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Health of Maine Woods Debated Conflicting Views Offered to LURC

Posted on: Tuesday, 24 January 2006, 15:00 CST

By KEVIN MILLER; OF THE NEWS STAFF

BANGOR - Members of the Land Use Regulation Commission heard conflicting views Monday on the economic and biological health of Maine's North Woods as private investment companies buy up large chunks of timberland.

LURC staff arranged Monday's information session in Bangor to help commissioners prepare to update the Comprehensive Land Use Plan for the state's Unorganized Territory.

Commissioners heard starkly different assessments on the future of the forest industry in Maine.

Undoubtedly the most pessimistic forecast was by Lloyd Irland, whose company, The Irland Group, provides forestry economics and consulting in Maine.

Irland said the forest industry in North America is entering "dark times" because of global competition. Enormous tree "plantations" in developing nations, massive new manufacturing plants and low production costs, among other factors, are cutting further into the U.S. industry's market share.

Maine is no exception and faces major challenges with no easy answers in remaining competitive, Irland cautioned.

Alec Giffen, director of the Maine Forest Service, acknowledged the challenge of maintaining sustainable forests amid the changing markets and development pressure. But Giffen said the "cluster" of forest-related industries in Maine - from timber operations and manufacturing plants to recreational opportunities - makes the state unique.

Giffen suggested further development of niche markets, such as production of biomass fuels as an affordable alternative to oil.

"We should not see this as the death knell of the industry," Giffen said. "Employment is trending down, and that is necessary. There are opportunities available."

Presenters also debated the emergence of investment companies as major landowners in the mid-1990s after paper and wood product companies divested much of their holdings in the state.

These new landowners have shorter-term interests in the land so they often tend to invest less money and manpower in forest management than the timber industry, said John Hagan with the Manomet Center for Conservation Sciences. Manomet recently completed a yearlong study of forest ownership issues in the North Woods.

Hagan said a survey of landowners found that investment companies harvested their land more aggressively and were less likely to employ the best biodiversity methods on their land. He concluded by saying that the state must find ways to engage these new owners in a social dialogue on sustainability.

"The future of the forest ... is more uncertain with this forest ownership change," Hagan said.

Not surprisingly, representatives of the investment companies disagreed.

Since investment firms began gobbling up Maine forests, the amount of private land put into conservation easements has increased, said Richard Carbonetti of LandVest, a Vermont company that manages 250,000 acres in Maine and consults on another 250,000 acres.

Carbonetti said investment firms are committed to biodiversity and accused environmental groups of trying to stop all tree harvesting in Maine - a statement strongly rebutted by later speakers. He said investment companies would be more likely to stay in Maine long term if the state's regulatory environment were more stable.

"They are not looking for junk-bond returns," Carbonetti said. "Their expected returns on timber are quite reasonable."

Source: Bangor Daily News

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