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Forest Certification Forest Certification UpdateUpdateThe Indiana ExperienceThe Indiana Experience

John SeifertJohn SeifertJohn SeifertJohn SeifertCarl HauserCarl Hauser

Duane McCoyDuane McCoyBrenda Huter Brenda Huter Phil WagnerPhil Wagner

Indiana Residents’ Perception of Indiana Residents’ Perception of Woodland Management Survey 2009Woodland Management Survey 2009 DNR Forestry funded surveyDNR Forestry funded survey

Conducted by Purdue and DJ Case & Assoc.Conducted by Purdue and DJ Case & Assoc.

Surveyed 1,402 HoosiersSurveyed 1,402 Hoosiers

Asked 25 questionsAsked 25 questions

Date collected OctoberDate collected October

Final report February 2010Final report February 2010

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Study ObjectivesStudy Objectives

Understand opinions about active forest management Understand opinions about active forest management on private and public landson private and public landson private and public landson private and public lands

Assess perceptions of what constitutes “sustainable” Assess perceptions of what constitutes “sustainable” forest managementforest management

Identify importance of different forest values Identify importance of different forest values ––support or oppositionsupport or opposition

Determine awareness and perceptions of “certified Determine awareness and perceptions of “certified p pp pforests”forests”

Collect socioCollect socio--demographic information to better demographic information to better understand segmentations in the populationunderstand segmentations in the population

ConcernsConcerns

93% of Hoosiers are concerned about long93% of Hoosiers are concerned about long--t h lth d d ti it f IN’t h lth d d ti it f IN’term health and productivity of IN’s term health and productivity of IN’s woodlandswoodlands

90% interested in Indiana’s fish, forests, 90% interested in Indiana’s fish, forests, wildlife and outwildlife and out--ofof--doorsdoors

88% think Indiana’s woodlands should be88% think Indiana’s woodlands should be 88% think Indiana s woodlands should be 88% think Indiana s woodlands should be managed for a balance of wood products, managed for a balance of wood products, recreation, wildlife and water qualityrecreation, wildlife and water quality

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Indiana Residents’ Perception of Indiana Residents’ Perception of Woodland Management SurveyWoodland Management Survey

95% of Hoosiers support removing some trees to 95% of Hoosiers support removing some trees to control disease and wildfirecontrol disease and wildfirecontrol disease and wildfirecontrol disease and wildfire

85% approval of harvesting if overseen by a 85% approval of harvesting if overseen by a professional foresterprofessional forester

82% of Hoosiers support harvesting to improve 82% of Hoosiers support harvesting to improve wildlifewildlife

74% of Hoosiers believe certified forests are wisely 74% of Hoosiers believe certified forests are wisely yymanagedmanaged

61% supported harvesting trees to make wood 61% supported harvesting trees to make wood productsproducts

2005 data – Update 4/2010

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2009

Update 4/2010

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Types of Certification

1 Certification of Forest1. Certification of Forest Management (FM)

2. Certification of Wood Based Industries(COC / Ch i f C t d )(COC / Chain of Custody)( Controlled Wood)

Holistic Approach for CertificationHolistic Approach for Certification

Need a critical mass of certified woodNeed a critical mass of certified wood

Economies of scale through groups Economies of scale through groups g g pg g p

Minimal fiscal impact to industryMinimal fiscal impact to industry

Maintain and/or expand market shareMaintain and/or expand market share

Need all facets Need all facets –– wood, CoC and controlled wood, CoC and controlled woodwood

DNR was the most logical entityDNR was the most logical entity

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20092009--10 Goals for Indiana10 Goals for Indiana

Maintained group certification of private lands under Maintained group certification of private lands under Tree Farm Program and PEFC endorsementTree Farm Program and PEFC endorsementTree Farm Program and PEFC endorsementTree Farm Program and PEFC endorsement

Maintained certification for Forest Stewardship Maintained certification for Forest Stewardship Council (FSC) and Sustainable Forestry Initiative Council (FSC) and Sustainable Forestry Initiative (SFI) for state forest lands(SFI) for state forest lands

Add Forest Stewardship Council (FSC) group Add Forest Stewardship Council (FSC) group certification for private lands programcertification for private lands program finalfinalcertification for private lands program certification for private lands program –– final final documents completed. Certificate pending documents completed. Certificate pending ––February/March 2010?February/March 2010?

