The Place of Forests in the Farm Economy by BURT P

The Place of Forests in the Farm Economy by BURT P. KiBKLAND '

A PREVIOUS article dealt with the problem of large forest areas in private and public ownerehip. But there is another kind of forest that is a more direct part of the farmer's resources farm woodlands. About 18 percent of all land in farms is woodland, and on some farms 60 percent of the land is in forest. The author of this article shows that most of this woodland is actually or potentially valuable if it is managed properly. For example, instead of getting building material from a thousand or more miles away, the farmer can grow it for himself. He can also market forest products. In certain favorable situations, the whole farm can become what is called a "forest farm," devoted almost entirely to timber growing. Local forests also offer an excellent field for cooperative management and the cooperative marketing and use of timber products by farm communities. The author indicates briefly how some of these things can be done.

FOR nearly three centuries American farmers depended directly on the farm woodlands and other nearby forests for the greater share of their fuel and buildhig materials. Other products of the forest lands, such as game and fish, were important for food, and some animals supplied fur and leather for clothing. During most of this era the farm was generally looked upon as the family home to be

1 Burt P. Kirkland is PriDcipal Forest Economist, Division of Forest Economics, Forest Service.

223761° -35 533 534 Yearbook of Asricuiturc, 1940 improved and conserved in every possible way. Although large areas of forest had to be destroyed in clearing land in the forest regions, it was an almost universal practice to reserve part of the forest on each farm unit as a permanent source of needed materials. The higldy adverse position of the farm as a commercial enterprise has during the last 50 years compelled the farmer to draw on every possible asset to maintain his commercial position. One result has been that in most woodlands assets have been destroyed that normally should have been held for the most urgent family emergencies. At the same time the capacity of the woodlands for growing high-quality material has been impaired. When the farmer looks beyond farm boundaries for sources of employment and for needed forest materials he is too apt to find that the forests of his community outside of farm ownership have become oven more deteriorated than his own woodlands. With the shrinkage in the foreign markets for agricultural prod\ice and unfavorable prices in domestic markets, public and private agricultural agencies and farmers themselves have had to reexamine the farm and the rural community for sources of farm-family support. In the aggregate, it is found that 185 million acres, or about 18 percent of all land in farms, is occupied by woodlands, of which about 139 million acres is estimated to be actuall}^ or potentially valuable for commercial timber production. The relative area of farm woodlands in the United States as compared with the areas of other privately owned forests and of publicly owned forests is shown in figure 1. Enormous farm areas in nonforested regions contain no woodlands. In man}^ forested regions 60 percent or more of the farm area is in forest. These forest lands are generally of better quality than the average of larger forest properties. Besides the farm woodlands, virtually all the forests within easy reacli of the farm or of the farm community should normally have a

25 50 75 100 125 150 250 MILLIONS OF ACRES

Commercial character and use Noncommercial character dnd use

Figure 1.—Division of the 630.1 million acres of forest land in the United States by ownership: A, Farm woodlands, 185.5 million acres; B, other private ownership, 248.3 million acres; C, public ownership, 196.3 million acres. Place of Forcsfs in Farm Economy 535 favorable influence on the farm economy. The total area of such forests is unknown. If we should estimate that all forests within 10 miles of any farm home in a settled community are potential sources of forest products easily available to the farm, or of employment, it is highly probable that more than 150 million acres of nonfarm forests are thus closel}^ interwoven with the farm and related rural economy. The importance of the farm woodlands in the farm economy was long obscured by the abundant timber supplies and by the labor opportunities available in these other nearby forests. Lumber and other forest products, generally sold to farmers direct by the manu- facturer and subject to low transportation costs, were cheap. This accounted for the spacious farm buildings built in most rural regions over 50 years ago. In many regions the farmer must now look i,000 to 3,000 miles away for a source of these materials, and he pays freight charges far greater than the cost of growing as good timber on his farm or in other nearby forests. For these reasons the farm economy is vitally influenced by the management both of the farm woodlands and of other local forests. If the farm woodlands normally hold the primary interest of the farmer, other local forests should be a close second. Owing, therefore, to the continuous demands of farmers on farm woodlands and other local forests for fuel, materials for shelter, and other essentials of living; to the contribution of nonfarm forest properties to local taxes; to opportunities for forest emplo^nnent and to many other benefits from the forest, both the farm woodlands and other local forests deserve the continuous interest and participation of farmers in measures to improve management practices. The subject can be developed with more clarity by discussing separately the principal ownership classes of forests found under typi- cal conditions in rural communities. These classes of ownership are the farm woodlands (integral parts of the average farm enterprise), privately owned nonfarm forests, and pubhc forests of various types. Of these the farm woodlands are economically capable of the most intensive management. Of the other local forests separate consideration needs to be given those that are expected to remain on the tax rolls in some form of private ownership and those now or eventually to be in public ownership.

