Forestry and Agriculture

Policy Issues

John Sessions

Feeding the World

OverviewOverview

Governments set the rules Policies affecting supply and demand for

forest products Linkages to agricultural policy Conditions that make sustainable

forestry possible

Governments Set the RulesGovernments Set the Rules

Governments largely determine how forests should be used on public and private lands

National, state, provincial policiesPublic ownership (>80%)

Govt Policies affect Supply and Govt Policies affect Supply and Demand for Timber ProductsDemand for Timber Products

Supply side - Policies affecting forest revenue such as

access to markets (roads, railroads)- Taxes and subsidies- Barriers to trade (import and export policies)- Property rights, land tenure, predictability- Timber concession management- Illegal Logging (law enforcement, corruption)

Corruption Can Influence PoliciesCorruption Can Influence Policies

“Use of public office for private gain”

124 of the 177 countries on Transparency International’s 2012 Corruption Perception Index (CPI) are considered to have “serious corruption”

Govt Policies affect Supply and Govt Policies affect Supply and Demand for Timber ProductsDemand for Timber Products

Policies affecting demand for forest products- Level of economic activity- Import restrictions, tariffs- Interest rates, loan conditions- Regulation, subsidies for wood and substitutes- Energy pricing policies toward fuelwood

substitutes- Exchange rates

The Forest/Agriculture InterfaceThe Forest/Agriculture Interface

Population growth, rising incomes - World food production has been increasing faster than world population but access and price are issues

Barriers to Trade -- Many govts have agricultural

subsidies (food security, cultural history, rural employment, foreign exchange earnings, corruption)

USA >$50/ac, European Union >$280/ac, Japan >$400/ac, Brazil ???

Land Title - Development (land clearing) as a means to obtain title

Relative cost of capital, tax policies

Major Causes of Land Change by Region Major Causes of Land Change by Region

 Latin America: Large scale conversion from forest to permanent agriculture, cash crops, pastureland

Asia: Migration to new areas for shifting cultivation (resettlement), conversion of shifting cultivation into permanent cultivation, agribusiness

Africa: Direct conversion of forest into small scale agriculture although this could be changing with international investments from Asia

Rising IncomesRising Incomes Meat Demand Up 2% Per Year Meat Demand Up 2% Per Year

Most countries consume most of what they produce (some exceptions)

Global trade is about 10% of production

Will require more land and/or more feed

http://www.wattagnet.com/uploadedImages/WattAgNet/Articles/Feed/0910FImeatchart1.jpg

Clearing SubTropical Forest for Agriculture – NW Argentina

Necessary Conditions for Necessary Conditions for Sustainable ForestrySustainable Forestry

Long Term Investments Make Forestry Unique!

Tenure claims on trees, land, and other forest resources are secure

Returns for forest outputs are competitive with alternative land uses

Authorities do not have conflicts of interest

Basic infrastructure is adequate

Society is able to maintain law and order in forested regions

Forest management rests on a sound scientific and technical basis

Society is able to identify and weight competing social and economic interests in forestry

Missing From Many CountriesMissing From Many Countries

Secure tenure Dependable law enforcement Incorruptible governments Basic infrastructure Open and competitive markets Policy predictability