Green Horizons Vol. 6, No. 2B News for people who take their trees seriously Autumn 2001 Oops! Please note that the first issue of this year's Green Horizons was mistakenly labeled Volume 6, No. 2, instead of correctly labeled as Volume 6, No. 1. So to keep on track, this issue is Volume 6, No. 2B. Harper wins national agroforestry award Larry Harper was awarded the 2001 Terry Johnson Agroforestry Award at the Seventh Biennial Conference on Agroforestry in North America in Regina, Saskatchewan in August. The award is granted to a professional, landowner, or individual who has provided sustained quality, innovative application, renowned research, outstanding technology transfer, exemplary education or other notable actions in the field of agroforestry. Harper practices alley cropping and silvopasture agroforestry on his farm, HarperHill Farms in Butler County, Mo. He was honored for his work in promoting agroforestry by holding numerous field days at his farm, in cooperation with the University of Missouri Center for Agroforestry - providing other landowners and natural resource professionals with hands-on learning experiences. While editor of Missouri Ruralist magazine, Harper wrote many articles highlighting the use of agroforestry by various individuals, and provided outstanding leadership as a spokesperson for agroforestry throughout Missouri and the Midwest. Harper was the founding editor of Green Horizons, and now regularly contributes to the newsletter, helping thousands of readers more fully understand agroforestry. In addition, his active involvement with the Walnut Council and as a landowner in the Association for Temperate Agroforestry has also strengthened agroforestry. Harper has also worked closely with the University of Missouri Center for Agroforestry in a research project exploring the impact of cows in a 9-year-old walnut silvopasture practice. Watch the next issue for that story. Funding available for innovative land use Landowners have always been innovators. Now Missouri farmers can get small grants to help them find new and better farming techniques through the Missouri Sustainable Agriculture Demonstration Award Program. Projects involving trees that have received funding include: using sheep to control weeds in Christmas tree plantings, converting a pecan picker into a reasonably-priced walnut picker, using mulches for weed control around nut trees, and growing ginseng under black walnuts. Grants encourage producers to reduce their dependence on non-renewable resources such as petroleum and minerals, and promote the preservation of natural resources such as soil, water and air. They help farmers experiment with techniques that will make their farms ecologically sound, economically viable and socially responsible. The Demonstration Award Program is sponsored by the Missouri Department of Agriculture and administered through the Sustainable Agriculture Extension Program of the University of Missouri and Lincoln University. This year's program will fund up to 23 farmers with grants of $3,000 each. The Demonstration Award Program began in 1995 with funding from the Missouri Legislature. Awards for 2002 will be announced in January. To apply, farmers must come up with a sustainable agriculture idea that they want to try out on their farm. They must fill out an application form and get a letter of support from an Extension agent or a staff member from another agency or non-profit organization. Applications with the new funding rate for 2002 are available at University Outreach and Extension centers, on the Sustainable Agriculture Web site: http://agebb.missouri.edu/sustain/ or by writing or calling: Missouri Department of Agriculture Plant Industries Division P.O. Box 630 Jefferson City, MO 65102-0630 Phone: (573) 522-8616 or (573) 751-5505 E-mail: Joan_Benjamin@mail.mda.state.mo.us Missouri Walnut Council holds summer meeting Great weather provided the perfect backdrop for Missouri Walnut Council members to hear about the latest walnut timber and nut production research. They held their summer meeting, July 14, at the Horticulture and Agroforestry Research Center (HARC) in New Franklin, Mo. Their meeting showcased walnut research being done by the University of Missouri Center for Agroforestry. One agroforestry study involves growing black walnut for quality timber using hybrid pine (pitch/loblolly) on either side of the walnut tree to serve as a "trainer tree." This triple-row planting configuration encourages upward growth of the walnut while also creating an environment that promotes the natural