2009 Update 4/2010 4
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1 Forest Certification Update The Indiana Experience John Seifert Carl Hauser Duane McCoy Brenda Huter Phil Wagner Indiana Residents Perception of Woodland Management Survey 2009 DNR Forestry funded survey Conducted by Purdue and DJ Case & Assoc. Surveyed 1,402 Hoosiers Asked 25 questions Date collected October Final report February
2 Study Objectives Understand opinions about active forest management on private and public lands Assess perceptions of what constitutes sustainable forest management Identify importance of different forest values support or opposition Determine awareness and perceptions p of certified forests Collect socio-demographic information to better understand segmentations in the population Concerns 93% of Hoosiers are concerned about long- term health and productivity it of IN s woodlands 90% interested in Indiana s fish, forests, wildlife and out-of of-doors 88% think Indiana s woodlands should be managed for a balance of wood products, recreation, wildlife and water quality 2
3 Indiana Residents Perception of Woodland Management Survey 95% of Hoosiers support removing some trees to control disease and wildfire 85% approval of harvesting if overseen by a professional forester 82% of Hoosiers support harvesting to improve wildlife 74% of Hoosiers believe certified forests are wisely managed 61% supported harvesting trees to make wood products 2005 data Update 4/2010 3
4 2009 Update 4/2010 4
5 Types of Certification 1. Certification of Forest Management (FM) 2. Certification of Wood Based Industries (COC / Chain of Custody) ( Controlled Wood) Holistic Approach for Certification Need a critical mass of certified wood Economies of scale through groups Minimal fiscal impact to industry Maintain and/or expand market share Need all facets wood, CoC and controlled wood DNR was the most logical entity 5
6 Goals for Indiana Maintained group certification of private lands under Tree Farm Program and PEFC endorsement Maintained certification for Forest Stewardship Council (FSC) and Sustainable Forestry Initiative (SFI) for state forest lands Add Forest Stewardship Council (FSC) group certification for private lands program final documents completed. Certificate pending February/March 2010? Certified Forests FSC & SFI certified state forest - 153,000 acres = 12,000,000 bd/ft annually FSC & PEFC (Tree Farm) private forest lands (Classified Forest Program) 500,000 acres = 35,000,000 bd/ft annually Annual state harvest of ~ 350,000,000 ~ 13% of annual state harvest volume could be certified 6
7 FM Certification Process Pre Audit (=scoping visit) Main Audit (= field assessment) Document Inspection Field Inspection Stakeholder Consultation Report with Recommendations YES Certification NO Corrective Actions Annual Audits 7
8 FSC Certification Requirements 12 Guiding Principles 1) Compliance with Laws - 6 criteria i 2) Tenure and Use Rights 3 3) Indigenous Peoples Rights 4 4) Community Relations and Workers Rights 5 5) Benefits from the Forest 6 FSC Certification Requirements 6) Environmental Impact 10 criteria 7) Management Plan 4 8) Monitoring and Assessment 5 9) Maintenance of High Conservation Value Forests 4 10) Plantations - 9 * 55 Criteria and additional indicators 8
9 Certification Changes to Current Operating Procedures New or update Stewardship Plan Pre harvest conference Site visit while harvest is in progress Post harvest site visit Tract goes into pool for future BMP monitoring Will require a closer working relationship among all parties involved in the harvest. Notifying the district forester of a sale is a big change Additional Updates All Stewardship Plans will be updated to the 2010 standard during the next five year re-inspection cycle. Focus on tracts where a harvest is imminent, ones with no or minimal plan is in place. Produce a Landowner Assistance Guide that will be part of an Umbrella Plan for the CFW Program. Continuous Forest Inventory on CFW land. Reporting chemical use on certified land 9
10 Group Certificate Private Lands Division of Forestry will hold the certification certificate t We will audit private landowners for compliance Tree Farm (PEFC) and FSC will audit us for compliance Second largest group certificate in the country BMP Application Gross Neglect 02% 0.2% Major Departure 1.8% Minor Departure 11.8% Meets Requirement 86.2% 10
11 BMP Effectiveness Direct and Temporary Impact 2.3% Direct and Prolonged Impact 2.0% Adequate Protection 92.3% Indirect and Prolonged Impact 1.1% Indirect and Temporary Impact 2.3% Why Hold the Group Status Economies of scale lower initial and annual certification costs A long history of professional forester help with private landowners Probably the only way to bring private landowners into a certification scheme Currently have a tax law program with 80+ years of management history- Classified Forest & Wildlands Program 11
12 Classified Forest Program Established in the 1920 s to give a reduction in property taxation ti for protecting ti the forest Currently have over 8,000 landowners and ~500,000 acres Each tract is inspected every 5 years and a revised plan every 10 years Certified FSC Certified Forest FSC Certified Timber Buyer FSC Certified Mill FSC Certified Lumber Figure 1 - In a complete chain of custody, the wood material moves from certified owner to certified owner all the way to the final product. 12