THE FARM WOODLAND Despite the seriously deteriorated condition of most farm woodlands, which produce no more than one-third to one-half of the volume of wood they are capable of producing and are worth a far smaller fraction of their potential value, their contribution to farm income and to farm living is very significant. The largest volume of wood withdrawn from farm woodlands is used directly on the farms, chiefly as fuel wood and posts. Nevertheless, farm woodlands produce nearly one- fourth of the sawlog supply of the United States. In farm value, forcist crops rank tenth among all farm crops. In addition, there are the game, fish, and recreation values of farm forests and the large contribution well-cared-for woodlands make to the aestlietic values and to other values inherent in a well-balanced enterprise. 536 Yearbook of Agriculture, 1940

Special Position of Farm-Woodland Products in the Rural Economy The utilization of American forests remote from settlement is accompanied by great waste. This is because industrial wood forms no more than 60 percent of the stem and branch volume of softwoods or 40 percent of the vohime of hardwoods. Exceptions occur, as where industry uses cord wood materials sucli as pulp wood and distillation wood. In all large continuous forest areas wood fit only for fuel is so plentiful that most of it cannot be used. This is a serious detri- ment to clean logging operations and to economical utilization of poorer trees. At existing market prices it does not pay to transport low-grade fuel wood from these areas to population centers. In most farm-woodland regions the situation is different or can be organized on a different basis. The proximity of tJie farm family and of rural village families to the woodland nearly always makes wood an economical fuel for at least part of the domestic and in(h7strial requirements of each communit}^. The relative inconvenience of preparing and biuMiing wood fuel in numy cases can be overcome by mechanizing the preparation of the fuel and improving the fuel-bnrning equipment. Other uses of small or low-grade trees needing removal according to sound silvicultura! practices include posts and poles. Sawdust and planer shavings from primary wood-manufacturing plants are also useful for bedding animals and for other farm needs. In addition to these well-known uses of wood there are potential uses that may become of the utmost importance. It is well known, for example, that ethyl alcohol can readily be made from wood by converting the cellulose to sugar, w^hich in turn is converted to alcohol by fermentation and later distilled. Methyl alcohol has, of course, long been a commercial product of the distillation of wood. It has been demonstrated in Europe, both experimentally and by practi- cal operation, that by means of a suitable gas producer installed on motor vehicles small blocks of air-dried wood or wood charcoal can be used as a motor fuel. The forests, therefore, constitute an alternative source of motor fuel as oil resources become depleted. The utility of all these products in the rural economy insures that whenever good forest practices can be coupled with good community organization, complete utilization of the yield from wx>ll-managcd forests can be made a reahty. This situation can rarely be duphcatcd outside of well-settled areas and is therefore special to communities well provided w^ith farm woodland or with other close-by or inter- mingled forest areas. Another important feature of the contribution of the farm woodland to the rural economy is the high quality and vahie of wood of the better species commonly found in farm woodlands. These valuable woods include black cherry, sugar maple, and various species of oak. Although these special values apply to only a small percentage (5 to 20 percent) of the total volumes and can often be realized only by effective processes of refinement as yet lacking in many communities, it is noteworthy that unlike most farm products today they can be exchanged on a parity basis for other products in national markets. Unfortunately many farm woodlands have been stripped of mature timber of this class, and many years will be required to put their Place of Forests in Farm Economy 537 growing stock in condition to yield regular supplies of high-quality material. In between these products of high exchange value and the large mass of products such as fuel and sawdust that can be used only on the farm or in nearby villages, both hardwoods and softwoods may, if properly handled, yield a substantial volume of rough and planed construction lumber and some other products of intermediate value. Tins wood is suitable for use as basic building material and for a number of other uses throughout rural communities. Produced at the wages prevaihng within each community, it can be equitably exchanged for other products among farmers and other rural dwellers. These multiple uses of the various grades of material create a unique variety of values from the farm-woodland resource. Some of these values ar(> realizable solely through the labor of the farmer himself in crciating products for his own use; other products created by further labor of the farmer or his employees are equitably exchangeable within the rural economy; and under some circumstances still other products become available that are capable of refinement to a state of high exchange value in national maxkets. The farm woodland thus provides fuel and materials for shelter and even contributes to food and clothing, so that a larger percentage of its products than of any other major farm crop, except products of the farm garden, is finally con- sumed on the farm or in the farm community. The wheat or cotton grower must ship out 80 percent or more of his product. The corn grower sells his corn mostly through livestock production. Their products arc thus subject to all the vicissitudes of Nation-wide and even world-wide economic maladjustments. The farmer and the rural community need not suspend use of farm-woodland products because of such maladjustments. They may, indeed, increase use under adverse conditions. Eehabihtation and proper management of farm woodlands is for the reasons just given a vital element in the security of the farm family and of the r'ural community. Further development of rural community organization may be necessary, however, to realize these possibilities to the full. The Farm Woodland as an Element in the Farm investment Besides, the production of fuel and timber used in farm structures and operations lends balance to the farm enterprise and gives partial insurance against fluctuations in markets for other farm products. When the major farm products cannot be exchanged on favorable terms for all of the varied means of subsistence not produced on the farm, the forest produces several of the necessary items at home without the need for external exchanges. Balance within the farm enterprise lends value to the farm investment. Except for localities where small farms are used intensively, as in some Pacific coast fruit districts and elsewhere, only a part of the average farm is in intensive use for crops or improved pasture. A considerable part is generally unimproved pasture of low yield, and a considerable area may be wasteland, entirely unused. In forest regions, wastelands and areas in partial use should generally be converted from open land to timber—the only crop that with little annual 538 Yearbook of Agriculture, 1940 labor keeps on adding to value at a compound interest rate of 2 to 5 percent. Wherever the more valuable species of trees are found, large, well-grown timber is a readily salable asset, and a good stand of such timber is a ''savings account'' of high value and safety. Although reduced in man}^ cases to marginal vahu^ as a resource, the farm woodland that still contains merchantable-sized trees can, if intelligently handled, reward the labor required for rehabilitation more directly and more liberally than most other kinds of rehabilitation on the farm. This is true for two reasons. (1) The multiple uses of wood, already noted, nearly always permit a choice of use where some vahie can be produced. (2) Until the time for harvesting, probably no form of production is carried on so largely by nature, almost imaided, year in and year out. Given well-selected trees with proper' growing space adjusted by occasional removal of trees that can be spared from the stand, production goes on at a compound-interest rate, with volume growth closely proportionate to the volume of merchantable trees (those 6 inches or more in diameter) and also contributed to by the younger growth on hand. In addition to rehabilitating woodlands already containing merchantable timber, it is nearly always important to recognize the value of young growth that has come up on cut-over areas, abandoned fields, and pastures. Thousands of farms also contain land exhausted by cropping, damaged by erosion, or otherwise lying waste, which for various reasons cannot or should not be restored to crop or pasture use. Immediate financial returns cannot be expected on such areas, but skillful afforestation will place them in conditioi] to accumulate value at a low compound-interest rate equivalent usually to 2 to 4 percent. From the age of 25 to 30 years on, these young stands will produce enough poles, posts, and cordwood to pay for their care. Although farm woodlands connected with permanent family home- steads generally received good care in the days before farming was dominated by the commercial point of view, techniques of management were by no means developed to the full possibilities. Conservatism in cutting often preserved trees beyond their useful growing period and reduced possible yields. Regenerating areas generally were neglected, and developing young stands missed the frequent and judicious thinnings that they should have had. With the existing deteriorated condition of most farm woodlands the need for improved techniques is many times multiplied. Recovery of productive capacity is an exceedingly slow process except where proi)er methods make more rapid progress possible. But improved techniques cannot be expected to come into use spontaneously. Sufficiently well supported public efiorts to permit personal contacts of some local forest organization with every farm-woodland owner desiring help in introducing improved practices will be necessary. In many cases, trained men should be sent to mark the trees for cutting, as is done by the Swedish forestry boards. How this work should be organized is still an open question, but it is certain that a minimum of 1 man per county will be necessary. To raise the efficiency and volume of work per forested acre to Swedish standards would require 5 to H) men per county. It is clear therefore that efforts so^far made bear little relation to needs. Place of Forests ¡n Farm Economy 539

