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In addition to damaging peas, corn, and lentils in Grant County, Washington, the ash fallout blanketed valuable alfalfa hay. The crop above was waist-high before the May volcanic eruption, and farmers had expected a 3-ton per acre cutting. The alfalfa which had just been cut (as below) was a total loss, as it quickly rotted in the windrows under the ash covering. Disking and plowing was performed through the Emergency Conservation Program to incorporate the ash deposits and recondition these fields.

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AGRICULTURAL STABILIZATION AND CONSERVATION SERVICE

The estimates include appropriation language for this item as follows (new language underscored; deleted matter enclosed in brackets).

Forestry Incentives Program

For necessary expenses, not otherwise provided for, to carry out the program of forestry incentives, as authorized in the Cooperative Forestry Assistance Act of 1978 (16 U.S.C.2101), including technical assistance and related expenses, [$12,500,000] $15,000,000, to remain available until expended, as authorized by that Act.

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The appropriation "Forestry Incentives Program" of the Agricultural Stabilization and Conservation Service funds the activities authorized by the Cooperative Forestry Assistance Act of 1978. Its purpose is to

encourage the development, management, and protection of non-industrial private forest lands to increase the production of timber, and to enhance other forest resources.

This program represents one element of a comprehensive plan directed to the private non-industrial sector by USDA. It is estimated that in the year 2010 the demand for lumber from U.S. forests will be about 95 billion board feet. The supply-demand balance will reflect a shortfall of approximately 20.6 billion board feet. As a part of this comprehensive plan the Forestry Incentives Program will contribute to reducing the shortfall.

The program is carried out through annual and long-term cost-sharing agreements with private landowners who plant trees or improve a stand of forest trees.

Under the 1981 program, it is planned to cost-share the expenses of planting trees on 157,000 acres and improving timberstand on 102,000 acres of forest.

For the 1982 program, at the appropriation level of $15 million, cost-sharing with landowners will allow planting of trees on 170,000 acres and timberstand improvement on 105,000 acres.

Justification of Increase

An increase of $2,500,000 for Forestry Incentives Program activities consisting of:

(1) An increase of $2,250,000 for cost-share assistance to landowners ($11,250,000 available in FY 1981).

Need for Change. The Department realizes that the Forestry Incentives
Program plays an integral part in the comprehensive plan to alleviate
the anticipated shortfall of lumber. The Department is proposing
that, in order to better fulfill its role in this comprehensive plan,
the Forestry Incentives Program have $13,500,000 available for cost-
sharing in FY 1982.

Nature of Change. This increase of $2,250,000 for cost-sharing will
allow an additional 25,000 acres of tree planting and an additional
10,000 acres of timberstand improvement above the amounts possible
at the FY 1981 funding level.

(2) An increase of $250,000 for technical assistance, which is allocated to Forest Service ($1,250,000 available in 1981).

Need for Change. This change corresponds to the increase in cost-share funds.

Nature of Change.

Increased technical assistance is necessary for

developing plans and monitoring agreements on additional acres.

STATUS OF PROGRAM

The Forestry Incentives Program (FIP) is authorized by the Cooperative Forestry Assistance Act of 1978 (16 USC 2101). A Forestry Incentives Program was administered as a part of the Agricultural Conservation Program in FY 1974. In FY 1975 it became a separately funded program. The Agricultural Stabilization and Conservation Service (ASCS) administers the program in consultation with the Forest Service and a committee of at least five State foresters or equivalent State officials.

Program Objective: The purpose of the program is to increase the amount of timber supplied by nonindustrial private landowners by encouraging increased production through cost-sharing assistance for expenses of planting trees, improving a stand of forest trees, and enhancing other forest resource values. Cost-Share Assistance: The Forestry Incentives Program shares up to 75% of the cost of tree planting and timberstand improvement, depending on the cost-share rate set in a particular State and county by the Agricultural Stabilization and Conservation (ASC) committee, in consultation with the State forester or equivalent State official. FIP is available in counties designated on the basis of a Forest Service survey of total eligible private timber for production of timber products.

Eligibility Requirements: To be eligible for cost-sharing assistance under FIP, a landowner must:

1. Be a private nonindustrial forest landowner. An eligible landowner is a private individual, group, Indian tribe or other native group, association, corporation (excluding corporations whose stocks are publicly traded), or other legal entity which owns eligible land. Landowners engaged in the manufacture of forest products on a parttime or irregular basis are eligible.

2.

3.

Own not more than 1000 acres of eligible forest land (unless ASCS
determines it is in the public interest to grant an exception for
a larger unit up to 5000 acres).

Have land that is capable of producing marketable timber crops and meeting minimum productivity standards of at least 50 cubic feet of wood per acre per year.

4. Have land that is suitable for forestation if presently not in trees, for reforestation, or for improved forest management. Usually, the eligible species for planting are softwoods, but hardwoods proven to be successfully plantable may be approved in specified areas.

Current Activities: Once an eligible landowner requests assistance through an ASCS county office, an examination of the landowner's property is made by a representative of the State forestry agency to certify the need for the practice. A forest management plan is developed by the State forester in cooperation with the landowner as a condition for cost-sharing assistance. The plan, when completed, must be approved by the State forester or his or her representative and a copy provided to the county ASC committee. The State forestry agency provides technical advice and helps find approved vendors, if needed, for getting the work accomplished. Once the State forestry agency certifies that the project has been completed, cost-share payments are made by the county ASCS office.

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