8/28/08

Welcome to our forester notes section, in this page we will continue to provide updates on the current activities of our company, the latest technologies in the forest industry and the best possible solutions to exceed all your possible needs and expectations.

Our Company History

In 1974 Thomas E. Jacques graduated from Michigan State University with a vision of starting a forestry company in Northeastern Michigan. This company would specialize in aiding non-industrial private forest landowners in managing their property for both timber management and wildlife enhancement. Over the past 36 years Thomas has successfully achieved this goal, and currently manages over 75,000 acres of private forest land throughout Northeastern Michigan as well as other parts of the State. Now Patrick T. Jacques son of Thomas has graduated from Forestry Technology Ranger School in upper state New York State and has also created his own vision and passion for forestry. Patrick has started his own company, Jacques Forest LLC. Together the two have successfully combined experience and expertise with new technology to create a diversified, well know and successful forestry company.

2/20/09

High cost of property taxes

Today I find myself setting at the desk its raining to beat the band and it is only February!  There will be no forest inventory work for me today so I decided to catch up on some paper work.  I started out by paying some bills wow, property taxes again!  This has led me to thoughts about the frustration and hardship of many of our clients and potential clients who own non-industrial Private forestland (NIPF).  So I decided to make some notes to share with those who visit our website and receive our news letter.

The high cost of forest land property taxes is virtually destroying the financial feasibility of making the small working forest pay its way.  The baby boomers that are poised to inherit property that has been in the family 30, 40, or even 50 years are looking at a 300-400% increase in property taxes.  The example that comes to mind is a new client in Ogemaw County that recently received the shock of their lives when the property tax bill on 240 acres increased from $1,800.00 to $9,200.00: following a transfer of property from their departed parent.  This family was just beside themselves and this is becoming more and more common as property is transferred and becoming uncapped which triggers a reassessment and the ultimate increase of taxes.

The Headley Amendment was great for Michigan landowners after 1978 for the short term but forest land and its financial details require vast periods of time to allow forest management to work and large increases in the carrying cost devastate these long range plans.

As a Consulting Forester who specializes in the management of small (40-4,000 acres) tracts of forest land it has been a real challenge to help client's fine tune the management of these forest holdings.  We are always looking for innovative ways to reduce carrying cost and improve revenue sources.

The major problem per my experience since 1974 has been the lack of knowledge of the forest land owner as it relates to everything from knowing what the value of their resources are to what kinds of programs are available to assist with developing and implementation of goals that property owners have. 

Over the past 20 years there have been many changes in the way people manage their forest holdings and with this evolution many programs have came and went.  The circumstances that I have experienced to be most appropriate: evolve around good sound forestry practices.  These practices have been adopted by land owners with long term goals and objectives, good plans and guidance.  This type of land owner doesn't face that property tax shock that many have felt.  

In watching and participating in many different programs and working with a lot of different people with a wide variety of management plans, it appears the common thread are the so often similar goals of reducing cost and increasing revenues. It's a simple concept with complex workings.  I have seen how good forestry presented in programs by organizations like Forest Stewardship (USDA), American Tree Farm System, Michigan Forest Association and many others when implemented makes financial sense.

I feel that the recent change in the law in Michigan with the qualified forest program 2007, along with things like the Commercial Forest act, Carbon credit sales, Conservation easements, and the ever popular hunting and recreational leases are a few of the things that help make a difference in preserving values of our forest land.