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CAPITAL IDEAS -- LIVE!

June 2005 News Conference for Forest Owners Sponsored by Alabama Forest Owners' Association, Inc. Conference was recorded June 15, 2005.

CLICK HERE
to Listen to the
Conference.

This conference and all future conferences will be in the .mp3 format, which is compatible with Windows Media Player and most other media devices.

Hayes D. Brown

starting time: (00:00)

Moderator

Hayes D. Brown, attorney and forest owner,  will moderate this news conference. Hayes' email address is hbrown@hayesbrown.com.

Click Here to View & Hear Prior News Conferences.

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Tom Randall

 (00:29)

The Endangered Species Act: Update and Strengthen

Tom Randall is a senior partner with Winningreen LLC, a public policy consulting firm based in Chicago, Illinois. He is supporting the efforts of House Resource Committee Chairman Richard Pombo (R-CA) and Senator Mike Crapo (R-ID) to update and strengthen the Endangered Species Act. Private forest owners are harmed by the 1973 ESA when it takes some or all of their land without paying for it. Private forest owners in the West were harmed when the Act bankrupted their stumpage buyers by shutting down National Forest timber sales. The 1973 ESA hasn't been too successful at "saving" species either. Randall discusses its effectiveness and what could be done to make it work better.

Phone: (773) 857-5086
Email: trandall@winningreen.com 

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Jimmy R. Delaney

 (03:39)

Linden-Area Landowner Questions Credibility of Pulp Mill Proposal

Jimmy Delaney is a concerned landowner from Linden, Alabama, who has some reasonable questions for the developers of a proposed pulp mill that may be entering his community. The mill's purpose would be to turn a bamboo-like plant, Arundo donax to pulp, and Global Cellulose Systems wants area landowners to grow it. In the excitement of a new industry and new jobs, local taxpayers and landowners may be reluctant to ask the tough questions. Delaney is here to suggest how they can start.

Click here to read Delaney's Letter to the Editor sent to Marengo County area newspapers (posted 08/12/05)

If This Project Fails:

  • will local taxpayers be responsible for its debts?
  • who will pay to remove 30,000 acres of bamboo roots from local cropland?

Links of Interest:

Phone: (205) 460-0910
Email: ellenm@delaneyinc.net

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Dr. Thomas Straka

 (10:16)

How to Value Land

Thomas Straka is Professor of Forest Management and Economics at Clemson University in South Carolina. Figuring out the value of your land just got easier. Simply follow the steps in Straka's guide (under "Bare Land Values") and plug your figures into FORVAL, a free computer software model and you have an easy solution with a land expectation option! Still confused? Straka takes us step-by-step through the process with some example figures.  

  1. Open FORVAL
    • Click on "Financial Criteria"
    • Type of Calculation -- Select "Net Present Value"
  2. Input per acre tree planting cost of $100
    • Cost/Revenue Type -- Select "Single Sum"
    • Cost/Revenue Dollar Amount -- input "100"
    • Year Cost/Revenue -- input "0"
    • Click on "Add Cost"
  3. Input annual per acre property taxes and expenses of $2 per year
    • Cost/Revenue Type -- Select "Terminating Annual"
    • Cost/Revenue Dollar Amount -- input "2"
    • Year Cost/Revenue occurs -- input "1"
    • Year Cost/Revenue ends -- input "30"
    • Click on "Add Cost"
  4. Input $500/acre pulpwood thinning income at age 15
    • Cost/Revenue Type -- Select "Single Sum"
    • Cost/Revenue Dollar Amount -- input "500"
    • Year Cost/Revenue occurs -- input "15"
    • Click on "Add Revenue"
  5. Input $1500/acre final harvest income at age 30
    • Cost/Revenue Type -- Select "Single Sum"
    • Cost/Revenue Dollar Amount -- input "1500"
    • Year Cost/Revenue occurs -- input "30"
    • Click on "Add Revenue"
  6. Click on "Calculate" to determine Net Present Value of This Timber Management Scheme
  7. The program will ask for an interest rate -- input "4"

Net Present Value = $605.52

If you click on "Calculate" again and change the interest rate to 5%, the net present value will fall to $456.82.      6/15/05 5:32 PM CT

Phone: (864) 656-4827
Email: tstraka@clemson.edu

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Paul Easley

 (14:18)

Small Sawmill Successfully Teams With eBay

Paul Easley runs a successful sawmill and retail store establishment, Oak Leaf Wood ’N Supplies, in Moweaqua, Illinois. His success is due to his ability to find value in something others throw away. Whatever "waste" is left over from a timber operation, Easley can turn it into cash. What doesn't sell in his shop, he manages to sell quickly and easily on eBay. And it always sells. Easley shares his enthusiasm and the secrets to his success in this niche market.

Phone: (217) 768-4944
Email: inwoods@frontiernet.net

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Ted DeVos

 (18:17)

Dressing Up the Front "40"

Ted DeVos is co-owner of Bach and DeVos Forestry and Wildlife Services in Montgomery, Alabama. Woodland grinders are becoming an alternative to various forestry operations and aesthetics. DeVos explains how he uses grinders in his mulching business and what the service costs these days.

Phone: (334) 269-2224
Email: ted@bachanddevos.com

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Rhett Johnson

 (21:50)

Hardwood or Longleaf Pine Management Consulting Fee Paid

Rhett Johnson is co-director of the Solon Dixon Forestry Education Center, located in Andalusia, Alabama. Interested in planting or managing upland or bottomland hardwoods or longleaf pine on your land? A new program allows you a free one-day visit to your land by a qualified professional consulting forester who has training in this. Johnson will put you in touch with a consultant and give you information on the details of the program. Be prepared to tell this professional what your management objectives are and to accompany him or her on a tour of your property. Note: Offer is only good until September 15, 2005.

Phone: (334) 222-7779
Email: dxnctr@alaweb.com 

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Darren Kirkham

 (25:42)

Pine Plantation Thinning Crew

Darren Kirkham is a forester with Saco Wood, Inc., located in Prattville, Alabama. He wrote a letter to AFOA, telling us about Saco Wood's services and we thought you'd be particularly interested in his Operator Select, Pine Plantation Thinning Crew. *

A good pine plantation thinning crew will:

  • Use small, maneuverable feller/buncher
  • Have a well-trained equipment operator
  • Focus on the ability of “leave” trees to grow into quality sawtimber

*AFOA has a long standing policy of encouraging landowners who plan to sell timber to employ the services of a consulting forester who doesn’t buy stumpage. In the past, the consultant might mark diseased, crooked, and crowded trees in a young pine plantation to be removed by the logger, but the cost of marking trees in low value young plantations has become prohibitive. AFOA continues to urge landowners to use the services of a consulting forester when thinning a young pine plantation, but the service will be focused on logger selection and contract compliance rather than tree selection and sale advertising.

Phone: (334) 365-0694
Email: info@sacowood.com

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Robert Flynn

 (29:04)

International Markets: An Update

Bob Flynn is director of Consulting Services with Wood Resources International. The U.S. is the world’s largest producer of forest products, and the U.S. dollar has been weakening in the past several years. Does this mean that our exports of forest products have been increasing? Who are the major trading partners with the U.S. in wood products, and what are the primary products involved? What about the pulp and paper sector? Flynn provides us with answers to these questions by offering an international market update. 

Phone: (253) 565-4846
Email: bobgflynn@aol.com

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