What is Exemplary Forestry? Why Should Land Trusts Care? Prepared for A Day in the Woods October 14, 2017 1

Maine Mountain Collaborative is working to create an Exemplary Forestry Fund to attract private investment capital to purchase timberlands that: Would be held for the long term, which we defined as at least 60 years Would be managed in an exemplary manner Investment Thesis: Marry philanthropy and private capital investment together. Raise philanthropic dollars to purchase exemplary forestry easements assuring that lands will be managed to a high standard. Revenue received from the sale of the exemplary forestry easements will be used to compensate investors for restoring the forest over time until it can produce substantial ongoing revenue from the harvesting of high quality forest products. Expectation is that this investment approach will be of interest to individuals, foundations and institutions for that portion of their portfolio dedicated to longer term investments (possibly intergenerational) and/or a commitment to Mountains of the Dawn and/or exemplary forestry.

How did this project originate? The New England Forestry Foundation wanted to define succinctly the forestry it aspires to practice and how it fits into the landscape The Maine Mountain Collaborative wants to “accelerate the pace of conservation” in the Mountains of the Dawn Keep forests as forests Manage for the full range of forest values – particularly biodiversity

Why should Land Trusts care about Exemplary Forestry and the Exemplary Forestry Initiative? Because they have been intentionally defined to enhance the conservation values Land Trusts care about most

In brief –EF is forest management that is positive for the full suite of forest values

The Essence of Exemplary Forestry forestry to achieve measurable metrics Exemplary Forestry is management for landscape scale objectives including: Growing the species best suited to each site Stocking that fully occupies the sites, “B” line stocking Growing and harvesting wood – an average of 0.5 cords/acre/year A diverse size class distribution of 5-15% seedlings, 30-40% in saplings and poles, 40-50% sawtimber (with 10% in large diameter multi-storied stands) Stand conditions which are well suited to the umbrella wildlife species Maintaining wildlife trees – an average of 3-5 live but decaying trees per acre and >18” in diameter Protecting soils, riparian and aquatic habitats Protecting special habitats including habitats of species identified as having special needs not entirely met by the management outlined above and habitats which are critically important to more common species; including by way of example, deer wintering areas A mix of management styles – the “Triad” approach may prove best

Special habitats and ecological reserves are protected Exemplary Forestry assumes: Special habitats and ecological reserves are protected Eagle Lake Old Growth Forest. Source: MFS

Management for umbrella wildlife species Exemplary Forestry includes: Management for umbrella wildlife species Den Trees Closed Crowns Big Reed. Source: MFS Source: Conservation Foundation The kind of habitat needed by American (Pine) marten

Exemplary Forestry includes: Management for wildlife species that represent the full range of habitat needs Dense spruce/fir regeneration to produce hares Source: https://pixabay.com/en/lynx-bobcat-wildlife-predator-981708/ Source: Maine Forest Service. Habitat needed by Canada Lynx

A stand size class distribution recommended by ecologists Exemplary Forestry includes: A stand size class distribution recommended by ecologists Sawtimber (40-50%) Seedlings (5-15%) Saplings & Poles (30-40%) Source of all photos: Maine Forest Service

Exemplary Forestry includes: Management that provides den trees, snags, and downed logs, as well as protects soils, water quality, riparian areas

Exemplary Forestry Includes Increasing stocking on depleted sites while growing and harvesting more wood – a central idea

Exemplary Forestry includes increasing timber harvests at the same time that other values are enhanced

Growing better quality timber Exemplary Forestry includes: Growing better quality timber Source: jeffjosephwoodworker.com. In terms of stumpage, 2 cords of sugar maple or red oak veneer (approximately 1,000 bd ft) can equal the value of 40 cords of hardwood pulp Increasing both growth and quality can make management more profitable

Exemplary Forestry includes: Stocking that fully occupies the sites Photo by Fred Field

Exemplary Forestry includes: The results of 50 years of selection management on the Penobscot Experimental Forest Harvesting that respects aesthetic and other values through progressive silviculture This stand was managed selectively with light harvests every 20 years. The financial return from this management (measured as the net present value of all income and costs) is approximately $534.* (Photo: John Brissette, Northeastern Research Station) * This is the financial return from what many consider the epitome of excellent forest management. Keep this figure in mind This is a key to building public support!

