Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, March 15, 1990                   TAG: 9003152344
SECTION: VIRGINIA                    PAGE: B4   EDITION: STATE 
SOURCE: EDWARDS BUSINESS WRITER
DATELINE:                                 LENGTH: Medium

JEFFERSON FOREST LOST MONEY ON '89 LOGGING

The below-cost sale of national forest timber has been a major source of debate between the U.S. Forest Service and its critics.

Nationally, the Forest Service reported it made $741.8 million on timber sales during the 12 months ending Sept. 30. Of 122 forests that sell timber, 56 returned more money to the treasury than they spent.

As a whole, the Forest Service's southern region, of which the Jefferson is a part, also reported earning more money than it spent. Nine of 14 forests in the South had positive earnings. The Jefferson and the George Washington in Virginia were among the five losers.

The Jefferson reported spending $1.5 million in 1989 to harvest timber, but got only $612,500 in return. A spokesman says the sales figures do not tell the whole story.

"If you just look at the timber payments made to the U.S. Treasury, we only returned 40 cents for every dollar we spent on our timber program," Jefferson spokesman Terry Seyden said. "But if you look at the added economic benefits to nearby local communities, then we were able to generate over $3 of additional local income for every taxpayer dollar spent."

The Jefferson's timber sales provided 217 local jobs and more than $4 million in private income for communities near the forest, Seyden said. In addition, the Jefferson paid $124,250 from its timber proceeds to Virginia counties in lieu of property taxes, he said.

George Washington National Forest, based in Harrisonburg, is one of 12 national forests included in a proposed five-year pilot program aimed at eliminating below-costs sales. The program is included in President Bush's 1991 budget.

Although Congress may take some forests out of the Bush proposal, the George Washington will probably be left in, said Ellen Layman, an aide to Rep. Jim Olin, D-Roanoke. Layman said Olin had talked to Forest Service chief Dale Robertson about allowing break-even logging there.

The George Washington reported a loss of $1.1 million last year on its timber sales program, not counting $206,000 paid to Virginia counties from its timber sales revenue.

The Jefferson is using its timber sales report to find ways to cut costs and increase timber revenues from the forest, Seyden said.

Seyden pointed out that Congress requires the Forest Service to manage the forests for uses other than timbering, such as recreation and wildlife habitat, increasing costs and reducing timber revenues.

John Cone of Roanoke, president of the Citizens Task Force on National Forest Management, said the Forest Service is hurting private landowners by artificially holding down the price of timber.

Because private owners are not getting enough for their timber, they cannot afford to properly manage their timberlands, Cone said. Timber will not be replanted as a result, and timber resources will suffer in the long run, he said.

Cone says the Forest Service should eliminate below-cost sales and emphasize the recreational opportunities the forest provides. "People who come to Virginia don't want to look at stumps," he said.

But Stephen Bennett, an Alleghany County logger, has warned that environmental abuses could result if the Forest Service quits selling timber and private landowners are forced to take up the slack.

Cone and Jefferson Supervisor Chip Cartright will discuss the issue of below-cost timber sales at a March 22 forum at Virginia Tech's forestry school.