THE FOREST FARM Particularly in forest regions east of the Great Plains large areas of hilly, stony, sandy, or otherwise infertile soils lie within, or once la}^ within, farm units that under the economic conditions of an earlier time were quite successful. With the opening to market, by railroads, waterways, and highways, of the entire area of the United States, production of staples tended to gravitate to the more favorable areas, leaving agriculture doppressed in the poorer land areas. Farm aban- donment is common in some, while in others setth^ment continues although incomes and standards of living are low. Where forest occupies much of the land and where land values have reached a low ebb there is opportunity through consolidation to create farm units large enough to depend on forest products as the primary source of cash income. Five hundred acres or more may be required for a family-size unit. Although large compared with most eastern farms, this is smaller than the family unit in western grazing areas. This type of forest farm is already developing in the Naval Stores Belt, primarily because of the ease with which naval stor(^s production can ho organized to yield annual income. When the simplicity of organiz- ing timber production for annual income is equally well understood and suitable outlets have been established for other for(>st products, thousands of opportunities-should be seized to build up forest farms. The essence of good management on such areas is to cut lightly every 3 to 5 years in all stands 30 years or more old or in stands of mixed ages. If the farm has 500 acres and each acre is to be cut over every 5 years, then 100 acres should be cut over annually, removing about the equivalent of 5 years' growth, except in young or depleted stands where 20 percent or more of the growth should be added to the growing stock. By this simple procedure annual yield is assured. One great advantage of the forest crop over crops requiring complete annual harvest is the facilitA^ with which timber can be stored in the living tree from low-price periods to those of higher prices. A peculiarity in which forest farming differs from most farm enterprises is that the crop of live timber performs a dual role—it is at one time the principal capital of the enterprise, while at another time the same volume unit becomes a commodity for use or sale. The diffi- culty most frequently facing sound forestry practice, especially in pioneer countries or where land use is not stabilized as between the forest crops and other uses, is premature cutting of trees that should be left for further growth. The forest farmer should not neglect to utilize some of his more fertile land for vegetables, grain, hay, and other crops needed on the self-sustaining farm, nor to reserve sufficient pasture for livestock. No more than 5 to 20 percent of the total farm area need be kept for these purposes. Effective utilization of the crop and pasture area is essential to hold down operating and family-living costs. The forest farmer needs intelligence and physical stamina to suc- ceed. Management of the forest by men able to direct the enterprise and perform much of the labor is devoid of the heavy supervisory costs that are unavoidable in larger enterprises. The incentive of personal interest added to these qualities usually insures much lower produc- 540 Yearbook of Agriculture, 1940

