Forests in the Delaware BasinOctober 22, 2014

Pinchot Institute for Conservation

“He was more than a forester, he was the father of American conservation. . . .It is far

more fitting and proper, rather than merely honor what he [Gifford Pinchot] did, to

dedicate this Institute to active work today. . .because we are reaching the limits of

our fundamental needs of water to drink, of fresh air to breathe, of open space to

enjoy, of abundant sources of energy to make life easier.” – John F. Kennedy, 1963

• Dedicated in 1963 at Grey Towers National Historic Site, Milford, PA

• Forges science-based & collaborative solutions to natural resource problems

• Serving the greatest good of the greatest number in the long run

• Non-profit and non-partisan conservation thought, policy, & action

• Loss and fragmentation

• Lack of regeneration• Invasive plants• Pests and disease• Severe weather & fire• Shifting species ranges

Threats to Forests

The U.S. Deforestation Crisis

• The U.S. is losing ~4 acres of forest and open space per minute. Mostly from family owned lands.

• Between 1997 – 2050 the U.S. is expected to lose a forested area about the size of Maine.

• Population & development pressures increasing.

Source: Smith et al., 2009; Tidwell, 2013.

Growth in the Upper Basin

Dr. Claire Jantz, Shippensburg University

Private Forest Trends

Source:

Discussion CasePocono – Kittattiny Cluster

Parcel Sizes (Pocono-Kittatinny Cluster)

Private Forest Trends

Timber

Hunting

Ownership

Solitude

Private Forest Trends

• 50% of family lands are owned by people > 65 years. 80% are owned by people > 55.

• We are in the midst of the largest intergenerational land transfer the U.S. has ever seen. • Implications for carbon?

• Health care costs will be of ever increasing importance in the decisions of these families.• (more on this later)

Source: Butler, 2014; Mater, 2011.

Forest Income Opportunities

• Commercial Development $$$• Gas Leases/Royalties $$($)• Partition Sale/Subdivide $$• Logging $$• Hunting Leases/Club $• Forest Stewardship $• Conservation Incentives $

Type$/Acre @ 80 yearsNortheast PA

Softwood $552

Black Cherry $4,876

Oak $479

Northern HW $1,237

Misc. HW $782

Penn State Coop. Extension (2008)

Timber Values

• 25% of family landowners have commercially harvested trees, but:

– ~10% have a written forest management plan,

– < 20% are receiving advice from natural resource professionals,

– ~4% participate in cost-share programs,

– < 2% have a conservation easement,

– ~1% have certified their forest, and

– Very few have a plan for their estate that includes care of their forest.

Source: Butler, 2014.

Private Forest Trends

Private Forest Trends

n = 450 pairs of current and next gen landowners.

• 15% - 45% of family landowners stated they will likely accelerate timber harvests to pay for medical expenses.

Source: Mater, 2011.

Private Forest Trends

Acquisitions

Permanent Easements (Purchased)

Permanent Easements (Bargain Sales)

Permanent Easements (Donated – Pay for Associated

Costs)

Term Easements, Contracts for Annual Payments or NPV Lump Payments,

Farmland Retirement, CREP, etc

Incentives for Stewardship Plans, Forest Management Practices, Agricultural BMPs

Education, Estate Planning Assistance, Income Diversification / Marketing Local Forest Products (incl. carbon*), Tax Credits/Preferential Assessment*, etc

CO

ST

# LANDOWNERS PARTICIPATING

TIM

E TO

AC

HIE

VE

PermanentNon-permanent

Options for Protecting Forests

Policy/Regulations:

Options for Protecting Forests

Federal Cost-Share Programs

• Conservation and management plans

• Financial assistance

• Incentives for conservation

Federal Cost-Share Programs

• Proposal being considered now for entire Delaware Basin

• New NRCS $

• EQIP, ACEP (incl. WRP), ??HFRP??

Delaware River Basin• Upper Basin: ~4,500 mi2

NYC

PHL

NY

NJ

PA

DE

• Maintain and improve forest cover• Educate water users and public• Capitalize fund to ensure long-term

sustainable funding

Common Waters Fund Goals

Common Waters Fund ActivitiesForest protection & management in priority areas

Forest Stewardship Plans

• Added to existing plan standards

– Boosted riparian area, road access system components

– Required more rigorous stand inventory

– 10-year contract

Common Waters Fund Activities

“In working with my family in this effort, I have an opportunity to be a leader in saving and preserving the forest that is so essential to us, our children, and grandchildren. The Common Waters Fund’s assistance with the Stewardship Plan has been a significant driver in making this happen.”— Gary Carr

Forest Management Practices

• Offered suite of practices:

– Tree planting and regeneration

– Riparian buffers and streambank re-vegetation

– Understory vegetation management

– Deer exclusion

– Stand improvement (TSI/FSI)

– Soil stabilization BMPs on problematic roads & trails

– 10-year contract

Conservation Easements

• Costs associated with placing an easement on a property (grants up to $25,000)

– HUGE NEED!! BARRIER ALERT!!

