One Million Dollars available to Minnesota Forest Landowners

The Minnesota Natural Resources Conservation Service 2013 EQIP State-wide Forestry Initiative has $1 million available to forest landowners who want to implement forest practices in their woodlands. The Environmental Quality Incentives Program (EQIP) is available to forest landowners with as little as 1 acre of forestland or woodland. There is no requirement to own or manage agricultural lands, pasturelands or grazing lands to qualify for EQIP.

Forest Management Plan Requirement

A forest management plan is necessary to qualify for program payments on implementing forest practices. A Forest Stewardship Plan or any forest management plan may qualify. Any existing plan that meets NRCS’s forest management plan criteria will enable the forest landowner to immediately apply to EQIP for implementing the forest practices in their plan.

Landowners who do not already have a Forest Stewardship Plan or a forest management plan can apply to have a plan completed through a certified and registered Technical Service Provider (TSP). Financial assistance is available through EQIP to hire a TSP for plan development. Program payments are available only if no previous plan exists for the woodlands or an existing plan needs to be updated to meet NRCS’s plan criteria. Only after the plan is developed and meets NRCS’s planning criteria can a new EQIP application be submitted for implementing the forest practices in the plan. Another option for obtaining a plan is to hire a Forest Stewardship Plan Preparer.

Other Eligibility Requirements (Owner, Land and Practices)

Other eligibility requirements include the owner, the land and the practices. Owner eligibility consists of income limits, proof of land ownership, and an active interest in the land. Having “an active interest” refers to having a forest management plan as explained above.

The land, or in this case the forest, needs to have a documented natural resource concern which means that at least one of five natural resources (soil, water, air, plants or animals) needs improvement. For example you may have invasive species in your forest, or erosion and excess sediment from nearby cropland creates a need for a riparian forest buffer. An NRCS or SWCD employee or a TSP will determine if you have a natural resource concern on your land.

Recommended forest practices in the forest management plan must be on the EQIP docket to be eligible for program payment. Practices on the docket include tree planting, site preparation, forest stand improvement, brush management, herbaceous weed management, riparian forest buffers, red and white pine establishment, oak savannah establishment, prescribed burning, and windbreak planting.

Screening and Ranking Applications

NRCS EQIP 2012 landscape stewardship areas map. Click for a larger version (PDF).

All applications will go through a screening and ranking process at the state level to prioritize the applications. The highest prioritized applications are those for a forest management plan. Those applications will be funded as monies are available. High priority applications are those from established Landscape Stewardship Areas (click map for larger version). Medium priority applications are the rest of the state. High and Medium applications are ranked according to a scoring system and allocated payments by score.

EQIP is a continuous application program; you may submit an application at any time. There are 2 more ranking periods in 2013, ending March 15 and April 19. Applications must be received by those dates to be ranked in that period. Corresponding award dates are March 30 and June 1. Soon after these dates landowners who are approved receive letters notifying them of their funding.

For more information about this process contact your local NRCS office or download the EQIP Forest and Woodland Owners 2012 Fact Sheet.

This article was updated in March 2013.  A slightly different version of this article appeared in the Minnesota Forestry Association’s winter 2012 newsletter.

Related posts:

1. Local Work Group Meetings for EQIP Now Scheduled
2. Organizations assisting Minnesota woodland owners
3. Changes to the Minnesota Forest Stewardship Program

Watch a June 2012 presentation on this topic now

After watching, please fill out the quick feedback form.

DOWNLOADS:  

• Family Forest Stewardship and Property Taxes (PDF, updated June 2012 by Mike Reichenbach and Mel Baughman).  Be patient, it may take a minute or two to download!
• FAQs about the SFIA program (PDF)
• The slides and notes from the September 2011 webinar presentation (PDF, 2 MB)
• Property tax-related fact sheets from the MN Department of Revenue.