Exemplary Forestry includes: Harvesting that respects aesthetic and other values through progressive silviculture Before thinning After thinning to reduce mortality and increase growth on the most desirable trees Source of photos: Jake Maier and the Cole Bros

The triad approach to management Exemplary Forestry could include: The triad approach to management Reserves (modest proportion) Intensively managed area (modest proportion) Ecological forestry (most of the area) Reserves unmanaged or lightly managed areas Intensive management: Early commercial thinning in spruce Ecological forestry: Regenerating spruce-fir by shelterwood Big Reed Forest Reserve. Photo: Lee Burnett Spruce-fir selection management. Source: MFS

HENCE, WE NEED NEW BUSINESS MODELS The Essence of Exemplary Forestry forestry to achieve measurable metrics Exemplary Forestry is management for landscape scale objectives including: Growing the species best suited to each site Stocking that fully occupies the sites, “B” line stocking Growing and harvesting wood – an average of 0.5 cords/acre/year A diverse size class distribution of 5-15% seedlings, 30-40% in saplings and poles, 40-50% sawtimber (with 10% in large diameter multi-storied stands) Stand conditions which are well suited to the umbrella wildlife species Maintaining wildlife trees – an average of 3-5 live but decaying trees per acre and >18” in diameter Protecting soils, riparian and aquatic habitats Protecting special habitats including habitats of species identified as having special needs not entirely met by the management outlined above and habitats which are critically important to more common species; including by way of example, deer wintering areas A mix of management styles – the “Triad” approach may prove best NOTE: FOLLOWING THESE STANDARDS DELIVERS THE DESIRED CONSERVATION VALUES REDUCES AND CAN DELAY TYPICAL FINANCIAL RETURN HENCE, WE NEED NEW BUSINESS MODELS

An alternative is careless forestry The results of 50 years of diameter limit cutting on the Penobscot Experimental Forest This stand was managed using a diameter limit (all trees above a given diameter were harvested). The financial return from this management was $976* (net present value). (Photo: John Brissette, Northeastern Research Station) * This $976 is the financial return (net present value) from harvesting trees when they become merchantable. Remember the $534 from 20 year selection management? Despite the fact that the selection management is producing superior annual timber returns now (50+ years after management began), standard financial analysis concluded that it is not as profitable as diameter limit cutting. This is a fundamental problem for practicing good forestry – superior annual timber returns are possible, but it requires patience.

Remember, in comparison, Exemplary Forestry can: Improve wildlife habitat Protect biodiversity Protect other environmental values, e.g., water quality Minimize adverse impacts to, if not improve, visual quality While producing more and better quality wood – to meet our own needs locally BUT IT NEEDS NEW BUSINESS MODELS

New Business Models Remember, Exemplary Forestry reduces and can delay returns. So, we need to: Find investors willing to take a lower return and/or be patient. Find public or philanthropic funds to support Exemplary Forestry (e.g., purchase of Exemplary Forestry easements), and in essence write down investment cost Partner with land trusts and jointly fund forest acquisition

Productive Land Trust Strategies Land Trusts could buy Exemplary Forestry easements while others buy the lands to practice Exemplary Forestry Land Trusts could buy lands and practice Exemplary Forestry to generate funds for stewardship or buying more lands or easements Land Trusts could contribute timber rights on lands they own in exchange for shares in an Exemplary Forestry fund and receive income over time

These approaches could provide: A win for the environment!!!!!!! Enhancing what land trusts value highly: environmental values from water quality to climate mitigation, most specifically improving wildlife habitat and protect biodiversity Producing more and better quality local wood Increasing the supply of wood as an alternative to concrete, steel, aluminum and plastic (all having greater environmental impacts?) A win for land protection!!!! Generates revenue needed to increase conservation efforts

Help us advance forest conservation in New England!