Maine s Forest Certification Initiative

1. Maine’sForest Certification Initiative Blandin Foundation Conference “Third Party Certification of Minnesota’s Family Forests: Getting it Done” Grand Rapids, Minnesota October 14, 2005

2. Overview Highlight the status of forest certification in Maine: emphasis on Family forests Identify the opportunities and challenges related to family forest owners Discuss how to advance the initiative to reach more family forest owners Certification is a tool to maintain the strength and viability of Maine’s forest products industry…. ….No more certification wars!

3. Certification demonstrates that forests: are well managed, support healthy wildlife populations, offer recreation opportunities and are able to supply raw materials to support Maine’s economy now and for the future. These are all “family forest” key messages!

4. Maine’s Position in Forest Certification Maine adopted certification standards early ATFS (5%), FSC (5%), MLP, SFI (72%) Joint certifications of SFI/ FSC @ (19%) Standards are controversial Each standard is considerably different from the others, affording the opportunity to select systems best suited to individual needs. Origins from clearcutting referendumb Maine is clearly in the lead 7.25 MM acres/ 41%/ ~60% of volume Most certified forests are corporate-owned Big challenge to increase participation by family forest owners Maine businesses have been early-adopters of all the major certification systems All the major certification systems tested and applied their standards early on in Maine Maine’s environmental community is engaged in forest certification The State of Maine has strongly supported forest certification Certification requires collaboration among landowners, foresters, loggers, sawmills, pulp and paper mills, log and pulpwood buyers and many others Maine businesses have been early-adopters of all the major certification systems All the major certification systems tested and applied their standards early on in Maine Maine’s environmental community is engaged in forest certification The State of Maine has strongly supported forest certification Certification requires collaboration among landowners, foresters, loggers, sawmills, pulp and paper mills, log and pulpwood buyers and many others

5. Maine’s Certification Progress

6. Certification Principles Market-driven Voluntary Continual improvement Value adding: environment, economy, community Collaboration Generally good alignment with family forest owners, but a low participation rate – why?

7. Family forest challenges Costs and benefits of certification Connect demand to supply Independent-minded forestland owners Seeking recognition of good forestry (Tree Farm), not interested in the “discipline of documentation” “Alphabet soup” syndrome We need simpler messages, perhaps fewer systems? House wiring example Systems must address landowner concerns Add value to landowners Consumer demand/ market demand Challenge to develop a “real economy” around certification Costs and benefits of certification Decrease costs, increase benefits, attract market access and price premiums, develop incentives to bridge cost: benefit gap Marketing and demand Focus has been on supply; new emphasis on demand Need to increase and solidify demand for certified products Family forests Cost: benefit issues most pronounced in this market Small parcel size and high rate of landowner turnover Conversion to other uses Certification system credibility Standards setting process Transparency of process Public summaries of results Atmosphere of confusion: landowners may want to become certified, but they do NOT want to learn all the details of each standard! Costs and benefits of certification Decrease costs, increase benefits, attract market access and price premiums, develop incentives to bridge cost: benefit gap Marketing and demand Focus has been on supply; new emphasis on demand Need to increase and solidify demand for certified products Family forests Cost: benefit issues most pronounced in this market Small parcel size and high rate of landowner turnover Conversion to other uses Certification system credibility Standards setting process Transparency of process Public summaries of results Atmosphere of confusion: landowners may want to become certified, but they do NOT want to learn all the details of each standard!

8. Maine’s approach to family forests: Small Woodland Owner’s Association of Maine 35,000 acres under group Tree Farm certificate Responsible Harvest Verification Program Master Logger Grown from 27 to 97 firms in 3 years MFS Stewardship Pool: “Woods Wise” landowners Considering best method of certifying this group Certification Leadership Team Public/ private partnership This is a non-regulatory, market-based, voluntary, value adding, collaborative effort that – if done correctly – will advance the interests of all involved.

9. SWOAM Small Woodland Owner’s Association of Maine Responsible Harvest Verification Program “Point of Harvest” – certifies practices, not land Silvicultural considerations through forester involvement 10/ 20 year cycle when landowner/ forester/ logger work together Five components: Harvest planning Timber sale set-up Timber sale administration Timber sale close-out with recommendations for next treatments Additional considerations: training, equipment investments, stewardship

10. RHVP (cont.) RHVP certificate to be held by forester and/ or logger Focuses effort at time of greatest potential harm or good (time of harvest) Doesn’t require ongoing commitment (time and money) Lower cost than certification Could work effectively even with high turnover in ownership All of this remains in development and in conceptual phase; plenty of opportunity to shape final form

11. Master Logger Eight Major Goals Document harvest planning Protect water quality Maintain soil productivity Sustain forest ecosystems Manage forest aesthetics Ensure workplace safety Demonstrate continuous improvement Ensure business viability

12. Master Logger (cont.) Grown from 27 to 97 firms in 3 years Chain of Custody MLC is now certified for wood from FSC certified lands Smart Logging Controlled Wood, BMP’s, CoC Certified Land Pool Chicago Climate Exchange Prospective pilot project to sequester carbon over longer rotations

13. Closing thoughts: Supply is not the issue: we have plenty of it! Especially for family forests, benefits must be raised to par with costs Need to simplify certification We need more market-based demand Market access, pricing differentials are OK Need a value-adding, “real economy” for market demand to pull new supply Ultimately, consumers will be writing the demand analysis: “willingness to pay?” Certification still in “early days”

14. Maine’sForest Certification Initiative Henry Whittemore Director – Governor’s Forest Certification Initiative Maine Forest Service 22 State House Station Augusta, Maine 04333 207-287-4992, desk 207-441-0680, mobile 207-287-8422, FAX henry.whittemore@maine.gov