About woodland property taxes in Minnesota

Property taxes pay for important local government services. They also are a significant annual cost for you, the forest landowner. You may not fully recover costs, such as property taxes, associated with forest management, due to the 30 to 100 year time between harvests.

In addition, your land provides wildlife habitat, watershed protection, aesthetics, and biodiversity that benefit all Minnesotans. Because of the public benefits your forest land provides, the Minnesota Legislature created the Sustainable Forest Incentive Act (SFIA) and 2c Managed Forest Land Classification (Class 2c).  In addition, the Green Acres/Rural Preserves program can be used to reduce ownership costs on sustainably managed forest land. This publication will help you decide which program, if any, best fits your situation.

A recently updated publication by Mike Reichenbach and Mel Baughman includes detailed overviews of the following information about your Minnesota woodland property taxes:

• Tax classifications and class rates
• How Minnesota’s Green Acres program works, including recent changes
• Rural Preserve Program: Qualifications, enrollment, and ending enrollment
• Sustainable Forests Incentive Act (SFIA): Qualifications, enrollment, incentive payment, acquiring enrolled land, and ending enrollment
• 2c Managed Forest Land Classification: Qualifications and enrollment
• Comparison between SFIA and Class 2c
• How to get forest management assistance
• More information

Related posts:

1. Itasca County woodland property tax postcard
2. Extension to lead 2c Managed Forest Land outreach
3. New 2c Managed Forest Land tax classification

Congress recently renewed the enhanced tax deduction for conservation restriction donations through December 31, 2011!

This is a powerful tool for allowing modest-income donors to receive greater credit for donating a valuable conservation restriction on their property, but it’s only good for project completed in 2010 and 2011.

Specifically, the enhanced incentive:

• Raises the deduction a donor can take for donating a conservation restriction from 30 percent of his or her income in any year to 50 percent;
• Extends the carry-forward period for a donor to take tax deductions for a conservation restriction from 5 to 15 years; and
• Allows qualifying farmers to deduct up to 100 percent of their income.

More information:

• Learn more about conservation restrictions.
• Read stories of landowners who have used conservation restrictions to meet their goals.
• Learn more about the enhanced tax deduction for conservation restriction donation.

Related posts:

1. Minnesota Conservation Funding Guide from MDA
2. Conservation Easements
3. 2011 SFI Conservation & Community Partnerships Grant Program

While the touching story of the Chapel farm family is appealing in its own right, the book also offers alternative legal options to transfer land between generations and valuable insights into forest management for those with minimal experience.  Technical aspects are covered in sidebars and the appendices so as not to interrupt the story.  The printing of the book was covered by a grant from the Wisconsin Environmental Education Board and thus can be offered to anyone wanting a copy for the cost of shipping and handling.  If interested please send $5 with your name and address to:

If you would like multiple copies to share with relatives, neighbors, or friends, you can request up to five (5) copies, but please include $5/copy for shipping and handling.

This announcement appeared in the December 2010 Woodland Leader News, published by the University of Wisconsin-Stevens Point.  It’s republished here with permission.  For more info on WLN, email John DuPlissis.  More on intergenerational land transfer from MyMinnesotaWoods.

Related posts:

1. Book review: Timber Tax Management for Family Forest Owners
2. New book available: Woodland Stewardship, 2nd Edition
3. Updated "Estate Planning for Forest Landowners" publication

This class is being offered to address intergenerational land transfer issues.  As such, the overall objective of this class is to discuss what makes for a successful transfer of a landowner woodland between one generation and the next.  The process involves three elements; family, a structure or business to carry on with management, and the legal aspects of land ownership.

Family members involved in successful transfers have communicated their vision, goals and feelings for the land with each other, they often work together to implement management goals, and they have a plan in place for the transfer of land.  Come and attend this class to learn various tools to help succeed in planning for the transfer of titled and non-titled property related to the ownership of woodlands.

