Funding incentives for agroforestry in Missouri

AGROFORESTRY IN ACTIONLarry D. Godsey, Economist, University of Missouri Center for AgroforestryProduced by the University of Missouri Center for AgroforestryInformation contained in this publication was obtained from websites, fact sheets, and personal contacts with agencies. Due to the nature of the material presented, it is subject to frequent changes.Special thanks to Doug Wallace, Missouri State Forester USDA/NRCS for his assistance in developing this guide.This publication is designed to help landowners and natural resource professionals find appropriate sources of funding for establishing and maintaining agroforestry practices. The financial success of agroforestry practices does not depend on the availability of government funding programs, nor should it. However, the funding programs noted in this publication were developed as incentives for good stewardship and, when properly designed and managed, agroforestry is good stewardship. Although there are more funding programs than described in this document, the programs listed represent federal, state, and private sources with the greatest application to agroforestry.This work was funded through the University of Missouri Center for Agroforestry under cooperative agreements 58-6227-1-004, 58-6227-2-008 and 58-6227-0-049 with the United States Dept. of Agriculture (USDA) Agricultural Research Service. Any opinions, findings, conclusions or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the USDA.By Larry D. Godsey (Economist, University of Missouri Center for Agroforestry)Reviewed November 2018 -- websit

Tax considerations for the establishment of agroforestry practices

AGROFORESTRY IN ACTIONUniversity of Missouri Center for AgroforestryLarry D. Godsey, Economist, University of Missouri Center for AgroforestryProduced by the University of Missouri Center for Agroforestry"Agroforestry is an integrated set of land management practices that helps land and forest owners to diversify products, markets and farm income, while simultaneously improving soil and water quality, enhancing wildlife habitat and sustaining land resources for long-term use. The five practices of agroforestry -- alley cropping, silvopasture, riparian forest buffers, forest farming and windbreaks -- offer a landowner opportunities for long-term income from areas that may not be currently utilized." -- page 1This work was funded through the University of Missouri Center for Agroforestry under cooperative agreements 58-6227-5-029, 58-6227-2-008 and 58-6227-5-028 with the United States Dept. of Agriculture (USDA) Agricultural Research Service. Special recognition is given to the USDA, ARS, Dale Bumpers Small Farms Research Center, Booneville, Ark. Any opinions, findings, conclusions or recommendations expressed in this publication are those of the author(s) and do not necessarily reflect the view of the USDA.By Larry D. Godsey (Economist, University of Missouri Center for Agroforestry)Reviewed November 2018 -- websiteIncludes bibliographical reference

Succession Planning for Woodland Owners (2009)

"The United States is blessed with a diverse portfolio of natural resources. Not least among them is our vast timberland. Every region of the country has its own unique forest type, suited for its individual geographic and climatic conditions. These ecosystems produce native timber varieties that endow this country and its citizens with a wide variety of benefits. Unfortunately, these benefits are often taken for granted."--First page.By David Watson, CLU, ChFC, RHU, REBC (Financial Advisor and Missouri Tree Farmer), and Larry Godsey (Economist, University of Missouri Center for Agroforestry

Modeling the financial impact of management decisions on loblolly pine (Pinus taeda) production

Title from PDF of title page (University of Missouri--Columbia, viewed on December 7, 2010).The entire thesis text is included in the research.pdf file; the official abstract appears in the short.pdf file; a non-technical public abstract appears in the public.pdf file.Dissertation advisor: Dr. John P. Dwyer.Vita.Ph. D. University of Missouri--Columbia 2010.Located primarily in the southeastern United States, Loblolly pine (Pinus taeda L.) is a variety of Southern yellow pine that is often planted by non-industrial private landowners seeking a beneficial long-term investment from their land. More recently, loblolly pine has received considerable attention as a potential species for agroforestry, carbon sequestration, and bio-energy plantations due to its ability to adapt to numerous site locations and its fast growth. Although the Ozark region is outside its native range, loblolly pine has shown potential as a fast growing, highly marketable option for landowners in this region who wish to diversify returns from their land. Understanding how loblolly pine management decisions impact their financial bottom line is a key to adoption and incorporation into an agroforestry practice. The Loblolly Pine Decision Support Tool (LPDST) incorporates growth and yield predictions with financial analysis in a simple format targeted to landowners with little forestry background. As a planning tool for landowners, the LPDST provides options for various spacing configurations, as well as options for pine straw harvest. The LPDST predicts average diameter at breast height (dbh) and height within a 99% confidence interval, and quickly reflects the impact of establishment, management, harvesting and marketing decisions on net present value (NPV), annual equivalent value (AEV), internal rate of return (IRR), modified internal rate of return (MIRR), and pay-back period (PBP). This study details the development of the LPDST and the processes for which the model is tested for reliability, accuracy, and sensitivity to decisions regarding establishment, management, harvesting and marketing of loblolly pine.Includes bibliographical reference

