Vol. 14, No. 1            Fall, 2004

 

2004:   Year of the Eagle

At Templin Forestry, 2004 will always be remembered as the Year of the Eagle.  We had two clients with bald eagle nests on timber sale areas this year.  The first discovery was on a proposed timber sale that we aborted after discovering a nest and two eagles that were pretty territorial about guarding their nest.  We later identified two eggs in their nest by way of a helicopter viewing.  The eagles stayed through early summer.  We believe that the eaglets survived.  Thus began my education with eagles, the Endangered Species Act, and the United States Fish and Wildlife Service (USF&W). 

 

The American Bald Eagle population has made a slow but steady comeback since DDT was banned in 1972.  Use of DDT was widespread because it controlled insects (namely mosquitoes that spread malaria and typhus) effectively and cheaply.  DDT didn’t actually kill the birds outright; however, it did cause a lack of calcium in the eggs that eagles were laying.  This made the eggs thin-shelled and they would often break before an eaglet could hatch.   In 1972, there were six or seven eagle nesting sites in Louisiana.  By 1985, the nesting sites increased to 18.  In 2002, 150 nesting sites were known in the state.  Northern states have far larger eagle populations.  The recovery of the bald eagles has been so successful that USF&W proposed that the eagles be de-listed as a “threatened” species in 1999.  The head of USF&W Service announced along with President Bush that the birds would officially come off the threatened list in 2004.  So far, that hasn’t happened and it is probable that it will not happen until the government decides what protections will be afforded the birds after de-listing.

 

Eagles are migratory birds that come to Louisiana in the late fall.  Typically, eagles will find a large pine or cypress tree within view of a large body of water.  Their diet consists mainly of fish.  They will put their nest in a fork close to the top of the tree in stout branches.  Nests are made of sticks and can be very large, weighing several hundred pounds.  The female will normally lay one to three (usually two) eggs.  The eggs incubate for 35 days, during which time the female will rarely leave the nest.  Eggs usually hatch sometime in January.  Eaglets grow fast and can fly after 78 – 80 days.  From the laying of eggs to first flight commonly takes from 16 – 18 weeks.  Each nesting pair of eagles yields an average of 1.5 new eaglets every year.  Eagles normally mate for life, but will take on a new mate if one dies.  With a life span of 10-20 years in the wild and upwards to 50 years in captivity, one can see that eagles are repopulating rapidly. 

 

Most of the eagles in Louisiana nest along the coast.  I’ve seen several eagle nests this year while working in south Louisiana in flooded cypress timber.  Terrebonne Parish has the highest bald eagle population in the state.  The eagles are quickly spreading north. 

 

The second official interface I had with eagles happened when I received a call from Irene Norris with Cleco Power, LLC informing me that an eagle nest was sighted on a timber sale area near Rodemacher Lake, Rapides Parish.  We had sold timber for Cleco to Martco Partnership a year earlier and knew Martco was planning to harvest the timber soon.  We inspected the site, found the nest, and notified USF&W.  I had already met with USF&W several times regarding the first nest we found earlier in the year.

 

I had determined that USF&W had different standards for protecting eagles in each state.  Louisiana was rather average for the South and their standards were nowhere near the most stringent.  However, they strongly recommended that no cutting be done within 1,500’ of the nest when the birds were present and 750’ buffer when they were not present.  This equates to no timber harvesting on a protected area of +40 acres when the birds are absent from the site.  Since mature timber was involved, the cost of protecting the area around the nest was significant. 

 

These standards seemed rather extreme and after extensive research, we had a formal meeting with USF&W, Cleco Power, Martco Partnership and Templin Forestry to discuss the matter.  We pointed out that there was no difference in USF&W recommended protections whether a shopping mall were being constructed or on-going timber management activities that renew the forest.  USF&W informed us that we had the option to write a management plan for a modified timber sale that protected the eagles.  If they agreed that our management plan would not likely adversely affect the eagles, then they could approve it at the state level, and we could proceed with the modified plan and be protected under law.

 

An Integrated Timber Management and Bald Eagle Protection Activity Plan was developed cooperatively by Templin Forestry, Martco Partnership, and Cleco Power.  We recommended that a 330’ buffer be established around the nest tree where no timber harvesting would take place.  A secondary buffer zone extending from 330’ to 660’ would be established where selective timber harvesting would take place removing approximately one-half of the trees, leaving a representative number of trees in each size class.  Clearcutting would be allowed beyond 660’.   All forest management activities would occur while eagles are absent from the site. 

