Crisis Alert!!

Secretary of the Department of Agriculture Announces Federal Timber Contract Extensions
November 3rd, Washington DC. Secretary of the Department of Agriculture, Mike Johanns announced today that the Superior and Chippewa National Forests would be providing up to one year timber extensions for tracts purchased prior to January 1st, 2006. This is unprecedented for the most part and the direct result of ACLT efforts and primarily Director Peter Wood. This quick federal response is impressive and will buy some crucial time for federal timber permit holders, potentially saving millions of dollars.

Ainsworth Holds Meeting with Bemidji Producers
November 2nd, Bemidji. ACLT Executive Director attended an Ainsworth producers meeting in Bemidji. Kent Jacobson discussed the restart of the remaining line in Bemidji and the proposed timber purchase program for the Bemidji mill. Mr. Jacobson announced that similar meetings will be held in Grand Rapids on November 15th and Cook on November 16th.

ACLT Director Meets with U.S. Senator Norm Coleman To Discuss Federal Timber Issues
November 1st, Saint Paul. ACLT Executive Director met privately with U.S. Senator Norm Coleman to discuss the industry crisis and request his assistance regarding the federal role that the USFS can play in resolving the problems. Items such as inclusion of forestry in the Farm Bill to make the timber industry eligible for disaster assistance similar to farmers; the BWCA land swap issue that would provide an additional 100,000 acres of forest for management and harvest; Trade Assistance Act eligibility for the timber industry that would provide extended unemployment for employees; and USFS timber contract policy.

Minnesota DNR Reschedules November Auction To Allow for Lower Base Prices
October 30th, Saint Paul. The Minnesota Department of Natural Resources Division of Forestry has decided to pull the November timber auctions so that they can adjust the base price down to 2002 levels. This action was in response to recommendations made by the Governors Task Force. The MNDNR requires 30 days notice of timber auctions, so after the change the tracts will be advertised and offered at a December auction. The estimated base price for these tracts for Aspen will be $18.00 - $20.00.

Governors Task Force Holds Second Meeting
October 25th, Grand Rapids. The Governors Task Force met to discuss, identify and propose changes to the timber industry that would improve and strengthen the competitiveness of the industry. Originally the Task Force has proposed to determine short-term, intermediate, and long-term actions. However, in consideration of the time frame and the urgency to identify and implement immediate policies the goal was refined to focus on short-term immediate proposals and action. Additional follow-up after the December 15th deadline to address intermediate and long-term solutions will be recommended. Two additional meetings are scheduled along with ongoing working team efforts prior to the December 15th deadline to report to the Governor.

Aitkin County Land Department Holds Informational Meeting
October 24th, Aitkin County. ACLT Executive Director attended an Aitkin County Timber Industry informational meeting and updated approximately 75 loggers on the current crisis and efforts that are underway. The meeting was attended by the Aitkin County Land Commissioner and other County Commissioners. Presentations were made by TPA representative Ray Higgins also. The Aitkin County Board was encouraged to review their timber extension policy (which requires payment in full for any extension) but to wait until the Governors Task Force completes its work and makes their recommendations regarding policy changes.

USDA Secretary Mike Johanns Travels to Minnesota and Meets with Area Loggers
October 24th, Grand Rapids. Secretary of the Department of Agriculture, Mike Johanns met with area loggers and timber industry stakeholders to hear concerns and recommendations regarding USFS timber policy and the current crisis. Suggestions to provide some assistance and relief were presented regarding timber extensions, volumes, BWCA land exchange, etc. Accompanying Secretary Johanns was senate candidate Mark Kennedy and congressional candidate Rod Grams. Secretary Johanns vowed to bring these issues back to Washington DC and work on them immediately.

Cass County Board of Commissioners Adopts Restrictive and Punitive Timber Policy
October 24th, Cass County. ACLT Executive Director Scott Dane attended the Cass County Board of Commissioners meeting to respond to their proposed timber policies. For the sake of ensuring that public land agencies respond to the crisis in a focused and concerted manner the ACLT requested that the County Board support timber contract extensions and take no action on the other recommendations proposed by Cass County Land Commissioner Norm Moody. The other proposed policies are more restrictive and punitive than any other land agency (County, State or Federal) in Minnesota. The Board of Commissioners declined to accept the proposal of the ACLT and adopted all of the recommendations presented by County Land Commissioner Norm Moody.

