1. Development and Implementation of a Red Alder Tree Farm Program Western Hardwood Association Annual Meeting 26-27 June, 2005

2. 2 Key Topics Introduction History of red alder Drivers and Needs Tree Farm Program Development  Plant Material  Management Approaches and Strategies  Key Program Issues Next Step

3. 3 GreenWood Resources Introduction GWR Specializes in high yield fast growing tree farms Primary hardwood species is poplar where we are managing over 15,000 acres of poplar tree farms in the Pacific Northwest for multiple markets such as solidwood, chips for pulp and paper, and biomass energy Internationally recognized for our tree improvement program on superior poplar clones and expanding this work into red alder Company initiative on a red alder tree farm program Expanding into China and Chile

4. 4 History of Red Alder Weed tree versus crop tree History has been about conversion of red alder stands to conifer stands

5. 5 History of Red Alder Move towards a different understanding in managing red alder Long-term trend analysis suggests a growing market

6. 6 Red Alder Tree Farm Program Drivers and Needs  Export Markets US red alder lumber exports, by destination, 1989- 2004 Total 2004 = 117.5 MMBF CBM Red alder CBMCBM

7. 7 Red Alder Tree Farm Program Drivers and Needs  Domestic markets have seen a steady increase in both use of alder and geographic reach

8. 8 Red Alder Tree Farm Program Drivers and Needs  Supply and Demand Historical management Regulation Sources of alder supply Standing Inventory Milling capacity and market demand

9. 9 Red Alder Tree Farm Program Drivers and Needs  Historical management  Regulation Riparian Management Areas Medium to Large Streams Fish habitat or Domestic waters Total Riparian Buffer width No-cut buffer width Oregon50 to 100 ft (15 to 30 m) 20 ft (6 m) Washington90 to 200 ft (27 to 61 m) 50 ft (15 m) British Columbia 164 to 328 ft (50 to 100 m) 0 to 164 ft (0 to 50 m)

10. 10 Red Alder Tree Farm Program Drivers and Needs  Sources of alder supply and standing inventory Source: USFS Forest Inventory and Analysis, BC Ministry of Forests ~1995-2000 Source: USFS Forest Inventory and Analysis

11. 11 Red Alder Tree Farm Program Drivers and Needs  Sources of alder supply and standing inventory 9,000 mmbf Source: 2002 GIS results - Washington Hardwoods Commission

12. 12 Red Alder Tree Farm Program Drivers and Needs  Milling capacity and market demand ~ 350 - 500 mmbf annual capacity More demand than supply

13. 13 Red Alder Tree Farm Program Drivers and Needs  How do we define the need for a tree farm planting program? Regional milling capacity Market demand Inventory and Sustainable yield  Estimated milling – 500 mmbf/yr  Demand ?  Sustainable yield - 250 mmbf/yr  Additional supply need – 250 mmbf/yr Annual Vol. Growth Removals

14. 14 Red Alder Tree Farm Program Program Development  Plant material  Management Approaches and Strategy  Key Program Issues

15. 15 Red Alder Tree Farm Program Plant Material – current supply  Native forest seedlings  Quality of seedlings  Limited availability of supply

16. 16 Red Alder Tree Farm Program Plant Material – cloning through selection  Cloning through selection and vegetative propagation to achieve superior genetics  Weyerhaeuser has been working on vegetative propagation of alder and has been field testing a large number of selected clones in the last 5 years

17. 17 Red Alder Tree Farm Program Plant Material – hybrid red alder  Hybrid red alder Using techniques perfected in poplar breeding Testing to determine if:  Achieve superior growth characteristics  Resistant to insects and diseases and frost damage  Understanding changes to wood properties  Techniques for cost effective scale up of selected hybrid clones

18. 18 Red Alder Tree Farm Program Management Approaches and Strategies Alder has to compete with other hardwoods particularly in the southern hemisphere Key factors for success: –Be disease and cold tolerant –Be grown to sizes that can be economically processed in shorter rotations –Have consistent stem form and predictable, consistent, and desirable wood properties –Survive and grow consistently when planted on prepared sites and managed intensively

19. 19 Red Alder Tree Farm Program Management Approaches and Strategies  Intensive management on natural forest setting through natural regeneration or replanting Target: 20 mbf/acre, 20- 25 yr rotation  Tree planting on agricultural land Target: 20-25 mbf/acre, 18-20 yr rotation 19

20. 20 Red Alder Tree Farm Program Management Approaches and Strategies  Site Selection  Quality Seedlings and Timing of Planting  Density management  Thorough Weed Control  Pruning strategy  Good Management Oversight KEYS TO A SUCCESSFUL RED ALDER PLANTATION

21. 21 Red Alder Tree Farm Program Management Approaches and Strategies  Examples of Strategy Intensive management of natural stands  400 mmbf/yr; 25 yr rotation; 20 mbf/acre yield  20,000 acres harvested per year; 500,000 acres Tree farming on agricultural land  400 mmbf/yr; 18 yr rotation; 25 mbf/acre yield  16,000 acres harvested per year; 288,000 acres

22. 22 Red Alder Tree Farm Program Key Program Issues Approaches  Industrial landowners  Non-industrial landowners- small landowners  Forest lands  Agricultural lands Plant Material Improvement and Supply R&D, Education/Information  Growth and yield  Inventory  Sustain yield

23. 23 Red Alder Tree Farm Program

24. 24 Red Alder Tree Farm Program Key Program Issues Leadership and Industry support Capital structure/financing Other species?

25. 25 Red Alder Tree Farm Program Key Program Issues Poplar Tree Farm  Example: 20-35 mbf/acre; rotation 10-12 years 400 mmbf per year; 30 mbf/ac, 11 yrs, 150,000 acres Current developments in the region for solidwood >30,000 acres Wood properties Market development Sustained yield and FSC model Future potential volume; >70 mmbf per yr

26. 26 Red Alder Tree Farm Program Next Steps and Action Items Focus on the Overall Goal Continue to build a strong and sustainable hardwood industry for the region