Forests owned by individuals and family landowners account for about two-thirds of Georgia’s private forests. This study provides a snapshot of the status and trend of forest management practices of Georgia family forest landowners and the unit costs associated with significant management activities through a survey of the consulting foresters practicing in the state. Family forest landowners increasingly managed pines intensively with various management regimes. Hardwood and mixed forests accounted for more than half of Georgia’s private forests, but they were mainly managed in a custodial manner. Besides receiving revenue from timber sales, many landowners in Georgia received additional income from hunting leases and selling pine straw. The results have important implications for the financial returns of timber investment and the long-term timber supply of the state. It also provides essential information to county assessors for fair and equitable timberland valuation for property tax purposes.

Although all southern states provide preferential property-tax incentives to forest landowners, there are great variations in the methodology of forestry-use valuation across the states. This study gives a comparative overview of the methods for current-use valuation of forestry properties across the southern states. Major issues with current practices include inconsistencies in the valuation method and forestry properties under assessment, inconsistencies in measures of incomes and costs, the quality of data for timber growth, insufficient treatment of risks associated with forest management, and the arbitrary limits on capitalization rate. To address these issues, policymakers are advised to ensure the consistency in valuation method and forestry assets, take risks into consideration, weigh the benefits and risks of fixed measures, and introduce adjustment mechanisms to the valuation system.

Changes in tax codes applicable to timberland investments can affect tax treatment of timber revenues and expenses. The 2017 Tax Cuts and Jobs Act (TCJA) is regarded as the most expansive overhaul of tax codes in the United States since 1986; however, our understanding of its effects on timberland investments for family forest owners has yet to be explored. Using the discounted cash-flow method, we estimated and compared effects of TCJA on land expectation value (LEV) and net tax from managing timberland for two classifications of median-income family forest owners in 10 southern states. Results showed a decrease in LEV and net tax for both material participants and investors, with a greater effect on landowners managing timberland as investments. Thus, owning timberland can become less beneficial under the current law for median-income family forest landowners. Study Implications: Family forests occupy a large portion of the total forest area in the United States and provide various goods and services to society. Taxes and tax policies are regarded as important issues for these landowners because policies could ultimately influence timberland investment, ownership structure, and management activities. After the 2017 tax reform, landowners became concerned about the effect of the new act on profitability and financial return from timberland investment. Here, we attempt to provide a better understanding of tax effects by estimating change in net benefit of owning and managing timberland under the current law compared with the previous law in 10 southern states. For policymakers, this study can provide insight into the importance of considering unique characteristics of timberland investment during the tax policy design and evaluation process. For landowners, this study can facilitate the timberland investment decisionmaking process and serve as a guide to the effects of the new tax rules on returns.

The effects of midrotation competition control and fertilization were studied in two loblolly pine stands in the Coastal Plain of Georgia. The use of fertilizer or herbicide alone did not enhance wood yields above the control, which negates the cost spent to conduct these practices. The combined treatment of fertilization and herbicide promoted higher average pine annual increment and greater proportion of sawtimber. Site limiting factors, most likely both competing woody vegetation and low nutrient status, largely determined the effectiveness and priority of midrotation treatments. The economic returns of the combined treatment varied considerably depending on stumpage prices, treatment costs, and magnitude and duration of the growth response. Sawtimber prices (absolute value and relative to pulpwood and chip-n-saw) play a critical role in the marginal returns of midrotation treatments. Continued depressed sawtimber prices will discourage private landowners from investing in midrotation vegetation control and fertilization.

A regime switching model based on real options shows that optimal land use switching boundaries are contingent upon the stochastic behavior (trend and volatility) of timberland and cropland returns, conversion costs, and return correlation. Using this modeling framework applied to timberland and cropland in the US South, tree planting subsidies are shown to increase forest area over baseline projections. However, timber supply feedbacks and partial eligibility for subsidies are shown to generate substantial benefit leakage. Given the context of market feedbacks it's not clear that treeplanting subsidies alone are an effective policy instrument for expanding forest area.