pruning of the lower branches of the walnut tree. How well forage grows in the shaded alleys of this configuration is also being studied, as is the potential to produce pine straw (pine needle mulch) from the pine hybrids. A walnut breeding program is under way at HARC that seeks to improve traits such as annual productivity, anthracnose resistance, ripening date, bud break date, percent kernel, kernel color and quality, ease of extraction, shell thickness, and nut size. Other topics at the meeting covered included thinning walnut stands and the use of chemical treatments to ensure that removed trees do not resprout. The fall meeting of the Missouri Walnut Council will be Oct. 27 (see Calendar on back page for details). For more information on the Walnut Council visit the Web site: http://www.walnutcouncil.org/ Or, contact Howard McCarty, 34985 Minnow Pl., Macon, MO 63552. 2001 Central Region Woodland Stewardship Conference coming in November Want to learn more about attracting wildlife to your land? Do you want to learn how to identify the trees and shrubs on your property? How about putting trees and shrubs to work to block the wind and blowing snow, or produce specialty products you can use at home or sell? Do you have some trees with some disease or insect problems? Are the rabbits and deer munching on your trees? To get answers to these and other tree and forest-related questions, be sure to come to the Central Region Woodland Stewardship Conference on Saturday, November 3, at the beautiful National Arbor Day Foundation's Lied Conference Center in Nebraska City, Neb. This conference is specifically designed to provide landowners in Iowa, Nebraska, Kansas and Missouri with the knowledge and skills to manage their woodland and related resources using good stewardship principles. It is sponsored by state and extension forestry programs in Iowa, Kansas, Missouri and Nebraska. The day-long event is packed with information-filled sessions. The conference begins at 9 a.m. with registration and refreshments and adjourns at 4 p.m. Topics include: Wildlife - Exploring the Forest Floor - Attracting Songbirds - Woodland Wildlife Management - Establishing and Maintaining Prairies - Grasslands and Fire for Wildlife Woodland Management - Pruning Trees - Estimating Timber Volume and Value - Forest Thinning and Improvement - Tree Identification - Forest Certification Working Trees - Making Money Planting Trees - Windbreak Design and Establishment - Producing and Marketing Specialty Forest Products - Nut Crops for the Central States - Trees for Country Living Tree Health Care - Wildlife Damage Control - Evergreen Problems in the Plains - Hardwood Diseases - Fire in the Forest - Keeping Trees Healthy Conference registration is $30 per person until October 26. Late registration is $35 per person. The registration fee includes a great buffet luncheon, refreshments and handout materials. Conference enrollment is limited to 250, so register early to ensure your place. For more information or a conference brochure, contact: - Iowa Paul Wray at (515) 294-1168 - Kansas Charlie Barden at (785) 532-1444 - Missouri Brian Brookshire at (573) 751-4115 - Nebraska Dennis Adams at (402) 472-5822 This conference is sponsored by state and extension forestry programs in Iowa, Kansas, Missouri and Nebraska. Pecan processing plant underway Ground breaking for a new pecan processing plant and retail outlet was held in early April in Nevada, Mo. Construction should be completed so members of the Missouri Northern Pecan Growers can begin cleaning this fall's crop in November. Lowell Mohler, director of the Missouri Department of Agriculture, helps one of the plant's owners, Joe Wilson, plant a pecan tree on the site. Oak decline to be focus of landowner tour Red oak is susceptible to oak decline, and they make up a significant portion of the forest in SE Missouri. A tour focusing on forest health issues related to oak decline will be held on Saturday, October 27 on several farms near Gipsy, Missouri. Arkansas already has a serious problem with oak decline and red oak borers. Over 300,000 acres of forest are dying in one area alone. That will have a serious impact on the forest industry - the value of many area landowners' forests will be greatly reduced. Many sawmills and loggers may soon be out of business as a result of this serious forest health issue. Oak decline is already showing up in many places in Southeast Missouri. Oak decline mostly affects trees in the red oak group - and red oaks make up a significant portion of the forest in this area. Management