connections -
New Photo-Based Marketing Service
Tim Capps is the founder and
developer of
Timber Connections,
a web-based marketing service for forest landowners, consulting foresters
and loggers and timber buyers. Tim says, "We are not consultants, timber buyers or loggers and we do not represent
them. Our main goal is simple: to give landowners the ability to easily
discuss any specific tract of timber with any one in the industry – before
any decisions are made."
From the mission statement of Timber
Connection: There are many variables that affect the price of timber
on any given day. Many of these variables are mostly unknown because there
is no efficient link between buyers and sellers. It is our mission to
provide that link! Real time information is the key. Who needs what - when,
where and how. From the landowner with only a few acres, to the investment
company that controls thousands, there is someone out there that can satisfy
your needs. Join us and get in touch.
"TimberConnections.com gives landowners the ability to give all in the
industry, that first look at a stand of timber without ever leaving their
office, and the easy ability to discuss it with as many as they choose."
"Many of you reading this and having a look around our website, may think,
'I sort of like this concept, but …..' I would respectfully ask that
you please give us the opportunity to respond to the 'buts,' whatever they
may be. I can almost assure you that we have put much thought into your
concerns and I believe that we can answer those concerns to your
satisfaction if given that opportunity."
"If TimberConnections.com is to succeed in its efforts to have a very
positive and broad affect on the way that landowners communicate with the
timber industry, it will be because the landowners stood up and supported
those efforts. We need your comments, thoughts, feedback and especially your
time to really understand what we are all about. Please contact me through
email, the contact button on the website, or simply give me a call. Your
feedback will be greatly appreciated and your help could prove to be a
catalyst that changes the way we do business in this industry – for the
better!"
"Not only that, but maybe you have a tract that you are considering doing
something with in the next few years. Let us help you to be in touch with
all in the industry about that specific tract."
Tim says: "Check out these web tools"
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Example Tract - "Click here to see our main service and how we
show your tract to all in the industry."
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Timber Value Estimate Tool - "Landowners, please, this is only a
tool to give you an IDEA of the value of your timber. There are many
variables that can not possibly be considered here. Please do not use
this tool to try to have confidence in your timber's value."
Phone: (252) 586-0840
Email:
tcapps@timberconnections.com
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