Iron Range Resources Agency Board of Directors Cancels Governor Pawlenty’s Proposed $2 million Forest Industry Assistance Program Funding
October 23rd, Eveleth.  The Iron Range Resources Agency cancelled their scheduled meeting that would have approved $2 million for the Forest Industry Assistance Program.  Iron Range Resources Board Members, comprised primarily of local legislative representatives indicated that there was no interest in the program from the logging and trucking industry.  One legislator commented that he was told it would be “like pissing on a fire”.  Executive Director Scott Dane responded that if it allowed the logger or trucker to piss long enough until the fire truck arrived then it would have helped.  The point is that if the funding had been approved and there was very little response then the IRR would have retained the funding, but give the loggers and truckers a chance!  The bottom line is the opposition was politically motivated and that is extremely disappointing considering the loggers and truckers that are caught in the middle and suffering because of political posturing.  In an effort to gauge interest and need in the program the IRR is going to mail out pre-applications and information to eligible loggers and truckers.

ACLT Representatives Meet With DEED Commissioner
October 18th, St. Paul. Representatives of the ACLT met in St. Paul with Department of Employment and Economic Development Commissioner Ward Einess upon their return from Colorado. The group briefed the Commissioner on the fact finding mission and the potential opportunities that exist in Colorado. Additional discussions regarding the state of Minnesota’s efforts to support and assist with the timber crisis were conducted. Commissioner Einess emphasized that the state wants to ensure that their response is framed in a manner that will seriously consider and support the needs of the logging community.

ACLT Representatives Visit Colorado On Fact Finding Mission
October 15th, Frisco Colorado. Five Representatives of the ACLT traveled to Frisco Colorado to meet with community, state, federal and industry representatives to explore and evaluate the Lodgepole Pine Beatle infestation and its impact on hundreds of thousands of acres of timber land. The threats posed to economic, recreational, fire and watershed concerns could prove devastating. Insufficient logging capacity to harvest the dead timber and insufficient mill capacity to utilize the timber exists in Colorado. The logging industry infrastructure in Minnesota could provide the workforce and equipment during the summer when harvest volumes are historically lower in Minnesota and allow Colorado to harvest and utilize this timber. The needs, markets, seasons, and labor force have the potential to provide a complementary opportunity for new markets for the Minnesota logging industry. More detailed information regarding this fact finding mission and the opportunities that are present in Colorado will be written up in the next issue of the Update magazine.

Congressman Oberstar Hosts Federal Timber Industry Meeting
October 12th, Grand Rapids. Congressman Oberstar hosted a meeting of approximately 50 timber industry representatives to discuss the role of the USFS in the Minnesota timber industry crisis. Regional USFS Director, Randy Moore from Milwaukee, USFS Director of Forestry Management, Corbin Newman from Washington DC, Superior National Forest Supervisor, Jim Sanders, and Chippewa National Forest Supervisor, Rob Harper comprised a panel that heard concerns and recommendations from timber industry representatives. Suggestions regarding the size and structure of federal timber contracts, base bid computation, the use of stewardship contracts, and contract modifications were presented. The USFS personnel acknowledged the limited authority for any contract modifications but did indicate that based on “public interest” the potential for authority exists to extend contracts.

Governor Pawlenty Reconvenes Timber Industry Task Force
October 11th, Grand Rapids. Governor Tim Pawlenty reconvenes an expanded task force to evaluate the timber industry crisis and provide recommendations to strengthen the competitiveness and security of the industry. The expanded task force includes two ACLT members, Peter Wood of Wood Forest Products and Scott Dane Executive Director of the ACLT. The group of eighteen has been tasked with responding to the Governor by December 15th. The outcome of the first meeting identified a three pronged approach to address the crisis with short-term immediate recommendations, legislative requirements and long term actions and policies. The agenda of the next meeting to be held October 25th will be to identify and present short term proposals.

ACLT Reiterates Need for State Assistance to AG Hatch
October 9th, Mt. Iron. Logging industry representatives met with Attorney General Mike Hatch to reiterate the need for industry assistance from the State of Minnesota. Mr. Hatch is reviewing options for existing timber permits and inquired whether the loggers in attendance supported more sealed bids in the future. Most supported more sealed bids.

Governor Tim Pawlenty and Area Legislators Meet with Ainsworth
October 6th, St. Paul. Ainsworth Executives from Vancouver traveled to St. Paul and met with Governor Tim Pawlenty and members of his administration. The Governor impressed upon Ainsworth the commitment Minnesota has to supporting and improving the timber industry in Minnesota. The Ainsworth representatives reaffirmed their commitment to operating in Minnesota. Following the meeting with the Governor area Legislators met with the group from Vancouver and reiterated their support for the timber industry in Minnesota and pledged their support for creating a more competitive environment for the timber industry.

