News in timber

Weyerhaeuser Company announced on Friday (4-30-21) that earlier in the week they had completed the acquisition of 69,200 acres of high-quality Alabama timberlands from Soterra, a subsidiary of Greif, Inc., for approximately $149 million. Separately, the company announced an agreement to sell 145,000 acres of timberlands in the North Cascades region of Washington to Hampton Resources for $266 million.

Tony Rotherham (RPF B.C. and Ont. (ret’d)) has worked on woodlands operations in B.C., Ontario, Quebec, Kenya and Iran. He worked for the CPPA (now FPAC) in the Woodlands Section for 21 years and since then as a consultant, largely on private forest land policy. Mr. Rotherham notes that Canada is a global leader in forest certification. In 2020, he provided an update on Canada’s changing certification landscape. But how have things changed since last year?

Oregon is the only state in the U.S. who has for the past 48-years maintained a wildfire risk policy. The provider is Lloyd’s of London, the insurance company founded in the 17th century coffeehouse near the Tower of London, known for issuing one-of-a-kind insurance policies. With the 2021 fire season just about to begin, Oregon will once again rely on its one-of-a-kind $25 million wildfire policy with Lloyd’s.

Oregon State University researchers say they have discovered a new way to predict the future price of logs using readily available information. Jeff Reimer, a professor of applied economics at Oregon State said, “Log prices are really variable. That makes this a difficult business, whether you are a land manager, mill owner, timberland investor or, as we are seeing now, a home builder.”

The Northern Spotted Owl, which has been listed as a “threatened” species (not endangered) since 1990 under the Endangered Species Act, finds itself back in court, the subject of several lawsuits filed against the U.S. Fish & Wildlife Services (USFWS) by both preservationist groups and timber industry interest, over the proposed development concerning critical habitat acreage designed for the Owl’s protection.

A Federal Reserve Board report reveals that the price index of lumber and wood products almost doubled from April 2020 to February 2021 — the sharpest rise since 1946, when the post-World War II housing boom kicked in. Any trip to your local lumber store will confirm that prices are spiking.

The destruction left in the path of last year’s Oregon fire season is slowly coming into focus. Last September more than a million acres burned, destroying many homes and in some place entire communities across much of western Oregon. Weyerhaeuser timberlands were impacted by several of the fires, including approximately 125,000 acres that need to be replanted.

In a keynote address on Thursday (4-8-21) at the virtual Council of Forest Industries (COFI) conference, British Columbia’s Premier John Horgan addressed the ongoing timber shortage in the province. “There is too little fiber, and we need to do something about that,” Horgan said.

Family forest owners in Oregon are required by law to replant their forestlands within two years of a wildfire. Like the wildfires which burned through a large portion of Oregon’s forests this past Labor Day, which included the loss of an estimated 63,000 acres of family forests. The dilemma for the smaller and private forest owners is that seedlings are extremely hard to find.

The British Columbia government has been in dialogue with stakeholders over four possible scenarios for the Lake Timber Supply Area (TSA) apportionment. The Annual Allowable Cut (ACC) of timber for the Burns Lake region was reduced by -41% in 2019, from the previous ACC; however, at that point, the apportionment of AAC between timber license holders was not yet made.