Challenges facing theNorth American forest sector

and boundary-spanning opportunities

Tat Smith and Guy Smith

Faculty of ForestryUniversity of Toronto

&Natural Resources Canada (NRCan)

Canadian Forest ServiceSault Ste. Marie, Ontario

North American Natural Resources Extension ForumCanadian Ecology Centre, Mattawa, Ontario

10 April 2006

Objectives --

• Major challenges facing NA forest sector

• Canadian and U.S. context

• Roles and responsibilities to address issues

• Models for natural resource extension programs

• Cross-border opportunities

Stimulate discussion and questions…

Major challenges facing NA forest sector:

• Survive!

• Demonstrate relevance to increasingly urban society• Resource access & availability• Social license for land managers• Visibility of our profession

• Maintain resources to address key issues• Human capital• Financial• Infrastructure

Major challenges facing NA forest sector:

Demonstrate relevance to the public by… e.g.

Achieving values of sustainable resource management:• Environmental – incl. ecological services• Economic

• Global competitiveness, including new product development• Rural economic development

• Social• Rural communities• Aboriginal and First Nations

Consider internationally accepted standards definingSustainable Forest Management (SFM)

SFM applies to land base, production systems and end-products.

Eastern forest types

13 Southern states

Geographic regionand dominant forest types

U.S. context --Southern example

Situation in the rural South

Forces of change described in the Southern Forest Resource AssessmentWear and Greis, 2002 -- http://www.srs.fs.usda.gov/sustain/

Five forces are reshaping forests:• Land markets – losses to urbanization• Timber markets – increased Southern production• Social institutions – increasing regulations• Biological factors – spread of native and exotic pests• Physical factors – increased pollution and catastrophic disturbance

Predicted change in forest area (1992-2020)

