CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc.

Advocate for the Forest Owner July 2016 Vol. 35, No. 7

www.AFOA.org

Phone: (205) 987-8811

Fax: (205) 987-9824

E-Mail: RLL@AFOA.ORG

P. O. Box 361434

Birmingham, Alabama

35236-1434

CALENDAR OF EVENTS

July

August

September

JULY 2016

July 7 & 14...Senatobia, Mississippi 5:30 - 8:30 PM.

Ties to the Land: Your Family Forest Heritage at Tate

County Extension Office, #1 French’s Alley. Topics

include: Steps to Succession Planning, Goals for Fami-

ly Forests, Heir’s Interest, Legal Considerations, Fi-

nancial Impacts of Ownership Transfers, and more.

Fee: $55; $85 per couple. Call Tara Ferguson at (662)

562-4274.

July 11...Lauderdale County 6 PM. Alabama Forestry

Association Shoals Area Regional Reception at The

River Bottom Grill, 1050 Clayborn Lillies Drive, Flor-

ence. Contact Liz Chambers at (334) 481-2135.

July 11-14...Lee County. Teacher’s Conservation

Workshop for Teachers of All Grades at Auburn Uni-

versity School of Forestry & Wildlife Sciences. The

workshop will focus on forest ecology, management

and products through guest speakers, field trips and

hands-on activities. The goal is to demonstrate the

importance working forests have to the environment

and economy. Teachers pay small fee: ~$75. Forest

owners and forest products companies are urged to

sponsor a teacher -- cost is about $500. Contact

Ashley Smith at (334) 481-2133.

July 11-13...Jackson, Mississippi. Teacher’s Conser-

vation Workshop at Mississippi Ag and Forestry Muse-

um. The workshop will include numerous field trips

including industries, harvesting operations, manage-

ment practices, and hands-on activities. Fee: $50.

Forest owners and forest products companies are

urged to sponsor a teacher. Contact Anna Kendall at

(601) 354-4936.

July 13...Quincy, Florida 8:30 AM - 2 PM ET. Ad-

vanced Forest Site Prep Herbicide Workshop at the

North Florida Research and Education Center, 155

Research Road. Private landowners are encouraged to

attend. CEUs and CFEs are offered as well. Bring your

own lunch. Call Megan at (850) 875-7100.

July 15-17...Jefferson County. Annual World Deer

Expo at Birmingham Jefferson Convention Complex,

2100 Richard Arrington, Jr. Boulevard North, Birming-

ham. The expo will have hunting products, apparel,

outfitters from all over the world, seminars, outdoor

celebrities, kid’s activities, and more. Fee: $10; kids

receive discounted admission. Call Channing Brown at

(205) 678-4141.

July 18...DeKalb County 8 AM. Alabama Certified

Prescribed Burn Manager Re-certification Workshop at

Sand Mountain Research & Extension Center, 13112

Alabama Highway 68, Crossville. Instructor: John

Stivers. Fee: $75. Limited seating. For more info call

John at (334) 253-2139. Attendees must register at:

http://classes.forestry.alabama.gov/cpbmclasses.aspx

Select the Re-Certify option.

July 19...Autauga County 8:30 to Noon. Manage-

ment of Native Warm Season Grasses Workshop at

Grey Rocks Ranch, 1058 County Road 15 S, Selma,

AL 36703. Contact Paula Adams at (334) 365-

5124x101.

July 19-22...DeKalb County. Alabama Certified Pre-

scribed Burn Manager Certification Course at Sand

Mountain Research & Extension Center, 13112 Ala-

bama Highway 68, Crossville. Instructor: John Sti-

vers. Fee: $125. Limited seating. For more info call

John at (334) 253-2139. Attendees must register at:

http://classes.forestry.alabama.gov/cpbmclasses.aspx

Select the Certify option.

July 20…NATIONWIDE 10:00 AM (CT). CAPI-

TAL IDEAS - LIVE! 30-minute Telephone News Con-

ference for Alabama Forest Owners. Listen on your

phone or later on the web. Call AFOA to register:

(205) 987-8811. Locations all for Dinner & Discussion

events the day after the webcast have not yet been

reserved.

July 21...Shelby County 6 PM. Dinner and Discus-

sion at Nino's Italian Restaurant, 2698 Pelham Park-

way, Pelham. Enjoy dinner, listen to AFOA’s July

News Conference, and argue about the issues with

other landowners. Dutch Treat dinner at 6 PM with

30 minute program starting about 6:45 PM. Limited

seating. Walk-ins may not have a seat. To attend,

RSVP AFOA at (205) 987-8811.

July 21...Coosa County 6 PM. Forestry Tax Seminar

at the Coosa County E911 Building, 66 Communica-

tions Drive, Rockford. Presenter: Rick Norris, CPA.

Contact Lori Woodfin at (256) 377-4750.

July 21-22...Athens, Georgia. Introduction to ArcGIS

at Warnell School of Forestry & Natural Resources,

Room 1-201, 1197 S Lumpkin Street. Attendees

should have taken a basic GIS course or have some

familiarity with GIS prior to this course. Fee: $295.

Contact Ingvar Elle at (706) 583-0566.

July 23-25...Jekyll Island, Georgia. Georgia Forestry

Association (GFA) Annual Conference & Forestry Expo

at Jekyll Island Convention Center. Fee: $575; $100

discount if paid by July 8. Call GFA at (478) 992-

8110.