Cass County Land Commissioner Proposes Strict Policy Regarding Timber Crisis
October 6th, Cass County. Cass County Land Commissioner Norm Moody proposes to recommend nine items to the County Commissioners on October 24th. The recommendations to respond to the timber industry crisis are:

1.) No refunds of downpayments or sale opening payments
2.) Penalize operators that forfeit sales with a 25% down of bid price for a period of 2 years.
3.) Allow responsible bidders the opportunity to purchase wood
4.) Reduce the size of the October auction
5.) Increase the percentage of sealed bid sales
6.) Expand the use of lump sum contracts (no species pricing)
7.) Monitor industry opportunities that may be unique to Cass County
8.) Offer federal contract on October sale
9.) No extensions at this time for market conditions.

Hubbard County Responds to Timber Industry Crisis with Relief
October 4th, Hubbard County. Hubbard County Commissioners take action addressing the timber industry crisis. Three policy decisions were made to: extend timber contracts; lower base bid rates to state levels; and ALLOW FOR THE TURN BACK OF ASPEN SALES FOR THE MONTH OF OCTOBER WITH NO PENALTY AND A FULL REFUND OF THE DOWN PAYMENT!

ACLT Meets with Northeast Minnesota of Office of Job Training
October 4th, Virginia. The ACLT met with the Northeast Minnesota Office of Job Training to discuss independent forest industry contractor’s eligibility for dislocated workers status and retraining benefits. An application for this segment of the timber industry will be submitted to render these workers eligible for up to two years of tuition reimbursement.

ACLT Meets with Senator Norm Coleman Staff
October 4th, Hibbing. Representatives of the ACLT met with Senator Norm Coleman’s Grand Rapids Representative Melissa Roberts to present federal timber related issues that the Senator could be of assistance with. The Trade Adjustment Assistance designation would allow loggers to be eligible for unemployment extensions. The Senators assistance in receiving TAA recognition was requested. USFS federal timber permit concerns were expressed.

Governor Pawlenty Meets with Timber Industry Representative and Proposes Assistance
September 29th, Grand Rapids. Governor Pawlenty hosts a closed meeting with timber industry representatives (including 3 ACLT Board Members) to discuss and hear input. The ACLT was pleased with Governor Pawlenty’s quick and decisive adoption of many of the ACLT recommendations submitted to his staff the previous day. These actions to extend contracts, review the MNDNR timber auction process, establish a $2 million Forest Industry Assistance Program and the need to look at reducing the value of the over inflated existing timber contracts.

ACLT Meets with Attorney General Hatch
September 28th, St. Paul. A meeting was held with Attorney General Mike Hatch to discuss the timber industry crisis and more particularly existing timber permit contracts and options. Concerns were expressed by AG Hatch regarding the states ability to “devalue” timber permits, but Mr. Hatch did suggest that it might be possible to rescind state timber permits as a means of addressing the volume of high priced permits.

ACLT Meets with Governor Pawlenty Staff
September 28th, St. Paul. Representatives from the ACLT met with Governor Tim Pawlenty’s Senior Policy Advisor Laura Bordelon and MNDNR Dave Epperly. Recommendations and suggestions regarding; redefining the state timber auction process and frequency; the need to provide financial assistance through bridge or gap financing to the logging industry; the need to implement free timber contract extensions; the need to devalue current timber permit contracts; an unemployment extension for loggers since they have been idled for six months; the need for a reinvestment modernization incentive program for Minnesota mills to improve productivity and efficiency; allowing for incremental opening of timber sales (similar to Wisconsin) to assist with cashflow; the need to recognize loggers and other independent forest industry contract workers in the same context as laid off mill workers and extend the eligibility of dislocated workers benefits to them.

ACLT Convenes Emergency Timber Industry Stakeholders Meeting
September 25th, Grand Rapids. The ACLT convened an emergency meeting of all timber industry stakeholders to impress upon them the severity of the situation and the threats posed to the future of the timber industry in Minnesota. Approximately 250 representatives from loggers, truckers, mills, insurance, financial organizations, landowners, and government attended and participated in a 2 ½ hour discussion. Suggestions and recommendations were presented by the participants. The objective of the meeting was to convey the threats to the industry and the need for collaborative public and private efforts to make comprehensive reforms to the timber industry in order to improve the competitiveness nationally and globally. This objective was accomplished with policy makers departing with a sense of urgency to make timber industry reform a priority.