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2009 Forests & people index
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  • This Issue
  • Meaux Award
  • Morgan Logging Tops
  • Opinion
  • Vandersteen Column

Select Stories from Forests & People - September 2010

Tree Farming is Meaux fun
Dick Meaux as the 2010 Outstanding Tree Farmer has always sought excellence in his life.

Career surprise for Outstanding Logger

Kenneth Morgan never planned to make logging a career but then he went ahead and made it an outstanding and enjoyable job.

Banking expert outlines the forestry prognosis

A defunct housing market is constraining forestry but this Federal Reserve analyst see more problems ahead.

Opinion: Uncertain state of taxation

Bill Siegel  says things have never before been so uncertain as forest landowners consider their taxation issues.

Column by Buck Vandersteen

Character defines the way we act in good times and in bad.

 

Family forest wins Outstanding Tree Farm Award

By Melanie Torbett

One couldn’t ask for a more serene, bucolic setting for a family retreat.  Down a narrow rural road in Beauregard Parish, Richard and Bobbye Meaux have crafted a quiet getaway where family and forest mesh easily. Turn down a tree-shaded avenue, pass the free-form pond and a small cabin that leads to a larger “dog-trot house,” and you’ve arrived at the heart of the Meaux compound.

It’s a place where decades of family memories have been created, enabled by decades of wise tree farming.

Over the years, piece by piece, the Lafayette couple has assembled properties whose careful stewardship has garnered Dick  Meaux the LFA’s Tree Farmer of the Year award for 2010. The title recognizes a record of good stewardship of 728 acres of forested tracts that cumulatively stretch across five parishes  from north to south Louisiana.

“Mr. Meaux has demonstrated an organized approach with the goal of annual harvests and sustainability,” said Steve Templin of Templin Forestry, Inc., who nominated the Meauxs for the award, and has served as their consulting forester for more than 16  years. “He is a joy to work with.”

The careful tending  of the Meaux tree farm, which goes under the business name of Mo-Pol,  LLC,  is self-evident.  The Meauxs have created an inviting “headquarters compound,” at the heart of their Beauregard Parish property near Dry Creek.  In addition to the two cabins is a storage barn, a shed for vehicles and tools, a covered cook shack, a fruit orchard, horse pasture and a clay-lined fish pond Meaux built taking advantage of a naturally-occurring slough. Move outside this comfortable15-acre site and you can see that equal care has gone into the purposefully-planned forestland that abuts the home site.

Along with conducting periodic thinning and clearcut harvests throughout the years, the family enterprise has invested in regular reforestation and other work to enhance their woods. Since 1996, Mo-Pol has planted a total of 615 acres of loblolly, longleaf and slash pine on various tracts in this and other parishes.

The properties have been under a forest management plan since 1992, with tree farm certification going back to 1973; a portion of the property that was originally purchased and managed by Meaux’s father was designated a tree farm in 1960.

“My dad was a county agent in Allen Parish during the 1930s,” explained Meaux. “I went with him throughout the parish, and I remember there was lots of cutover land back then.”  When Meaux and his father visited a CCC camp near the community of Reeves, the elder Meaux was intrigued by the men’s  reforestation work  in the area.

His interest piqued by these projects, Meaux’s father eventually put together and purchased 200 acres in separate tracts in Beauregard Parish. He began planting trees on the land, but left open a section where three live oaks stood; he and his son later added a complement of oak seedlings to create an entrance avenue. A primitive camp house  made from wood  reclaimed from an old sharecropper’s cabin was built on the property by Meaux’s dad in 1955.

In the meantime, Richard Meaux grew up, joined the Navy, got married to childhood friend Bobbye Pollock, and left the area. For 24 years (with academic training that included a master’s degree in oceanography),  he fulfilled a host of military assignments — primarily captaining submarines, but even serving as a social aide in the White House early in his career — until retirement brought Meaux back to his home state.

Settled in Baton Rouge, Meaux got his teaching certificate, and transitioned into teaching. He spent eight years as a principal of a Catholic school in Opelousas, and later accepted the position of superintendent of the diocesan schools in Lafayette.