Wear & Greis, 2002

Wear & Greis, 2002

A 40-year summary of Southern Pine Beetle outbreaks

Hurricane Katrina19:15 UTC (3:15 p.m. EDT) on 29 August 2005

Source: MODIS-NASA

Hurricane Rita1:01 p.m. EDT on 23 September 2005

Hurricane RitaTexas Forest Service Timber Damage Assessment

http://texasforestservice.tamu.edu/pdf/forest/ritaassessment.pdf

Landownership Patterns in East Texas

Historical

Industry

32%

Public

7% NIPF

61%

2003

NIPF

61%

Public

7%

Industry

17%

Investors

15%

Darwin Foster, Texas A&M

Virginia 2001

NIPF66%

Forest Industry

7%

Public14%

Other Corporate

13%

Land ownership in Virginia

Jim Johnson, Virginia Tech, 2006

Oregon 2006

Public61%

Forest Industry

22%

Tribal1%

NIPF16%

Jim Reeb, Oregon State, 2006

Land ownership in Oregon

Michigan 1993

Forest Industry

8%Other

Corporate11%

Public35%NIPF

46%

Land ownership in Michigan

Peg Gale, Michigan Tech, 2006

Maine 2003

Public6%

Forest Industry31%

Other Corporate31%

NIPF32%

Land ownership in Maine

Jim Philp, University of Maine, 2006

9 forested ecozones

Geographic regionand dominant forest types

Canadian context

British Columbia

Provincial96%

Federal1%

Private3%

Paula Konka, NRCan-CFS, 2006

Alberta

Provincial89%

Federal8%

Private3%

British Columbia and AlbertaLand ownership and tenure

Ontario

Provincial91%

Federal1%

Private8%

Quebec

Provincial89%

Private11%

Ontario and QuebecLand ownership and tenure

Paula Konka, NRCan-CFS, 2006

New Brunswick

Provincial48%

Federal2%

Private50%

Nova Scotia

Provincial29%

Federal3%Private

68%

Paula Konka, NRCan-CFS, 2006

New Brunswick and Nova Scotia land ownership and tenure

Prince Edward Island

Provincial8%

Federal1%

Private91%

Newfoundland and Labrador

Provincial99%

Private1%

PEI and Newfoundland & LabradorLand ownership and tenure

Paula Konka, NRCan-CFS, 2006

Canada - U.S. Comparison

29%94%Public timberland

71%6%Private timberland

747 million acres

1.033 billion acres

ForestlandUnited StatesCanada

Autos #1, Wood

Products#18

Aerospace #1Wood Products #5

Petroleum #1,Wood

Products #2

BC AB

ON QC NB

Wood Products

#1

Oil & Gas #1 Wood

Products #5

Wood Products Manufacturing as a

Percentage of Total Merchandise

Exports

# = Importance of industry, ranked by 1st two quarters (Jan. – Jun.) of

2005 value of exports to U.S.34%

3%

2%7%

11%

x%

Importance of Wood Products“competitiveness is critical to the B.C. economy”

Peter Woodbridge, 2006

Canadian headline news

Daily News Friday, April 07, 2006

Former Tembec mill to be converted into co-gen plant

Daily News Tuesday, March 28, 2006Environmental concerns halt pulp mill construction

Thursday January 26, 6:33 am ET

Bowater Announces Fourth Quarter and Full Year 2005 Financial Results

…the company will permanently close the Thunder Bay "A" kraft mill

in the second quarter of 2006.

News Release: February 21, 2006Graduates of Forestry Programs Needed and In Demand

…the large number of retirements in the forest sector coincidental with lowered enrollment has created an employment gap.

Major challenges facing NA forest sector:

Ontario forest industry competitive positionaffected by:• U.S. dollar exchange rate• Cost of energy – e.g. 3X Quebec electricity cost• Price of delivered wood

Hard lessons:• It’s tough to survive in commodity markets• Urgent need to develop new business plans

• North vs. South issues in province• Energy policy hinders investment in renewable energy• Province owns the forest… has not grasped biomass concepts

Canada - U.S. Trade

USA 97%

European Union 1%

Other countries 2%

Ontario: destination of exports (2002)

Major challenges facing NA forest sector:

Policy opportunity for Canadian and U.S.…• Develop renewable energy sector

• Technology developed in IEA Bioenergy collaboration

IEA Bioenergy Task 31

Recoverable forest biomass (106 dry tons/yr)41 Logging & other residue60 Fuel treatments35 Fuel wood106 Forest products industry waste37 Urban wood residues89 Forest growth

368 Total

DOE/USDA Billion Ton Vision Paper

Annual biomass resource potential (106 dry tons/yr)

368 Forest resources998 Agricultural resources

1366 Total resource potential

DOE/USDA Billion Ton Vision Paper

Pathway Link to Resource Base

DOE/USDA Billion Ton

Vision Paper

1,2

3

4

5

6,7

“Pathway”Identification Numbers

Source: Russo

U.S. Department of EnergyEnergy Efficiency and Renewable Energy

Office of the Biomass Program

Thermochemical Platform

Sugar Platform

FuelsChemicals & MaterialsBiomass

Combined Heat & Power

Residues

Clean Gas

Conditioned GasBio-oils

Sugar Feedstocks, Lignin Intermediates

Advanced Biomass R&D

Systems Integration = BiorefineriesSource: Russo

Forest Sector Biorefinery PathwaysNote DOE “partner” opportunities!

Complete systems level demonstration and validation of

all technologies to improve corn wet mill facilities using

corn grain feedstock

ForestResidues

•Georgia-Pacific•Agenda 2020

• Wood• Mill

Wastes

• New Fractionation Process for Hemicellulose Removal

• Products from C 5/C6 Sugars• Black Liquor Gasification• Products from BLG Syn Gas