Figure 2.—Farmstead near Cooperstown, N. Y., surrounded by well-cultivated fields In the background on the right is woodland capable of Immediate profitable management. On the left, on extensive area, partly of abandoned orchard, lies waste, though it would support a highly productive forest. tion costs and higher acreage returns for the operator than could otherwise be obtained. This organization of forest production is especially adaptable to large areas of forests in regions with mild climate, such as the South and the Pacific Northwest, but it also fits the situation in other regions where settled areas border on extensive forest areas. It may be by far the cheapest method of restoring over- exploited forests. Activity in this direction will unquestionably develop at a slow rate because of the absence of men with knowledge combined with some capital. Temperamental and mental attitudes are involved as well as the necessity of overcoming social attitudes growing out of speculative and other bad ownership practices. The educational measures discussed elsewhere must be well advanced before much progress can be made. The labor requirement on the woodland portion of the forest farm may be estimated at not far from 1 day an acre a year. This is to cover all cultural operations and harvesting of logs, poles, posts, cordwood, or other products, including transportation to a central yard on the farm or to a roadside. It may or may not iticlude delivery to a ship- ping point or manufacturing plant, or to rural consumers. The more of these functions that are performed by the forest farmer himself, the higher his labor income will be per acre of forest. From the cost standpohit the labor can usually be performed more cheaply by the forest farmer or his own employees than by others. Tills approach to the problem of land submarguial for crops and pasture can assist in keephig all the land of a commuidty on tlie tax rolls and increase community productivity in a field noiicompetitive with staple food and fiber crops (figs. 2 and 3). As in the case of Place of Forests in Farm Economy 541 woodland on smaller farms, local sales of products from forest farms should become important in many communities. These products are acceptable in exchange for foods, forage, or other products, and for services. Over-all efficiency of the community is enhanced by a balanced internal economy ; but external sales should not be neglected.

NEEDS OF INDIVIDUAL FARMERS NOT OWNING WOODLAND AND OF RURAL COMMUNITIES Numerous communities in the West and considerable areas cast of the Great Plains are organized into farm units too small for woodland to be significant in the farm enterprise. Many of these small farms are heavy users of forest products. Thus it has been estimated that the average acre of productive apple orchard in the Wenatchee Valley of Washington needs the annual growth of 10 to 15 acres of nearby ponderosa pine forest to supply boxboards and other lumber requirements of the apple grower. Under other conditions, such as those in the Missouri Ozarks and parts of the Appalachian region, small land- owners on poor land cannot usefully employ their labor on the farm longer than during the crop season of 4 to 6 months. The part-time employment which the general distribution of forests makes possible is needed. Even where farms are larger, winter work is often light, and forest employment may give needed additional iiicome. In other cases, some members of the farm family need outside employment. Throughout central Europe people living in hilly country are well

Figure 3.—Farm lands near Cooperstown, N. Y. About one-third is cultivated land and pasture, one-third is merchantable woodland capable of immediate productive management, and one-third is now unproductive though suitable for forestatlon. 542 Yearbook of Agriculture, 1940

housed and fed because of a successful combination of intensive forestry with agriculture. This is facilitated by the intermingling of farm and forest lands. Part of the forest is individually owned, but some is often in communal or State ownership. Where communities have extensive forests besides farm woodland and where forest employment and forest products from outside the farm holding are needed, it is very important that the nonfarm forests be organized to give the maximum benefits in each community. This can be done either under continued private ownership or under some form of public ownership. In neither case have methods been devised in the United States that obtain all possible benefits from these larger forest holdings.

