Re: O/T Stumpage rates

Posted by Rudi on February 15, 2005 at 06:31:29 from (69.195.159.117):

In Reply to: Re: O/T Stumpage rates posted by ericlb on February 15, 2005 at 06:12:08:

Eric:

Here in Canada we use stumpage as a term to describe standing trees on a woodlot or Crown Land section. It is used to determine what a particular species is worth to a contractor to harvest the trees in a commercial operation.

It varies across Canada as to what stumpage is worth. Some provinces regulate the stumpage price as a minimum. New Brunswick (NB) lets the market place determine the price. We do have things called Marketing Boards which origainally were groups of people such as myself who banded together to sell their privately owned timber from their privately held woodlots. Mostly farmers and small land owners. This was done to try to guarantee that woodlot owners would be able to sell their wood before the big compainies harvested from Crown Lands. This would keep the market place fair.

That is what the so-called Softwood War between the US and Canada is about - something called a subsidy. Unfortunately, no province in Canada actually subsidizes forestry. It is mostly determined by the markets. Even in the provinces that set the stumpage rates, it is not a subsidy, but a minimum price that a contractor must pay to cut wood on Crown Land (Govenment or the people's land).

As for subsidies, the US has more subsidies for it's forestry sector than Canada ever thought of having. Also on top of that, right now there is what?, 3 to 4 BILLION DOLLARS -- US sitting in the US treasury collected from CANADIAN producers in what is called a Anti-Dumping Tarriff. This money is slated for the US Lumber Companies - most of the Global Conglomerates - who somehow feel that we Canadaians are somehow cheating the US taxpayer.

Funny though, now that they put in this Anti-Dumping Tarriff, the cost of building a home in the US has risen by an average of $3.00/foot for the last couple of years. I wonder who is making the profit there ??? US LUMBER COMPANIES!!!!

Sorry for the soap box, but this anti-dumping malarky affects even the small woodlot owner. Also, the NAFTA Resolution Tribunal which is comprised 50/50 of US/Canadian appointees, has determined at least a half a dozen times that this Anti-Dumping Tarriff is clearly illegal. They have also determined that there is no basis for the Tarriff as Canada does not provide subsidies to the forestry industry.

• Cub Manuals at www.cleancomputes.com/Cub/index.html

Follow Ups:

• Re: O/T Stumpage rates Bill WI 07:14:15 02/15/05 (0)
• Re: O/T Stumpage rates ericlb 07:00:12 02/15/05 (0)

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