The document provides an overview of options for small farm and forest landowners to generate income from their forest resources in a sustainable manner. It discusses timber production, fuelwood, recreation, conservation, non-timber forest products, agroforestry, and carbon offsets. For each option, it outlines what the activity entails, advantages and disadvantages for small landowners, and steps needed to implement it. The document emphasizes the importance of determining objectives, consulting professionals, developing management plans, reducing costs, and record keeping.

1. Sustainably utilizing your forest
resources
Small Farm Family Conference
November 1-2, 2011; Danville, VA
Greg Frey
Extension Specialist - Forestry
Virginia Cooperative Extension
Virginia State University

2. Many landowners say:
I am continuously putting money into my
forestland – taxes, planting, monitoring.
I want to be a good steward of the land.
Timber takes so long to grow.
How can I make money from my forests?

3. Statistics
• 79% of forestland in Virginia is owned by Non-
Industrial Private Forest (NIPF) landowners.
• 89% have less than 50 acres.
• However, 67% of forestland is owned by 11%
of the owners.
How can small farm/forest owners make
money in this environment?
Source: Rose, A.K. 2009. Virginia’s Forests, 2007. USDA Forest Service.

4. Objectives
• Review some steps to get good information
and make smart decisions.
• Give small farmers/landowners an overview of
some options to make money from their
woods, and discuss some advantages and
disadvantages.

5. Step 1: Determine your objectives
• Stewardship
• Personal activities/recreation
• Total profits
• Annual income
• Low costs/investment
• Ease of management
• Ease of marketing
Photo Credit: Forest Landowner Education Program

6. Step 2: Consult a professional
• VA Department of Forestry County Foresters
• Consulting Forester
• VA Cooperative Extension
Photo Credit: Virginia Dept of Forestry

7. Step 3: Define your activities and/or
products
• Timber
• Fuelwood
• Recreation
• Conservation
• Non-timber forest products
• Agroforestry
• Carbon
Photo Credits: Forest Landowner Education Program; http://shiitakemushroomlog.com/

8. Step 4: Plan and manage
• Would you start a garden without thinking
about what you want to grow?
• Would start it without planting anything?
• Would you grow it without controlling weeds?

9. Step 4: Plan and manage
You can get support to help with the following:
• Land use plan
• Land Stewardship Plan
• American Tree Farm System
• CAP 106
For many activities, it is also beneficial to
develop a business plan.

10. Step 5: Reduce your costs
• Land use tax rate, if available
• Tax credits and deductions
• USDA cost share programs (WHIP, EQIP, CRP,
CSP, others)
• VA Best Management Practices loans and cost
share
• VA woodlands improvement and health cost
share

11. Step 6 & 7
• Keep records.
• Plan for your heirs.

12. Options for generating income with
forest resources

13. Timber
What is it?
• Sawtimber
• Pulpwood
Photo Credit: Forest Landowner Education Program

14. Timber
What are the advantages and disadvantages for small
farms?
+ Timber can wait until you need it, or until prices are
good.
+ Compatible with other products (e.g. recreation).
+ Low intensity management.
- Long waiting time.
- Competition with large landowners
- There may be some unscrupulous loggers.
- Markets for products like pulpwood are on the decline
in many areas.

15. Timber
What do I need to do?
• Contact a forester & create management plan
• Site prep, planting
• Competition control, release
• Thinning
• Work with a forester on timber sale
and cost-share programs
• Keep records
Photo Credit: Greg Frey

16. Fuelwood
What is it?
• Firewood
• Charcoal
• Biomass (chips/pellets)
Photo Credits: Forest Landowner Education Program; http://www.pine3.info/Charmake.htm

17. Fuelwood
What are the advantages and disadvantages for
small farms?
+ Use material that would otherwise be wasted.
+ Very small to the medium or large scale.
- Prices are not high, but might be a source of
side income.

18. Fuelwood
What do I need to do?
• Develop a management plan and a business
plan.

19. Recreation
What is it?
• Hunting
• Fishing
• Hiking
• Camping
• Bird watching
• Other tourism activities
Photo Credit: Forest Landowner Education Program; http://www.earlybirdies.net/
http://www.earlybirdies.net/

20. Recreation
What are the advantages and disadvantages for
small farms?
- For many leases, you need a relatively large
area.
- Prices not high.
+ Management is not too hard, once you have
the legal issues sorted out.
+ Annual income

21. Recreation
What do I need to do?
• Find an individual or group to lease your land,
or seek bids.
• Work with a lawyer.
• Make sure you have the right insurance.
• Forest improvement for wildlife.

