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Public Opinion

Codes. Policies. Public Opinion. Substitute Products. +. +. +. +. Too little money Too little time WRONG HILL!. FAILED. Why?. Hardwood Checkoff Growing Future Demand. Checkoffs and Forestry. Softwood Lumber - VOTE UNDERWAY Paper and Packaging – VOTE Fall 2011

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Public Opinion

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  1. Codes Policies Public Opinion Substitute Products + +

  2. + +

  3. Too little money Too little time WRONG HILL! FAILED Why?

  4. Hardwood CheckoffGrowing Future Demand

  5. Checkoffs and Forestry Softwood Lumber - VOTE UNDERWAY Paper and Packaging – VOTE Fall 2011 Christmas Trees – Effective Christmas 2011

  6. Commodity Checkoffs • Established Yearly revenue • Cotton 1966 $66 million • Potatoes 1972 $20 million • Eggs 1976 $21 million • Pork 1986 $65 million • Beef 1986 $80 million • Honey 1987 $3.8 million • Watermelons 1990 $1.6 million • Soybeans 1991 $90 million • Milk 1993 $281 million • Mushrooms 1993 $2.6 million • Popcorn 1997 $1.5 million • Peanuts 1999 $6 million • Avocados 2002 $24 million • Lamb 2002 $2.3 million

  7. Hardwood CheckoffGrowing Future Markets Allocation of funds Egg Board

  8. Hardwood CheckoffGrowing Future Demand Cotton Inc. has estimated a return of $8 for every $1 of investment

  9. Hardwood CheckoffGrowing Future Markets Dairy Inc. reports the per capita consumption of all dairy products increased 16% from 1983 to 2008

  10. Hardwood CheckoffGrowing Future Markets Potato Board estimates $4.74 return for every $1 invested

  11. Hardwood CheckoffGrowing Future Markets Promotion Education Research

  12. Hardwood CheckoffGrowing Future Markets Jim Howard (Co-Chair), Atlanta Hardwood Corp. Ted Rossi (Co-Chair), Rossi Lumber Nancy Arend, Northwest Hardwoods Victor Barringer, Coastal Lumber Chris Bingaman, Bingaman & Son Lumber, Inc. Bill Buchanan, Buchanan Hardwoods John Crites, Allegheny Wood Products Don Finkell, Anderson Hardwood Floors, Inc Jamey French, Northland Forest Products, Inc. Pem Jenkins, Turn Bull Lumber Jeff Meyer, Baillie Lumber Co., Inc. Jack Shannon, The Shannon Group Brad Thompson, Columbia Forest Products Chris Zinkhan, The Forestland Group LLC

  13. Hardwood CheckoffGrowing Future Demand Checkoff Provides • Fairness • Flexibility • Experience • Durability

  14. Process Hardwood CheckoffGrowing Future Markets • Industry submits plan to USDA • USDA publishes for 60-day comment • Referendum date set • Industry votes

  15. Hardwood Checkoff Board Hardwood CheckoffGrowing Future Markets • Industry nominates • Cross-section of industry • Board is unpaid • Board Governs the program

  16. Hardwood CheckoffGrowing Future Demand Funding Plan Sawmills • Facilities with over $2 million in sales • $1 for every $1,000 in lumber sales

  17. Hardwood CheckoffGrowing Future Demand Sawmill example Company Sales Fee Joe’s Sawmill $1.75m $0 Carl’s Sawmill $8M $8,000 Bob’s Sawmill $15m $15,000

  18. Hardwood CheckoffGrowing Future Demand Funding Plan Concentration Yard / Dry Kilns Facility • Facilities with over $2 million in sales • $1 for every $1,000 in lumber sales • Deduct for lumber purchased

  19. Hardwood CheckoffGrowing Future Demand Dry Kiln example Company Sales Fee Fred’s Kilns $1.9m $0 Gary’s Kilns $4m $4,000 Gary’s Kilns $2.5m(lumber purch.)-$2,500 Gary’s Kilns $1,500 Sam’s Kilns $20m(sales) $20,000 Sam’s Kilns $12m(lumber purch.)-12,000 Sam’s Kilns $8,000

  20. Hardwood CheckoffGrowing Future Demand Funding Plan Value Added • Multi-product facilities (sawmill or dry kilns) with over $2 million in sales • No furniture, cabinet • $.75 for every $1,000 value added sales

  21. Hardwood CheckoffGrowing Future Demand Value Added example Company Sales Fee Bill’s VA $16m(millwork) $12,000 Bill’s VA $4m(KD sales) $4,000 Bill’s VA $10m(lumber purch.)-$10,000 Bill’s VA $6,000

  22. Hardwood CheckoffGrowing Future Demand Funding Plan Hardwood Plywood • Producers over 10 million square feet • $4 per 1,000 square feet

  23. Power to the Middle • Greater than 20 MM bf – 25% • 10 to 20 MM bf – 25% • 3 to 10 MM bf – 50%

  24. Hardwood CheckoffGrowing Future Demand Sawmills-Green $3.5 mil. Sawmills-KD $2.5 mil. Yards & value added $1.5 mil. Hardwood plywood $2.4 mil. TOTAL $9.9 mil. Projected Revenue

  25. Hardwood CheckoffGrowing Future Markets Why do WE Need Checkoff?

  26. Time for Change! www.hardwoodcheckoff.com

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