July 26-27...Athens, Georgia. Wildlife Management at

Flinchum’s Phoenix, Whitehall Forest, 650 Phoenix

Drive. This course will focus on wildlife-habitat man-

agement techniques for three primary game species in

the Southeast — white-tailed deer, wild turkey, and

bobwhite quail. Fee: $296; $51 discount if paid by

July 5. Contact Ingvar Elle at (706) 583-0566.

July 28-31...Mobile County. Commodity Producers

Conference at the Renaissance Riverview Plaza Hotel.

The Green tour will include a drone demonstration in

forestry and the latest technology used to help eradi-

cate wild hogs. Fee: Will vary according to registra-

tion selections. Email questions to Casey Earnest at

cearnest@alfafamers.org.

July 31 - August 3...Nebraska City, Nebraska. North-

ern Nut Growers Association Annual Meeting at Lied

Lodge and Conference Center. The conference is open

to all people with an interest in nut trees. Fee: $84.

Contact Grant Glatt at grant_40@juno.com.

July 31 - August 3...Lawrenceburg, Indiana. Annual

Walnut Council Meeting at DoubleTree by Hilton

which is a stone’s throw from Ohio and Kentucky.

The meeting will include field trips, indoor presenta-

tions, question and answer session, and awards ban-

quet. Fee: $175. Contact Liz Jackson at (765) 583-

3501.

AUGUST 2016

August 2-3...Athens, Georgia. Wetlands Ecology &

Management at Flinchum’s Phoenix, Whitehall Forest,

650 Phoenix Road. “The primary goal of this class is

to focus on the relationship between forest manage-

ment and wildlife, fisheries, and wetlands manage-

ment.” Fee: $295; $50 discount if paid by July 12.

Lunch included on day one. Contact Ingvar Elle at

(706) 583-0566.

August 4...Autauga County 12 - 1 PM. Protecting

your Property from Wildfires at 2175 Cobbs Ford

Road, Prattville. Presenter: Brigetta Giles, Autauga

County Forester. Bring a sack lunch. Drinks provided.

Call Mallory Kelley at (334) 361-7273.

August 6...Elmore County 5:30 PM. Wild Game Cook-

Off Finals at the Alabama Wildlife Federation Head-

quarters, 3050 Lanark Road, Millbrook. Attend the

cook-off and enjoy live music, door prizes, youth

activities, and sample wild game recipes. Fee: $35;

Youth 15 and under free. Call the Alabama Wildlife

Federation at 1-800-822-9453.

August 8...Lee County 8 AM. Alabama Certified Pre-

scribed Burn Manager Re-certification Workshop at

Auburn University Forestry & Wildlife Sciences Build-

ing, 602 Duncan Drive, Auburn. Instructor: John

Stivers. Fee: $75. Limited seating. For more info call

John at (334) 253-2139. Attendees must register at:

http://classes.forestry.alabama.gov/cpbmclasses.aspx

Select the Re-Certify option.

August 9-12...Lee County. Alabama Certified Pre-

scribed Burn Manager Certification Course at Auburn

University Forestry & Wildlife Sciences Building, 602

Duncan Drive, Auburn. Instructor: John Stivers. Fee:

$125. Limited seating. For more info call John at

(334) 253-2139. Attendees must register at: http://

classes.forestry.alabama.gov/cpbmclasses.aspx

Select the Certify option.

August 13...Ocean Springs, Mississippi. The Southern

Christmas Tree Conference at Gulf Hills Hotel & Con-

ference Center. This conference is for established

growers and landowners considering growing Christ-

mas trees. Fee: $TBD. Contact Michael Buchart at

(225) 505-6335.

August 19-21...Andersonville, Tennessee. Deer Stew-

ard Module: Habitat Enhancement will be led by Dr.

Craig Harper, University of Tennessee. Topics tenta-

tively include: hack and squirt, girdling, prescribed

burning, seasonal disking, use of herbicides, site

evaluation, and more. If you want to shape and de-

sign a property for deer hunting then do not miss this

learning opportunity. Fee: $550. To register call

QDMA at 1-800-209-3337.

August 22 & 29...Winona, Mississippi 5:30 PM & 6

PM, respectively. Alternative Sources of Forest In-

come Short Course (2 day course) at Montgomery

County Extension Office, 618 Summit Street. Topics

include: Specialty wood products, Recreational leases,

Managing for utility poles, Raking pine straw, Agrofor-

estry, Christmas trees, and more. Fee: $45; $70 per

couple. Call Amy Ware at (662) 283-4133.

August 24-25...Statesboro, Georgia. Increasing Tim-

berland Returns at Bulloch County Ag Center, 151

Langston Chapel Road. This course will help a land-

owner make effective silvicultural and economic deci-

(CALENDAR OF EVENTS CONTINUED ON PAGE 5)

Page 2 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) July 2016

FORESTLAND FOR SALE www.forestland.bz

270 acres in Lamar County near state line and Cutbank

Creek. Mix of hardwood and pine timber, excellent deer

and turkey hunting. $1,100/acre or best reasonable offer.