Certified ForestsCertified Forests

FSC & SFI certified state forest FSC & SFI certified state forest -- 153,000 acres = 153,000 acres = 12 000 000 bd/ft annually12 000 000 bd/ft annually12,000,000 bd/ft annually12,000,000 bd/ft annually

FSC & PEFC (Tree Farm) private forest lands FSC & PEFC (Tree Farm) private forest lands (Classified Forest Program) (Classified Forest Program) –– 500,000 acres = 500,000 acres = 35,000,000 bd/ft annually35,000,000 bd/ft annually

Annual state harvest of ~ 350,000,000Annual state harvest of ~ 350,000,000

13% f l h l ld b13% f l h l ld b ~ 13% of annual state harvest volume could be ~ 13% of annual state harvest volume could be certifiedcertified

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FM Certification Process

Pre Audit(=scoping visit)

Main Audit

Document Inspection

Stakeholder Consultation

a ud(= field assessment)

Field Inspection

Report withRecommendations

NOYES

Certification

Annual Audits

Corrective Actions

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FSC Certification RequirementsFSC Certification Requirements

12 Guiding Principles12 Guiding Principles1) C li ith L1) C li ith L 6 it i6 it i1) Compliance with Laws 1) Compliance with Laws -- 6 criteria6 criteria2) Tenure and Use Rights 2) Tenure and Use Rights –– 3 “3 “3) Indigenous Peoples Rights 3) Indigenous Peoples Rights –– 4 “4 “4) Community Relations and Workers 4) Community Relations and Workers

RightsRights –– 5 “5 “Rights Rights –– 5 5 5) Benefits from the Forest 5) Benefits from the Forest –– 6 “6 “

FSC Certification RequirementsFSC Certification Requirements

6) Environmental Impact 6) Environmental Impact –– 10 criteria10 criteria7) Management Plan7) Management Plan 4 “4 “7) Management Plan 7) Management Plan –– 4 4 8) Monitoring and Assessment 8) Monitoring and Assessment –– 5 “5 “9) Maintenance of High Conservation 9) Maintenance of High Conservation

Value Forests Value Forests –– 4 “4 “10) Plantations 10) Plantations -- 9 “9 “

* 55 Criteria and additional indicators * 55 Criteria and additional indicators

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Certification Changes to Current Certification Changes to Current Operating ProceduresOperating Procedures

New or update Stewardship Plan New or update Stewardship Plan

P h fP h f Pre harvest conferencePre harvest conference

Site visit while harvest is in progressSite visit while harvest is in progress

Post harvest site visitPost harvest site visit

Tract goes into pool for future BMP monitoringTract goes into pool for future BMP monitoring

Will require a closer working relationship among all Will require a closer working relationship among all q g p gq g p gparties involved in the harvest. Notifying the district parties involved in the harvest. Notifying the district forester of a sale is a big changeforester of a sale is a big change

Additional UpdatesAdditional Updates

All Stewardship Plans will be updated to the 2010 All Stewardship Plans will be updated to the 2010 standard during the next five year restandard during the next five year re inspection cycleinspection cyclestandard during the next five year restandard during the next five year re--inspection cycle. inspection cycle. Focus on tracts where a harvest is imminent, ones Focus on tracts where a harvest is imminent, ones with no or minimal plan is in place.with no or minimal plan is in place.

Produce a Landowner Assistance Guide that will be Produce a Landowner Assistance Guide that will be part of an “Umbrella Plan” for the CFW Program.part of an “Umbrella Plan” for the CFW Program.

Continuous Forest Inventory on CFW landContinuous Forest Inventory on CFW land Continuous Forest Inventory on CFW land.Continuous Forest Inventory on CFW land.

