State Cost-Share Programs for Forest Landowners in the Southern United States: A Review

Abstract

Abstract The largest concentration of state-level forest cost-share programs in the United States can be found in the southern states. Since the inception of the first programs in the 1970s, the state-level forest cost-share programs in the US South have acted as models for the rest of the country. Cost-share programs compensate landowners through direct reimbursements to address barriers such as limited owner capital and cash flow in the initial years of investment. Through a review of the literature and progress reports from southern state forestry agencies, we qualitatively assessed state-level cost-share programs and their status in the southern states. We identified the common themes in the literature related to cost-share programs: market, nonmarket, and landowners’ perceptions and knowledge. Many of the programs enacted between the 1970s and 1980s aimed to ensure a sustainable timber supply, a market good, from private forestlands. A few of the programs enacted more recently compensate landowners for nonmarket benefits such as forest health or soil and water conservation. Two of the nine available programs are practically inactive in recent years because of a lack of funding. We discuss current prospects regarding funding, partnerships, and broadening the focus of incentives to cover forest-based ecosystem services. Study Implications Regionally, cost-share programs in the US South differ in eligibility criteria, funding source and status, and resource management objectives. The majority of state-level cost-share programs in the US South were enacted 30 to 50 years ago. The first cost-share programs were designed to support a continued timber supply from private forestlands, but a few recent programs have expanded their objectives to protect forest health and soil and water quality. Forest-based ecosystem service markets, specifically reforestation to capture atmospheric carbon dioxide and provide clean air and water, have become more prevalent in recent years. Funding for forest commodity incentive programs is a continual challenge. New funding sources and new programs are crucial to meet demands for incentives for landowners to provide both timber and ecosystem services outputs.