Call Scott at (662) 889-4241.(098719)

166 acres in Barbour County near Clayton. Features two

ponds, a stream, and lots of natural growth, including 13

year old pines. Great for hunting and fishing. $1,800/

acre. Contact Charles at (334) 303-7773.(038178)

LINDEN LUMBER CLOSES FLOOR-

ING DIVISION. Losing “...market share to

engineered flooring.” Source: woodwork-

ingnetwork.com, 5/19/16.

CLASSIFIED SECTION

Dow-Jones Industrial Average: 18011.07

10-year Treasury yield: 1.741%

Dollar: 106.15 Yen; Euro: $1.1385

Oil: $50.11/barrel

Gold: $1,261.20/troy ounce

Source: The Wall Street Journal, 06/24/16

“THERE’S A SHORTAGE OF SHEL-

TER.

STANDING TIMBER VALUES

Hardwood Pulpwood $ per ton

Oak Sawtimber $ per ton

Alabama 1Q15 1Q16 1Q15 1Q16

North 15.76 16.82 51.12 49.38

South 16.00 14.23 46.67 42.48

Average 15.88 15.53 48.90 45.93

Hardwood Pulpwood — 5,800 lbs./cord

Oak Sawtimber — 17,500 lbs./1000 Board Feet (Doyle)

1st Quarter, 2015 (1Q15) and 1st Quarter, 2016 (1Q16)

from Timber Mart-South, University of Georgia.

For Timber Mart-South subscription details, call

(706) 542-4756 or visit M1j 07/2016

STOCK MARKET REPORT

Company Name 06/15/15 06/15/16

Potlatch (PCH) REIT 35.42 32.93

Rayonier (RYN) REIT 24.91 25.25

Weyerhaeuser Co. (WY) REIT 32.04 28.70

Louisiana Pacific (LPX) 17.56 17.04

WestRock (WRK) N/A 38.37 Stock Market Report courtesy of Howard Sokol, Raymond James Financial Services, Birmingham, Alabama. WestRock 06/15/2015

price was not available since the stock didn’t start trading until 7/15. Plum Creek merged with Weyerhaeuser on February 19, 2016.

LUMBER & SHEATHING PRICES

Source: Random Lengths

MidWeek Market Report 06/17/15 06/15/16

2 x 4 lumber * $296 $320 7/16” Oriented Strand Board ** $208 $280 * 2x4 #2&Btr KD Western S-P-F (mill base price) (per 1000 board feet)

** 7/16” OSB (North Central) (f.o.b. mill prices) (per 1000 square feet)

FOREST FINANCE SIMPLIFIED by

Brooks Mendell (spiral bound, 101 pages,

$35, (770) 725-8447) “is a solid guide to

forest investment and the financial side of

forest management,” says Steve Wilent in

The Forestry Source, 6/16. Wilent quotes

Mendell: “At the end of the day, the ability

to do the math about where capital is spent

or allocated responsibly and getting returns

[is important because] the research shows

— and we know from experience — that

when forest owners and investors have the

opportunity to manage their resources and

generate a reasonable rate of return, they

replant.”

