Order Code RL33917
Forestry in the 2008 Farm Bill
Updated June 23, 2008
Ross W. Gorte
Specialist in Natural Resources Policy
Resources, Science, and Industry Division

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Forestry in the 2008 Farm Bill
Summary
The Food, Conservation, and Energy Act of 2008 (the 2008 farm bill) became
law (P.L. 110-246) when the House and Senate voted to override President Bush’s
veto on June 18, 2008. The conference agreement on the bill (H.R. 2419) had been
enacted, vetoed by the President, and overridden (P.L. 110-234), but inadvertently
excluded the trade title. Both chambers repassed the conference agreement (with the
trade title) as H.R. 6124; it was again vetoed and again overridden as P.L. 110-246.
The 2008 farm bill contains a forestry title and forestry provisions in other titles.
General forestry legislation is within the jurisdiction of the Agriculture Committees,
and past farm bills have included provisions addressing forestry, especially on private
lands. Most federal forestry programs are permanently authorized, and thus do not
require reauthorization in the farm bill.
The forestry title (Title VIII) of the 2008 farm bill amends the Cooperative
Forestry Assistance Act of 1978 (P.L. 95-313; 16 U.S.C. §§ 2101-2114) in several
ways. It adds national priorities for forestry assistance, requires statewide forest
assessments, creates a new community forest and open space conservation program
(to protect forests threatened with conversion to non-forest uses), establishes a new
Coordinating Committee, adds an Emergency Forest Restoration Program, and
authorizes competitive allocation for some forestry assistance funding. The title also
directs cooperation and collaboration with Indian tribes, amends the Lacey Act to
restrict imports of illegally logged wood products, authorizes changes to certain
national forest timber contracts, and provides grants to Hispanic-serving institutions.
In addition, it reauthorizes and extends four existing programs.
Other titles also contain provisions affecting forestry. The conservation title
(Title II) modifies most programs to include forestry activities and directs the
creation of infrastructure for environmental services markets (including carbon
markets). The trade title (Title III) includes a section that requires lumber importers
to report on imports and fees paid, to assure implementation of the 2006 U.S.-Canada
Softwood Lumber Agreement. The energy title (Title IX) includes woody biomass
in many programs. Finally, the tax title (Title XV) includes provisions to authorize
new tax-exempt forest conservation bonds, to modify income deductions for
qualified timber income, and to modernize and clarify the tax treatment of timber real
estate investment trusts (REITs).
Other forestry provisions were suggested by various interests, and might be
considered in the next farm bill. Funding is one issue, as half the mandatory
spending for the Forest Land Enhancement Program (FLEP) was cancelled and the
program was not reauthorized. Protecting communities from wildfire continues to
be a priority for some, while controlling invasive species is a priority for others.
Assisting forest-dependent communities in diversifying their economies has also
been debated. Finally, some have expressed interest in trying to provide payments
for ecosystem services — forest values that have not traditionally been sold in the
marketplace.

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Contents
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
The 2008 Forestry Title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Provisions Amending the CFAA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
National Priorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Statewide Assessments and Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Community Forest and Open Space Conservation Program . . . . . . . . . 3
Forest Resource Coordinating Committee . . . . . . . . . . . . . . . . . . . . . . . 4
Competitive Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Emergency Reforestation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Other Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Tribal-Forest Service Cooperative Relations . . . . . . . . . . . . . . . . . . . . . 4
Reauthorizations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Illegal Logging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
National Forest Modifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
National Forest Timber Contract Options . . . . . . . . . . . . . . . . . . . . . . . 5
Hispanic-Serving Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Forestry in Other Titles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Conservation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Softwood Lumber Imports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Woody Biomass Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Timber Tax Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Possible Forestry Issues for a Future Farm Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Forestry Assistance Funding . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Wildfire Protection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
Invasive Species . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Economic Diversity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
Markets for Ecosystem Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Appendix A:House, Senate, and Enacted Forestry Provisions of the
2008 Farm Bill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Agricultural Trade and Aid . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Forestry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Cooperative Forestry Programs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Other Forestry Provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13

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Forestry in the 2008 Farm Bill
Federal forestry has historically been associated with agriculture, and with
agriculture legislation. Forestry programs have been addressed in past farm bills and
other agriculture legislation. This report provides brief background on the House and
Senate Agriculture Committees’ jurisdiction over forestry, with examples of bills
addressed by the committees. It then presents information on the forestry provisions
in the 2008 farm bill, the Food, Conservation, and Energy Act of 2008 (P.L. 110-
246), organized by provisions in the forestry title and other provisions.1 It concludes
with some forestry issues that were debated and that might be discussed in the next
farm bill. The Appendix includes a side-by-side description of the House, Senate,
and enacted provisions.
Background
Both the House and Senate Committees on Agriculture have jurisdiction over
“forestry in general” and acquired national forests.2 Thus, the committees have been
able to exert considerable influence over federal forestry activities over the years.
For example, the Forest and Rangelands Renewable Resources Planning Act of 1974
(RPA, P.L. 93-378; 16 U.S.C. §§ 1600-1614) and the National Forest Management
Act of 1976 (NFMA; P.L. 94-588), which guide Forest Service (USFS) planning and
management, were both initially referred to the Agriculture Committees. More
recently, the Healthy Forests Restoration Act of 2003 (P.L. 108-148; 16 U.S.C. §§
6501-6591) was referred to and reported by the Agriculture Committees.
In addition to forestry on federal lands, the Agriculture Committees have
jurisdiction over forestry research and forestry assistance to states and to private
landowners.3 Forestry research is governed largely by the Forest and Rangeland
Renewable Resources Research Act of 1978 (P.L. 95-307; 16 U.S.C. §§ 1641-1647),
which revised and updated the McSweeney-McNary Act of 1928. Forestry assistance
1 The conference agreement on the 2008 farm bill was originally approved by the House and
the Senate as H.R. 2419 and vetoed by the President in May 2008. Both chambers overrode
the veto, making the bill law (P.L. 110-234). However, the trade title was inadvertently
excluded from the enrolled bill. To remedy the situation, both chambers repassed the farm
bill conference agreement (including the trade title) as H.R. 6124. The President vetoed the
measure on June 18, 1008, and both chambers again overrode the veto, which made H.R.
6124 law as P.L. 110-246, and superseded P.L. 110-234.
2 Jurisdiction over national forests established from the public domain lies with the House
Natural Resources Committee and the Senate Energy and Natural Resources Committee.
See each Committee’s website for details on its jurisdiction.
3 These three programs — forest management, forestry research, and forestry assistance —
have traditionally been the three principal branches of the USDA Forest Service.