22. Conservation
What is it?
• Easement - Give away, or sell, your rights to
develop a portion of your land, either
permanently or for a set period of time.
• Undertake forest improvement practices.
• Claim numerous tax deductions or credits, or
cost-share payments.
Photo Credit: Forest Landowner Education Program

23. Conservation
What are the advantages and disadvantages for
small farms?
- Terms can be flexible, but you forfeit some of
your rights. Only do this if you absolutely do
not want your land to be developed.
- Many conservation trusts don’t deal with
small acreages.
+ Cost share and tax deductions from state and
federal government.

24. Conservation
What do I need to do?
• Speak to a professional
• Appraisals will be done for the value of your
land with and without easement
Photo Credit: Forest Landowner Education Program

25. Non-Timber Forest Products
What is it?
• Pine straw
• Ginseng, Goldenseal, Cohosh
• Ramps
• Mushrooms
• Honey
• Crafts (Oak baskets,
Holiday greenery)
• Christmas trees
• Many others
Photo Credit: Forest Landowner Education Program; N.C. Department of Agriculture and Consumer Services

26. Non-Timber Forest Products
What are the advantages and disadvantages for
small farms?
+ Find a niche.
+ There are so many NTFPs, it is possible to find
one to match your management objectives.
+ Can be “wild-cultivated” or managed.
- Marketing is time consuming.
- Requires willingness to experiment.

27. Non-Timber Forest Products
What do I need to do?
• Investigate NTFPs that would match your farm
conditions and management objectives.
• Contact a professional or specialist.
• Develop a management plan and business
plan.
Photo Credits: Forest Landowner Education Program; http://www.southernliving.com

28. Agroforestry
What is it?
• Forest farming
• Silvopasture
• Alley cropping
• Windbreaks and shelterbelts
• Riparian buffers
Photo Credits: Greg Frey; National Agroforestry Center

29. Agroforestry
What is it? Silvopasture example
http://www.youtube.com/watch?v=VJsKmBbtw7Q
0:00-5:18

30. Agroforestry
What are the advantages and disadvantages for
small farms?
+ Diversification of income.
+ Annual income and long term “savings
account”.
- Intensive management.
- Requires willingness to experiment.

31. Agroforestry
What do I need to do?
• Be willing to spend some time doing research
and experimenting.
• Contact a professional or specialist.
• Investigate practices that would match your
farm conditions and management objectives.
• Develop a management plan and business
plan.

32. Carbon offsets
What is it?
• Trees capture carbon dioxide from the
atmosphere.
• Some groups are willing to pay for this service,
to offset their own carbon emissions.
• Driven by California’s climate program, the
Climate Action Reserve (CAR)

33. Carbon offsets
What are the advantages and disadvantages for
small farms?
- At present, the market in the US is virtually
non-existent.
- For the foreseeable future, market will attract
only large players, because of high cost of
project design, and of monitoring and
verifying emissions.

34. Carbon offsets
What do I need to do?
• Not much you can do since the US market is
not very large, just wait, and do something
else in the meantime.

35. Comparison
Timber Fuelwood Recreation Conservation
Easy to market ++ + + +
Competition with -- + -- --
large producers
Annual income -- +/- ++ +/-
Management ++ + ++ ++
intensity
Costs/Investment + ++ ++ ++
Profitability - - -- --

36. Comparison
Non-timber Agroforestry Carbon
Forest Products
Easy to market -- + --
Competition with large ++ +/- --
producers
Annual income +/- ++ +/-
Management intensity - -- +/-
Costs/Investment - -- --
Profitability ++ ++ ?

37. Review
1. Determine your objectives
2. Contact a professional
3. Define your activities and products
4. Plan and manage
5. Reduce your costs
6. Keep records
7. Plan for your heirs

38. Questions about this presentation:
Greg Frey – gfrey@vsu.edu; 804-524-6967
For more information about forest planning, and about cost share and
other programs, visit your local County Forester (VA Dept of Forestry),
Cooperative Extension office, or USDA Service Center
THANK YOU