During these years, the Meaux family added some north Louisiana property to their forestland holdings; acquisition of acreage in DeSoto and Union parishes mostly originated with wife Bobbye’s family, the Pollocks, who hailed from the town of Bernice.

“We wound up with six tracts in five parishes,” explained Dick Meaux.  The Mo-Pol tree farm currently owns 360 acres in Beauregard Parish; 80 acres in Rapides; 118 acres in DeSoto; 83 acres in Acadia; and 86 acres in Union Parish.

While their forests grew, so too did the family’s affection for the land. While providing supplemental income, the tree farm became the “go-to place” for extended family and friends’ gatherings and recreation, including hunting and building projects.

While Dick Meaux is an only child, his wife Bobbye has four brothers, whose families have long enjoyed the peaceful country retreat. Bobbye and Dick’s two children, David and Jean-Marie, now in their thirties and living in Lafayette, have  fond memories of their years in this place.

“We have so much fun,” said Jean-Marie.  Highly-competitive fishing tournaments attract friends and family alike, barbecues keep the cook shack busy and lively conversations around an outdoor fire pit during the winter make for popular gatherings year 'round. The property provides hunting grounds for deer, rabbits and squirrels, and a locale for skeet shooting, holiday fireworks and horseback riding.

With so many visitors to accommodate, the Meauxs decided a few years ago that they needed more room than the original small cabin provided, even though they had improved it through the years. What evolved was a unique “dog trot house” that is the centerpiece gem of the compound.

It was built three years ago, using wood harvested from the property, cut by  a portable sawmill brought on site, explained Dick Meaux.  The floors, walls and decorative trim that give the house its rustic look come from pine, oak, cypress, catalpa and sweet-gum trees that once stood on the property. Some of the trees were felled by a tornado that ripped through the area a few years ago.

It was the Meauxs’ family consensus to build an old-fashioned Southern cabin that included wide front and back doors to allow cross-ventilation through the house. Dick and Bobbye found an authentic 19th century design they liked at the LSU Rural Life Museum in Baton Rouge and closely replicated that style.

“It’s lived up to every dream we had,” smiled Bobbye Meaux. With an upstairs dormitory-style room and two downstairs bedrooms, the house is equipped with enough beds to sleep 15, with floor room for many more. Most of the rest of the house is given over to screened and open porch space. “It’s built to throw people outside,” laughed Dick Meaux. “I would eat every meal outdoors if I could.”

This sweet retreat has been one by-product of the “financial flexibility” that forestry has afforded the Meauxs, said Dick.  Dubbing himself as a “conservative conservationist,” Meaux says he has always enjoyed the outdoors, going back to Boy Scout days in his youth, and is glad to be involved in the natural stewardship inherent in tree farming.

“You are producing something that is a crop, and it’s useful.”  His plan for the farm follows best management practices  for wildlife, soil and water conservation measures, such as streamside management and preservation of hardwoods in low, wet areas. Periodic thinning, prescribed burns and final harvest operations have been conducted throughout the years.

From the beginning of their work together on the tree farm in the mid-1990s, says forester Steve Templin, “Dick had a good idea what he wanted to do.” The result, he says is “a very productive, highly-maintained forest for the family to move into the next generation.”

Remembering their early planning work, Meaux offers compliments to his forester who has helped guide his management decisions.

“I was so impressed with Steve,” he said. “I have a lot of confidence in him.” Meaux has continued to add to his knowledge of forestry throughout the years; he is a member of the LFA, as well as the Southwest Louisiana Forestry Association, and is on the state Stewardship Advisory Committee. His property is designated as a Stewardship Forest.

The labor to maintain the timberland and family compound represents a shared effort.  Improvement projects, including brushing, fencing and fire lane maintenance is accomplished by Meaux, his forester and locally-contracted workers, as well as family members. Meaux has made it a habit to hire local high school boys and work with neighbors on various projects around the cabin compound and in his forestlands.

“He’s very good about communicating with his neighbors,” said Templin. “It’s minimized problems he might have had.”

The Meauxs’ two children, who share such fond memories of fun times at this family retreat, look forward to future family ownership and use. “We are the third generation to enjoy this property,” said son David. Decisions about projects are often family-centered, pointed out his father.  “We try to make it as collaborative as possible.”

