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From: corporate-welfare@essential.org
Date: Sun, 7 Jul 1996 13:05:50 -0400 (EDT)
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From: Janice Shields <jshields@essential.org>
To: Multiple recipients of list <corporate-welfare@essential.org>
Subject: Corporate Welfare in the U.S. Forest Service
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TIMBER SALE PROGRAM LOSSES ON FEDERAL LANDS
* The Forest Service assigns timber sales to one of three
categories, based on the goals of the sale: (1) the timber
commodity component, which includes sales that are supposed to
help meet the needs of U.S. citizens for wood products; (2)
the stewardship component (salvage), which includes sales that
are intended to help achieve desired ecological conditions and
non-timber objectives outlined in forest plans; and, (3) the
personal use component, which includes sales of forest
products such as firewood and Christmas trees to individuals
for personal use.
* All but one [Chippewa (MN)] of the 121 Forest Service forests
generated negative net revenues in at least one of the three
components during fiscal year 1994, the most recent year for
which public data are available. Seventy-four of the 121 (61
percent) forests generated negative net revenues in at least
two components and 35 (29 percent) generated negative net
revenues in all three components.
* Fifty of the 121 forests (41 percent) generated negative net
revenues in the timber component in 1994; 43 of these 50
forests also generated negative net revenues in the timber
component in 1993. The 1994 timber commodity negative net
revenues from these 50 forests totalled $20,694,000.
* Sixty-three of the 121 forests (52 percent) generated negative
net revenues in the salvage component in 1994. The 1994
negative net revenues of these 63 forests totalled
$19,306,000; negative net revenues in the salvage component in
1993 totalled $18,385,000. When the stewardship component's
share of Washington and regional costs is allocated to forests
based on harvest volume, 1994 losses from salvage sales in
negative net revenue forests jump to $28,687,000.
* Increased salvage sales won't reduce the federal deficit.
Fifty percent of revenue from salvage sales is added to the
Salvage Sales Fund to cover costs to prepare and administer
future salvage sales and for associated roads, 25 percent goes
to the Knutson-Vandenberg Fund and is used primarily for
reforestation activities, and 25 percent is distributed to the
states and benefits the public schools and public roads in
counties within the national forests.
* The 1994 total negative net revenues generated by forests
whose revenues were less than costs in the commercial timber
and salvage components was $40 million [$20,694,000 timber +
$19,306,000 salvage]. The negative net revenues understate
the total dollar amount of below-cost sales because: (1)
profitable sales are combined with below-cost sales in
negative net revenue forests*; (2) below-cost sales in
positive net revenue forests are excluded; and, (3) allocable
regional and Washington office costs of $90,492,000 are
excluded. *[For example, a sale that generates a profit of
$80 is added to a sale that incurs a loss of $100, resulting
in a net loss of $20. However, losses on below-cost sales
total $100.]
* The impact of logging on non-timber resources, including
recreation, wildlife, fish, grazing and water, is reported for
each forest as the present net value of the net benefits
(positive minus negative effects) less costs. Seventeen
forests reported negative present net values in 1994; the
total negative present net value for these forests was
$16,073,000.
-----
Janice Shields
Center for Study of Responsive Law
P.O. Box 19367, Washington, DC 20036
202-387-8030 | Internet: jshields@essential.org