Update from the Longleaf Economics Team “An Overview of the Literature”

1. Longleaf Partnership Council October 2014 Update from the Longleaf Economics Team “An Overview of the Literature”

2. Tracking Additional Values Associated with Longleaf Pine Restoration • Initial Concept – Review Economic Topics • Economic Impacts (direct LLP economic analyses) • Watershed and Water Quality • Habitat and Associated Wildlife Populations • Outdoor Recreation • Carbon Sequestration • Reduced Risk for Catastrophic Wildfires • Others

3. Summary of the Literature for Economics and Values Associated with Longleaf Pine Management • Some categories rich, others poor • Direct and indirect relevance to LLP • "Hurricane Katrina Winds Damaged Longleaf Pine Less than Loblolly Pine." • "Testing Loblolly-Pine Wind Firmness with Simulated Wind Stress."

4. Summary of the Literature for Economics and Values Associated with Longleaf Pine Management Economic Impacts (direct LLP economic analyses) Individual Landowner. “Longleaf growth and yield models are now available as tools to help better inform small landowners of projected economic yields of managing longleaf pine under various scenarios. In general longleaf pine competes well with other pine species if cost/share is available for upfront establishment and revenue from pine straw revenue and higher value timber product is included. “ Medium and Large Landowners. “Work is in progress to look at the economic incentives potential for medium and large landowners (TIMOs & REITs) to convert to longleaf vs. other southern pine” Broad Scale. “An analysis of the CFLR program on the Osceola NF shows that for every $1 invested in longleaf restoration, $0.20 was returned to the federal government in tax revenues, $1.50 in GDP was created, and $2.40 in total economic activity was generated.”

5. Summary of the Literature for Economics and Values Associated with Longleaf Pine Management Risk Aversion/Risk Analysis Storm Events LLP shows greater resilience to tropical cyclones in monitoring of 2004-2005 storms Johnsen, K. H., et al. (2009) Oswalt, S. N., et al. (2008) Catastrophic Wildfires Surprisingly little data available on per acre timber losses, most deals with overall costs and timber market impacts Southern Pine Beetle Large differential impacts of SPB b/t LLP and Loblolly (no economic analyses) Friedenberg, N. A., et al. (2007)

6. Summary of the Literature for Economics and Values Associated with Longleaf Pine Management Watershed and Water Quality Vose et al (2011) suggests natural LLP has lowest transpiration rate of any forest type in SE US (trees only, no understory) Watershed studies in FMNF Turkey Cr. watershed restarted by USFS Center for Forested Wetlands and Clemson Univ, not specific to LLP Habitat and Associated Wildlife Populations “To incentivize private landowners to manage longleaf for red-cockaded woodpecker habitat (ie. Longleaf maintenance condition class) in lieu of potential revenues derived from forest products would result in opportunity cost payments to the landowner of between $322 - $439 per acre ($23-$25 per acre annually over 20 years). “ Glenn et al (pub unknown) Outdoor Recreation Clearly there is added value of high quality LLP for hunting leases, LLP specific literature still needs to be explored, but likely little published

7. Summary of the Literature for Economics and Values Associated with Longleaf Pine Management • Carbon Sequestration • 2010 Auburn Conference • Remucal et al. 2012 CAR SE US model