 

We also developed specific data collection criteria to describe the site so that USF&W may develop a database that could help to characterize the type of habitat eagles prefer.   Through use of pictures, tree measurements, diagramming spatial relationships of tree sizes and locations, one can describe the site with concrete characteristics.  This would enable USF&W to make recommendations that would be based on scientific observations rather than on arbitrary guidelines. 

 

Our study and plan concluded with the following opinion: ‘Eagles prefer to nest in tall pine trees with stout branches close to water.  Nest trees are not necessarily the tallest trees, but are chosen for a variety of factors.  Those factors seem to include being in an area that has other tall trees in the immediate vicinity for perching.  The nest tree is in rather open timber so that the eagle’s approach to the nest is unobstructed by competing branches from other trees.  The close proximity of the pine plantation being within 42 feet of the nest with an average height of 36 feet indicates that eagles do not require large areas of old-growth timber.  It appears that normal forest management activities can co-exist with eagle habitat as long as nest trees and perch trees are protected and timber cutting is not conducted during the time when the eagles are using the nest.’ 

 

Our management plan was accepted by USF&W within a month.  We have been told by USF&W that our plan, with slight modification allowing for “line-of-sight protection from the nest to the water”, may become the standard recommendations for forest management operations in Louisiana and perhaps in the nation. 

 

We made generous concessions for protecting the eagle nest and habitat.  However, the cost of protecting the eagles’ nest was less than 50% of the cost had we used the original USF&W guidelines.  I believe this situation was an excellent example of how the federal and private sectors worked together in a spirit of cooperation to protect our national symbol while reducing the infringement by government on private property rights.  I greatly respect Cleco Power, LLC and Martco Partnership for their unwavering commitment to “do the right thing.”

 

The American Bald Eagle is a magnificent bird and is worthy of being protected.  The birds are making a comeback primarily because of the ban on DDT and because they have few predators, besides man.  They like mature timber near water.  Keep your eye out for them:  they have a white head and white tail, a large yellow beak, and a large black body, and a wingspan of 6-7 feet.  Chances are good that if you haven’t seen them yet, you soon will. 

 

 

The Stumpage Report

 

The wet weather lasted through July in 2004, causing mills to use what good ground they had and to scramble to buy timber with good access.  Most mills are a little nervous about yard inventories as our October rains forebode an early and wet winter.  The mills are currently “courting” timber producers, to encourage them to bring timber to their mill throughout the coming winter and spring.  Prices for pine sawtimber with good ground are rising as winter approaches.  Timber that needs to be harvested during the summer months is largely being ignored at the moment. 

 

Hardwood stumpage prices have been strong all this year.  We’ve been seeing the best prices ever on red oak sawtimber.  Pulpwood markets are somewhat better than in years past, but still nothing to write home about.

 

A comparison of the average quarterly lumber, panel, and pine sawtimber stumpage prices for the last four years appears below:

 

*   Compiled by Templin Forestry from Random Lengths

**  Templin Forestry

 

Panel prices surged during the 2^nd and 3^rd quarters of 2003.  Prices for panels have fluctuated more dramatically than lumber.  Record prices were set for both lumber and panel prices this year.  Both panel and lumber prices have been sliding in recent weeks, as high domestic production and imports keep high supplies in the market.  Plywood from Brazil and lumber from Canada keep strong downward pressure on prices. 

 

Housing starts for 2004 are expected to be around 1.9 million units.  Rising interest rates have not adversely affected the home market.  So far, the Fed has been making light, predictable increases that do not appear to be cooling off the economy. 

 

Production has risen with prices and demand.  North American panel production is expected to make its third consecutive production record in 2004.  Southern lumber production is approximately 12% higher than this time last year. 

 

Rebuilding in Florida from the hurricanes will be a long process that will definitely have a positive impact on the forest products industry.  The economic recovery seems to be alive and growing, and adding new jobs.  If we can sustain this level of increase, the economy looks good for the timber industry in 2005. 

 

NAFTA ruled in September that lumber importers from Canada do not threaten to injure the U.S. industry.  If the U.S. can’t prove that Canadian lumber threatens to injure the U.S. industry, then we cannot legally collect the countervailing and anti-dumping duties.  The U.S. is challenging the ruling and it will most probably be in 2005 before a final decision is made. 