MANAGEMENT OF NONFARM PRIVATELY OWNED FORESTS IN THE FARM COMMUNITY It is not possible to speak so definitely of th(> future management of the great body of privately owned forest lands outside of farm ownership (fig. 1). This subject is discussed in the article on Forest- Resource Conservation, p. 458. Good management for these nonfarm forcists I'equires (1) stabiliza- tion of ownership, (2) rebuilding the timber stands to their former productivity, (3) providing patterns of taxation and ownership tenure that will eliminate economic pressure for excessive exploitation, (4) providing for community benefits from nearby foT'ests, and (5) utilizing employment possibilities. The great problem is to create an ownei'ship pattern, owner and communit}^ attitudes, and organization for active use of the forest and forest products that will insure steady advance toward immediate and long-term objectives of forest management. The county planning committees fostered and participated in by the Department of Agricidture are concerned with solving these problems and establishing such degi'ees of social control as will minimize future losses from mismanagement of resources. Other Federal, State, and local agencies are working to the same end. With such large areas involved, there is room for many typcîs of ownership and management. The forests may be controlled' for example, by industry, estates, country clubs, or game and fishing clubs. From the community viewpoint, forms of ownership that permit broad participation and free access by the people of the communitv are most desirable. In the past the relation of these important resources to community welfare was more or less accidental. No important community organization gave consideration to the means of obtaining maximum benefits frona them. Sometimes they wei-e exploited by casual or transient labor with no close ties to the community chiefly concerned and very Kttle to any other. In other cases beneficial employment and business relationships existed, but short-sighted and ill-informed exploitation of the timber led to rapid deterioration. A decade of depression has taught us that ill-considered and wasteful exploitation of resources brings an unfavorable economic reaction to the communities concerned. Place of Forests in Farm Economy 543 It is evident that a basic problem is to change the management pohcies from too diverse individuahstic viewpoints to a community point of view. In other words, there is involved not only permanence of the forest resom^ce but its management in such a manner as to dif- fuse widely the benefits from it, in the interest of 'Hhe greatest good of the greatest number in the long run'' (the objective of Forest Service management). Cooperative management, discussed on pages 545-546, may often be the answer. Utilizins Employment Possibilities Management of these forests should be organized with special ref- eriiiice to creating a maximum of rural employment. Forest work will never be comparable to the spectacular exploitation of a virgin oil field, where a few weeks' laboi' by a few men may bring in a well flowing hundreds of barrels a day. Naturally the yield to both labor and capital in the latter case is high, but it is temporary when meas- ured by the life of nations. In contrast, forest restoration and use can yield only slow and modest returns, but forests can be made to yield returns continuously through periods centuries long. The prevailing local rate of rural wages generally makes forest work economically feasible. Higher wages, where socially necessary, must usually be subsidized from other sources. Two classes of work in the forest may be distinguished and treated somewhat differently in employment policies: (1) Removal of the forest products and cultural operations to maintain growth and (2) construction of permanent improvements, such as roads. Most important is the work of utilizing the products of the forest. The major cultural tool in forest management is a continuous process of selection of trees, some for removal and some for further growth. The great bulk of the work in the forest is in utilization and mainte- nance. In well-settled localities this work continually ^^ields the variety of products mentioned under The Farm Woodland (p. 536) and rewards reasonably the money and labor expended. Unlike farm- woodland management, the accomplishment of this work in extensive areas devoted almost exclusively to forest use requires centralized organization of some type, regular wage payments, sales of products, etc. The second class of work in extensive forests consists of the construction of permanent improvements, of which roads are usually the most important. The average weight of the product per acre per year in forests is greater than that produced in annual crop and livestock operations. More roadwa}^ is therefore required per unit of area than in average farming areas. Unlike the farm woodlands, which can depend largely on public roads for access and for transportation of products, extensive forest areas under unified management must nearly always be provided with road systems at the expense of the forest owners. Although it is a complete illusion to expect road- construction costs to be less as a result of conversion of land from annual crop and livestock production to forest use, the cost may shift from taxpayers' to other shoulders. Other forest improvements include providing limited building facilities and in some cases fences, water developments, and other minor items. In addition to these 544 Yearbook of Asriculture, 1940 depreciable capital investments, considerable work in regeneration and care of young stands may properly bi^ (capitalized. It should be noted that while the current work of utilization should yield returns sufficient to employ labor on a self-sustaining basis, many of the forest improvements, especially in depleted areas, fall in the category of things needed for permanent preservation of our national domain. Yet moderate development of these facihties falls well within the field of private investment, expecially if fostered hj suitable credit institutions which enable proprietors to carry on operations beyond their own capital resources. Koads and other developments should sometimes be built more substantially and permanently than is possible if they are to be liquidated within the periods appro- priate to private finance. With the aid of public subsidies such work may well be done to utilize otherwise idle labor in times of depression. Considerable recovery on these public investments will accrue through taxation of future income. Pubhc subsidies for these types of work are common in most European countries. Suitable organization standards to assure continuity of the forest enterprise must be prerequisite to such pubhc aid.