CERTIFIED PUBLIC ACCOUNTANTS

JamisonMoneyFarmer PC Tuscaloosa, AL (205)345-8440 #432 11/15-10/16

Sheldon, Rogers & Bryan, PC Mobile, AL (251)345-1252 0463 06/16-05/17

CONSULTING FORESTER - Member: ACF

C. V. Forestry Services Clayton, AL (334)775-8345 #057 11/15-10/16

Melisa V. Love, RF, ACF Opelika (334)745-7530 #143 07/16-06/17

Joseph E. Rigsby, RF, ACF Georgiana (334)265-8200 #074 11/15-10/16

Larson & McGowin, Inc. Mobile, AL (251)438-4581 #016 02/16-01/17

Leh Bass, RF, ACF Opelika (334)749-0598 0259 06/16-05/17

Eddie Carlson, RF, ACF Montgomery (334)270-1291 #300 10/15-09/16

McKinley & Lanier Forest Res. Tuscaloosa 1-800-247-0041 #055 09/16-08/17

Arthur C. Dyas, RF, ACF Mobile, AL (251)331-4017 #353 05/16-04/17

Gibson Forest Mgmt., Inc. Aliceville, AL (205)373-6168 #207 08/16-07/17

Forestall Company, Inc. Hoover 1-800-844-0904 #007 10/15-09/16

John R. Stivers, RF, ACF, CF AL & GA (334)253-2139 #347 11/15-10/16

Sizemore & Sizemore, Inc. Tallassee, AL (334)283-3611 #062 03/16-02/17

J. Pat Autrey Fort Deposit (334)227-4239 #395 03/16-02/17

F & W Forestry Services LaFayette (334)864-9542 #167 08/16-07/17

M & W Forestry Consultants Ozark, AL (334)432-0467 #468 04/16-03/17

Bear Creek Consulting LLC Grove Hill, AL (251)744-4428 0475 11/15-10/16

Edward F. Travis Co., Inc. Mobile (251)633-8885 0142 04/16-03/17

CONSULTING FORESTER

Stewart Forestry Services, Inc. Decatur, AL (256)350-9721 #225 08/16-07/17

Midsouth Forestry Services, Inc. Gordo, AL 1-888-228-7531 #076 03/16-02/17

Forever Green, Inc. Leeds, AL 1-800-498-5821 #243 07/16-06/17

American Forest Mgmt. Prattville, AL (334)358-2345 #358 07/16-06/17

Southern Forestry Cnslt. Enterprise, AL (334)393-7868 #310 04/16-03/17

Eiland Forestry & Real Estate Trussville (205)655-0191 #097 06/16-05/17

Foster Land Management, LLC Central Ala. (205)826-7741 #437 11/15-10/16

www.ChesnutForestry.com Northeast AL (706)936-0699 #345 11/15-10/16

Lang Forestry Consultants, LLC Selma (334)375-1065 #454 04/16-03/17

Cliff A. Logan & Associates, Inc. Eutaw, AL (205)372-9321 #466 11/15-10/16

CONSULTING FORESTER - continued

Graham Forestry & Appraisal Butler, AL (205)459-2472 #158 04/16-03/17

Richard Crenshaw, RF Greenville, AL (334)382-3826 0473 05/16-04/17

CONSULTING WILDLIFE BIOLOGIST

David Runyan Quail Restoration (770)364-9802 0478 02/16-01/17

INSURANCE

Hunting Lease & Timberland Liability Group Policies

Alabama Forest Owners’ Association (205)987-8811

LAND FOR SALE

Tutt Land Company www.tuttland.com (334)534-1315 #266 02/16-01/17

Carlson Land Services Montgomery (334)270-1291 #300 10/15-09/16

Hudson Hines Real Estate www.hudsonhinesrealestate.com #321 12/15-11/16

AFM Land Sales, LLC Prattville, AL (334)358-2345 #358 07/16-06/17

Southeastern Land Group, Inc. 1-866-751-5263

Farm & Timber Land AL, GA, TN, FL www.selandgroup.com #329 09/16-08/17

Mossy Oak Properties Alabama Land Crafters (334)277-6501 #319 10/15-09/16

John Hall & Co. www.johnhallco.com (334)270-8400 0304 06/16-05/17

National Land Realty NationalLand.com (855)NLR-LAND 0479 08/16-07/17

Eiland Forestry & Real Estate Trussville (205)655-0191 #097 06/16-05/17

Larson & McGowin, Inc. Mobile, AL (251)438-4581 #016 02/16-01/17

Southeastern Realty & Auction Co John Hall (334)534-0525 #459 12/15-11/16

Longleaf Land Co. LLC longleafland.com (334)493-0123 #461 03/16-02/17

Mossy Oak Properties - Logan Land Co. 1-877-377-5263 #465 11/15-10/16

SouthLand Realty North Alabama (256)259-7868 #473 09/15-08/16

Target Auction Company All of 1-800-476-3939

Real Estate Auctions SE www.targetauction.com #273 11/15-10/16

United Country www.alalandforsale.com (251)744-4428 0475 11/15-10/16

McKeithen Land & Realty, LLC (251)974-5656 0416 12/15-11/16

LAND MANAGEMENT SERVICES

Scotch Land Management, LLC Fulton, AL (334)637-2128 #444 10/15-09/16

PINE STRAW

Wanted: Longleaf & Slash / Straw Harvest Prep Services 0480 05/16-04/17

CCS Pine Straw ccspinestraw@yahoo.com (706)527-0732

POND MANAGEMENT

Honey Hole Fisheries Ralph, AL (205)333-3665 #405 07/16-06/17

POSTED SIGNS

Alabama Forest Owners’ Association (205)987-8811

REAL ESTATE APPRAISALS

Larson & McGowin, Inc. Mobile, AL (251)438-4581

Graham Forestry & Appraisal Butler, AL (205)459-2472

TIMBER BUYER

Blue Ox Forestry, Inc. (334)875-5100

IndusTREE Timber, Inc. (334)567-5436

Ronny Wimberley Land & Timber Division 1-877-292-0056

Ideal Timber Company, Inc. 1-888-220-5591

TIMBER SALE ASSISTANCE

TIMBER BUYER LIST for your county. Printed on gummed

labels ready for mailing prospectus. Just tell us the county

in which your timber is located. $15 per county.

MEMBERS ONLY. AFOA , Box 361434, Birmingham, AL 35236

TREE PLANTING EQUIPMENT & SERVICES

Site Preparation & Tree Planting Services.

For a list in your county, call AFOA at (205)987-8811.

TREE SEED FOR SALE

LOUISIANA FOREST SEED CO. (318)443-5026

TREE SEEDLINGS FOR SALE

INTERNATIONAL FOREST COMPANY 1-800-633-4506

TECHNOLOGY THAT GROWS CONTAINER SEEDLINGS

ArborGen, LLC

Selma: 1-800-222-1280 or (334)872-5452

SUPERIOR TREES, INC. Lee, FL (850)971-5159

WHITE CITY NURSERY Autauga Co. (334)365-2488

Pines & Hardwoods for Forestry, Wildlife, Landscapes

Weyerhaeuser Company

Premium Pine and Hardwood Seedlings

1-800-635-0162

Pinecrest Forest Seedling Nursery - Georgia - (229)314-9445

Improved Bareroot Pine Seedling pinecrest1@windstream.net

CLASSIFIED ADVERTISING RATES: First Line $85.00/year.

July 2016 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) Page 3

TERRI SEWELL was the only U.S.

House member from Alabama to vote on

5/25/16 for permanent funding of the Land

and Water Conservation Fund. Source:

American Land Rights Association, 6/16.