Exploring landowners' connections to carbon markets in rural Missouri : interest, feasibility, and transaction costs

Paper presented at the 12th North American Agroforesty Conference, which was held June 4-9, 2011 in Athens, Georgia.In Ashton, S. F., S.W. Workman, W.G. Hubbard and D.J. Moorhead, eds. Agroforestry: A Profitable Land Use. Proceedings, 12th North American Agroforestry Conference, Athens, GA, June 4-9, 2011.Global carbon trading may present a unique opportunity for landowners to make an environmental impact with financial incentives that may change the rural landscape. By allowing point source polluters to trade to an optimal level of pollution by offsetting their emissions with compatible carbon reduction project, markets are able to facilitate a cleaner environment. Agroforestry provides a set of practices that can sequester carbon with managed tree and crop plantings. However, the initial lack of financial resources has been an obstacle to its adoption in North America. This paper seeks to explore if carbon offset trading provides an added incentive to adopt agroforestry. Specific landowner characteristics, related to planting trees. Profiles of landowners are identified, and carbon offset trading is assessed in each context. The most applicable carbon sequestration project will be identified, and what actual Missouri landowners would need to do in terms of contracting and ownership to meet the requirements of this project. Landowners in central Missouri and the Ozarks (330 individuals) will be used to determine concentration of interested landowners and potential adoption of agroforestry. A model to evaluate agroforestry profitability scenarios is used to compare with and without carbon credit trading to traditional alternate uses for the property.Jason Holderieath (1), Corinne Valdivia (2), Carla Barbieri (3) and Larry Godsey (4) ; 1. Agricultural and Applied Economics, University of Missouri. 2. Associate Professor, Agricultural and Applied Economics, University of Missouri. 3. Assistant Professor, Parks Recreation and Tourism, University of Missouri. 4. Economist, Center for Agroforestry, University of Missouri.Includes bibliographical references

Using NRCS technical and financial assistance to establish elderberries (2011)

The Natural Resource Conservation Service (NRCS) is an agency of the U.S. Department of Agriculture that is responsible for assisting landowners to improve our soil, water, air, plants, wildlife and energy use. Insuring productive lands in harmony with a healthy environment is the vision of NRCS. Establishing elderberries on private land and managing elderberries for aesthetic benefit, wildlife benefit and production benefit, or a combination of all three uses is consistent with NRCS goals and vision.By Larry D. Godsey (Economist, University of Missouri Center for Agroforestry)Includes bibliographical reference

Managing your timber sale tax (2005)

An important part of managing your timber is managing your timber sale tax. The question is not whether the sale of your standing timber is taxable, but rather will the Internal Revenue Service (IRS) view the sale as ordinary income, or will you be able to report the income as a long-term capital gain? There are several good reasons to make sure that the sale of your timber qualifies as a capital gain. First, the income from your sale will be taxed at a lower rate. Second, there is no limit on using your capital losses to offset your capital gains. However, capital losses can only be used to offset $3,000 of ordinary income per year. Lastly, if you treat growing your timber as a business, then the capital gain from selling the timber is exempt from the 15.3 percent self-employment tax.New 10/05/5M

