If you are a new forest landowner, the first step you should take is to develop a forest management plan. Developing a forest management plan will help you define goals and objectives for your land, and help you lower your property and income taxes.
Well-defined forest resource management plans establish actionable steps to achieve your forest management goals, improve forest health, and ensure sustainability.
Use the FREE TEMPLATE included here to meet requirements for property tax exemptions, forestry certification, and financial assistance programs.
Why do I Need a Forest Management Plan?
A forest management plan can save you money on taxes, allow you to receive financial assistance for projects on your land, and is required to join certification organizations that can bring a premium when you harvest trees.
A plan can also help you understand how to generate income, and help plan for the future. If you hire a professional forester to help complete your plan, they can answer all the questions you have about your new property.
Income Tax Deductions
Forest management costs such as planting, brush removal, and mulching can be deducted from business or personal federal income taxes.
If you set up a value basis for your forestland at the time of acquisition and have a forest management plan in place, this allows you to benefit from forest management tax deductions.
Seek the help of a forestland tax expert to help with your particular situation. More information for forest landowners about federal income tax deductions can be found here and here.
Property Tax Reduction
In most states and counties, forest land managed to generate income is eligible for a property tax reduction. States that offer property tax reduction for forest land often require a management plan to demonstrate the landowner’s goals and objectives.
The reduction in property tax can be quite substantial and may save you thousands of dollars per year. Most states have minimum acreage requirements, so it’s best to contact your local county assessor to inquire about forest land designation.
Washington’s Forest and Timber Tax
Montana’s Forest Land Tax Program
Financial Assistance
There are many federal programs to help landowners sustainably manage their land and improve natural resources. Financial assistance is available to improve stream quality, plant trees after harvest, reduce wildfire risk, and complete many other management activities.
Most of these financial assistance programs require a forest management plan.
Natural Resource Conservation Service Financial Assistance Programs
Forest Certification
The American Tree Farm System helps forest landowners stay up to date on current forest management related challenges and opportunities. Joining the Tree Farm program in your state will connect you with other tree farmers and provide relevant information to help you meet your forest management goals.
Membership in a community of fellow woodland owners can help you reach your goals much faster than trying to figure it all out by yourself. An approved forest management plan is required to join the American Tree Farm System.
If you plan to harvest trees from your land to sell to a lumber mill, you may receive a premium price because you are a certified Tree Farm member.
Defining Goals and Objectives
Some of the biggest benefits of having a forest management plan in place is that you understand your current forest condition and your goals and objectives are clearly defined. Using this information, you can determine your priorities and decide what is most important to you on your land.
The goals and objectives of forest landowners are as diverse as the forest landowners themselves! Some potential priorities are:
- Wildlife habitat
- Stream water quality
- Timber production
- Improving soil
- Reducing insect and disease damage
- Reducing wildfire risk
- Overall forest health
- Restoring ecosystems
- Providing recreation opportunities for the family
- Maintaining forest landscapes for future generations
- Mitigating climate change effects
- Preserving aesthetics
Identifying Current Risks and Opportunities
A forest management plan can help you identify current risks such as insect and disease outbreaks, wildfire susceptibility, or animal damage. Opportunities to improve the health and productivity of your forest can also be identified.
When you hire a professional forester to walk with you through your forest property, you can ask all your questions. The forester will likely provide you with recommended actions to meet your specified goals.
Whether your objective is to produce maximum profits, or improve wildlife habitat, a good forester can provide sound advice.
Plan for the Future
Forest land can provide benefits now and into the future. Having a strategic plan and backing it up with management decisions will help you realize your forestland dreams and plan for the next generation.
If you plan to hand down your forest land to your kids and grand kids, a comprehensive plan can help your wishes be well known and defined.
Forest Management Plan Structure
Forest management plans typically include:
- Landowner goals and objectives
- Property description
- Description of current conditions
- Current forest health description
- Current wildfire risk assessment
- Invasive species presence/absence
- Detailed soil map and description of soils present
- Water quality, fish habitat, and wetland information (if applicable)
- Forest inventory will details about tree species, volumes, and sizes
- Property access, road, and trail descriptions
- Wildlife habitat
- Descriptions of any special or important sites
- Identification of any threatened or endangered species
- Descriptions of cultural or historic sites
- Biodiversity assessments
- Recreation opportunities
- Forest resilience information
- A management plan implementation timetable
- A property map showing boundaries, streams, and buildings
Professional Forester Review
Many of the programs that require a forest management plan also require a professional forester to sign off on your plan.
Whether you can fill out most of the plan yourself, or if you need a forester to provide technical assistance, enlisting the help of a professional is worth the money.
Certified foresters usually have many years of experience and understand the local forest management best practices.
A forester can help you understand the current risks to the health of your forest. They can also share opportunities to improve productivity and resilience of your land.
A forester can also help you understand what type of forest you have, the opportunities for generating income, and offer advice for improving health and resilience.
When you schedule a forester to look at your property, walk through with them and ask all your questions. You will be surprised how much you can learn by walking through the forest with a forester.
Find a Local Certified Forester
Forest Stewardship Program
The USDA Forest Service has a program that partners with state agencies, conservation districts, and extension services to help private forest landowners find the information and tools they need. You can find local professionals who can answer your questions through this nation-wide program.
FREE Forest Management Plan Template
Make sure you grab the FREE forest management plan template by entering your email below. This template meets the requirements of state and county property tax programs, the American Tree Farm program, and federal financial assistance programs.
Questions? Please Comment!
Do you have questions about the FREE forest management plan? Leave a comment on this post and a certified forester will respond!
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***This post does not seek to offer professional tax advice. Please consult with a tax professional to best meet your tax needs.
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