California Seeing Dramatic Increase in Cost of Timber Harvesting, According to Study by Cal Poly Institute

SAN LUIS OBISPO-The cost of preparing state-mandated plans to harvest trees in California has increased more than 1,200 percent over the last 30 years, making it difficult to manage forests and increasing the likelihood that forest land will be converted for other uses, according to a study released today by Cal Poly's Institute for the Study of Specialty Crops. The study found the typical harvest plan costs about $30,000 to prepare, compared to $2,200 (adjusted to today's dollars) 30 years ago. The increasing cost of the harvest plans adds to the financial burden of managing forest land and economically squeezes landowners, the study concluded. "Declining returns to private investment, coupled with mounting regulatory hurdles, create incentives to convert (forests) to other land uses," said Cal Poly Forestry Professor Richard P. Thompson. Thompson, a licensed California Registered Professional Forester co-authored the study with Cal Poly Assistant Forestry Professor Christopher Dicus. As more forest land is converted to other uses, the study's authors said, "in turn, small landholdings become economically infeasible, inducing an increasing number of forest landowners to harvest sooner than otherwise planned due to future uncertainties over the regulatory requirements." The study included 607 timber harvest plans (THPs) with a median acreage of 73 acres. The $30,000 average cost of a current harvest plan doesn't include expenses related to public challenges of plans, appeals, hearings and modifications that reduce the value of a timber harvest. "The time constraints keep the forest land owner from being able to time the sale for optimal market conditions. This review process has now been extended by the recent addition of final approval by the