The Fund continues to buy more land for

the Federal Government while maintenance

backlogs on federal lands are approaching

$20 billion.

RENEW HUNTING LEASE INSUR-

ANCE COVERAGE BEFORE AUGUST

to get full value from AFOA's group policy

and to prevent the possibility of a hunting

related accident happening without cover-

age. There are still 3,900 members who

have not renewed coverage for 2016-2017.

SUMTER COUNTY PROPERTY TAX

INCREASE will be on the ballot in the

future. The Governor signed HB418 which

will allow a 6 mill tax increase if voters

approve. If you can provide useful details

about ballot date(s), please send the infor-

mation to rll@afoa.org.

STATE FORESTER DISMISSED. At a

special called meeting of the Alabama For-

estry Commission on May 31, 2016, the

Commission voted 4 to 2 to dismiss State

Forester Greg Pate. Source: AFA News-

room, 6/1/16. AFOA has not heard any offi-

cial information as to the reason or reasons

for the dismissal, but we have heard rumors

that Pate may have attempted to encourage

legislation that would have nearly doubled

the 10 cent forestland tax to 19 cents and

also increased stumpage severance taxes.

AFOA wrote about the proposed legislation

on our News webpage back on February 29,

having been led to believe that Senator Trip

Pittman was the instigator of the proposed

tax increases. Whether any of the rumors

are true, our message to applicants for the

State Forester’s job is: NO TAX IN-

CREASES.

IN REACTION TO THE LISTING OF

THE BLACK PINE SNAKE on the en-

dangered species list, Scotch Land Manage-

ment Company LLC withdrew 19,000 acres

from free public access for hunting. For a

more complete rundown of the company’s

reasoning for the decision, visit AFOA’s

Ne ws web p a g e fo r Ma y 3 1 . www.afoa.org/news/news.htm

Cahaba Timber, Inc. in Brierfield, Alabama man-

ufactures pressure-treated utility poles, barn poles, fence posts,

and crossties. Their first sawmill on the same site was estab-

lished in 1964, and it’s still a family company, says company

vice president Kenneth “Doc” Stephens. Though his father, co-

founder Kermit Stephens, Sr. still comes to the site every day,

Doc and two brothers Kermit, Jr. and Walter Stephens run the

operation. All of the poles and posts are Southern Yellow Pine,

and the crossties are mixed hardwood, primarily oak, with a lot

of sweet gum as well. Stephens says, “Not every tree will make

a pole.” He estimates in a 45-year-old tract, maybe fifty percent

of the trees would be suitable for poles. One of the pressures he

and the owners see right now is landowners rushing to cut tim-

ber faster, so that fewer large trees come to market. He under-

stands the urge to cut faster, but says the larger trees yield a

better return in the end. Demand for larger poles is increasing,

especially in storm-prone areas. Pole mills like Cahaba Timber

are key players when major storms hit. Their company and oth-

er mills have in the past run around the clock to get poles where

they’re needed, because no one gets power until they can get the

lines up off the ground. And for that, you need a good pole.

FOREST PROFILES:

CONSULTING FORESTERS

by Jessica Nelson

FOREST PROFILES:

FOREST PRODUCTS MANUFACTURERS

by Jessica Nelson

R ea l Es ta t e F in an c in g fo r

www.AlabamaFarmCredit.com

(256) 734-0132

(256) 739-4071 fax

1-888-305-0074

Recreational and Timber Land

Jeff Bagwell Fisheries Biologist

(205) 333-3665

• Lake Construction & Habitat Development

• Professional Lake Design & Consultation • Fish Stocking

Twin City, Georgia (912) 682-4948

Container Grown Pine Seedlings Longleaf & Loblolly

www.whit f ie ldpineseedl ings.com

205± acres in Dallas County. Paved road front-

age, Merchantable Hardwood & Pine, and Utilities. Great Deer, Turkey, Dove, and Duck Hunting, located in the Black Belt minutes from Marion Junction. $1,685/ac.

Contact Clint Flowers, ALC at (251) 387-0787

National Land Realty NationalLand.com

Page 4 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) July 2016

RETIREE IRA STRATEGY The so-called extender legislation late in 2015 made permanent the provision allowing

a retiree to move funds directly from an IRA to a charity without income recognition.

The key feature is that these transfers count for the annual required minimum distribu-

tions (RMD) that every IRA holder over age 70½ must withdraw.

THE BASICS. This special tax rule requires that the taxpayer must have attained age

70½, and the transfer must be made directly from the IRA account to a qualified chari-

ty (other than a private foundation or donor-advised fund). These transfers are subject

to a $100,000 annual limit per person. When done properly, there's no income from the IRA withdraw-

al, but no charitable deduction either. So why bother, given this technique appears to give the same re-

sult as drawing out taxable IRA income and issuing a tax-deductible check to charity?

REDUCE AGI. Removing some or all of the IRA RMD from income lowers the taxpayer's adjusted gross

income (AGI) on Page 1 of your 1040. For upper-income taxpayers (single filers above $260,000 and

joint filers above roughly $310,000), personal exemptions and itemized deductions phase out based on

AGI. Generally, there will be a 2 to 3% rate savings for these filers on the RMD amount deflected to

charity.