PUBLIC FORESTS—FEDERAL, STATE, AND COMMUNITY The systematic development of opportunities for rural populations to obtain fuel and other products and to utilize their own labor, especially outside of crop seasons, in national, State, and commercial forests has not gone far as yet. Although forest products are now^ used freely in many rural districts, large opportunities for their further and more effective use remain. In some luxtional-forest areas definite plans have been perfected to provide a certain amount of stable employment to local residents. A good example of intensive coordination between a national-forest program and adjacent farm areas is found in the Chippewa National Forest in Minnesota. The needs of each agricultural community in or near the forest were investigated to determine how much forest area and forest work need be allotted to each community to bring the community income to reasonable standards. The required forest work consists partly of sustained-yield utilization of timber and partly of investments for the future, such as forest planting and the creation of transportation and other forest improvements.^ In the United States wehere forest land is abundant, national forests may often be partly devoted to common grazing ground under an orderly charge permit system. State and community forests are being built up with similar aims. Vast opportunities still remain for perfecting all forms of public- forest management. Public forests are just beginning to be developed as the stabilizing factor in supplying forest industries with raw material. Public forests should be managed with as much regard for local community interests as has already been recommended for privately managed lands. In addition they have to serve broad State and Federal interests.

2 KMJTRON, OLAHENCE E. THE APPLICATION OF A LAND UTILIZATION PKOGRAM TO THE CHIPPEWA NA- TION \L FOK EST. Jour, Forestry 37: 738-740, 1939. Place of Forests in Farm Economy 545

COOPERATIVE ORGANIZATIONS The educational and other pubhc assistance mentioned in this article, though confined to traditional channels, may show the way to more productive handling of the farm woodlands and similarly situated forests so far as concerns measures that can be taken in the forest itself. But these measures may not in themselves increase the actual utility of the woodlands for the farmer or for the community to the full extent that is possible. The average farmer can no more afford to own the necessary manufacturing equipment to prepare timber for higher-grade uses on the farm or for marketing than he can afford to own a flour mill. Likewise it is often inexpedient or financially impossible for other owners to provide adequate facilities. United action is thus essential. In those communities where diverse wood-using industries exist and where grades of lumber needed locally are sold at reasonable prices, additional facilities for processing and marketing farm-woodland and other local forest products may not be urgently needed. In many if not the majority of communities either the primary wood-utilization plants are extremely antiquated or none exist. Full economic use of products from farm and other local forests must in numerous places await the construction of modern plants. One such plant, a pioneering development, is shown in figure 4. Because improvement of forest stands always requires removal of various materials, the problem of providing adequate facilities for manufacturing is complicated. Where the convenience of the manu- facturer is the sole criterion for the needed facilities, forest utilization is apt to assume an unbalanced character. Facilities need to be designed with special reference to utilizing what needs to be cut for the good of the forest. This complete reversal of the usual point of

Figure 4.—Plant of the Otsego Forest Products Cooperative Association, Cooperstown, N. Y. This Is a pioneer effort still in tfie experimental stage, designed to prepare fiard- wood timber suitable for the general market for sale at full value and to saw and plane local hemlock and pine for use on farms and in the community. Fuel wood, sawdust, and other byproducts are also available to farmers. 546 Yearbook of Agriculture, 1940 view will increasingly demand procedure in accord with sound tech- nical advice and direct control by farmers and other forest owners through cooperative organization. The farm-woodland cooperative has another special function because so large a percentage of forest products must be used within the community. It provides a place of business and continuous service for exchanges of products among members and for diffusing production and use of forest products throughout the local community. By means of it, positive action can be taken to increase the use of forest products, especially in creating better constructed and better heated rural buildings. In addition to these special needs that may be met by cooperative organization, the recognized functions of cooperation in the general agricultural field hold with full force. There is very special need for grading and refinement of products before sale; for improved bargain- ing power; for control of plants and of sales by farmers; for ownership by farmers of capital stock as one form of savings to equalize standards of living over long periods; and for realizing the educational values that are inherent in cooperative effort of any kind on an important community job. The requirement that the farm-woodland cooperative shall look out for all the forest interests of members, from production of timber to its processing and distribution, places exceptionally heavy burdens on the management. For that reason it demands exceptional abilities and training. There seems little doubt that the forest cooperative movement will grow in future. In addition to attending to strictly farm-woodland management, processing, and marketing problems, the local cooperative may well assume ownership or managing custody of other local forests. It has been proposed that local cooperatives should be set up in each community having such forest areas, to take title to the lands and apply unified management and that under certain circumstances public subsidies shall be given. Cooperative management seems logically to offer a good method of introducing a community viewpoint and creating an increased measure of local responsibility for these areas. It appears unnecessary, however, to insist upon complete surrender of title of all forest lands to the cooperative. A form of management contract could readily be devised which would be fair to all owners,. unify management policy, increase income from sales of products, and provide for steady improvement in each holding by more effective utilization of normal biological forces. Complete acquisition by the cooperative would be desirable in those cases where existing owmers are disregarding community needs or have no further interest in their holdings. Ownership of some forest land by a cooperative drawing its supplies mostly from small owners would tend to stabilize its source of raw materials. The forest owned by the association would provide materials at times when farmers and others failed to supply sufficient volume. Many pulp companies and hunber companies hold title to forest lands for this purpose. Publicly owned forests may provide this basic raw material supply in some cases. Place of Forests in Form Economy 547

