The Forest Service and ASBDC/SBDC Partnership A Time for Change and Challenges

Who is the Forest Service and why are they paddling upstream?

About the Forest Service 155 national forests 20 national grasslands Manage 191 million acres in 44 states, the Virgin Islands and Puerto Rico Ranger District offices often located in same towns as SBDC offices

Secretary of Agriculture 1 Chief of the Forest Service 9 Regional Foresters 132 Forest Supervisors 860 District Rangers Forest Service Organization 30,000 + Employees

Forest Service Organization National Forest Systems –Recreation –Timber Management –Range –Wildlife –Watershed and Air –Minerals and Geology –Fire

The Forest Service IS A Dept. of Agriculture Agency The Forest Service Symbolized by Smokey Bear Decentralized Organization (local decisions) Profession Natural Resource Managers Forest Rangers Managed for multiple uses

The Forest Service Is Not A Dept of Interior Agency The Park Service Forestry Service Bureau of Land Management Parks Centrally Managed Park Rangers Managed for preservation Professional business experts / managers

Forest Service Mandates Agency is moving toward a business-like approach. –GPRA – Government Performance Results Act –Government Accounting Office audits –National Recreation Strategy for the Forest Service

Special Use Permits Recreation vs. Lands

So how does “Business Training” apply in our world of Recreation Special uses? It develops a better internal understanding of how “Business Plans” apply to special use permits. We can review the client’s application with improved knowledge and understanding of business plans and financial capabilities.

It creates a new awareness and appreciation for the private sector bid to obtain a permit. We become more responsible for understanding and meeting local needs within rural economic development.

We are able to assist our permittees by gaining the knowledge of how to manage small business risk. We organize our business effectiveness by collaborative partnerships with local SBDC's. We establish a significant database of available business resources for us and the applicant. We create a new awareness and appreciation of our business efforts within the private sector.

We build the new skills needed for effectively evaluating new permit applications, for permit administration and for applying the criteria within the programs of Cost Recovery and Rec Fee Demo. We foster a partnership of networking within the organizations of SBDC’s.

Some Examples

Special Use Permits Agency administers more than 74,000 total permits Permits are issued to private sector businesses to occupy or operate on National Forest system lands. Examples: –Hotel/restaurants –Outfitters (Hunting, fishing, mountain biking, snowmobiling) –Lodges –Campground concessions –Downhill and cross country ski resorts –Marinas

Permits, what are they? An authorization to occupy federal land. Fees generated return to the US Treasury, with the exception of photography and filming. Rec Fee Demo has “pushed” the FS into “operating as a business” with a much similar accountability. Cost recovery will have a significant impact on fees and looking at permits as a business.

Basic requirements for permit issuance Financial and technical ability Good standing Bond, in some cases Fees Insurance

When is Financial Ability Determined and who determines it? When there is a change in ownership of a business. When a new permit is issued. We determine financial ability.

Recreation Permit Numbers Total recreation permits: 13, Fees of $20.7 million/year Total winter resorts: Fees of $19,965,000 million/year -Gross Revenues = $895,814,000/ yr. Total resort permits: Fees of $2.3 million/year Total outfitter permits: -7,028. Fees of $4.2 million/year (3% of gross) -Gross Revenues = $140,000,000 per year

Training our Workforce In Business Plans

The Need We lack the business knowledge and experience and internal resources to determine those permittees with adequate financial capabilities. Increase in sales of permitted businesses. Increase in number and types of prospectus’s offered.

How it Began Original business plan developed by Delta, Colorado SBDC office, US Forest Service, and Colorado Outfitters Association Grew throughout Rocky Mt. Region New Mexico SBDC and Southwest Regions partnership was signed Business plan is now required in order to obtain a permit The Forest Service is required to evaluate potential permittees based on: - Technical capability - Financial capability

The Forest Service Business Plan Levels the playing field for permit applicants. Eases burden of financial review. Improves consistency between all units, types of uses. Reduces number of permitted businesses that fail. Provides better customer service.

Future Agency Trends Increasing population means more people recreating on public lands Agency moving from commodity based programs toward recreation, wildlife emphasis Shrinking Forest Service budget Increase in private companies providing recreation experiences/services

The Business Plan is now required by R2 and R3 when responding to a Campground Concession Prospectus. In R2, Completion of Business Plan is required for O/G changes in ownership. Trained more than 350 employees. Selected high quality viable permit holders for: lodges, outfitter/guide activities and campground concessions. AccomplishmentsAccomplishments

National Commitment National Memorandum of Understanding between ASBDC and USDA, Forest Service, signed July 2001.

National MOU Framework Provides general framework for cooperation between SBDC’s and Forest Service Encourages training sessions for Forest Service employees, permit holders and potential permit holders Encourages business plan consultation

Next Steps Train-the-trainer session for SBDC’s Introduce National business plan training curriculum Conduct joint SBDC & FS trainings Meet your local SBDC & FS counter parts (That’s Today!!)

Let’s Work Together