| Dwight L. Phipps Forest Nursery |
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| Update on Phipps Nursery |
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April 2, 2008
Sales operations of tree seedlings from the D.L. Phipps Forest Nursery ended on April 1, 2008. Staff are involved in shut-down processes for the nursery and operations are expected to conclude by May 31.
Proposed Sale / RFP Update
The Oregon Department of Forestry accepted proposals regarding a proposed sale of the nursery during a 30-day period which began on January 14, 2008.
The scope of the proposed sale is the 115-acre nursery property at 2424 Wells Road, located southwest of Elkton. The minimum price set for the property in this offer is $2.45 million, with Forestry retaining rights to lease-back a portion of the property through the remainder of the current seedling growing season.
The state-owned D.L. Phipps Forest Nursery has grown forest tree seedlings since 1957. The majority of the annual crop consists of seedlings grown for family forest landowners to be purchased, as needed, without prior contract. Family forest landowners often harvest in response to market conditions and short-term needs and objectives, rather than planning for harvest two or more years into the future.
When the Phipps Nursery was first established, speculatively grown seedlings were not available in sufficient quantity to meet the need. Since that time, the number of private nurseries has increased in Oregon while over the last decade, harvesting on federal lands has decreased. The result is that private nurseries have become better equipped to meet the demand of speculatively grown seedlings for family forest landowners. An increasing available supply of seedlings and competition among private nurseries caused concern that the Phipps Forest Nursery may be competing with private nurseries.
This concern prompted the Oregon Legislature to direct the Oregon Department of Forestry to explore alternatives for providing a stable and reliable supply of tree seedlings for family forestland owners. A Seedling Task Force was created to explore this issue in cooperation with the Oregon Association of Nurseries. Two options were explored: 1) forming a cooperative with private nurseries to grow speculatively-grown seedlings and 2) leasing Phipps to a private nursery grower. After considerable public and stakeholder input and deliberation, both options were deemed not viable because of lack of support from private nurseries.
With decreased timber harvests on federal lands and increased seedling availability in the private sector, seedling sales at Phipps diminished over a period of years. The operation of Phipps is entirely supported by the sale of seedlings, sales of which have not been sufficient to support the Phipps Nursery operation. The Board of Forestry in 2006 directed the Oregon Department of Forestry to pursue sale of the Nursery.
If a potential buyer is not selected through the RFP process just completed, the property could be listed through a real estate broker for a negotiated sale.
Questions about the proposed sale should be directed to:
Robert McKee, Facilities Manager
Oregon Department of Forestry
2600 State Street
Salem, Oregon 97301
503-945-7503
bmckee@odf.state.or.us
General questions, or public comment, about the Phipps Nursery may be directed to:
Kevin Weeks, ODF Agency Affairs Office
503-945-7427
kweeks@odf.state.or.us
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| Contact Information |
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Dwight. L. Phipps Forest Nursery
2424 Wells Road
Elkton, OR 97430
541-584-2214
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| About the Nursery |
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The Dwight L. Phipps Forest Nursery was opened in 1957 to provide government agencies, family forests and private landowners with an on-demand source for at-cost tree seedlings without multi-year seedling contracts required. At its peak, the nursery produced 16 million tree seedlings per year. It is the only state-owned seedling nursery in Oregon.
ODF began providing tree seedlings to Oregon landowners after the Clarke-McNary Act of 1924 provided federal money to states for forest management. A tree-seedling nursery opened near Corvallis in 1925 and provided seedlings beginning in 1927, operating until the opening of the Elkton Nursery thirty years later. The nursery, located three miles south of Elkton, was re-named in 1965 in honor of former State Forester Dwight L. Phipps who guided its founding.
The 261-acre Phipps Nursery initially produced 2.5 million seedlings a year, and towards the end of production produced between 6 and 12 million seedlings annually. Many of the Douglas-fir, pine, cedar, spruce, hemlock, true fir, and hardwood seedlings like alder, ash, and maple seen throughout Oregon spent their first two years as seedlings in the Phipps Nursery.
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