Policy Research

A Cross-Sectional Analysis of Michigan Non-Industrial Private Forest Landowners

Renee O’Connell

Summary

This analysis surveyed those enrolled in various forest management incentive programs and compared differences in demographics among incentive programs (age, income, and education) with likelihood of performing a given forest management activity. Survey data was collected during 2000 and 2001 in the eastern Upper Peninsula. Researchers looked at those enrolled in a cost share program (Forest Stewardship Program Plan), those receiving property tax reductions (Commercial Forest Program), those in a landowner-organized program (Michigan Forest Association), and those in a state program (Two-Hearted River Watershed). Based off of demographic information collected from surveys, researchers found differences in demographics of those who enrolled in each of the different forest management programs. However, the results from this study suggest that there is not a significant relationship between landowner demographics and management activity. Smaller parcel size and not having a primary residence on the forested parcel had a significant effect on whether or not landowners managed forests. Membership enrollment in MFA or CF was significantly related to performing management activity, while enrollment in TRW had a negative correlation and FSP had no correlation with management activity.

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Policy Implications

State and national policies have created cost-sharing, technical assistance, and tax reduction incentives to encourage private landowners to produce forestland with certain characteristics. A number of federal funding sources such as the USDA Forest Stewardship Program have been reduced or discontinued in the past fifteen years, and Michigan landowners have struggled to adjust to both changes in property tax structure and landowner assistance delivery. Policy makers must exercise caution when using demographics or enrollment in a specific program, as demographics such as age, income, and education may not be good enough predictors of propensity to perform forest management. There is, however, a significant relationship between parcel size and management activity. Nonetheless, as political pressure increases to make cuts on state incentive programs, policymakers should keep in mind the trend at the federal level has been to reduce support and changes can have unexpected and major effects on landowners.