Program “A”MilestonesFeedstocksBiorefinery Pathway

Conversion Pathway Options Under

Consideration (each has a B Milestone - cost target ) Partners

•None• Wood• Mill

Wastes

• Pyrolysis Oil Upgrading

Complete systems level demonstration and validation of

all technologies to improve corn dry mill facilities using

corn (and other ) grain feedstock

•NoneComplete systems level

demonstration and validation of all technologies to improve

natural oil processing facilities using oil crop feedstock

• LoggingResidues

TreatmentsFuel•

• Biomass Sugar Production• Products from C 5/C6 Sugars• Products from Lignin • Biomass Gasification• Products from Synthesis Gas• New Fractionation Processes• Products from New Process

Intermediates

•None Complete systems level demonstration and validation of

all technologies to improve processing facilities using

agricultural residue feedstocks

• MSW &Urban

WastesWood

• Biomass Sugar Production• Products from C 5/C6 Sugars• Products from Lignin • Biomass Gasification• Products from Synthesis Gas• New Fractionation Processes• Products from New Process

Intermediates

Pulp and

Paper Mills

Forest Product

Mills

Non-ForestWood

Wastes

Source: Russo

Sustainable Production of

Biobased Products

Product Delivery Logistics

Rural Economic

Development

Manufacturing/Energy Production

Sustainable Forest

Operations

Consumer Demand

Environmental Sustainability

Critical Components of Sustainable Bioenergy Production Systems

Martin Holmer, 2001 IEA Bioenergy Task 31

Major challenges facing NA forest sector:

What renewable energy potential for Ontario?

What role for extension programs?

IEA Bioenergy Task 31

Major challenges facing NA forest sector:

British Columbia mountain pine beetle epidemic• What forecast for Alberta thru the Maritimes?!

What role for extension programs?

Mountain pine beetle outbreak in B.C. in 2003

Stennis & White, 2005

Mountain pine beetle mortality in B.C.

Stennis & White, 2005

Stennis & White, 2005

Stennis & White, 2005

Roles and responsibilities to address issues

Shared among public and private parties• Government

• Legislative• Federal, provincial, state• Management• Research

• Industry• Companies• Contractors

• Professional foresters• Woodlot owners• Aboriginal people• Academic institutions – incl. research, outreach & extension• NGOs• General public

Communities of interest for bioenergy and biobased products

Clearly an important role for natural resource extension programs…

How do Canadian and U.S. extension programs compare?

Can we do more together?

Where shall we focus?

Do our respective performance review protocols provide adequate incentive?

Founding principle and legislation for key partnershipsinvolved with U.S. extension programs

Federal-state partnership… created by• Smith-Lever Act of 1914• Renewable Resources Extension Act of 1978

• Formula funds administered by USDA-CSREES

• Land Grant Colleges and Universities involved at State level• 1862, 1887, 1890 and Tuskegee, and 1994 (tribal) legislation

The Texas Forestry Extension Model

Extension Program Council

People

Extension Education Programs

Science/ Research

Program Delivery

Forestry Extension Specialists

County Extension

Agents

Texas Forest Service

Coordinators

Darwin Foster, Texas A&M

The logic model: a framework for program performance evaluationapplied to bioenergy and bio-based products programs

Forestry Extension in Canada

Audience Profile

Private and public; small-scale and large-scale industrial operations

VariableContracts with woodlot owners; forest products companies

Contractors

First Nations; adjacent public and private lands

VariableFirst Nations organizations

Aboriginal

Private and public; industrial and small-scale and large scale

University;Community college

Provincial governments; forest products companies

Foresters and Technicians

Private and public; small-scale and large-scale industrial operations

VariableWork for contractors; forest products companies

Forestry workers

Private; small scale (non-industrial)

VariableSelf-employedWoodlot Owners

LandbaseEducationEmployerGroup

Client Profile

Woodlot Owners

Contractors

Engaged citizens

Foresters and Technicians

Forestry workers

Policy-makers

Public land-provincial licensees -forest industry -range, mining, energy,

water

Urban/Municipal

Private land-industrial -woodlots

First Nations lands

AssociationsProfessionalWoodlotsIndustry

GovernmentFederalProvincialMunicipal

IndustryForest ProductsContractorsSmall businessNon-timber products

PartnershipsNot-for-profitCooperativesCouncils

AcademicCollegesUniversities

Institutional context

Support & ExtensionPartnershipsAssociations

R & DGovernmentAcademia-via partnerships

Institutional Context

Regulation & PolicyProvincial government Federal government Programs

GovernmentInter-agency agreements

OperationsIndustryContractorsProvincial governmentFirst Nations

Roles and functions

Extension in Canadian Terms

Diversity of providers& users

What’s behind a name?