Reporting chemical use on certified landReporting chemical use on certified land

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Group Certificate Private LandsGroup Certificate Private Lands

Division of Forestry will hold the certification Division of Forestry will hold the certification tifi ttifi t W ill dit i t l dW ill dit i t l dcertificate certificate –– We will audit private landowners We will audit private landowners

for compliancefor compliance

Tree Farm (PEFC) and FSC will audit us for Tree Farm (PEFC) and FSC will audit us for compliancecompliance

Second largest group certificate in the countrySecond largest group certificate in the country Second largest group certificate in the countrySecond largest group certificate in the country

BMP Application

Gross Neglect0 2%

Major Departure

1.8%

0.2%

Meets Requirement

86.2%

Minor Departure

11.8%

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BMP Effectiveness

Direct and Temporary

Direct and Prolonged

Impact2.0%

Adequate Protection

92 3%Impact2.3%

Indirect and Prolonged

Impact1.1%

92.3%

Indirect and Temporary

Impact2.3%

Why Hold the Group StatusWhy Hold the Group Status

Economies of scale Economies of scale –– lower initial and annual lower initial and annual certification costscertification costs

A long history of professional forester help A long history of professional forester help with private landownerswith private landowners

Probably the only way to bring private Probably the only way to bring private landowners into a certification schemelandowners into a certification schemeC tl h t l ith 80+C tl h t l ith 80+ Currently have a tax law program with 80+ Currently have a tax law program with 80+ years of management historyyears of management history-- Classified Forest & Classified Forest & Wildlands ProgramWildlands Program

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Classified Forest ProgramClassified Forest Program

Established in the 1920’s to give a reduction in Established in the 1920’s to give a reduction in t t ti f t ti th f tt t ti f t ti th f tproperty taxation for protecting the forestproperty taxation for protecting the forest

Currently have over 8,000 landowners and Currently have over 8,000 landowners and ~500,000 acres~500,000 acres

Each tract is inspected every 5 years and a Each tract is inspected every 5 years and a revised plan every 10 yearsrevised plan every 10 yearsrevised plan every 10 yearsrevised plan every 10 years

CertifiedCertified

FSC Certified L b

FSC Certified Ti b B

FSC Certified MillFSC Certified ForestLumberTimber Buyer

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.

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UncertifiedUncertified

Uncertified LumberFSC Certified Timber Buyer

Uncertified MillFSC Certified Forest

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 Certification systems are not new –– we all we all know and use them everydayknow and use them everyday

Underwriter’s

LaboratoryUSDA Grade

A BeefMotion Picture

Association

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Other Acres CertifiedOther Acres Certified

TNC TNC –– Forest Bank and associated landsForest Bank and associated lands TIMO’s and REIT’sTIMO’s and REIT’s –– One or both FSCOne or both FSC TIMO s and REIT s TIMO s and REIT s One or both FSC One or both FSC

and SFIand SFImillions?millions?

Wisconsin Wisconsin –– 2.7 mm acres of state forest 2.7 mm acres of state forest or county lands or county lands

Michigan Michigan –– 1.5 million acres state forest1.5 million acres state forestMinnesotaMinnesota 4 9 million acres state4 9 million acres state Minnesota Minnesota –– 4.9 million acres state 4.9 million acres state forestforest

Pennsylvania Pennsylvania –– 1.9 million acres state 1.9 million acres state forestforest

Primary Species in IndianaPrimary Species in Indianafor Certificationfor Certification

White oak White oak DecreasingDecreasing

Black walnutBlack walnut i ti tBig interest in

Black walnut Black walnut importance importance

Red oak Red oak Yellow PoplarYellow Poplar Sugar mapleSugar maple White ashWhite ash

Bl k hBl k h

gchips

Lower grade products like ties

Black cherryBlack cherry HickoriesHickories

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Forest CertificationForest CertificationLog and Lumber Log and Lumber

Chain of CustodyChain of Custody

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The succession of ownership of wood products The succession of ownership of wood products f h f h h h ff h f h h h f

Chain of CustodyChain of Custody

from the forest through each stage of from the forest through each stage of manufacturing and distribution to the final manufacturing and distribution to the final consumer. consumer.