CONSERVATION OF SOIL AND WATER The measures described for forest management are also Mghly effective in conserving soils not needed for crop and pasture. The same principle holds for nonfarm forest land. As nearly all labor intelligently applied in the forest is either immediately or eventually rewarded directly by commodity production, costs chargeable to soil conservation are almost nil. The ungrazed and unburned forest is nearly 100 percent efficient in preventing erosion. Under some cli- matic conditions and with certain species of trees, certain soil types deteriorate by transference of mineral constituents between soil hori- zons, but this deteriorating action is slow and can usually be prevcTited by proper mixtures of species and proper silvicultural management. The foregoing facts justify the broad generalization that vast areas of well-managed farm woodlands, besides being essential to the well- being of the average farmer in humid regions, constitute a safe guardian for a great national reserve of farm soils not now needed for crop or pasture use but available in case of future need. These soils are generally of secondary quality and would not be profitable in commercial farming at present. Exceptions occur in bottom-land and swamp areas where soils are rich but the cost of improving them for agricultural use is excessive and not now justified. In the same way, any soils in the humid region not in farms can be conserved at very low cost under forest management until such time as more urgent needs may have to be met.

WORK OF THE PUBLIC AGENCIES Through several of its agencies the Department of Agriculture has long been interested in educating farm woodland owners to protect all forests from fire, insects, and diseases and otherwise to foster good management practices on farm woodlands and other forests. A brief review of the work of the Department to further these ends is given in approximately the order in which the work was initiated by the various agencies. Forest Service For more than 40 years the Forest Service has included farm forestry within its field of activity. Limited financial resources have compelled restriction of its woi'k mainly to publication and a limited number of studies in farm woodlands. Extension foresters of the Forest Service cooperate w^ith the Extension Service of thé Department and with State extension foresters by providing information and in other ways. Under the Weeks law of 1911 and the Clarke-McNary law of 1924, the Secretary of Agriculture, through the Forest Service, has cooperated with the States and through them with private and other agencies within the States in protecting the forests from fire. Under section 4 of the latter act the Secretary of Agriculture is also authorized to cooperate with the various States in the procurement, production, and distribution of forest-tree seeds and plants for the purpose of establishing forests upon denuded or nonforested lands on farms. Through the interest of the President and the use of emergency relief funds the Forest Service initiated the Prairie States Forestry 548 Yearbook of Agriculture, 1940 project, designed to provide protective forest belts on large mimbers of farms in the Plains States. That work has been successfidly caiTied on at variable rates since 1935. About 10,950 miles of successful strips of trees have been established. Although planned for protective purposes, these belts will eventually furnish considerable supplies of posts, fuel wood, and other farm timber. Still more recently the Forest Service has been charged with the responsibility of studying forestry cooperative methods and experimental development of forest cooperatives in New Hampshire and New York. This approach to farm-woodland and other rural forest problems has already been discussed. In the whole national field of forestry the Forest Service has charge of about 175,000,000 acres of national forests, of forest research at 12 forest experiment stations and the Forest Products Laboratory at Madison, Wis., and, in general, is charged with the duty of fostering good-management practices in all the forests of the Nation. In its management of the national forests multiple use is an important principle. Other Department Agencies For many years the Bureau of Plant Industry has carried on experi- ments at the Northern Great Plains Experiment Station at Mandan, N. Dak., to determine the species and varieties of trees and shrubs best adapted to planting under the adverse conditions of the Plains. Also for many years the Division of Forest Pathology has carried on scientific investigations of fungus diseases affecting forest trees. In recent years considerable sums have been made available to this division for fighting the more serious fungus attacks, such as those of white pine blister rust and Dutch elm disípase. Insects are among the most serious enemies of forest trees. Exten- sive investigations have been carried on by the Bureau of Entomology and Plant Quarantine to identify and classify forest insects; to ascertain their distribution and habits; and, on the basis of this knowledge, to determine the most effective methods of control. The Bureau also guards against the introduction of foreign insect pests. Since July 1, 1925, the Extension Service has had funds for distribution to the States under terms similar to those under which other agricultural extension funds are distributed. Under this program 40 States now employ extension foresters, some of whom have several assistants. In a very few instances county extension foresters have been providi^d under this program. Because the funds available have been limited, forestry extension work has consisted mostly of publications, addresses, and demonstration areas. Nothing approaching the activity of the Swedish forestry boards has been possible. For several years the Farm Credit Administration has appraised farm woodlands as part of the mortgage-credit base for farms. Loan value has been based on permanent productivity of the woodlands rather than on their liquidating value. The interest of the Agricultural Adjustment Administration in conservation and in reducing areas planted to certain soil-depleting crops has led in some areas to payments for forest planting and to a limited degree for other forest practices. For example, in the Place of Forests in Farm Economy 549

