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The Price Isn't Right
Timber Sales

$1.65 billion

"In terms of assets, the agency would rank in the top five in Fortune magazine's list of the nation's 500 largest corporations. In terms of operating revenues, however, the agency would be only number 290. In terms of net income, the Forest Service would be classified as bankrupt." Economist Randal O'Toole

The U.S. Forest Service's (USFS) "commodity" timber sales program provides timber from our National Forests to companies that cut and mill lumber or other wood products. Commodity timber sales on public lands lose money because the receipts paid to the government by the companies buying the timber do not cover all the costs associated with preparing and administering the sales. According to two General Accounting Office (GAO) reports, the USFS lost more than $2 billion of taxpayer money from the commodity timber sales program between 1992 and 1997.

Green Scissors Proposal
Require the receipts for commodity timber sales in national forests to cover all of the expenses involved with preparing the sales, as well as restoring landscapes and watersheds. Doing so would save taxpayers more than $330 million annually or $1.65 billion over five years.

Current Status

Senators Richard Bryan (D-NV) and Peter Fitzgerald (R-IL) offered an amendment to the fiscal year 2001 Interior Appropriations bill (H.R. 4578) that would have cut $25 million from the forest products line item (formerly the timber sales management line item) and $5 million from the "Tongass Timber Pipeline" line item. Of the $30 million cut from these two programs, $15 million would have been redirected to the Wildfire Preparedness and Planning program, and $15 million would have been returned to the U.S. Treasury for debt reduction. The amendment failed on a vote of 45 to 54.

In the House of Representatives, Representatives David Wu (D-OR) and Christopher Smith (R-NJ) offered an amendment to the fiscal year 2001 Interior Appropriations bill (H.R. 4578) that would have trimmed $14.7 million from the USFS forest products line item and transferred all of the money to fish and wildlife management. The House rejected the amendment, 173 to 249.

Program Hurts Taxpayers

Since the 1970's, the USFS has lost billions of dollars on its timber program. In addition to the money the program loses, USFS timber sales accounting is in such poor shape that neither the USDA Office of Inspector General or the GAO were able to determine the true cost of the program. According to a 2001 GAO report, the USFS fails to properly track the money it spends, and several accounting procedures make it nearly impossible to evaluate the true cost of the program. On top of that, the USFS has discontinued its annual timber sale accounting report, leaving taxpayers in the dark.

Program Hurts the Environment

Logging in our National Forests has eliminated many old growth forests and damaged habitat for numerous species such as salmon, grizzly bear, and wolf. Soil erosion and sedimentation caused by logging and road building is the most significant threat to fish and other aquatic organisms in our National Forests. Erosion can also reduce the productive capacity of these lands, limiting regeneration of trees and other plants.

Logging compromises many essential biological services, such as clean water, that are provided by forests. A large number of below cost sales are in high-elevation, environmentally sensitive watersheds on steep slopes, areas that will probably need to be restored in the future.

Contacts

• Erich Pica, Friends of the Earth, (202) 783-7400 x229.
• Steve Holmer, American Lands Alliance, (202) 547-9105.
• Cena Swisher, Taxpayers for Common Sense, (202) 546-8500 x108.