It is easy to take forests in Georgia for granted. They are often viewed as natural gifts akin to the sun and the clouds- timeless and steadfast. But Georgia’s forests have not been here forever and they don’t take care of themselves. The state’s working forests, which provide so many benefits to Georgians, face a public policy threat.
The majority of Georgia’s forests, 91 percent, are privately owned. Forest landownersinvest their resources to manage healthy forestlands that benefit every Georgian. Their forests provide air to breathe, water to drink, beauty and recreation to enjoy, along with billions of dollars in economic impact to Georgia. These are Georgia’s working forests.
Working forests are planted, harvested and replanted to produce the raw materials for products we use every day, and, increasingly, as a source of energy. These renewable resources on 23 million acres of privately owned working forestland are part of the state’s second largest industry in terms of wages and salaries. The forestry sector supports 133,000 jobs and provides an annual $28.9 billion boost to the state’s economy.
In local terms, working forests are vitally important to Atlanta and the metro region. According to the Georgia Institute of Technology, forest landowners and forestry-related industries provide $3.8 billion in total economic output, $861 million in wages and salaries and 13,880 jobs to the 10 counties that comprise the Atlanta Regional Commission.
The impact of our state’s working forests extends well beyond the economy to the environment. A 2011 University of Georgia study estimated the value of these services — in the form of clean water, clean air, wildlife habitat and scenic beauty — at $37.6 billion annually.
We enjoy these benefits thanks to a fair and reasonable federal tax policy that recognizes the long-term investments and responsible land management of forest land owners. Current tax provisions, among other things, allow landowners to deduct the annual costs associated with growing healthy, sustainable timberlands.
According to research by F&W Forestry Services that analyzed the impacts on a typical Georgia forest land owner, removing these provisions would reduce returns and cash flows by almost one-third. Most timberland owners, especially smaller ones, need cash flow to justify their long-term investment in their property. Without existing provisions, many timberland owners would potentially be forced to convert their land to other uses.
A proposed tax reform package released last year — the Tax Reform Act of 2014 — is still being discussed as a blueprint as Congress evaluates ways to reform the nation’s tax code. Even though several delegates have spoken publicly against the proposal, it is alarming that a tax policy that helps the environment and economy could end up on a congressional chopping block. We stand to lose the many public benefits that privately owned forests provide.
A healthy and vital forestry economy is essential to Georgia. We should expect federal policy to support an industry that helps our economy and ecosystem. The current timber tax provisions are a great example of how Washington can help, not hinder, growth and prosperity.
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