THE 3.8% NII TAX. The Affordable Care Act brought a new 3.8% tax on net investment income (NII) to

the extent a single filer is over $200,000 or a joint filer over $250,000 in AGI. Upper-income farm retir-

ees with income from rent, as well as occasional capital gain land sales, face this 3.8% tax. Again, de-

flecting some or all of the RMD amount to charity lowers the AGI and decreases the 3.8% tax.

LOWER-INCOME FILERS. Amazingly, the real money in this technique is with lower-income retirees.

Many are in that $25,000 to $60,000 income range in their 1040, where a portion of Social Security

benefits are taxable. The tax law contains a complicated formula: As income increases above $25,000

single or $32,000 joint (counting AGI plus half of the Social Security benefits), there's a gradual phase-

in of the taxable portion of the benefits, first at 50% and then up to 85%.

As an additional savings, many retirees aren't deducting charitable contributions because the standard

deduction is greater. In one example of a widow with about $50,000 of income, by simply removing

$5,000 of IRA income via a transfer to her church, federal taxes were cut by $1,700, a 34% return.

The savings arose because of both a reduction in taxable Social Security and the standard deduction not

changing when direct charitable contributions decreased. In another example of joint filers in the

$60,000 income range, a $5,000 IRA transfer saved more than $600.

The results vary significantly based on income levels, the RMD amount and the portion that's trans-

ferred to charity. However, every retiree with RMD income and some charitable deductions should

check this opportunity with their tax adviser.

Tax Columnist Andy Biebl is a CPA and tax partner with the accounting firm of CliftonLarsonAllen in

New Ulm and Minneapolis, Minnesota.

Read Andy’s "ASK THE TAXMAN" column at ABOUT.DTNPF.COM/TAX

You may email Andy at askandy@dtn.com.

This article appeared in the June 2016 issue of The Progressive Farmer.

Reprinted with permission, copyright 2016, Telvent DTN, LLC.

ANDY BIEBL

Donating your IRA's annual Required Minimum Distribution to a

charity reduces your overall taxable income, often reducing the

taxes you'd pay on Social Security.

July 2016 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) Page 5

MEMBER SERVICE REQUESTS

[ ] I own 40 or more acres of forestland in Alabama and would like, at no cost to me, an

Initial Consultation with a member of the Association of Consulting Foresters.*

[ ] I am enclosing $15 for a Timber Buyer List for ______________________County.

[ ] Guidelines for Hunting Lease Agreement

[ ] Model for a Timber Sale Contract

[ ] Application for Hunting Lease Liability Insurance Coverage *

[ ] Application for Timberland Liability Insurance Coverage *

[ ] _____ 8” x 10” Posted Signs. Enclosed is 45¢ per sign plus $4.50 S & H

(“No Trespassing Hunt Club” - yellow) (“No Trespassing—Period” - orange) circle one

[ ] AFOA T-Shirt — Short Sleeve, $11 or Long Sleeve, $13.50 (call for colors and sizes)

[ ] AFOA Ball Cap: Pink, Black, Blaze Orange w/Camo, or Denim (circle choice. $13 each)

* This service is for landowners only. Hunters may only use the hunting lease liability

insurance policy under the membership of a landowner.

MEMBERSHIP FEES

(1st class postage will cause your newsletter to

arrive several days earlier than bulk rate)

1 YEAR

[ ] Regular Member - Bulk Rate Postage $16

[ ] Regular Member - 1st Class Postage $28

[ ] Sustaining Member - 1st Class Postage $160

2 YEARS

[ ] Regular Member - Bulk Rate Postage $31

[ ] Regular Member - 1st Class Postage $55

[ ] Sustaining Member - 1st Class Postage $320

3 YEARS

[ ] Regular Member - Bulk Rate Postage $46

[ ] Regular Member - 1st Class Postage $82

[ ] Sustaining Member - 1st Class Postage $480

SEND APPLICATION & PAYMENT

TO:

AFOA, Inc.

P. O. Box 361434

Birmingham, AL 35236

MEMBERSHIP APPLICATION

(Mr.)(Mrs.)(Ms.) ___________________________________________________________________________

Name of Landowner (person, family, partnership, corporation, LLC, etc.)*

(Mr.)(Mrs.)(Ms.) ___________________________________________________________________________

Name of Person Representing Landowner (optional)*

___________________________________________________________________________

Mailing Address

___________________________________________________________________________

City State Zip Code

___________________________________________________________________________

Telephone: home Telephone: work

___________________________________________________________________________

Telephone: fax E-Mail Address (we do not share)

___________________________________________________________________________

State(s) and County(ies) Where Forestland Is Located — Please List.

sions for managing loblolly, longleaf, and slash

stands. Fee: $210; $25 discount if paid by August 3.

Contact Ingvar Elle at (706) 583-0566.

August 26-27...Starkville, Mississippi. Mid-South

Forestry Equipment Show. Longest-running live log-

ging/biomass event in the country and only such

venue located in the heart of the South's forest indus-

try. Fee: $20; $5 discount for advance registration.

For additional information call (662) 325-2191.

August 30 - September 1...Amelia Island, Florida.

Florida Forestry Association (FFA) Annual Meeting at

the Omni at Amelia Island Plantation Resort. Fee:

$370; $30 discount if paid by August 1. Call FFA at

(850) 222-5646.