Each company in the chain must hold a valid Each company in the chain must hold a valid certificate to ensure: certificate to ensure:

They have a system of accountability in placeThey have a system of accountability in place

They are in fact buying certified inputsThey are in fact buying certified inputs

They are accountable for tracking materialThey are accountable for tracking material

They are making accurate and verifiable claims They are making accurate and verifiable claims

You need a COC Certificate if you: You need a COC Certificate if you:

Who Needs CoC Certification?Who Needs CoC Certification?

a)a) Take legal ownership of FSC certified product, Take legal ownership of FSC certified product, andand

b)b) Wish to pass on a commercial claim that the Wish to pass on a commercial claim that the product is certified, whether that claim is onproduct is certified, whether that claim is on--product, on an invoice, or in other communicationproduct, on an invoice, or in other communication

If you don’t hold a certificate, the product that you If you don’t hold a certificate, the product that you sell loses its certified status and may not be resold as sell loses its certified status and may not be resold as FSC nor used for LEED points.FSC nor used for LEED points.

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11 Quality SystemQuality System

The FSC CoC StandardsThe FSC CoC Standards1.1. Quality SystemQuality System

2.2. Product GroupsProduct Groups

3.3. Sourcing FSC InputsSourcing FSC Inputs

4.4. Receiving and StorageReceiving and Storage

5.5. ProcessingProcessing

6.6. Labeling and PromotionLabeling and Promotion

7.7. Sales and DeliverySales and Delivery

8.8. OutsourcingOutsourcing

Small/Portable SawmillsSmall/Portable Sawmills

Achieving Group CertificationAchieving Group Certification

Small/Portable SawmillsSmall/Portable Sawmills

Small Haulers/Loggers Small Haulers/Loggers

Small:15 and fewer employeesSmall:15 and fewer employees

Member of External Support Member of External Support Organization, Indiana DNROrganization, Indiana DNROrganization, Indiana DNROrganization, Indiana DNR

Audited by Group OrganizationAudited by Group Organization

IN DNR and selected members audited by IN DNR and selected members audited by Independent Auditor each yearIndependent Auditor each year

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Chain of Custody (FSC)Chain of Custody (FSC)

Create a DoF group certificate for loggers and Create a DoF group certificate for loggers and sawmillssawmillssawmillssawmills

Division becomes the auditorDivision becomes the auditor Reduction in auditing costsReduction in auditing costs DoF assumes auditing costs for small operatorsDoF assumes auditing costs for small operators Cost to Member Company ~ $100 per yearCost to Member Company ~ $100 per yearCost to Member Company $100 per year Cost to Member Company $100 per year

(compared to ~ $3000 per year) (compared to ~ $3000 per year)

Indiana’s Group CoC CertificationIndiana’s Group CoC Certification

Group Certification achieved January, 2009Group Certification achieved January, 2009

January, 2010 January, 2010 –– 39 member companies39 member companies 22 Loggers22 Loggers

17 Mills17 Mills

SCSSCS--COCCOC--002041002041

SCSSCS CWCW 002041002041 SCSSCS--CWCW--002041002041

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Go To www.info.fsc.org

Enter Number 002041

Select IDNR DoF

State Forest Sales: http://www.in.gov/dnr/forestry/5194.htm

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FSC Control SystemsFSC Control Systems

Transfer SystemTransfer System Transfers the FSC claim from supplier to customerTransfers the FSC claim from supplier to customer

Only system used for “FSC Pure” Only system used for “FSC Pure”

Percentage SystemPercentage System “FSC Pure” mixed with ““FSC Pure” mixed with “FSC Controlled WoodFSC Controlled Wood””

Credit SystemCredit System Credit SystemCredit System “FSC Pure” mixed with ““FSC Pure” mixed with “FSC Controlled WoodFSC Controlled Wood””

Sold as “FSC Mixed Credit”Sold as “FSC Mixed Credit”

Transfer SystemTransfer System

Until now, the only system available to DoF CoC Group Members

Any other system requires Controlled Wood Certificate

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Percentage SystemPercentage System

Credit SystemCredit System

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Credit System Account (For each product)Credit System Account (For each product)

