Financial
Woodland
Owner Notes
Incentives for Forest Management
Managing your forestland can be an excellent long-term investment. Over the
years, income from managed timber stands has exceeded that from most other
crops in terms of value added per acre per year. Even managed pre-salable timber
stands have increased the property value of forestland substantially over bare or
unmanaged, cutover woodland. Annual returns from 0 to 40 percent are possible
from forest management. The range of returns is wide because of variations in soil
productivity, stand condition, tree species, markets (both availability and price fluc¬
tuations), intensity of management, and availability of financial incentives.
Both federal and state governments offer fi¬
nancial incentive programs for woodlot own¬
ers. Several of these programs provide cost¬
sharing payments that reimburse landowners
for timber management activities. Other
programs provide tax incentives, tax credits,
and deductions for reforestation expenses.
COST-SHARING PAYMENTS
The North Carolina Forest Develop¬
ment Program (FDP) is a cost-sharing
program focused on timber production and
creating the benefits associated with active
forest management. The FDP is adminis¬
tered by the NC Division of Forest Resourc¬
es (NCDFR). Under FDP, any private indi¬
vidual, group, association, or corporation is
eligible who owns a minimum of 1 acre to a
maximum of 100 acres of nonindustrial pri¬
vate forestland in North Carolina. FDP par¬
tially reimburses landowners for the costs
of site preparation, seedling purchases, tree
planting, release of desirable seedlings and
trees from competing vegetation, removal of
undesirable species, prescribed burning, and
forest fertilization. The program has differ¬
ent qualification standards for upland and
bottomland hardwood commercial species,
southern yellow pine (including loblolly,
longleaf, shortleaf and pond), eastern white
pine, and baldcypress and Atlantic white
cedar. Landowners are reimbursed based on
the specific practice, its actual cost, and the
prevailing cost-share rates (up to a cap) for
FDP practices specific to each state forest
service region. To qualify for this assistance,
the landowner must have a forest manage¬
ment plan approved by NCDFR before any
work is started. Participation in the pro¬
gram is on a first-come, first-serve basis.
Landowners may sign up by contacting the
nearest NCDFR office: http://www.dfr.state.
nc.us/ contacts/ contacts_main.htm
The Southern Pine Beetle Prevention
Program (SPBPP) reduces the risk of
southern pine beetle outbreaks by reducing
the stress of overstocked loblolly pine and
white pine stands through precommercial
thinning. Under SPBPP, any private indi¬
vidual, group, association or corporation
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