practices taking place on the farms to be visited are aimed at reducing the impact of oak decline. A method of logging will be presented that is entirely different than most traditional logging practices. The logger will be on site to answer questions about his methods. Also featured will be timber stand improvement (TSI) practices that are also aimed at reducing oak decline. TSI contractors will be present, and you can view work that one of them completed two years ago. Practices to reduce or eliminate erosion are an important aspect of a timber sale. Called best management practices (BMPs), logging methods that are pleasing to the eye, and the practice of reducing or eliminating erosion when closing out a logging road, can be significant components of forest aesthetics. These practices have been started on the current timber sale. You will see a road where BMPs were completed two years ago. The bulldozer operator who has worked on the roads of the current sale plans to be at the tour. Wildlife practices and tree planting efforts, including site preparation for planting, will be discussed. There will be a tour through a 40-year-old pine plantation to see the potential of using BMPs. Cost-shares, which are available for many forest and wildlife management practices, will be discussed. This tour may challenge your current concepts of BMPs and will present information on practices that you can apply to your operation. All forest landowners, loggers and others who are interested in the well-being of our forests are invited to attend. The tour will start at 10 a.m. from the Gipsy Fire Tower, off of Highway TT, southwest of Zalma. Lunch will be served, so please call in advance so that everyone can be served. For more information, contact Roger Frazier, private land conservationist at (573) 238-2671, ext. 111, or Rick Kammler, resource forester at (573) 783-7031. The bid sheet The following black walnut timber sales and range of bids are reported by Missouri consulting forester Larry Lackamp. It is interesting to note the average price trends both per tree (about $100) and per board foot (about $1). Also note the wide spread in bids in nearly every case. * Case No. 1: 29 black walnut trees with total volume of 4,500 bd. ft. Bids received: $4,538.40; $2,533; $2,170. * Case No. 2: 18 black walnut trees with total volume of 3,700 bd. ft. Bids received: $3,626. 10; $3,010; $2,820; $2,100. * Case No. 3: 44 black walnut trees with estimated volume of 5,100 bd. ft. Bids received: $4,937.21; $4,800; $3,750. * Case No. 4: 24 black walnut trees with estimated volume of 3,800 bd. ft. Bids received: $2,400; $2,172: $2,102. * Case No. 5: 48 black walnut trees with estimated volume of 7,000 bd. ft. Bids received: $7,140; $4,040; $2,700. * Case No. 6: 31 black walnut trees with estimated volume of 4,700 bd. ft. Bids received: $4,316.60; $3,700; $3,225. Competitive bids and professional foresters do help increase the value of the Missouri timber crop! For a professional forester in your area, contact the Missouri Consulting Forester's Association, P.O. Box 7596, Columbia, MO 65205-7596. Tax incentives for agroforestry Agroforestry is promoted for conservation benefits and income diversity. However, it may be tax advantages that provide the greatest benefit to some landowners. Agroforestry is a mix of disciplines including forestry, agriculture and horticulture. Accordingly, agroforestry tax advantages also can be derived from forestry, agriculture, and conservation, as well as from small business tax laws. According to the Internal Revenue Service (IRS), a farm business is defined as ". . . the trade or business of cultivating land or raising or harvesting any agricultural or horticultural commodity. This includes. . . raising or harvesting of trees bearing fruits, nuts, or other crops. . . " (Instructions for Schedule J, Year 2000, Farm Income Averaging). However, for certain situations, the IRS specifically says "you are not farming if you are engaged only in forestry or the growing of timber" (Publication 225; Farmer's Tax Guide). This seems to complicate the position of the taxpayer who uses agroforestry practices. However, because agroforestry consists of both raising trees and agricultural commodities, tax advantages can come from both the forestry and the farming incentives. There are five possible tax incentives for landowners who choose to plant trees in an agroforestry practice. These incentives are described in Section 48, Section 126, Section194, Section 179, and Section 175 of the Internal Revenue Code (IRC). Section 126 