13 Uncertified FSC Certified Forest FSC Certified Timber Buyer Uncertified Mill Uncertified Lumber Figure 2 A broken chain of custody occurs anytime the certified material is passed to an uncertified owner or the certified wood is mixed with uncertified wood. Certification systems are not new we all know and use them everyday Underwriter s Laboratory Motion Picture Association USDA Grade A Beef 13
14 Other Acres Certified TNC Forest Bank and associated lands TIMO sandreit s s One or both FSC and SFI millions? Wisconsin 2.7 mm acres of state forest or county lands Michigan 1.5 million acres state forest Minnesota 4.9 million acres state forest Pennsylvania 1.9 million acres state forest Primary Species in Indiana for Certification White oak Black walnut i t Red oak Yellow Poplar Sugar maple White ash Black cherry Hickories Decreasing importance Big interest in chips Lower grade products like ties 14
15 Forest Certification Log and Lumber Chain of Custody 15
16 Chain of Custody The succession of ownership of wood products from the forest through h each stage of manufacturing and distribution to the final consumer. Each company in the chain must hold a valid certificate to ensure: They have a system of accountability in place They are in fact buying certified inputs They are accountable for tracking material They are making accurate and verifiable claims Who Needs CoC Certification? You need a COC Certificate if you: a) Take legal ownership of FSC certified product, and b) Wish to pass on a commercial claim that the product is certified, whether that claim is on- product, on an invoice, or in other communication If you don t hold a certificate, the product that you sell loses its certified status and may not be resold as FSC nor used for LEED points. 16
17 The FSC CoC Standards 1. Quality System 2. Product Groups 3. Sourcing FSC Inputs 4. Receiving and Storage 5. Processing 6. Labeling and Promotion 7. Sales and Delivery 8. Outsourcing Achieving Group Certification Small/Portable Sawmills Small Haulers/Loggers Small:15 and fewer employees Member of External Support Organization, Indiana DNR Audited by Group Organization IN DNR and selected members audited by Independent Auditor each year 17
18 Chain of Custody (FSC) Create a DoF group certificate for loggers and sawmills Division becomes the auditor Reduction in auditing costs DoF assumes auditing costs for small operators Cost to Member Company ~ $100 per year (compared to ~ $3000 per year) Indiana s Group CoC Certification Group Certification achieved January, 2009 January, member companies 22 Loggers 17 Mills SCS-COC SCS-CW CW
19 19
20 Go To Enter Number Select IDNR DoF State Forest Sales: 20
21 FSC Control Systems Transfer System Transfers the FSC claim from supplier to customer Only system used for FSC Pure Percentage System FSC Pure mixed with FSC Controlled Wood Credit System FSC Pure mixed with FSC Controlled Wood Sold as FSC Mixed Credit Transfer System Until now, the only system available to DoF CoC Group Members Any other system requires Controlled Wood Certificate 21
22 Percentage System Credit System 22
23 Credit System Account (For each product) Tons Sum of Chips Tons Previous 12 Correct Date Board Feet Added Chips Sold Balance Months Balance 9/1/ /1/ /1/ /1/ /1/ /1/ FSC Controlled Wood Does not require separation of FSC Pure can mix FSC Pure with FSC Controlled Can be Sold as FSC Controlled to other FSC CoC certified companies 23
24 Why would you need FSC Controlled Wood Not enough FSC Pure wood available to meet market ktd demand d Customer may require it (Veneer) Product not easily stored in separate locations or marked (Chips) What Extra Work for Controlled Wood Need to modify your Procedures Document to include the Control Systems and Claims that you use Company Policy List of Suppliers Keep documentation to demonstrate district of origin (State, County, Landowner)... Proof of purchase from the forest management unit of origin 24
25 More Information? Carl Hauser Division of Forestry 402 W. Washington, Rm W-296 Indianapolis, IN (317) Certification Related Topics Duane McCoy LTB Forester 25
26 An outreach initiative to provide landowners with information for successful timber harvesting wdz-wize wize ( ) 9493) Information Packets Tailored to Indiana 500 packets/year anticipated wdz-wize wize ( ) 9493) 50% of requests come in by and internet Most simply request packet. <10% have specific questions 26
27 Find a forester Industry, state and consultant Find a licensed buyer Download brochures Program sponsors listed- IHLA? Much more promotion to come 27
28 What kind of users are there? There is the general public: Will be able to view approved timber sales, landowner jobs, items wanted, items for sale, services, employment, announcements, articles, and web links Will be able to conduct some searches There is the general user Can do what the general public can do plus. Can submit timber sales, landowner jobs, items wanted, items for sale, services, employment, announcements, articles, and web links now. There is an Administrator, which consists of only a few people They can do whatever a user or the general public can They approve, not approve, and can kill any submission to site. Getting Started The general public can visit the site and this is what they will see. 28
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