Part one provides hands-on information on how to start the conversation with your family. During part two, participants will have the opportunity to talk with an attorney who has helped woodland owners begin the process.  A family that makes a conscious decision about the distribution of titled and non-titled property in advance is more likely to succeed than a family that leaves the heirs or state to decide distribution issues after one’s death.

Families are encouraged to attend.  The cost of attending this class is $100/family or extended family.  The cost will include two workbooks and a DVD video.  Having mutltiple generations attend this class is encouraged.

Participants may elect to receive credit for Woodland Advisor Financial Aspects WAC10. Woodland Advisor is a program of the Minnesota Forestry Association, University of Minnesota Extension, and Minnesota Department of Natural Resources Division of Forestry.

To register for the class, contact Sue Crotty at 888-241-0720 or crott012@umn.edu.

Related posts:

1. Intergenerational Land Transfer
2. Reflections on 2008 Intergenerational Land Transfer workshops
3. Growing and Tending Your Forest workshop, North Branch, March 18 2010

Assessing forestation opportunities for carbon sequestration in Minnesota: Executive Summary

As directed by the 2009 Minnesota Legislature, this study assesses the feasibility of creating one million acres of new forests to increase CO₂ sequestration.  Nearly 7.6 million acres of the state’s current croplands and grasslands were dominated by forests prior to European settlement and subsequently deforested, but likely would support productive forests now.

We used hypothetical scenarios to illustrate a variety of ways in which landowners could replace income from current land uses by managing forest on their lands.  The amount of land likely to be forested, however, varies with level of total payment (see Figures 2-4).  At annual payments of $30 per acre, approximately 34,000 acres could be forested that are currently in private cropland and grassland.  With annual payments of $88, approximately 407,000 acres could be forested.  A carbon market with a price of $30/ton of CO₂ sequestered would generate approximately 616,711 new acres with a net sequestration of 44 million tons of CO₂ over 100 years. Nearly 132,000 cords of roundwood from newly forested lands would be available annually at this level of payment. To obtain one million acres of new forest would require annual payments totaling approximately $114 per acre.

Current demand for seedlings in Minnesota is already high relative to in-state production capacity.  The maximum number of acres that could be planted based solely on current seedling production capacity in Minnesota is approximately 23,000 acres per year.  Given current demand for seedlings to reforest public and private forestland that has been harvested for timber, establishing forests for carbon sequestration likely will require higher seedling production by Minnesota producers, greater reliance on out-of-state producers, or both.

We offer these recommendations.

• Combine existing programs and funding to meet multiple environmental goals. For example, establishing riparian buffers adjacent to water bodies that exceed TMDL thresholds could simultaneously improve waters quality and sequester carbon.
• “Stack” policy incentives with new and existing markets to maximize forestation efforts. Adding publicly funded incentives for carbon sequestration to payments from existing markets and emerging markets may significantly increase forestation.
• Direct the DNR to plant northern white cedar, white spruce, balsam fir, and/or black spruce, the native tree species with the highest potential for long-term carbon sequestration, on 5,000 acres of suitable DNR-administered land by 2025.
• Direct the DNR to help private tree nursery businesses become more competitive with out-of-state seedling producers.
• Identify ways to improve the way we manage and use forest resources to increase carbon sequestration.  A comprehensive analysis of the carbon sequestration and climate change mitigation benefits associated with existing forest resource management and use should reveal ways to improve sequestration.

Download the complete report here: Assessing forestation opportunities for carbon sequestration in Minnesota.

Related posts:

1. Forest Values and Carbon Markets: Opportunities for Minnesota
2. Carbon credits on Minnesota woodlands
3. CVal: Carbon credit valuation tool for foresters and landowners

Dear Colleague:

After heroic efforts by county assessors and Department of Revenue staff, the final, much-cleaned-up 2009 agricultural and timber land values data for all Minnesota taxing jurisdictions is now available in the Land Values section of Minnesota Land Economics.

