Assessing State Timber Sale Policies, Programs and Stumpage Price Drivers

Abstract

The recent major decline of Minnesota’s timber stumpage market has raised growing concern about the policies, procedures, and contract provisions associated with Minnesota’s public land timber sale programs, in particular those that apply to timber sold from state-administered forest land managed by the Minnesota Department of Natural Resources (MN DNR). In its December 2006 report, Governor Pawlenty’s Task Force on the Competitiveness of Minnesota’s Primary Forest Products Industry (Governor’s Forest Products Task Force) identified timber sale policies and procedures as one of the most urgent economic issues facing the state’s wood products industry. Specifically, the report recommended a study be undertaken to assess how state timber sale procedures and associated conditions impact stumpage prices. This report describes several research studies undertaken to address the important information needs identified in the Governor’s Task Force Report.