SEPTEMBER 2016

September 1...Lee County 8 AM - 4 PM. Alabama

Prescribed Fire Council Annual Meeting at Auburn

University, School of Forestry & Wildlife Sciences

Building, Room 1101. Theme: "As a burner, are you a

good neighbor?" Fee: $45; lunch included. Contact

John Stivers at (706) 773-5749.

September 2...Online 1 PM CT. Snake Identification

Webinar. Learn tips to help you distinguish venomous

and nonvenomous snakes. Contact Kenneth Creel at

(256) 532-1578.

September 7-9...Baldwin County. Alabama Water

Resources Conference & Symposium at Perdido Beach

Resort, Orange Beach. Fee: $350; $70 discount if

paid by August 19. For more information call (334)

844-5100.

September 11-13...Baldwin County. Alabama Forestry

Association Annual Meeting at Perdido Beach Resort.

Fee: $475. Contact Liz Chambers at (334) 481-2135.

September 12...Barbour County 8 AM. Alabama Certi-

fied Prescribed Burn Manager Re-certification Work-

(CALENDAR OF EVENTS CONTINUED FROM PAGE 1) shop at Wallace Community College, Eufaula. Instruc-

tor: John Stivers. Fee: $75. Limited seating. For more

info call John at (334) 253-2139. Attendees must

register at: http://classes.forestry.alabama.gov/

cpbmclasses.aspx Select the Re-Certify option.

September 13-16...Barbour County. Alabama Certified

Prescribed Burn Manager Certification Course at Wal-

lace Community College, Eufaula. Instructor: John

Stivers. Fee: $125. For more info call John at (334)

253-2139. Attendees must register at: http://

classes.forestry.alabama.gov/cpbmclasses.aspx

Select the Certify option.

September 14...Russell County 8 - 10 AM. Pond

Management Workshop at 508 14th Street, Phenix

City. Pond owners will learn how to identify common

aquatic weeds and learn about seasonal management.

Fee: $5. Contact Jennifer Davidson at (334) 298-

6845.

September 14-15...Martinez, Georgia. Conservation

Easements for Forest Landowners and their Advisors.

Fee: $295; $50 discount if paid by August 24. Lunch

included. Contact Ingvar Elle at (706) 583-0566.

September 15...Tallapoosa County 8 AM - 12 PM.

Private Pesticide Applicator Training Class. Learn to

calibrate a backpack sprayer to save chemicals & $$.

Fee: $20. Call (256) 825-1050.

September 15...Eastpoint, Florida 9 AM - 3 PM ET.

Invasive Exotic Species and Control Workshop at

Apalachicola National Estuarine Research Reserve.

Fee: $10; lunch provided. Contact Anita Grove at

(850) 670-7708.

September 16...DeKalb County. Progressive Agricul-

ture Safety Day (Kids Only) at Geraldine Town Park,

Geraldine. Third grade students. Contact Cameron

Mitchell at (256) 601-0958.

September 16-17...Swainsboro, Georgia. Georgia

Trappers Annual Convention at the JC Fairgrounds.

F e e : $ 5 . S e n d q u e s t i o n s t o

info@gatrappersassoc.com.

September 19...Covington, Georgia. Women in the

Outdoors at Georgia FFA Center. Event designed just

for women using expert instructors. Fee: $TBD. Con-

tact Dee Lowrey at (678) 936-4314.

September 19-20...Cullman County. Forest-Her: A

Workshop for women who love the land at Riverwood

Farms, Bremen. Goal setting, Management for Wild-

life, Timber Management, Non-Timber Forest Prod-

ucts, Hands-on Field Tour, and Forest Measurements.

Fee: $65. Contact Norm Haley at (256) 630-4248.

September 19-22...Savannah, Georgia. National Asso-

ciation of State Foresters Annual Meeting at Hilton

Savannah DeSoto. Landowners are welcome to at-

tend. Fee: $525. Call Rusty Brown at (478) 752-

1233.

September 20-22...Portland, Oregon. "Who Will Own

The Forest?" and Forest Products Forum at World

Forestry Center. Fee: $2,400. Contact Sara Wu at

(503) 228-1367.

September 21-23....Pigeon Forge, Tennessee. Ten-

nessee Forestry Association Annual Meeting at Mar-

garitaville. Fee: $TBD. Contact Dana Howard at (615)

883-3832.

September 27...Milton, Florida 8:30 AM - 3 PM CT.

Prescribed Fire Workshop at Blackwater River State

Forest. A burn demonstration will be planned and

executed if conditions allow. Fee: $10; lunch provid-

ed. Call Bethany at (850) 675-6654.

September 29...Tifton, Georgia. Georgia Prescribed

Fire Council Annual Meeting at the Tifton Campus

Conference Center. Fee: $TBD. Contact Jessica

McCorvey at (229) 734-4706.

…

Always Call Ahead to Confirm Program Details

Alabama Forest Owners’ Association, Inc.

Officers & Board of Directors

Ben F. Black, President

Andrew B. E. Kyle, Vice President

William C. Yeargan, Secretary

Jon R. Ingram, Treasurer

Hayes D. Brown, General Counsel

R. Lee Laechelt, Exec. Vice Pres.

Henry Barclay, III

Harvey Lester Barnett, Jr.

Mafus R. Bird, Jr.

