California Forest Products Commission Releases First Annual 'State of the Industry' Report.

News Editors

SACRAMENTO, Calif.--(BUSINESS WIRE)--April 22, 2004

Government Policies Export Jobs Out of California;

Declining Harvests Have Created Overcrowded Forests

That Put More Communities At Risk for Wildfire

California is importing more wood

The result is that, despite having some of the most productive forestlands in the world, California imports between 70 and 80 percent of the wood used in the state -- with much of that wood coming from countries with lower standards for environmental protection.

"Over the last 15 years, 15,000 forestry jobs have been exported right out of California," said Donn Zea, president of the California Forest Products Commission. "While there is public debate today about corporations exporting jobs, government policies are responsible for these 15,000 California jobs being lost. Overregulation is devastating rural communities, shuttering family-owned businesses and hurting those who practice responsible, sustainable forest management in California."

The Commission attributed the sharp decline in harvesting to two primary factors: a near-elimination of harvesting trees on government land and increasing regulatory red-tape that makes it harder and excessively expensive to responsibly harvest trees on privately-owned lands.

According to statistics recently released by the California Board of Equalization, just 1.66 billion board feet was harvested in California in 2003 -- compared to 4.67 billion board feet in 1988.

Harvesting on government-owned lands is down more than 90 percent over the last 15 years, while harvesting on privately-owned lands is down more than 40 percent during that same time period.

Ironically, the decline in harvesting comes at a time of nearly unprecedented growth in forests. In fact, forests on government lands are literally growing out of control -- and increasingly falling victim to disease and monster wildfires. Scientists estimate that our forests grow more than 2 billion board feet each year even after mortality and harvest. The 2 billion feet would be enough wood to build more than 130,000 homes.

"Last year, Californians watched in horror as monster fires destroyed thousands of homes and nearly consumed entire communities in the San Bernardino Mountains," Mr. Zea said. "These fires are a direct result of policies that prevent almost any kind of management to maintain a healthy landscape. In many areas, overcrowded forests have 10 times as many trees than would be expected in a healthy forest."

While the state's increasing regulation has been intended to improve the environment, a 2003 study by Cal Poly-San Luis Obispo found that policies have had the unintended consequence of promoting harvesting outside California, where regulations are less stringent, and promoting conversion of California forestland for development.

"California's forest products industry practices sustainable forestry, planting an average of seven trees for every tree harvested," Mr. Zea said. "Landowners have a vested interest in sustaining their forests -- so they have some trees ready for harvesting in 50 or 60 years to create natural wood products for all Californians to enjoy. Unfortunately, due to increasing regulation and costs, forestland is being sold off and developed instead of conserved for future generations."

Forestry companies that remain face more difficult markets today, in part because there are far fewer sawmills to process harvested trees, the Commission said. More than 80 sawmills closed between the late 1980s and 2000, leaving fewer than 50 today.

The loss of this infrastructure to process wood is a problem that is beginning to manifest itself in the state, Mr. Zea said. When community leaders in San Bernardino County wanted to remove damaged trees from its overcrowded forests, they learned that the closest sawmill is 250 miles away -- further limiting market opportunities and increasing the chance that the lesser valued wood would be thrown away.

"As government and community leaders recognize the need to harvest trees in crowded forests, they will find that there are fewer facilities to accommodate those trees," Mr. Zea said. "What California needs is a stable and reasonable regulatory environment that will promote responsible forestry for California's long-term future. If we can improve the regulatory environment, we can achieve a healthier balance and safer forests for our state."