Dear Legislator and Interested Public Reader,

This report, Retention of High-Valued Forest Lands at Risk of Conversion to Non-Forest Uses in Washington State, is in response to the 2007 Legislature, which allocated funds for the Department of Natural Resources to contract with the University of Washington College of Forest Resources and Northwest Environmental Forum to recommend actions for retaining highest-valued forest lands at risk of conversion to non-forest uses. 

The problem we face is remarkably similar to that 75 years ago, when in the midst of the Great Depression, a University of Washington report identified the rapid loss of productive forest land as a key problem then facing the state. In contrast to 1934, tomorrow’s threat to Washington’s forests is triggered by fragmentation of the state’s most productive forests from real estate pressures, changes in forest company ownerships and insufficient incentives for forest land owners to manage their lands for a full range of ecological services, along with timber values.

The Northwest Environmental Forum has brought together over 400 participants from 94 organizations in dialogues over the past five years, representing the full range of interests concerned about the future of Washington’s forests. Forum participants have urged a set of market-based incentives to give Washington’s forest industry competitive advantages and help withstand the growth pressures that threaten to eradicate major swaths of working forests over time.

The new Washington State Forestland Database, developed by the College of Forest Resources Rural Technology Initiative, has now analyzed data that examine the state’s 23 million acres of public and private forestland, owned by industrial, tribal and non-industrial (such as family) owners. These private lands provide critical fish and wildlife habitat, especially in highly-productive lower elevation riparian areas. Nearly 972,000 acres of private forestland in western Washington are threatened with conversion. 

The potential risk of conversion is highest in the Puget Sound region but is a concern in every timbershed of the state. Reductions in harvest levels due to conversion will translate into less supply for forest products mills. Washington mills will become less competitive over the next 4 decades, and all sectors – mills, export, veneer and plywood and pulp establishments – will find themselves significantly impacted for their raw material supply. 

This will affect communities in all regions of the state. Forest and paper industries represent 11% of all manufacturing jobs and play a particularly important role in rural, timber-dependent communities. Population pressures, changing forest ownership patterns and the desire for rural housing sites are fragmenting once continuous forests into smaller tracts that are economically and environmentally unsustainable. In addition to community economic upheavals, forest conversion will eliminate major opportunities to leverage forest carbon sequestration to address climate change and will negatively affect biodiversity, fisheries resources and open space amenity values.

A successful state strategy to support the long-term future of working forests should increase working forest values by improving the value of the timber resource and the value of non-timber resources, such as carbon and biodiversity, and decrease alternative land use values by either compensating/incentivizing landowners for forgoing fragmentation or by restrictions to prevent fragmentation.  
This report contains current Washington state efforts, successful programs from other states and mechanisms that Forum participants propose. It also reflects on the reactions of small private forestland owners to a “supply curve” in which landowners would accept compensation to combine working forest retention and ecosystem service-enhancing forest management. The public or conservation organizations would be able to specify the terms of a “demand curve” to meet the supply and reflect the public values attached to preventing forest conversion.

A commitment by the State of Washington to an integrated strategy will make it possible for landowners to commit to a future where their ability to continue managing their land for forestry will not be jeopardized by regulatory uncertainty and real estate pressures. Public forestlands will also be able to provide more protection of critical resources once their privately-held forest neighbors are committed to long-term forestry.

Despite the current economy and housing down-market, this period should be viewed as a time to take action before the next upturn, given that Washington’s population will continue to grow. Smaller land ownerships around the Puget and other growth corridors are most threatened by regulatory and growth pressures and are also the least-compensated within the meager programs that are available. Just as it was recognized in 1934, a time of drastic downturn is also a time of opportunity. 

We hope these findings and proposals will stimulate new legislative action to support the private forestland owners who are so critical to the economic and environmental vitality of the State of Washington.

Sincerely,

B. Bruce Bare
Dean, College of Forest Resources                              

Brian J. Boyle
Forum Leader, Northwest Environmental Forum

Gordon Bradley, Ph. D.
Principal Investigator & Professor, College of Forest Resources