Presentation to

MD Governors Forestry Commission

Working Forest and Conservation
Prevent the conversion of forestland to other
uses
Maintain the economic reasons to keep
forests as forests-a viable industry in MD
Increase public confidence in and support for
sustainable forestry practices

Protecting forests is too big a task for any
one groupwe need to work together.
Success will require building a new tool kit of
working forest easements, tax policy,
conservation planning and incentives
Parsonfield, Maine:10,000 acre working forest
Property up for development into 15 parcels
TNC partnered with private investor to buy the property.
Investor gave TNC option to purchase an easement to buy
time for us to raise $$
TNC, working with state legacy program obtained the funds
to purchase easement with donation from town and private
fund raising- $2.5 m total.
Land protected from development but will remain in
working forest
In four state area of NY, VT, NH, ME TNC has
helped purchase 2.5 million acres of working forest
easements
Cost ~$300 million w/ State/Federal providing
close to $100 m, private investors providing over
$100 m
Nash State Forest- NH 49,000 acres
Errol Town Forest NH 2,000 acres
Randolph Town Forest NH 6,000 acres

Properties funded by bond issues, private
fundraising and forest legacy. All are
managed as working forests
TNC purchases $50 m in GNP debt from other
lender
Trades $14 m in debt for 41,000 acres of
reserves
Provides company with a lower interest rate
note in exchange for easement on 200,000
acres of key conservation land ($36 m,7 years
@4%. 4% is currently the cost of TNC capital)

Federal New Market Tax Credits have been used to
help private investors purchase forest land in
exchange for conservation easements:
5 projects totaling $129 m in tax credits linked to
conservation on 1.5 million acres so far. MD has many
counties eligible
NMTC used to refinance 2 paper mills (ME) and
pallet manufacturer (NM)
Expanding MDs state programs (current use,
tradable tax deductions on gifts of easements -
CO, VA)
TNC has been major proponent of developing
markets for carbon linked to protecting and
restoring forests:
6 projects in US and overseas- $35 m in investment
by utilities to reduce greenhouse gases
Opportunity to work with NE governors to
create regional market for greenhouse gases
Forest harvesting had ground to a halt in most
state owned land due to public concern over
harvesting
TNC in partnership with state help broker a new
strategy
State designation of ecological reserves on about 20% of
state lands
Certification of other state lands by third party programs
Early indications are that with proper controls, the
public can accept long term forest management as
a tool for public lands.
TNC on boards of both FSC and SFI programs
The Maine example: Governors commitment
to have 75% of its working forest certified
lead to Time inc increasing paper purchases
by 19%.

We can help each other
Build community commitment to protecting
forests by proactive strategy of conservation
and industry working together.