I would love to think that 20 years from now, we would still be getting together here; we would like to keep that going,” said daughter Jean-Marie.

With the dual advantages of being a family playground as well as a sound investment that has stood the test of time, the Meaux’s tree farm continues to be a remarkable example of what good family forestry looks like.

(Melanie Torbett, a writer and editor in Alexndria, is a forest landowner and frequent contributor to Forests & People magazine.)

Morgan Logging Wins Honors Again

By Janet Tompkins

Kenneth Morgan suprised himself that he has chosen logging as his career but even more surprising to him is how much he enjoys it. That makes this year’s award as Louisiana’s Outstanding Logger even sweeter.
After getting his forestry degree from Louisiana Tech in 1993, he worked in forestry, managing 150,000 acres for a forest products company. Six years later he returned to G.W. Morgan Logging with an office in Saline, working with his father. Eventually he and his sister Sherry became co-owners of the business when his father retired.

“I thought I’d do more with the (forestry) consulting and less with the equipment,” Kenneth said.  “But I found that I really enjoy the work, the equipment, the men on the crew.”

It wasn’t as if he was unaccustomed to the job. Growing up, he worked for his father, Jerry Morgan, who was named the Outstanding Logger in 1995. And his grandfathers on both sides of his family were loggers as well as his uncle, Mickey Hawkins. “I’d worked other jobs, but there’s a different mindset in the logging community. It makes you proud to work alongside other hardworking people.”

Morgan has much praise for the hard-working people on his two crews. G.W. Morgan Logging has 10 men in the woods (including Kenneth) and eight truck drivers. He also uses two contract trucks. He downsized from a three-crew job when the downturn in the economy came.

“One good thing has come out of this recession,” said Morgan. “The men value their jobs more and I value them more.”

J.R. Conlay, a crew foreman who also runs the cutter, has 34 years experience in the business. “This is more like a family than a job,” he said. Steven Brown is foreman of the second crew.  Morgan said the stable and experienced crews make the job go smoothly.

Brent Deen, Chopin forest manager with Roy O. Martin Lumber Company, said his company sees Morgan as invaluable due to his varied background. “His degree in forestry gives him a unique perspective,” said Deen. “He helps us to get out in front of issues before they become problems.”

Kenneth made the change to Martin six years ago.  “We can produce a lot of different products for Martin and not be stuck to one facility,” he said. “We can shift production from one day to another.” During this visit to a logging site in Red River Parish, there were trucks headed to the Chopin plywood plant, to Colfax Creosote plant and the IP mills in Campti and Mansfield.
 
Kenneth exhibits other qualities that make the job run smoothly even in tough times:
• Flexibility - Morgan has been trying out some back hauling with other loggers to minimize the empty loads his trucks face. Rain hampered the process when other cooperating jobs had to shut down,  but he was still hopeful that the process could still be productive for them.

•  Innovative - He had recently purchased a processor head that measures the logs to the specified length and the worker was still finessing its operation to get the most production out of it.

• Cautious - Morgan is studying the biomass market that everyone is talking about but will wait for those markets to develop and prove themselves.

•  Experienced - Looking out on this 30-year-old mixed pine and hardwood site his crew was harvesting, he talked about the site index which was very high (more than 100), the streamside management zones that he was working around and the way the rains had settled the dust yet not stopped the harvest. His years as a land manager help his work as a logger.

Sherry Morgan, part owner in the logging business, said they strive to take care of the men while taking care of business. It wasn’t a hard decision to invest in the busness with her brother. “I watched these log trucks rolling out all these years and I do see it it as a future for our family.”

Jerry Morgan visited the Saline office for the logging business, which was the home where he grew up. Now in its third generation, the continuation of G.W. Morgan Logging pleases him. “There is a pride factor when your children want to take over a family job,” he said. “Kenneth is open to new ideas and he’s a hard worker.”

