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|Archives - January 2008|
|Tuesday, January 01, 2008|
Real estate versus working timberland: Which will timber companies, and Oregonians, choose?
By Abraham Hyatt
Oregon may have some of the most restrictive land-use laws in the nation when it comes to forestland, but Andrew Miller, president and CEO of Portland-based Stimson Lumber, is willing to make a wager: Sell a 40-acre plot from the 170,000 acres of working forestland that Stimson manages in the state, and then hire a good land-use lawyer.
It’s a challenge that has less to do with the strength of the laws governing that land and more to do with what has become perhaps the most powerful issue the timber industry is facing. According to the Department of Forestry, about 10% of the state’s private timberland sits inside urban growth boundaries or development zones. Thanks to demand from the state’s fast-growing population, the land around urban areas suddenly has more value as real estate than as forestland — sometimes three times as much.
“There is a growing economic incentive to fragment land and sell off the pieces,” Miller says. “It’s not healthy in an economic sense or for the ecology or the environment but it’s driving people [in the industry] to look for value outside of selling trees.”
Is that working forestland worth more to the public as much-cherished woodlands or as something else? And if it’s forest, who will pay to keep it that way if it’s worth more as real estate?
The Department of Forestry, industry groups and foresters are looking at different solutions, including conservation easements and tax incentives. U.S. Senators Gordon Smith and Ron Wyden and others are looking at different ways to increase the amount of timber harvested on federal lands, which would help buoy the industry as a whole.
Dale Riddle is senior vice president of legal affairs at Eugene-based Seneca Jones Timber, which manages about 166,000 acres of forestland in western Oregon. He argues the two biggest challenges are the trade relationship with Canada, which subsidizes its timber industry, and the restrictive U.S. federal timber policy.
In the 1980s timber from federal lands made up 50% to almost 60% of Oregon’s annual harvest. Since then the federal government has cut back logging following legal battles over endangered species habitat and management practices; timber from federal lands now makes up less than 10% of the state’s annual harvest. That puts most of the state’s timber production on private lands and creates a fire risk on overgrown federal lands.
Plum Creek, the nation’s largest private landholder, has run up against controversy for its use of its timberland. In Washington, Maine and Montana, Plum Creek has sold land to developers or is actively developing resorts and housing developments on 100,000-plus acre parcels of its own timberland. Most famously, the company — which did not respond to requests for an interview for this story — also filed, and then withdrew, Oregon’s largest Measure 37 claim. The claim would have given Plum Creek the ability to develop 32,000 acres of the 372,000 acres of forestland it owns in the state.
That kind of land sales or development by REITs could have an impact on the state’s smaller, privately held timber companies, especially if those big companies are harvesting timber or selling land based on stockholder demands rather than on a long-term plans. As Geisinger points out, “When you’ve got an accountant managing forests, that’s not always the best forestry.”
The value of that land is multifold: jobs, rural economies, supporting industries, habitat, biodiversity, water, carbon sequestration (the natural process of trees removing and storing carbon dioxide, which plays a major role in global warming, from the atmosphere). But to save that land, the timber industry can’t be the only advocate, Donegan says.
“It’s got to be the conservation community who identifies the value of working forests,” he says. “Conservationists need to stand up as a third party and say, ‘This is a crisis.’”
UNTIL THE PAST FEW decades, the intersection of logging and residential growth has had little impact on the timber industry. Conservation efforts from outside the industry played a minor role as well. The biggest force that shaped the industry was federal forests.
Wednesday, July 09, 2014
BY LINDA BAKER | OB EDITOR
Scott Kveton, the CEO of Urban Airship is taking a leave of absence from the company. As the story continues to unfold, here’s our perspective on a few of the key players.
Tuesday, July 01, 2014
BY HANNAH WALLACE | OB BLOGGER
Demand for organic food continues to soar: Last year, sales of organic food rose to $32.3 billion — up 10% from 2012. In Oregon, organic produce wholesaler Organically Grown Co. has been championing organic growing methods for four decades.
Thursday, July 31, 2014
BY MARY SPILDE | OB GUEST CONTRIBUTOR
Faced with the aftermath of the “great recession,” increasing concern about the environment and dwindling family wage jobs, we have some very important choices to make about our future.
Tuesday, July 08, 2014
BY LINDA BAKER | OB EDITOR
The New Yorker recently published a sharply worded critique of “disruptive innovation,” one of the most widely cited theories in the business world today. The article raises questions about the descriptive value of disruption and innovation — whether the terms are mere buzzwords or actually explain today's extraordinarily complex and fast changing business environment.
Update: We caught up with Portland's Thomas Thurston, who shared his data driven take on the disruption controversy.
Monday, July 07, 2014
BY TOM COX | OB BLOGGER
Named after the 2010 experiment by Thomas Ryan, "Robin Sages" are fake social media profiles designed to encourage linking and divulging valuable information.
Tuesday, June 03, 2014
Citing the transition to catch shares management as a key to rebuilding stocks and reducing bycatch, 13 species caught by the West Coast trawl fishery today earned designation from the Marine Stewardship Council (MSC) as sustainable.
Friday, June 27, 2014
BY JASON NORRIS | OB BLOGGER
Over the last several months we have seen a wave of cross-border acquisitions, primarily U.S.-based companies looking to purchase non-U.S.-based companies. There are a few reasons for this, but the main culprit is the U.S. corporate tax system. The United States has one of the highest corporate tax rates in the world.
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Vigilant enters a New Year with a new president.
How George Fox has become one of Oregon's largest private universities.
Forest Grove sees growth in the burgeoning food and beverage scene.
Lane Powell Shareholder Susan K. Eggum has been elected as vice chair of programs and projects for the International Association of Defense Counsel’s (IADC’s) Employment Law Committee.
Geffen Mesher is saddened to announce the passing of long-time shareholder, Tom “Mike” Anderson, who died on July 10, 2014, from liver disease diagnosed after recent heart surgery. He was 55 years old.
Fifteen Lane Powell attorneys have been named 2014 “Oregon Super Lawyers,” and another five attorneys have been named as “Oregon Rising Stars” by Super Lawyers magazine.