1939 agricultural conservation program in the northeast region the following schedule of payments was in effect: NortheaM regirán A. AU States. 1. Planting forest trees, $7.50 per acre, 1,000 trees per acre. 2. Forest improvement, $3 per acre to develop 100 trees per acre. B. Maine, Vermont, New Hampshire, Massachusetts, Rhode Island, New York, Pennsylvania. 3. Fencing livestock out of farm wood lots, $0.375 per acre. Payment will not be made for more than 2 acres for each animal unit normally grazed. C. All of Rhode Island and New Hampshire and parts of Maine, Massachusetts, Connecticut, VermoTit, and New York. 4. Woodland rehabilitation on hurricane-devastated woodlands, $4 per acre. Heretofore woodland areas have not been included in the acreage against which the maximum soil conservation payment on a given farm is calculated. It has been suggested that a separate base should be set up for the forest land on each farm. The 1940 agricultural conservation program provides a special allowance of $30 for forest planting in some regions. This can be earned without interfering with payments for conservation practices on cultivated and pasture lands. It is probable that forestry policies of the Agricultural Adjustment Administration will undergo further development during the next few years. The Soil Conservation Service, first organized in 1933, has used a new approach to conservation problems. This consists of active use of a project method through which, intensive work is done in selected demonstration areas and, more recently, in soil conservation districts set up under State law. The work includes close contact with land- owners, cooperative agreements designed to encourage activity on their part, and the furnishing of labor on farms through the Civilian Con- servation Corps, Work Projects Administration, and other available sources of manpower. The primary purpose of soil conservation is served in part through forest planting and care of existing woodlands. During the fiscal year 1940 funds specifically for farm forestry have become available through the Cooperative Farm Forestry Act. The Soil Conservation Service has major responsibility in the administration of the funds appropriated under this act. This work is only in the initial stages, and several years may elapse before policies reach a settled condition. The Farm Security Administration, concerned primarily with low- income farmers, has an opportunity to encourage clients in intelligent use of farm-woodland holdings. It is natural that supervision of crop, livestock, and home economics practices rather than forestry have so far been of paramount importance. In addition to its work on farms, the Farm Security Administration has financed through loans three large forest cooperative enterprises located in northern New Hampshire, at Cooperstown, N. Y., and in the Tygart Valley, W. Va. These have been on part-time or full-time operation for only a short while. Conclusive data on operating results must await several years^ further operating experience. It is desirable to expand this experimental cooperative program into certain other areas. As the primary planning agency of the Department of Agriculture, Í22H7G1°—40 36 550 Yearbook oí Agriculture, 1940 the Bureau of Agricultural Economics is concerned with woodland areas of farms, with the problem of retiring submarginal areas from farm use, with the relation of farm areas to more or less extensive forest areas, and with many other general problems concerning forests. It should be clear from the foregoing that the work of several agencies of this Department must continue to impinge on farm forestry- problems and on other forest problems in farming regions. Good management of farm woodlands and other forests of agricultural regions is so important and so closely related to many activities of the Department that it is impossible to concentrate all forestry contacts in one agency. This diversification has the great advantage of bring- ing many points of view to bear. Correlation of these activities and integration with State programs have been provided for in the recent reorganization of the Department. Out of this should in time come a sound composite view of the place of forestry in the farm economy. Cooperating State Agencies Cooperation with the States follows the Federal pattern in that responsibilities are divided. The State foresters. State extension foresters, and, in some States, forest schools occupy spheres partly well defined and partly overlapping. In several ways relations have been established between the Department of Agriculture and these agencies. The Need of Unified Local Aid in Farm and Other Forest Management It seems clear that all of the public agencies that operate in the field of forestry have more or less important functions that cannot be dis- continued without adverse results. On the other hand, direct adoption of sound forest practices by farmers and other forest owners is proceeding at a slow pace, partly because contacts with any of the agencies mentioned are relatively few. As a consequence, existing knowledge both of the economic and social need for sound practices and of what constitutes such practices is not being rapidly assimilated or put into effect by owners of forest land. All of the modern European countries counting on private forest ownership as an effective means of obtaining maximum social benefits from substantial portions of their forest land have devised means of maintaining direct local contacts with forest owners. The methods developed over a period of many years in Sweden and adopted more recently in Finland are instructive. These consist in setting up loe^l forest boards in every Province (about equivalent to our county), which carry out provisions of the laws affecting private forests. This is done in Sweden by maintaining close contacts with forest owners and by assistance in the management of private forests. Assistance is given to owners in marking over 75 percent of the timber to be cut in annual fellings. Until equally effective educational aids and other assistance to local forest management are devised in this country, progress must continue to be very slow despite the numerous agencies working at these problems, mostly from thé top.