Date Board Feet

Tons Chips

AddedTons

Chips Sold Balance

Sum of Previous 12

MonthsCorrect

BalanceDate Board Feet Added Chips Sold Balance Months Balance

9/1/2009 20000 20 0 180 180 180

10/1/2009 20000 20 20 180 200 180

11/1/2009 20000 20 0 200 220 200

12/1/2009 20000 20 0 220 240 220

1/1/2010 20000 20 0 240 240 240

2/1/2010 20000 20 0 260 240 240

FSC Controlled WoodFSC Controlled Wood

Does not require separation of FSC Pure Does not require separation of FSC Pure –– can can i FSC P ith FSC C t ll di FSC P ith FSC C t ll dmix FSC Pure with FSC Controlledmix FSC Pure with FSC Controlled

Can be Sold as “FSC Controlled” to other FSC Can be Sold as “FSC Controlled” to other FSC CoC certified companiesCoC certified companies

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Why would you need FSC Why would you need FSC Controlled WoodControlled Wood

Not enough FSC Pure wood available to meet Not enough FSC Pure wood available to meet k t d dk t d dmarket demandmarket demand

Customer may require it (Veneer)Customer may require it (Veneer)

Product not easily stored in separate locations Product not easily stored in separate locations or marked (Chips)or marked (Chips)

What Extra Work for Controlled What Extra Work for Controlled WoodWood

Need to modify your Procedures Document to Need to modify your Procedures Document to include the Control Systems and Claims thatinclude the Control Systems and Claims thatinclude the Control Systems and Claims that include the Control Systems and Claims that you useyou use

Company PolicyCompany Policy List of SuppliersList of Suppliers Keep documentation to demonstrate district of Keep documentation to demonstrate district of

origin (State, County, Landowner)origin (State, County, Landowner) “. . . Proof of purchase from the forest “. . . Proof of purchase from the forest

management unit of origin”management unit of origin”

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More Information?More Information?

Carl HauserCarl HauserDivision of ForestryDivision of ForestryDivision of ForestryDivision of Forestry402 W. Washington, Rm W402 W. Washington, Rm W--296296Indianapolis, IN 46204Indianapolis, IN 46204

(317) 232(317) 232--41144114(317) 232(317) 232 41144114

chauser@dnr.in.govchauser@dnr.in.gov

Certification RelatedCertification RelatedCertification Related Certification Related TopicsTopics

Duane McCoyDuane McCoy

LTB ForesterLTB Forester

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An outreach initiative to provide An outreach initiative to provide landowners with information for landowners with information for successful timber harvestingsuccessful timber harvestingsuccessful timber harvestingsuccessful timber harvesting

www.callb4ucut.comwww.callb4ucut.com888888--wdzwdz--wize (939wize (939--9493)9493)

Information Packets Tailored to IndianaInformation Packets Tailored to Indiana 500 packets/year anticipated500 packets/year anticipated 11--888888--wdzwdz--wize (888wize (888--939939--9493) 9493) 50% of requests come in by e50% of requests come in by e--mail and internetmail and internet Most simply request packet. Most simply request packet. <10% have specific questions<10% have specific questions

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www.callb4ucut.comwww.callb4ucut.com

Find a foresterFind a forester Industry, state and Industry, state and

consultantconsultant

Find a licensed buyerFind a licensed buyer Download brochuresDownload brochures Program sponsors Program sponsors

listedlisted-- IHLA?IHLA?M hM h Much more Much more promotion to comepromotion to come

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What kind of users are there?What kind of users are there?

There is the general public:There is the general public: Will be able to view approved timber sales, landowner jobs, items wanted, items for Will be able to view approved timber sales, landowner jobs, items wanted, items for

sale, services, employment, announcements, articles, and web links sale, services, employment, announcements, articles, and web links Will be able to conduct some searchesWill be able to conduct some searches

There is the general “user”There is the general “user” Can do what the general public can do plus….Can do what the general public can do plus…. Can submit timber sales, landowner jobs, items wanted, items for sale, services, Can submit timber sales, landowner jobs, items wanted, items for sale, services,

employment, announcements, articles, and web links now.employment, announcements, articles, and web links now.

There is an “Administrator,” which consists of only a few peopleThere is an “Administrator,” which consists of only a few people They can do whatever a “user” or the general public canThey can do whatever a “user” or the general public can They approve, not approve, and can “kill” any submission to site.They approve, not approve, and can “kill” any submission to site.

Getting StartedGetting Started

The general public can visit the site and this is The general public can visit the site and this is what they will see.what they will see.

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