In Canada,

No national system of Land-Grant Universities & Cooperative Extension

Few providers, yet highly diverse partnerships

What’s behind a name?

Extension

- meeting the needs of:

•Public land managers•Private woodlot/woodIand owners

What’s behind a name?

Lack of value/recognition of extension as a professional discipline

Need broader recognition of the value of extension

TrendsReductions in government capacity

Increased demand from forest industry, with more focused learning objectives

- to meet regulatory expectations- heavy reliance on science

TrendsGovernment programs have encouraged the creation of partnerships.

Many partnerships depend on continued government support.

Trends

Creation of associations and partnerships to deliver extension services

TrendsChallenges:

- staying on mission

- maintaining capacity

- effectively meeting demands

Cross-country examples

•FERIC

•Forintek

Government-Provincial-Industry partnerships

British Columbia

FORREX Forest Research Extension Partnership (FORREX) is a British Columbia, Canada-based charitable non-share corporation, founded in 1998 to help people develop science and knowledge-based solutions to complex natural resource challenges.

AlbertaWoodlot Extension Program

SaskatchewanSaskatchewan Forest Centre

Ontario

QuebecForest Innovation Partnership

The Forest Innovation Partnership's mission is to answer the needs of Quebec's forest-dependent regions and their communities by promoting innovative forest management through more effective knowledge transfer between researchers and users. This strategic alliance stems from an agreement between the Canadian Forest Service (CFS), FERIC and Forintek Canada Corp. withfinancial support from Canada Economic Development.

New Brunswick

The NB Christmas Tree Growers Association, the NB Maple Syrup Producers Association and the NB Federation of Woodlot Owners joined forces with very strong support from the NB Department of Natural Resources in order to provide consulting services and promote the sustainable management of private woodlots.

National

During the Rio Earth Summit in 1992, Canada demonstrated international leadership in environmental stewardship by launching one of the world’s largest experiments in sustainable forest management. The Canadian Model Forest Network continues to bring together organizations with diverse views on how forests should be managed. With core funding and leadership from Natural Resources Canada’s Canadian Forest Service, this diversity of opinion and spirit of collaboration has advanced the knowledgeand practice of sustainable forest management. Model Forests include among their partners forest industry, environmental groups, woodlot owners,academics, Aboriginal communities, parks, government agencies, recreational groups, trappers and anyone who has an interest in sustainable forest management. Together, these partnerships address the challenge of balancing the extensive range of demands placed on forests today with theneeds of future generations.

Institutional linkages – rich relationships…•Great Lakes Forest Alliance

•Networking Across Borderse.g. Maritimes - New England

•Association of Natural Resource Extension Professionals

•IUFRO – Extension Working Party

•Heaps more…

What are the priority topics? Vehicles for interaction?

Cross-border opportunities

What are the priority topics?•Traditional forestry and natural resource areas

•Ongoing and/or new trans-national activity•SFM certification schemes

•E.g. SFI, FSC, ISO 14001•International Model Forest Network•Global climate change

•Carbon trading•Bioenergy

•IEA Bioenergy program•USDA funded forest encyclopedia

•www.forestencyclopedia.net•Ecological services

Consider point on diffusion-adoption curve…

Cross-border opportunities

Consider point on diffusion-adoption curve…

Priorities for cross-border collaboration?•Innovators or early adopters?•Early to late majority?

Consider program performance review metrics

Cross-border opportunities

Source: Jim Johnson, 2006

Thanks!

Questions?

Back to PRESENTATIONS page