Stumpage is the value assigned to standing timber by the landowner. In BC the timber valuation process has a long history of determining timber value based on industrial approaches to forestry, that is extensive road building and clearcutting. This approach strongly rewards, and in fact promotes, these timber-oriented activities. Forest techniques that provide for greater protection to other forest values, such as partial cutting, long skidding and extensive public consultation, do not receive adequate cost allowances.
Because of our gentle approach to forestry we have been subject to high stumpage rates on some of our initial cutting permits. It has resulted in significant financial hardship as we attempt to start our company. This initial blow has restricted us in our management flexibility and called into question our financial viability. We are now slowly recovering with newer permits at more reasonable stumpage rates.
The issue of stumpage determination is the subject of considerable debate since it is at the heart of the US/Canada softwood lumber dispute. Whatever the outcome, we need recognition of the higher costs of practicing more sophisticated forestry. It makes no sense to require timber harvesting in highly sensitive areas without providing the tools necessary to do a good job.