“What was most impressive to me about Mr. Morgan’s operation was the order and workman-like manner that dominated the logging site,” said Mike Dawson, Kisatchie District Ranger who was part of the judging team.  “Each sequential action of cut-to-deck-to-load was well coordinated, with very little wasted motion.”
“What impressed me most about Kenneth’s logging operation is the organization of his job and the maintenance and condition of his equipment, a very efficient operation,” said Mark Martinez of  Timber-Mark, Inc. Martinez was the 2009 Outstanding Logger who also participated in the judging.

Leading the judging team were Drs. Mark Gibson and Clyde Vidrine of Louisiana Tech’s School of Forestry.
The Morgan crews are also safety conscious. They have their monthly safety meetings and they are particular about the equipment. “We provide the tools to be safe,” Morgan said. His foreman Conlay agreed. “We keep the equipment up. We fix it when it needs fixing– not just making do.”

Morgan also gives the truckers an incentive bonus of $150 per quarter if they have a perfect driving record. “I give them an incentive to get everything right.”

Morgan said the business challenge today is trucking. “You have to get small enough for lean times and large enough to make a living.” He’s seen all sides of the business-from his days working at a DeQuincy sawmill to being the land manager for a company and now the logging contractor.

He doesn’t fret about the weather, the global economy or the local situation. “It’s just the way it is,” he said. “I just try to capitalize on the situation that is.”

Morgan’s wife Rebecca teaches dance at Northwestern State University and takes classes there as well. Born in New Orleans and raised in Baton Rouge, she was unfamiliar with logging before their marriage, but she is very proud of her husband. “He’s seen all sides of the business and that can only be an advantage,” she said.

Their 18-year-old son Preston sometimes works the skidder but his plans include LSU-Baton Rouge and possible dentistry career. Their daughter Sidney is 14. 

 
(Janet Tompkins has been the editor of Forests & People magazine since 1994.)


 

Uncertain State of Timber Taxation

By Bill Siegel

“Don’t tax you and don’t tax me, just tax that man behind the tree.” Louisiana’s Senator Russell Long, who chaired the U.S. Senate Finance (tax writing) Committee for many years, was well known for this quote which he was fond of repeating when referring to his Committee’s work. Today many of Louisiana’s forest owners, together with their brethren from across the country, are probably peeking out from behind one of their trees and wondering what lies down the road with respect to federal taxes associated with  timberland.

Things have never been as uncertain in U.S. history as they are now regarding pending changes in both the federal income tax and the federal estate tax. Reasoned planning for the future is impossible because Congress has failed to address the turmoil caused by its refusal to act in a timely manner. The uncertainty certainly affects the majority of all U.S. taxpayers, but because of the unique nature of nonindustrial forest ownership it impacts timber owners in special ways.

Virtually all timber sale proceeds can be taxed as long-term capital gains. This provision has been part of the Internal Revenue Code since 1944 after being enacted by Congress over President Roosevelt’s veto. The President in his veto message termed the new law “a bill providing relief not for the needy, but for the greedy.” A majority of Congress did not agree.

   The current maximum long-term capital gain rate is 15 percent and has been for the last 10 years as part of the  Bush tax cuts. If the 15 percent rate is not extended by Congress, the basic rate will automatically rise to 20 percent on Jan. 1, 2011 – and for certain taxpayers to 21.2 percent. Additionally, because of a surtax to pay for part of the recently enacted health care law, the rate will become 25 percent in 2013.

At this time, it is not certain what Congress will do with respect to capital gains – and, if a change is made when it will happen. Time is rapidly running out for legislation to be enacted this year. Where does this leave the nonindustrial timber owner? The capital gains represented by standing timber become ever more important as an investment vehicle because – absent an extension of existing law – the maximum rate on dividends and interest is scheduled to increase in steps to  44.6 percent by 2013. The quandary for present and future financial planning with respect to timber management and harvesting is apparent.

  Even more uncertainty surrounds the federal estate tax. Last year (2009) the  exemption was $3.5 million and the tax rate was 45 percent on the portion of the estate over that amount. Under current law, there is no estate tax this year (2010). However, unless Congress acts, it will rear its ugly head again in 2011 with only a $1 million dollar exemption and a 55 percent rate.

