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CAPITAL IDEAS -- LIVE!

SEPTEMBER 2013 News Conference for Forest Owners
Sponsored by the Alabama Forest Owners' Association, Inc.
This Conference was recorded on September 18, 2013

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Conference.
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Hayes D. Brown   Alabama Forest Owners' Association

Hayes D. Brown

starting time: (00:00)
Hear Conference

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.

 

Terry Ezzell

(00:27)
Hear Conference

Comment

Impact of IP Closure on North Alabama Pulpwood Market

Terry Ezzell is the North Regional Forester of the Alabama Forestry Commission. When International Paper announced on September 11 that it would close its Courtland, Alabama (free sheet) paper mill, we knew it wouldn't be just 1,100 mill employees that would be facing hard times. Local schools and businesses would be hurt as well as pulpwood growers, loggers, equipment dealers and many others. Since the Forestry Commission tracks wood processing facilities across the state, we asked Terry to give us an idea of where North Alabama pulpwood was now being utilized. He sent us a map of the Courtland Mill Wood Procurement Area and a second map that show the location of Mills that Use Pulpwood in North Alabama.

Terry also sent us Growth and Removal Data for IP's Courtland Mill that indicates the region is growing a lot more wood than is being used. For those of you who might remember, back in the summer of 1992 there was a big controversy over TVA's decision to block access to the Tennessee River for wood chip barge loading facilities. TVA's 1993 decision has cost the wood growers of the region a fortune in lost opportunities since then. Perhaps it's time to open up shipping access so the wood we grow can find wider markets. You might consider contacting Governor Bentley and state and federal lawmakers to remind them that the huge forest resource of North Alabama and the shipping opportunities available on the Tennessee River should not be ignored.

IP's decision was not irrational. In one of his normal rants on the ups and downs of the stock market, Jim Cramer reminds us that the paper business is not dead. On September 19, 2013 we read at AL.com, "On [9/17/18], the company unveiled plans to invest up to $150 million to upgrade equipment and expand its linerboard mill in Coosa, Georgia."

Phone: (256) 350-1637
Email: terry.ezzell@forestry.alabama.gov

.

Dr. Adam M. Taylor

(03:17)
Hear Conference

Comment

 

The South - World Leader in Growing & Harvesting Trees

Adam Taylor is the Forest Products Extension Specialist in Forestry, Wildlife & Fisheries at the University of Tennessee, but before settling in Knoxville, he received his B.Sc.F and M.Sc.F. from universities in eastern Canada and his PhD from Oregon State University. Dr. Taylor has seen and experienced forests and the forest products industry all across North America. We asked him if our diverse privately owned forest resource base, our stable economic system, and our immense transportation and communications infrastructure makes the U.S. South competitive in the world. His answer will make you proud that you play a part in such a unique enterprise.  

Supporting Information:

Phone: (865) 946-1125
Email: mtaylo29@utk.edu

.

Dr. Warren A. Flick

(06:25)
Hear Conference

Comment

BP Oil Spill Claims Process

Warren Flick is an Alabama attorney and a retired forestry professor (and he was the first speaker of a fledgling Alabama Forest Owners group back in 1981). Warren is currently working with The Ladd Firm in Mobile to help submit claims to the BP Settlement Fund. Recently he wrote a brief discussion of the oil spill and the related claims process: 

On April 20th 2010, BPʼs Deep Water Horizon oil rig exploded killing eleven men and releasing millions of barrels of oil into the Gulf of Mexico. In 2012, BP agreed to pay damages, including damages for indirect economic injuries, as provided in a Settlement Agreement that BP negotiated with plaintiffs and the federal courts. The Agreement provides well-defined formulae based on revenues before, during, and after the disaster. It favors fluctuating or inconsistent revenues. If a landownerʼs or businessʼs revenues fit the formulae, they will be eligible for a claim, provided other legal requirements are also met.

In all of Alabama, Mississippi, Louisiana, as well as parts of Texas and Florida, individuals and businesses may submit economic-loss claims. Originally the deadline was April 22, 2014, but litigation thatʼs pending may have the effect of extending that deadline. Many potential claimants seem unaware of this settlement process and their rights to submit claims. Timberland owners and forest products businesses are eligible claimants.

Many law firms that service BP claims will evaluate a claim free of charge provided the claimant can submit good accounting records for the necessary periods. Landowners and business persons can easily find out if they may have a valid claim. No representation is made that the quality of the legal services to be performed is greater than the quality of legal services performed by other lawyers.

Supporting Information:

Phone: (706) 614-9487
Email: warren@laddfirm.com

.

Senator Paul Sanford

(09:59)
Hear Conference

Comment

Hunting Regulations Grow as Hunter Numbers Decline

Paul Sanford is a member of the Alabama Senate representing Madison County. He is concerned that new deer and turkey harvest reporting requirements to soon be enforced by the Wildlife and Freshwater Fisheries (WFF) Division of the Alabama Department of Conservations and Natural Resources (ADCNR) are unnecessary. Sanford was quoted in The Daily Home, 4/22/13, “Putting more red tape on hunters sounds like an idea the federal government would dream up, not the Department of Conservation in a strong pro-hunting state like Alabama. This sport generates a nearly $1 billion annual economic impact for our state, and we should be working to increase that number. I’m afraid increased regulations would have the opposite effect.” (Hunting license purchases are down nearly 36,000 since 1985, according to former head of WFF, Corky Pugh. Capital Ideas, 9/13)