• Eligibility

– 501(c)3 land trusts and conservancies

– Minimum 25 acres

– Must allow sustainable forest management

Training workshops– ***Regional land-use planning & capacity-building***– Watershed stewardship for landowners and managers

Common Waters Fund Activities

Acquisitions

Permanent Easements (Purchased)

Permanent Easements (Bargain Sales)

Permanent Easements (Donated – Pay for Associated

Costs)

Term Easements, Contracts for Annual Payments or NPV Lump Payments,

Farmland Retirement, CREP, etc

Incentives for Stewardship Plans, Forest Management Practices, Agricultural BMPs

Education, Estate Planning Assistance, Income Diversification/Marketing Local Forest Products (incl. carbon), Tax Credits/Preferential Assessment*, etc

CO

ST

# LANDOWNERS PARTICIPATING

TIM

E TO

AC

HIE

VE

PermanentNon-permanent

Options for Protecting Forests

Policy/Regulations:

Education, Outreach, Marketing Assistance

If they don’t know about it, they definitely won’t do it!

• 25% of family landowners have commercially harvested trees, but:

– ~10% have a written forest management plan,

– < 20% are receiving advice from natural resource professionals,

– ~4% participate in cost-share programs,

– < 2% have a conservation easement,

– ~1% have certified their forest, and

– Very few have a plan for their estate that includes care of their forest.

Source: Butler, 2014.

Private Forest Trends

Education, Outreach, Marketing Assistance

If they don’t know about it, they definitely won’t do it!

• Estate Planning

• Without proper planning, estate taxes may force landowners to split up and sell off the farm to pay estate taxes.

Education, Outreach, Marketing Assistance

“Offspring Study” Interview Findings• Across the U.S. rural residents pay more than 40%

of health care expenses out-of-pocket.

• In OR, WA, PA, and WI:• Up to 42% of family landowners are paying at least $5,000 out-of-

pocket.• Up to 95% of family landowners do not have long-term care

insurance. Large expense and possibly a large driver.

• Next generation is interested in Ecosystem Services Markets, particularly carbon.

Source: HHS, 2010; Mater, 2011.

Can we turn health care from a conservation liability to a conservation opportunity?

Design and test a “carbon for health care” program to monetize family landowner conservation assets to help address health care expenses.

Acquisitions

Permanent Easements (Purchased)

Permanent Easements (Bargain Sales)

Permanent Easements (Donated – Pay for Associated

Costs)

Term Easements, Contracts for Annual Payments or NPV Lump Payments,

Farmland Retirement, CREP, etc

Incentives for Stewardship Plans, Forest Management Practices, Agricultural BMPs

Education, Estate Planning Assistance, Income Diversification/Marketing Local Forest Products (incl. carbon), Tax Credits/Preferential Assessment*, etc

CO

ST

# LANDOWNERS PARTICIPATING

TIM

E TO

AC

HIE

VE

PermanentNon-permanent

Options for Protecting Forests

Policy/Regulations:

A COMPELLING NEW MODEL FOR CONSERVING FORESTS

• Long-term forest conservation

• Establishes partnerships with key landowners to improve forest conditions

• Maintains traditional uses while improving ecosystem services – carbon, water, wildlife

• Generates ongoing revenue stream to landowners and helps TNC forest management program

WORKING WOODLANDS – HOW IT WORKS

In exchange for a long-term conservation agreement, TNC provides a landowner – at no cost – with:

• High quality forest inventory and plan

• FSC certification under TNC group certificate

• Access to highest quality markets for carbon credits (voluntary and compliance)

• Ongoing technical support from TNC forest management experts

• Potential tax benefits

Maintain working forest landscapes for the production of high quality ecologic and economic values.

LONG-TERMFOREST PROTECTION

• Working forest conservation easements• Working forest certification agreements

CERTIFIED FOREST MANAGEMENT

• Forest inventory • 10 yr. Assessment and plan• FSC certification

ECOSYSTEM VALUEMONETIZATION

• IFM + AC carbon offsets• Water quality trading• Habitat mitigation

Landowner Benefits

• No out-of-pocket costs

• Full forest + carbon inventory and assessment

• 10-year FSC forest management plan

• 10-year enrollment in FSC certification

• 100% of FSC-certified wood product revenues

• 50%+ of annual high quality forest carbon revenues

• Potential income tax deduction for easement donation

• Network of top-quality service providers

• Legacy

• Plan implementation assistance

PA Forest Landowner Segments

RISK

EASE

SOCIALCLUBS

FORESTPRODUCTSFIRMS

TIMOS

LANDTRUSTS

MUNICIPALITIES & AUTHORITIES

FAMILYFORESTS

Acquisitions

Permanent Easements (Purchased)

Permanent Easements (Bargain Sales)

Permanent Easements (Donated – Pay for Associated

Costs)

Term Easements, Contracts for Annual Payments or NPV Lump Payments,

Farmland Retirement, CREP, etc

Incentives for Stewardship Plans, Forest Management Practices, Agricultural BMPs

Education, Estate Planning Assistance, Income Diversification / Marketing Local Forest Products (incl. carbon*), Tax Credits/Preferential Assessment*, etc

CO

ST

# LANDOWNERS PARTICIPATING

TIM

E TO

AC

HIE

VE

PermanentNon-permanent

Options for Protecting Forests

Policy/Regulations:

Challenges

• “Making the case” for investment in existingforests

• Measuring success

– Connecting investments to results

Ernst, Caryn. 2004. Protecting the Source. Land Conservation and the Future of America’s Drinking Water. The Trust for Public Land and the American Water Works Association. San Francisco, CA.

Challenges

• “Making the case” for investment in existingforests

• Measuring success

• Nature of the problem

– Development: many decisions at local level with major cumulative impacts

Thank You!

Stephanie P. Dalke

202-797-6530

spdalke@pinchot.org

Will Price

301-943-5100

willprice@pinchot.orgwww.commonwatersfund.org