allows an exclusion of cost-share and other payments that are available through certain specified programs. Some of these specific programs, such as the Wildlife Habitat Incentive Program (WHIP), provide incentives to the landowner who incorporates trees into land-use plans for the purpose of improving either wildlife or conservation benefits. It is important to work with natural resource professionals to identify excludable cost-share programs that are currently funded and support agroforestry practices. Sections 48 and 194 provide incentives for the landowner who plants trees into the agricultural landscape. They are the reforestation investment tax credit (Section 48) and the reforestation amortization deduction (Section 194). These two incentives can provide a substantial tax reduction if trees are planted in an agroforestry practice for "commercial timber production" - any other intent will not qualify for these incentives. Excluded, for example, are ornamental trees, Christmas trees, fruit trees or trees planted for nut production. The IRC does not specify a planting density or stipulate an acceptable species list. Therefore, the taxpayer's planting intent will most likely be the determining factor as to whether or not the practice qualifies for Section 48 and Section 194 incentives. Under Section 179, a deduction of up to $20,000 can be taken in a given year to recover the cost of personal property used in an active trade or business. Farm fences, livestock, machinery and equipment, and structures specifically used for the growing of mushrooms or commercial plants qualify for this deduction. The maximum deduction amount of $20,000 will continue to increase over the next three years until it reaches a $25,000 deduction limit in 2003. The key to this deduction is that the taxpayer must have an active trade or business enterprise from the agroforestry practice, whether it be crops, livestock, timber, nuts or some other product. Finally, expenses for the establishment of windbreaks that are designed based on USDA/NRCS-approved plans are deductible up to 25 percent of gross farm income. Section 175 of the IRC specifically identifies planting windbreaks and the eradication of brush as deductible soil and water conservation expenses. Income exclusions, tax deductions, and tax credits can provide financial incentives above and beyond the expected revenues from agroforestry practices. The key to tax benefits is good record keeping. Most university extension services have publications describing the best method of record keeping for both timber production and agricultural production. One publication specific to agroforestry is the Economic Budgeting for Agroforestry Practices available from the University of Missouri Center for Agroforestry. Several agroforestry taxation issues are forthcoming in the Center's Agroforestry in Action series. The first publication in this series, Tax Considerations for The Establishment of Agroforestry Practices, is now available. For more information about this publication or other agroforestry tax questions, contact the University of Missouri Center for Agroforestry by e-mailing to umca@missouri.edu; by calling (573) 884-2874; or by writing to 203 Anheuser-Busch Natural Resources Bldg., University of Missouri, Columbia, MO 65211. - Larry D. Godsey, economist, University of Missouri Center for Agroforestry. Readership survey results Over 600 Green Horizons subscribers responded to the survey in the Autumn 2000 issue of Green Horizons. We were interested in what you, the reader, would like to see in the newsletter. The numbers have been crunched and it turns out you would like more information on (listed in order of importance): * how to sell culled timber for the highest price; * the five most helpful tools for use in the forest; * the optimum age to harvest trees; * tax law changes for forest owners; and * the cost of timber stand improvement (TSI) and what it is worth. We appreciate all of you who took the time to fill out the readership survey. The results will be used to continue to tailor this newsletter to your information needs! Girdling, in itself, not effective to conduct thinning Always use chemicals. Pathway, which has a label identical to Tordon RTU but is cheaper, is one of several possible herbicides that can be used with girdling, says consulting forester Scott Brundage of Columbia, Mo. In tests he has performed, he found that even double girdling black walnut trees was not effective. Many are still alive after two years. Other species also have exhibited an amazing ability