"WFF will initiate the Game Check program for the 2013–14 hunting season. Game Check will require all deer and turkey hunters, both licensed and exempt, to report all deer (i.e., bucks and does) and turkeys harvested in Alabama. All deer and turkey hunters will still be required to have a Harvest Record in their possession while hunting and be required to fill it out prior to moving the deer or turkey. Following completion of the harvest record, hunters will then be required to report all deer and turkeys harvested within 24 hours of killing the deer or turkey. Harvests can be reported via the Outdoor Alabama app for iPhone and Droid smartphones, ADCNR’s website (www.outdooralabama.com/gamecheck), or by phone (1-800-888-7690)." Source: Alabama Hunting & Fishing Digest

Alabama resident landowners are not required to buy a hunting license when hunting on their own land, but with Harvest Record requirements and the new Game Check reporting regulations, taking a deer for the stew pot without properly reporting the kill could lead to a $500 fine. "I am concerned that landowners that never needed a license to hunt on their own property are now tossed into a ... system that will eventually lead to more hunting regulations for such landowners. You and I both know Government never moves backwards once it encroaches upon something." Paul Sanford, private email, 9/4/13.

Senator Sanford wrote to AFOA on 9/12/13, "As a member of the Legislative Council I have 35 days to try to either amend the rule or reject it, or do nothing and the submitted rule becomes a new ADCNR regulation. I have requested that the Legislative Council convene a meeting so I may offer an amendment to make the rule/regulation only apply to State Lands such as Wildlife Management Areas or other owner/leased State Lands. I am also willing to entertain expanding the time reporting requirements to 72 hours to help hunters with no cell phone or Internet services in many areas of the State, or hunters on long getaway hunting trips. I have offered both suggestions to the ADCNR and they have declined to negotiate changing their new rule."

ALABAMA GAME CHECK SYSTEM NOW VOLUNTARY, 9/27/13

Phone: (256) 539-5441
Email: paul.sanford@alsenate.gov

.

Sean S. Brown

(14:26)
Hear Conference

Comment

Cabin, Barn, & Lodge Design & Construction

Sean Brown is a Land Specialist at Tutt Land Company. In an email to AFOA, Sean wrote, "Hunting season is just around the corner. Are you ready? Just a reminder to our clients and friends, we not only help with the purchase or sale of land, but we also provide additional services." One of the services listed was the design and construction of cabins, barns, and lodges. We called Sean and asked him to tell us about Tutt Land's design and construction services.

Photos of Construction Projects: Southern Trophy Properties (link removed 03/16/2015: no longer working)

Phone: (205) 531-9221
Email: sean@tuttland.com

.

Andy Gustafson

(17:42)
Hear Conference

Comment

Deferring Capital Gains Taxes When Selling & Buying Land

Andy Gustafson is a Certified Exchange Specialist and Managing Member of Atlas 1031 Exchange, LLC, "a worldwide accommodator of Internal Revenue Code Section 1031. Andy has written two very brief eBooks that will help you understand how to use the Section 1031 Exchange to defer capital gains taxes. The first is entitled Ten Reasons Why a 1031 Exchange Makes Sense. The second is entitled 1031 Exchanges: Benefits to Timberland and Forest Landowners. This eBook includes the following topics:

  • What a timberland owner of real and personal property should know about a 1031 exchange
  • What is an Internal Revenue Service Code 1031 tax deferred exchange and the benefit
  • Mixed use exchanges where there is a primary residence and timberland
  • Multi asset exchanges including water and ditch rights, oil, gas and mineral rights
  • 1031 forward and reverse exchange steps
  • 1031 exchange rules and requirements

Phone: 800-227-1031
Email: andgus@atlas1031.com

.

Rory Paul

(20:31)
Hear Conference

Comment

A New Point of View

Rory Paul is CEO of Volt Aerial Robotics. He was quoted in The Progressive Farmer, 8/13: "'This is instant gratification for crop scouts.' With a rotary-winged vehicle, 'You can stand on the side of a field with a real-time video download and see what is happening in the interior of a field.' If you want a closer look, you can lower the UAV (unmanned aerial vehicle) and take high-resolution still images of crops, insects or weeds." "As rules (to allow commercial use of UAVs) are being written, the UAV industry is looking for a domestic market. The manufacturers and suppliers -- companies like Northrop Grumman, Yamaha Motor Corp. and General Dynamics -- released a study in February touting agriculture as a potential market for up to 110,000 vehicles a year." Take a look at this video of one of Rory's Quadcopters and let your imagination tell you how this new technology might be useful to forest owners.

If Rory doesn't expand his business into Alabama forestry uses, we hope someone in our audience will start this service business of the near future. Monitor the website sUAS News for almost daily technology advances. A quick YouTube search provides all kinds of ideas on UAV uses. Also, please read eWave: Future of drone use appears to be wide open.

Phone: (636) 410-0191
Email: roryp@voltaerialrobotics.com

.

Dr. Rebecca J. Barlow

(25:00)
Hear Conference

Comment

Costs & Cost Trends for Forestry Practices in the South

Becky Barlow is the co-author of 2012 Cost and Cost Trends for Forestry Practices in the South, Forest Landowner, July/August 2013. This survey of costs of forestry practices dates back to 1952 and provides useful information for forest owners and the professionals who help them with their forest management work. For example, in Table 11 we see that timber cruising costs (estimating timber volumes) have risen from 30 cents per acre in 1952 to an average of $13.20 per acre in 2012. Average cost of labor to hand-plant tree seedlings (exclusive of herbicides and seedling expenses) has risen from $0.0111 each to $0.1144 each (one cent versus eleven cents). While looking back is interesting, what you need this information for is improving your management in the future. If you play with Texas A&M's Timberland Decision Support System, you will need cost information to help you make the best management decisions. Cost and Cost Trends will help you do that.

Phone: (334) 844-1019
Email: rjb0003@auburn.edu

.

 

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