Please note: this is assessor estimated land values by jurisdiction, NOT SALES PRICE by transaction data. The latter data won’t be available for several months yet.

Here’s what we say about this new data at MLE: “In 2009, the Minnesota Legislature created several new classifications for agricultural and timber land in the state. On Minnesota Land Economics, the reclassifications are handled by treating post-2008 land valuation data in a separate section. If you select “2009 and onward” on the attributes page, you will be presented with the new valuation classifications. These changes resulted in valuation data that is not directly comparable for that reported in previous years.”

Check out the updated content at Minnesota Land Economics now.

Related posts:

1. Updated content on Minnesota Land Economics
2. 2008 Property tax estimates now up on Minnesota Land Economics
3. Final and official 2008 MN rural real estate data

All five webinars will be recorded and made available online for later viewing.  There is no charge to attend, but pre-registration is required in order to obtain webinar connection instructions.

Webinar schedule:

January: Five things every woodland owner needs to know

Eli Sagor, University of Minnesota Extension.  This straightforward session covers the basics of Minnesota woodland ownership.  We’ll cover developing a vision, getting to know your land, the benefits of obtaining a Woodland Stewardship Plan, finding professional help, and getting to know other landowners.

This webinar is over. Click here to watch the Jan. 2010 recording. After watching it, please fill out our quick evaluation form. You can also access the content, complete with links, here.

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February:  Property Tax & Incentive Payments for Forest Land

Mel Baughman, University of Minnesota Extension.  Minnesota woodland owners will learn about property tax classifications and incentive payments that may lower your Minnesota property taxes on managed forest land.  The webinar covers Green Acres/Rural Preserve, Class 2c, and the Sustainable Forest Incentive Act. 

This webinar is over. Click here to watch the Feb. 2010 recording. After watching it, please fill out our quick evaluation form.  You can also access the content in written form, complete with links, here.

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March:  Carbon credits for Minnesota woodland owners

Diomy Zamora, University of Minnesota Extension. Carbon credits offer a potentially significant new source of revenue for Minnesota woodland owners.  This session will provide an overview of how carbon credit programs work.  It’ll also review the enrollment process, responsibilities and obligations, costs, and expected financial returns.  The session is designed to help Minnesota woodland owners decide whether enrollment in a carbon credit program is right for them.

This webinar is over. Click here to watch the March 2010 recording. After watching it, please fill out our quick evaluation form.  You can also access the content in written form, complete with links, here.

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April: Minnesota woodlands and climate change

Eli Sagor, University of Minnesota Extension.  This presentation, designed for Minnesota woodland owners, has 3 sections:  How Minnesota woodlands developed, Climate change and projected impacts, and What Minnesota woodland owners can do.  One particular focus is on actions Minnesota woodland owners can take to make sure they’re part of the solution, not a source of forest health problems for their neighbors.

This webinar is over. Click here to watch the April 2010 recording now. After watching it, please fill out our quick evaluation form.You can also access the content in written form, complete with links, here.

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May: Nontimber forest products in Minnesota

Dave Wilsey, University of Minnesota Extension. Non-timber forest products play important but understated roles in the lives and livelihoods of Minnesota’s landowners and natural resource users. We review these roles and some products of economic and social importance in this region. We will explore different ways of engaging these resources, from increasing basic awareness to management. An improved understanding of NTFPs and their roles in our lives might change the way you look at and interact with the forest.

This webinar is over. Click here to watch the May 2010 recording now. After watching it, please fill out our quick evaluation form.  Learn more about other Minnesota Extension forestry webinars.

For more information:

If you have questions or need additional information, either leave them in the comments below or email mnwoods@umn.edu.

Funding to support the webinars is provided by the Minnesota Forest Stewardship Program.

Related posts:

1. Extension’s 2012 woodland webinar series
2. Extension’s 2011 woodland webinar series
3. Nontimber forest products in Minnesota: Two webinar recordings