Rocky Mountain Region

U.S. Forest Service
Rocky Mountain Region
740 Simms St
Golden, CO 80401
303-275-5350

TTD ⁄ TTY
303-275-5367

Landowner Assistance Programs

ROCKY MOUNTAIN REGION
STATE AND PRIVATE FORESTRY

Forest Stewardship Program


Purpose

The Forest Stewardship Program was designed to assist private forest landowners meet personal land management goals while providing environmental, economic and social public benefits. Forest stewardship enables the private landowner to maximize individual enjoyment and pride in land ownership while maintaining its value for future generations. Good land stewardship guards against soil erosion, protects water quality, ensures future timber supplies, improves fish and wildlife habitat, enhances natural beauty and provides recreational opportunities. The Forest Stewardship Program provides educational and technical assistance to landowners interested in active management of their forest lands for these multiple resource benefits.

Program Delivery

The Forest Stewardship Program is delivered at the State level through the State Forester's office, in cooperation with state forest stewardship coordinating committees. Local representatives of committee members provide assistance to landowners participating in the program. This service generally takes the form of the preparation of an integrated forest management plan and subsequent help with plan implementation. Each plan contains a description of the landowner's property and recommended practices for achieving individual management goals. It also addresses ways to conserve or improve timber, fish and wildlife, soil and water, recreation, aesthetics and forage resources found on the property. Landowners can be recognized for their stewardship efforts and receive a certificate, sign and local publicity if desired.

Benefits from Program Participation

Any non-industrial, private forest landowner is eligible to participate in the program, unless the State has established minimum acreage requirements. Forest stewards are provided an opportunity to learn more about forest resource management and obtain technical, multiple resource assistance, can be recognized for their stewardship efforts, promoting sustainability and setting an example for other landowners and the public, and receive a management plan which may, depending on the State, reduce tax liability.

How to Participate

Landowners interested in participating in the Forest Stewardship Program should contact the State Forest Stewardship Program Coordinator or their local office of the state forestry agency for additional information.

Forest Land Enhancement Program (FLEP)

The 2002 Farm Bill has authorized the USDA Forest Service to launch a multimillion-dollar forestry program to assist non-industrial private forest (NIPF) landowners in what is known as the Forest Land Enhancement Program (FLEP). Authorized for $100 million for program years 2002-2007, the program has been approved to allocate $20 million in its inaugural year (FY2003) to be distributed through State forestry agencies.

Program Delivery

Through FLEP, State forestry agencies can provide a wide array of educational, technical and financial services that are intended to ensure that the nation’s NIPF and related resources continue to provide sustainable forest products and safeguard the health of our water, air, and wildlife.

FLEP is a voluntary program in each State and participation by landowners is voluntary. In each State participating in the program, the State Forester and State Forest Stewardship Coordinating Committee has jointly developed a State priority plan that is intended to promote forest management objectives and describe implementation of FLEP in their State. The State priority plan determines the mix of educational, technical and financial assistance with States choosing one or more of these elements. As applicable, they identify educational activities and their outcome, describe the technical assistance to be provided and its outcomes, and describe the cost-share components that will be available to NIPF landowners and the public values of these practices.

Benefits from Program Participation

The Stewardship Incentive Program (SIP) and the Forestry Incentives Program (FIP) were repealed in the 2002 Farm Bill. FLEP will provide States with the opportunity to continue the efforts they had going with SIP and FIP. State forestry agencies can use FLEP funds to provide assistance to NIPF owners to achieve a broad array of natural resource objectives.

The USDA Forest Service and State forestry agencies are guided by the following principles:

• Establish, manage, maintain, protect, enhance, and restore NIPF lands.
• Enhance the productivity of timber, habitat for flora and fauna, soil, water, air quality, wetlands, and riparian buffers of these lands.
• Assist owners and managers to more actively manage NIPF lands to enhance and sustain the long-term productivity of timber and non-timber forest resources.
• Reduce the risk and help restore, recover and mitigate the damage to forests caused by fire, insects, invasive species, disease, and damaging weather.
• Increase and enhance carbon sequestration opportunities.
• Enhance implementation of agroforestry practices.
• Encourage and leverage State, Federal, and local resource management expertise, financial assistance and educational programs that support FLEP.