 Are the estates of those who die in 2010 entirely home free? The answer is no due to a little known provision of current law that represents a trap for the unwary. Since enactment of the estate tax in 1916,  all inherited assets have always received a step-up in basis to their value at the death of the decedent. This has been a particularly important rule for timber properties whose basis may have been depleted heavily over their life due to low original cost and periodic harvesting.

However, as an offset to no tax for deaths in 2010, Congress limited the step-up in basis  to only $1.3 million in value for non-spousal heirs and $3 million for surviving spouses. Remaining assets will take the decedent’s basis which in many cases could be very low or nonexistent – and in some cases difficult to determine.

 Congress is not expected to act on the estate tax this year. What will happen in 2011 (probably retroactive to the beginning of 2011) is anyone’s guess. Again, this leaves the forest landowner in a quandary with respect to planning. Even modest forest holdings — when combined with the value of other common assets such as a residence, stock and bonds — can easily cause the total estate to exceed $1 million.

  In short, Congress has turned its head and abdicated its responsibility, thereby creating a real mess for American taxpayers. Louisiana’s forest owners need to join with their fellow citizens and tell the state’s Congressional delegation that the current situation is unacceptable and that Congress needs to move quickly to an  equitable solution.

(Bill Siegel is a forester and attorney with much of his practice concentrated in the areas of timber taxation,  estate planning and successions.)

 Last quarter we spoke about Tree Farming and how valuable it is to the family forest landowner. Recently the Louisiana Department of Agriculture and Forestry reported on its compliance survey on use of Best Management Practices (BMP) and the results are not as good as we can do.

Family forest landowners take great pride in their property and want to treat their land with an eye to leaving it better for their children.

The Office of Forestry BMP report details problems in constructing water bars along roads and seeding them to protect soil from erosion and keeping sediment out of streams. It also shows landowners using less professional assistance in managing their forests. Using less professional help is not a violation of BMPs but it could be symptomatic of why there is no oversight of these erosion control practices.

We have heard so much about the British Petroleum (BP) oil spill that it is sickening, but there are some lessons we should learn that shouldn’t be overlooked.

BP got in trouble because they wanted to cut corners, save money, and not meet professional standards. They were in a hurry and ignored the warning signs that something was going wrong. Failure on their part will cost them billions of dollars and the loss of their reputation that may never be restored.

Our current situation of declining BMP compliance is similar but certainly not on the same scale. The public could look at these BMP compliance figures and say the forest community can’t be trusted to monitor itself and more government regulation is needed. That’s the last thing we want or need.

Our loggers are having it tough. Current wood orders are insufficient, there are long lines at mills, and the price for deliveries keeps dropping. Their bottom lines are suffering and they wonder if they are going to make the week.

To “save” money, loggers cut corners. Landowners cut corners, too. But are these risks worth taking? Loggers, landowners, and foresters must work together to ensure our forestry practices are done as professionally as we need. What we do on the land is an expression of our character.

One Call revisions
The Louisiana One Call system requires anyone moving or digging dirt to call 811 to receive a locator number and have utility companies determine if a pipeline, underground cable or water line is in the area of the excavation.

 In the 2010 Legislative Session the Louisiana One Call system was amended to have this locator call number good for 30 days, making it easier for landowners, loggers, tree planters, and prescribed burners to comply with the law. So try and plan your harvests and forest management activities with a 30-day look to the future. It will avoid downtime and heavy fines if a utility is cut and you didn’t call 811.

Also during the legislative session prescribed burners have added protection from liability suits when they follow their burn plan. The amended Prescribed Burning law states that prescribed burners are presumed not negligent if their burn plan is followed. Remember that prescribed burners must be certified by the state for this liability provision to be effective.

Landowners having problems with nuisance feral hogs or other wildlife have the opportunity to remove them at night with a permit from the Louisiana Department of Wildlife and Fisheries. As much damage as hogs do to newly planted trees or protecting stream banks, this is a welcome measure to the landowner.

Gas exploration has created much interest in the use of water and the state has initiated a means of obtaining fees for such usage. To protect forest and agriculture users from such fees, the legislature allows riparian owners to use water for agricultural and forestry purposes without fees. A neighboring landowner with permission from the riparian owner can also use water for agricultural purposes without fees.  
 

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