 

The Canadian dollar (the loonie) is currently around $.82 to the greenback, up from $.75 a year ago.  The loonie hit a low of $.64 in 2002 and has been steadily increasing compared to the dollar since then.  This makes it tougher for Canadians to import their lumber into the United States.  If prices for lumber trend lower, it will make it tougher on Canadians to export lumber to us as long as the exchange rate stays high.  The reason the loonie is gaining in value may be the international recognition of Canada’s vast oil reserves. 

 

Stumpage price fluctuations will continue to occur in the markets based on individual mill supply and demand considerations.  Weather, markets, and characteristics of the timber to be sold all play a major part in the price you get for your timber.  One thing you can control is how your timber is marketed.  Getting the best possible price for your timber while ensuring that the sale is conducted in a manner that protects your long-term goals is something you can control.  Letting your consulting forester handle the details of your sale is the best way of ensuring you get the best price for your timber.  Remember, forest industry has a strong desire to buy your timber at the lowest price possible.  A certified consulting forester who has no interest in buying your timber can consistently get you the best price. 

 

The average timber prices our clients received as compared to the reported averages in Louisiana for the last year and a half are shown below:

 

 * Published by the Louisiana Office of Forestry

 

 

 

 Safe Harbor Act and Red-Cockaded Woodpeckers

 

The Safe Harbor Agreement is planned to go into effect on January 25, 2005 during a ceremony when the Louisiana Office of Forestry will put their lands under an agreement with the Louisiana Fish and Wildlife Service and Natural Heritage Foundation as agreed to by the United States Fish & Wildlife Service.  The Safe Harbor Agreement is available to all private and non-federal landowners in Louisiana.  Currently, if you have red-cockaded woodpeckers (RCW) on your property, you have certain obligations to protect and manage the nesting area (ten acres) and a foraging area (an additional 65 acres) in a manner that protects the birds.  The Safe Harbor Agreement is a voluntary program that landowners may join that will afford them some limited protection from further restrictions if more RCW come onto their property. 

 

RCW are not likely to live on most land owned by the forest industry.  Forest industry manage their lands with high timber production objectives and harvest their timber well before the stands become attractive to the RCW.  Many private landowners manage their property less intensively and have older timber associated with an uneven-aged style of management.  Essentially, RCW are attracted to older pine stands.  If you have 50 – 60 year old pine stands, then it is probably just a matter of time before they set up house-keeping on your property.  The birds have an uncanny sense for choosing trees with heartrot as cavity trees.  It takes an average of seven years for the birds to make a suitable cavity in a tree for nesting. 

 

Most of the known populations are on the Kisatchie National Forest where recovering the birds is a major management priority.  The Kisatchie National Forest currently has 304 clusters (several active cavity trees in a common area).  Most of the active clusters are on the Vernon and Evangeline areas of the Calcasieu Ranger District. The Kisatchie, Winn and Catahoula Ranger Districts also have significant clusters.   RCW populations are increasing slowly on the national forest. 

 

If you join the Safe Harbor Agreement, you will need to make an official study that will provide you with baseline information on how many birds you have.  You will agree to manage a certain portion of your property with old-growth pine timber.  You will maintain a minimum 50 basal area on 75 acres and must actively reduce the hardwoods in the area through chemical and/or prescribed burning treatments.  Whenever you decide to harvest some timber, you will have another study done to determine if your populations have increased.  If the bird populations increased above your baseline because of the management you agreed to provide, then you can be authorized for an incidental take, and the excess birds can be moved.  This would give you protection from liabilities (additional restrictions) associated with increased populations above your baseline. 

 

The birds will be moved to suitable habitat (probably on the national forest).  Inserts are installed into mature trees, a kind of prefab housing for woodpeckers.  These inserts are more readily accepted by the birds if they are located on the outskirts of an existing colony.  In February 2005, I’ll have the chance to observe an insert being placed in a tree.

 

We are reserving our opinion on the Safe Harbor Protection Plan until we can actually see it in action.  It may be useful to protect landowners with known populations of RCW.  However, managing for RCW is restrictive to private property rights and is expensive when compared to active timber management.  Unless a landowner particularly desires to assist in the recovery of RCW on their property, holding large areas of mature pine timber should probably be avoided. 

 

 

 

 

 

Real Estate Page

A lot of industrial timberland has traded hands in Louisiana during the last two years.  Mills have moved toward consolidating their investments in production facilities and away from land ownership.  They can see that private investors manage timber responsibly and do not fear that there will be a lack of timber.  Land ownership and timber management should be profitable endeavors for a long time to come.

 

If you are interested in increasing your timberland assets, we’re interested and available to give you our best efforts in assisting you make an informed decision about your next timberland purchase.