Eleanor Espy Cheatham

Michael C. Dixon, Sr.

Susan P. Dooley

William L. Forbes

William A. Freise

James W. Gewin

Henry A. Long, Jr.

Helen Crow Mills Pittman

Austin L. Rainwaters Ira W. Rhodes Jack Rhodes

John A. Screws

Emmett F. Thompson

Jan S. Witt

Capital Ideas & AFOA Staff

R. Lee Laechelt, Editor, Capital Ideas

Eyvon S. Laechelt, Office Manager

W. A. Laechelt, Business & Tech. Manager

Brandie R. Floyd, Member Records

Susan Poe Love, Executive Assistant

Brenda Singleton, Executive Assistant

Martha L. Powell, Executive Assistant

Tiffany Dixon, Clerical Assistant

Mark Long, Clerical Assistant

Ann Garrett, Clerical Assistant

Page 6 CAPITAL IDEAS The Newsletter of the Alabama Forest Owners’ Association, Inc. (AFOA) July 2016

MARK YOUR CALENDAR. AFOA’s

36th Annual Meeting is scheduled for Fri-

day and Saturday, April 21-22, 2017 at the

Alabama 4-H Center on Lay Lake in Shelby

County. Hotel ($70, single or double) and

dorm ($50, single or double) accommoda-

tions have been blocked out for Friday

night, April 21. Room reservations may be

made now and may include a Saturday

night stay-over following the close of the

meeting at 4 PM on Saturday. Call (205)

669-1364 for reservations. Meals during the

meeting will be handled by AFOA and will

be included in the meeting registration.

HOW MUCH DOES THAT TREE

WEIGH? Since sawtimber and pulpwood

are sold by the ton, you’ve probably won-

dered how the weight of a tree might be

estimated while it is standing in the woods.

Tree & Stand Measurement, a University

of New Hampshire publication provides

rough estimates. An 18 inch diameter tree

with 40 feet (5 sticks) of merchantable

wood would weigh about one ton (1.098).

W A L N U T

SLABS “bring a

premium. I might

look at $7,000 just

for one large wal-

nut slab.” Source: Peterson Slabber by

Dave Boyt, Independent Sawmill and

Woodlot, 4/16.

“WHAT IMPROVEMENTS can be made

to add the most value to forest property?”

Assuming certain fixed attributes such as

location, public road frontage, streams and

topography, consult-

ing forester Chris

Miller says there are

six types of improve-

ments that are uni-

versal across the

U.S. He lists Access

(legal and improved

internal roads and

trails), Boundaries

(well-marked), Man-

agement (visible,

documented), Water

(a pond), Open Are-

as (along roads,

green fields), Gates

(security). Source:

Does Your For-

estland Have Curb Appeal?, Forest Land-

owner, July/August 2016.

THE POLITICALLY ACTIVE Alabama

Forestry Association has developed 4 core

principles to help them focus their lobbying

activities. They are:

2. Protection of private property rights

4. Preservation of the rule of law.

“We cannot continue to allow ourselves to

be led aimlessly, deeper and deeper on a

journey down the rabbit hole. We must

unite around a common purpose to change

the way we are governed.” Source: From

Executive Vice President, Chris Isaacson,

Alabama Forests, Spring 2016.

SIGNAL BOOSTERS to improve cell

phone coverage are available from Wilson

Electronics. Call 800-568-2723.

TWO BOOKS OF INTEREST:

Inside The Equal Access to Justice Act and the Crippling Battle over America’s Lands, Endangered Species, and Critical Habitats by Lowell E. Baier, 678 pages, $56.49 Kindle edition. “A content-rich book recommended for those who wish to see how the award of attorneys fees has shaped public policy in the area of environ-mental law,” wrote reviewer Hayes Brown in the July/August 2016 issue of Forest Landowner.

Hail of Fire: A Man and His Family Face Natural Disaster by Randy Frist, $17.95 paperback. “His is a rare text, written … from the interior life of a man whose home and community were incinerated in the furi-ous Bastrop County Complex Fire of 2011,” wrote reviewer Char Miller in the Journal of Forestry, 5/16.

PRSRT STD U.S. POSTAGE

PAID MONTGOMERY, AL

PERMIT NO. 275

Alabama Forest Owners’ Association

Post Office Box 361434

Birmingham, AL 35236-1434

Return Service Requested

Alabama SuperTree Nursery producers and sellers of hardwood and genetically

improved pine seedlings.

SuperTree Seedlings

Selma: (334) 872-5452

Toll free 1-800-222-1280

Fax (334) 872-2358

Eiland Forestry & Real Estate Trussville, AL (205) 655-0191

Timber/Land Sales

Management/Reforestation

Appraisals • Large Inventories

Madison, FL / Office / 850-973-2967

C.J. (Jay) Blanton III / Cell 850-566-1884

Jason M Blanton / Cell 850-566-7175

C.J. Blanton Jr. / Cell 850-673-7421

Email: blantonsnursery@earthlink.net

Blanton's Longleaf Container Nursery / 6" Containerized Pine Seedlings

Improved and Natural Stand Longleaf / Improved Slash and Loblolly

.

Growers of Deep Plug Pine Seedlings

Steve Meeks 877-809-1737 Linc: 18*14655

www.meeksfarms-nurserys.com

1-800-579-5471