to overcome girdling. Many girdled trees have the top die, but produce several sprouts, observes Brundage. Mailing list update Pardon our lateness! For the past several months, we have been in the process of updating our list of subscribers. All subscribers were sent postcards asking if they wish to continue receiving Green Horizons. Postcards that we received by August 20 are on the updated mailing list. If you know of anyone who still wants to receive the free newsletter, please encourage them to send in their card so they don't miss the next issue of Green Horizons. Calendar of upcoming events October 5-6, 2001 Landowner Training on Forest Harvesting Techniques, Safety and Best Management Practices at Graves Mountain Conservation Area, Wayne County. Contact Jason Jensen, MDC, at (573) 223-4525 October 13, 2001 Combined meeting of Missouri Nut Growers Association, Missouri Chapter of the Walnut Council and Missouri Tree Farmers at HarperHill Farms, Butler, Mo. Emphasis will be on mechanical harvesting of black walnuts. Farm is 9 miles west of Butler, on Highway 52 and 11/4 miles south on "V" Highway. Registration at 9 am. Contact Larry Harper at (573) 442-5326 to reserve lunch. October 13, 2001 Woods walk on Karl Wolf property in Carter County. Contact John Tuttle, MDC, at (573) 323-8515 October 26, 2001 Missouri State Tree Farm Committee meeting in Rolla, Mo. from 1-4 p.m. Contact Jason Holder at (573) 634-3252. October 26-27, 2001 Annual Nut Harvest Festival at the Jim and Florence Wilson Pecan Farm, Nevada, Mo., sponsored by Wilson Pecan Farms, Missouri Nut Growers Association and Nevada Chamber of Commerce. 10 am to 3 pm daily, including tours of the pecan orchards, tree shaking and mechanical nut harvesting. Rain or shine. Contact Florence Wilson at (417) 667-8115. October 27, 2001 Missouri Chapter of the Walnut Council meeting at the Roland Cartwright farm near Cabool, Mo. The meeting will feature an evaluation and discussion of a walnut log sale. Timber has been marked by a professional forester. Registration begins at 9 am at the Methodist Church in Cabool. Contact Roland Cartwright at (417) 962-3411. October 27, 2001 Forest management tour focusing on oak decline. Several sites near Zalma, Bollinger County. Contact Rick Kammler, MDC at (573) 783-7031 (See article on page 5.) November 3, 2001 Central Region Woodland Stewardship Conference at the beautiful National Arbor Day Foundation's Lied Conference Center in Nebraska City, Neb. (for more information see page 4). November 8-11, 2001 2001 National Tree Farmer Convention in Hershey, Pa. Contact Sue Shaddeau, 1555 Pangborn Station Dr., Decatur, GA 30033; phone: (770) 492-1229; fax (770) 451-2976. December 7, 2001 Missouri State Tree Farm Committee meeting in Jefferson City, Mo. from 10 a.m. to noon at the Jefferson City Chamber of Commerce, 213 Adams St. Contact Jason Holder at (573) 634-252. February 8-9, 2002 Missouri Nut Growers Association nut show. Community Center, Nevada, Mo. Evaluation of entries on Friday and nut show and business meeting on Saturday. All are welcome. Contact Mary Ann Byrd, (660) 925-3253. February 23, 2002 Tree Farm Stewardship Days Conference, Country Club Hotel at the Lake of the Ozarks. Contact Julie Rhoads (573) 882-3234 or RhoadsJ@missouri.edu * Send event dates to: Sandy Hodge, 203 Anheuser-Busch Natural Resources Bldg., MU Center for Agroforestry, Columbia, MO 65211 Green Horizons is published quarterly by the University of Missouri Center for Agroforestry and the College of Agriculture, Food and Natural Resources. All submitted material is subject to editing for style and length. Editorial board: Sandy Hodge, editor, Green Horizons, MU Center for Agroforestry, (573) 884-6729 Scott Brundage, Missouri Consulting Foresters Association (573) 443-3977 Howard McCarty, president, Missouri Chapter of the Walnut Council, 34985 Minnow Pl., Macon, MO 63552 Gene Garrett, director, MU Center for Agroforestry, (573) 882-3647 Paul Manson, president, Missouri Nut Growers Association, (660) 548-3477 Cory Ridenhour, Missouri Forest Products Association (573) 634-3253 John Shopland, superintendent, MU Horticulture and Agroforestry Research Center, (660) 848-2268 Clell Solomon, Missouri Christmas Tree Producers Association (660) 273-2368 Larry Harper, president, Missouri Tree Farm Committee (573) 442-5326 Wayne Wittmeyer, Forest Stewardship Program (573) 751-4115 Mailing address: Green Horizons, c/o Sandy Hodge, MU Center for Agroforestry, 203 Anheuser-Busch Natural Resources Bldg., Forestry Program, University of Missouri, Columbia, MO 65211.