Forest Establishment Bidding Process

Michael CollinsConserv

Landowner Workshop 1June 8, 2010

What is Forest Establishment?

• Planting pine and perhaps hardwood seedlings in areas that are now Open Land.

• Open land: – Pasture land– Hay land– Crop land– Grass land

Two Categories of Projects

• General Open Land Tree Planting

• Riparian Buffer Land Tree Planting

General Open Land Planting

• Planting of pine seedlings on Open Land

• 10% of the project can be wildlife planting

• VDOF Forester approves details

• Livestock must be excluded from area

• MINIMUM OF 5 ACRES CONTIGUOUS

Riparian Buffer Tree Planting

• Planting of pine and hardwood seedlings on Open Land within stream buffers (50’ width)

• VDOF Forester approves details

• Livestock must be excluded from areas

• MINIMUM OF 1 CONTIGUOUS ACRE

Payment Components

• Land Rental

• Reimbursement of Planting Costs

• Maintenance Payments

Land Rental

• Lump Sum Payment

• Net Present Value of 20 years of payments

• Discount rate of 7%

• Payment ceiling of $100.00 per acre

Example 1

A landowner with a 10-acre portion of a property that is currently open space might bid $75 per acre. Using a discount rate of 7 percent, for

example, would mean the landowner would be paid approximately $7,950 plus have all

reasonable costs for trees and labor covered. (It is important to note that the ceiling on submitted

bids for the land rental is capped at $100 per acre.) The land rental rate that landowners bid for will be an important factor in determining if

the bid is successfully chosen for funding.

Example 2

A landowner with a 10 acre open field decides that having all costs paid for the tree planting project is very desirable and considers making a low bid to possibly increase the chance of their project

being accepted for funding. However, they would like to get enough income to offset the

property taxes and rental income they are presently receiving. The landowner bids $30.00 per acre. The Present Value lump-sum payment calculation returns a landowner rental payment

of approximately $3250.

Reimbursement of Planting Costs

• Site preparation

• Bare rooted seedlings (note: balled and burlapped/potted saplings are not eligible)

• Planting labor

• Other VDOF recommended supplies (such as tree shelters and mats when planting hardwoods in a riparian area).

• $200 per acre cap for pine plantings

• $600 per acre cap for hardwood plantings

Maintenance Payment

$50 per acre:

can be used for replanting, stand maintenance (mowing, spraying), or

fencing.

Bidding Window

• July 2010

• Bids will be accepted via the F2F website (www.foreststofaucets.info) from 8 a.m., Monday, July 12 until 5 p.m., Friday, July 30.

• Multiple bids may be submitted by the same landowner.

• July 2011

Bidding Instructions (computer enabled)

1. Go to F2F website

2. Click on Forest Establishment Bidding Form

3. Click on Bidding Form Link

Bidding Instructions Cont’d

• Check for confirmation email in 24 hours

• Review information submitted

• Any bid that is incomplete by the close of bidding Friday, July 30, 5 p.m., will be automatically voided. 

• All required fields must be completed.

Bidding Instructions (Snail Mail)

• Request Form be mailed or pick up from VDOF

• Physically return completed form to VDOF no later than 5 p.m., July 30. Note: It must be physically received by VDOF by this deadline.

General Criteria for Project Selection

• South Fork Rivanna Reservoir Watershed

• Dollar value per acre

• Ecosystem services benefits