Using the Porter Model to analyze the U.S. elderberry industry

Paper presented at the 12th North American Agroforesty Conference, which was held June 4-9, 2011 in Athens, Georgia.In Ashton, S. F., S.W. Workman, W.G. Hubbard and D.J. Moorhead, eds. Agroforestry: A Profitable Land Use. Proceedings, 12th North American Agroforestry Conference, Athens, GA, June 4-9, 2011.Elderberry, a perennial shrub native to North America with a variety of uses and benefits, is neither well known nor widely utilized as a specialty crop in the U.S. Up-to-date information is lacking with regard to the elderberry market or market potential. This research identifies the market participants along the value chain, the current status of the industry, direction, and future trends, elderberry market limitations as well as risks and potential opportunities for elderberry producers and processors. A combination of quantitative (mail survey) and qualitative (phone interview) methods have been used. The theoretical model used for the survey and interview development and analysis is based on the Porter Five Forces Model (PFFM) which describes the competitive forces that coordinate and control the market. The PFFM has been used previously to shed light on the chestnut and shiitake mushroom specialty crop markets. Seventy-four mail survey responses and 20 follow up phone interviews provided information on the market participants, challenges, opportunities and competitive forces in the elderberry industry. Results show a nascent industry with mostly small scale participants poised for growth. Demand trends are favorable and prices are good across the value chain. Challenges include a limited domestic supply of fruit, few regionally adapted varieties suitable for commercial production, and high labor costs. Additionally, the absence of existing mechanical harvesting equipment limits future production potential and industry growth. Respondents identified low levels of competition within the industry at the present time. Based on identified market size and demand, opportunities exist to increase the domestic elderberry industry across the value chain.Mihaela M. Cernusca, Michael A. Gold and Larry D. Godsey ; The Center for Agroforestry, University of Missouri.Includes bibliographical references

Comparison of bare root and RPM seedling production technologies : implications for agroforestry

Paper presented at the 12th North American Agroforesty Conference, which was held June 4-9, 2011 in Athens, Georgia.In Ashton, S. F., S.W. Workman, W.G. Hubbard and D.J. Moorhead, eds. Agroforestry: A Profitable Land Use. Proceedings, 12th North American Agroforestry Conference, Athens, GA, June 4-9, 2011.'Root Production Method' (RPM) technology significantly increases the development of root systems in containerized seedlings. As an alternative to bare root seedlings, RPM seedlings have been promoted as a method to increase growth and survivability of hardwood trees. However, few scientific studies have been conducted that would support these claims. Three oak species (Quercus spp.) were the focus of this study. Seed was collected from a single mother tree of black oak (Quercus velutina, Lam.), white oak (Quercus alba Linn.), and swamp white oak (Quercus bicolor Willd.). Half of the seed from each mother tree was used to produce RPM, the other half bare root stock, (i.e. half siblings) which were planted in the fall (RPM) of 1996 or spring (bare root) of 1997 at the Horticulture and Agroforestry Research Center, New Franklin, MO. After 14 years in the field, bare root and RPM trees were harvested for each species and total above ground weight was recorded. Statistical analysis of the data was conducted using least-square means and a method of orthogonal contrasts to determine if significant differences existed between the biomass of bare root and RPM trees. Results showed that the RPM trees had up to twice as much above-ground biomass weight as the bare root trees of the same age. Implications of this study suggest that RPM trees could be used in agroforestry practices as a way of increasing carbon sequestration and biomass production. In addition, the significant increase in growth that was observed should serve to enhance interest in adopting agroforestry practices.Larry D. Godsey (1), John P. Dwyer (2), W. Dusty Walter (1) and Harold 'Gene' Garrett (1) ; 1. University of Missouri Center for Agroforestry, Columbia, MO. 2. Department of Forestry, School of Natural Resources, University of Missouri-Columbia,Columbia, MO.Includes bibliographical references

Growing and Marketing Elderberries in Missouri (2012)

The American elderberry (Sambucus canadensis, also known as Sambucus nigra subsp. canadensis) is native to much of eastern and midwestern North America. The plant is a medium to large multiple-stemmed shrub, bush or small tree. Elderberry is commonly found growing in a range of habitats throughout Missouri, but it prefers moist, well-drained, sunny sites and is often found along roadside ditches and streams.By Patrick L. Byers, Andrew L. Thomas, Mihaela M. Cernusca, Larry D. Godsey and Michael A. Gold (University of Missouri)Includes bibliographical reference