How to Participate

NIPF owners who wish to participate in the cost-share component of FLEP in those States offering it as an option, must complete one or more of the sustainable forestry practices available in their State as described in a forest management plan.

In each state, the State forester or their representative will evaluate the management plans submitted by NIPF owners and approve them for participation in FLEP. Eligibility criteria for FLEP are broader than for SIP and FIP to encourage greater participation.

FLEP allows treatment of up to 1,000 acres per year and variances of up to 5,000 acres if significant public benefits will accrue. The maximum FLEP cost-share payment for any practice may be up to 75 percent. The aggregate payment to any one landowner through 2007 may not exceed $100,000.

Forest Resource Management

Forest resource management promotes the conservation and management of rural forest resources for a variety of desired benefits through the application of sound sustainable and economic resource management principles.

Cooperative Forestry staff members provide technical information and assistance to State agencies and other groups.

Cooperative Forestry staff members monitor, evaluate, and coordinate the latest research information developed by the USDA Forest Service Forest Experiment Stations for dissemination to private landowners, public and private foresters, and other interested groups.

Forest Legacy Program (FLP)

The Forest Legacy Program protects private lands from being converted to non-forest uses through the purchase of conservation easements or fee simple titles from willing private landowners. The program is voluntary on two levels; states decide whether or not to join and private forest landowners voluntarily agree to place conservation easements on their properties. The purpose of the Forest Legacy Program is to keep forest land available for traditional forest uses.

Participating landowners may be compensated up to 75% of the appraised value of the conservation easement or fee simple title of the property.

Currently Colorado and Nebraska are participating in the program and have completed their Assessment of Need (AON). These documents show the goals for the forest lands eligible for the program. Forest Legacy assures that both traditional uses of private forest lands and the public values of America's forest are protected for future generations.

How to Participate

If you have forested property that you would like to have considered for the Forest Legacy Program, contact your state forestry office and ask for the Forest Legacy Program Coordinator.

For more information, visit the national Forest Legacy Program web site.

Forest Taxation

Taxes are a major cost of doing business.  Proper tax planning is just as important as the silvicultural techniques used to grow a profitable timber crop.  Hence, to increase your revenues be aware of the special income tax provisions available to help you earn optimum income from your forest lands. Congress provides these favorable advantages and elections TO STIMULATE INCREASED PRODUCTIVITY from the nation’s privately owned forest lands.

You should have a general knowledge of these provisions whether you prepare your own tax return or have someone do it for you.  Most tax accountants are not familiar with all of the special provisions available for private forest landowners. The tax code is complex, and these special provisions are obscure.  Be aware of them so you can inform your tax accountant.

Here are a few special provisions to help you avoid paying unnecessary income taxes:

1. Landowners can claim a 10% reforestation tax credit and 7-year amortization for qualified reforestation expenses on the first $10,000 invested in reforestation each year. This special advantage is available only to timber growers -- with only a few specified exceptions.
2. You must have a profit motive to claim business or investment expenses, but you do not have to have a profit three out of five consecutive years.   An expanded definition for “profit” is particularly relevant to timber.  “Profit” also includes appreciation in value of assets.  Hence, timber growing meets the profit definition since it appreciates in value through physical growth and enhanced quality over time -- even though it may not be harvested for a period of many years.
3. Generally, you get the best tax treatment if you are “an active participant in the trade or business.”  The passive rules apply, but it is not difficult for you to meet these requirements if you so choose.  However, you must report your business expenses in a consistent manner and dispose of your timber under the provisions of Section 631, i.e., you should not sell your timber “lump sum” (see Web site below).
4. You should maintain current tax records IRS Form T (Timber) Forest Activities Schedules.  You should also attach Form T schedules to your tax return when specified by the instructions included on this form.

Listed below are several publications and Web sites available on the Internet that cover timber taxation issues for forest landowners.  Check them out before you sell your timber, acquire new timberland, or reforest!

•   Forest Landowners’ Guide  to the Federal Income Tax (AG. HBK. No. 718)
•  Tax Tips For Forest Landowners for the 2007 Tax Year
•  National Timber Tax Web site
•  IRS publications and forms (including Form T)
•  Sample Timber Sale Contract
•  Summary of Casualty Loss Provisions
• Federal Income Tax on Timber: A Key to Your Most Frequently Asked Questions (R8-TP34)