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you can use your computer to find out the health of our woodlands in the country or in maine. you will find that the paper mills and woodland industry is far from 100%. the reason is over cutting and it continues! "Thirty million acres of forestland have changed hands since 1996, says Michael Goergen, executive vice president of the Society of American Foresters. Another 12 to 15 million will transfer out of industry ownership in the next decade. That's over half the approximately 80 million acres timber companies nationwide owned during the 20th century. By 2015, analysts predict, they will have sold a forested area as large as New England... Transferring the ownership of this much forestland would have major implications under any circumstances, but under the current trend the implications are staggering. Financial institutions dominate the buyers: timberland investment management organizations (TIMOs), real estate investment trusts (REITs), limited liability and master limited partnerships. TIMOs alone have bought over a third of the 30 million acres of private industrial forests already sold, says Goergen. Another 5 million acres belong to various other financial institutions." (American Forests, Autum 2005)1 "A recent U.S. Forest Service study predicted that more than 44 million acres of private forest land, an area twice the size of Maine, will be sold over the next 25 years. The consulting firm U.S. Forest Capital estimates that half of all U.S. timberland has changed hands in the past decade." (Washington Post, March 24, 2006)2 The relocation of wood and paper manufacturing facilities, the transfer of timberland ownership and management to non-manufacturing institutions, and the conversion of timberland to other uses are complex phenomena influenced by many factors, including the cost of land ownership, the cost of building operating manufacturing facilities, the supply and demand for wood fiber, and evolving corporate structure and tax laws. Tax benefits for traditional timber companies have included: • routine disposition of timber is taxed as capital gain (which has lower tax than other income) • gains from sales of timber can be offset by the maximum allowance for depletion • sellers of timberlands have a low tax basis in their properties in relation to current values But there are additional benefits to be had from certain corporate structures, including limited partnerships, limited liability companies, real estate investment trusts, and timberland investment management organizations. Timberland acquisitions often come with strings attached. For example: • After buying 538,000 acres in Arkansas and Louisiana, PC agreed to supply the seller, Riverwood International, with chips to make paper pulp for 20 years. • Plum Creek bought timberland in Maine from Sappi, but agreed to supply Sappi's paper mill in Skowhegan for 40 years. • Same in Michigan: Plum Creek bought 650,000 acres from NewPage Escanaba, but will supply Escanaba's paper mills. as you can see some of our mills have even sold off their woodlands and the wood chips are being supplied by the new owner(plum creek in maine is one of these new companies in maine) this new era of the woodland industry bears watching by every mainer who loves the outdoors. It is pretty easy to gloss over the true facts with a couple of arm twisting tv bytes or a public relations blitz! get out and look you can't miss the pucker brush and scars of over cutting!
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