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is governed largely by the Cooperative Forestry Assistance Act of 1978 (CFAA; P.L.
95-313; 16 U.S.C. §§ 2101-2111), which revised and updated the Clarke-McNary
Act of 1924. Both laws were referred to and reported by the Agriculture Committees.
Recent farm bills have also included forestry provisions, primarily addressing
the forestry assistance programs. The 1990 farm bill (the Food, Agriculture,
Conservation, and Trade Act of 1990, P.L. 101-624) contained a separate forestry
title that:
! created four new forestry assistance programs;
! revised two existing forestry assistance programs;
! amended two forestry assistance programs;
! revised the administrative provisions for forestry assistance;
! created five special forestry research programs;
! amended three existing forestry research programs;
! authorized a private, non-profit tree planting foundation; and
! created a new USFS branch: international forestry.
The 1996 farm bill (the Federal Agriculture Improvement and Reform Act of
1996, P.L. 104-127) included only a few forestry provisions, extending the
authorization for the one expiring assistance program and adding a new funding
option within an existing program.
The 2002 farm bill (the Farm Security and Rural Investment Act of 2002, P.L.
107-171) contained a separate forestry title. The conference could not resolve many
of the differences between the House and Senate forestry provisions, and thus the
conference report contained fewer provisions than either. (Some of the disputed
provisions were enacted subsequently in the Healthy Forests Restoration Act.)
The 2008 Forestry Title
Numerous programs were created, modified, and/or extended in the forestry title
of the 2008 farm bill (Title VIII). The various provisions can be sorted into two
groups: provisions amending the Cooperative Forestry Assistance Act (CFAA), and
other provisions.
Provisions Amending the CFAA
The CFAA provides various types of forestry assistance to states and private
landowners.4 The 2008 farm bill modifies several of the provisions, adding new
requirements, authorizing new programs and spending, and otherwise modifying
forestry assistance programs.
One significant aspect of the 2008 farm bill is the lack of a private forest
landowner assistance program, which the Administration had proposed to terminate.
4 For more information on these programs, see CRS Report RL31065, Forestry Assistance
Programs, by Ross W. Gorte.

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The Forest Land Enhancement Program (FLEP) was created in the 2002 farm bill.
It was not reauthorized, and thus has expired. FLEP funding ended earlier; funds
were borrowed for wildfire suppression, a small portion was repaid, and other funds
cancelled. In the end, only about half of the $100 million of mandatory spending
enacted in 2002 was actually spent on the program. This marks the first time since
the CFAA was enacted in 1978 that no such forest landowner financial aid program
is authorized.
National Priorities. The 2008 farm bill (§ 8001) establishes a new set of
national priorities for federal assistance for private forest conservation. It adds a new
subsection to § 2 of the CFAA:
(c) PRIORITIES. — In allocating funds appropriated or otherwise made available
under this Act, the Secretary shall focus on the following national private forest
conservation priorities, notwithstanding other priorities specified elsewhere in
this Act:
(1) Conserving and managing working forest landscapes for multiple values
and uses.
(2) Protecting forests from threats, including catastrophic wildfires,
hurricanes, tornados, windstorms, snow or ice storms, flooding, drought, invasive
species, insect or disease outbreak, or development, and restoring appropriate
forest types in response to such threats.
(3) Enhancing public benefits from private forests, including air and water
quality, soil conservation, biological diversity, carbon storage, forest products,
forestry-related jobs, production of renewable energy, wildlife, wildlife corridors
and wildlife habitat, and recreation.
Thus, the 2008 farm bill requires that forestry assistance aim to conserve
working forests, protect and restore forests, and enhance public benefits from private
forests.
Statewide Assessments and Strategies. The 2008 farm bill (§ 8002)
requires each state to conduct a statewide assessment of forest resource conditions,
trends, threats, and priorities to receive federal forestry assistance funds. Each state
also must prepare a strategy for addressing the identified threats, and describe the
resources needed to address those threats. The states are to prepare the initial
assessment and strategy, with updates as needed, and to coordinate with specified
agencies and groups. The Secretary may use up to $10 million annually for FY2008-
FY2012 of appropriated forestry assistance planning funds to assist states with their
assessments and strategies.
Community Forest and Open Space Conservation Program. The
farm bill (§ 8003) amends the CFAA to establish a Community Forest and Open
Space Conservation Program. The program provides grants to local governments,
Indian tribes, or nonprofit organizations to acquire lands threatened by conversion to
non-forest uses and that provide economic, environmental, educational, and
recreational benefits and serve as models of sustainable forest stewardship for other
landowners. The grants may be up to 50% of the acquisition cost, with the
authorization for “such sums as are necessary.” This program is similar to the Forest
Legacy Program, which authorizes the federal acquisition, or grants to states for their

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acquisition, of lands or easements on lands threatened by conversion to non-forest
uses.
Forest Resource Coordinating Committee. The bill (§ 8005) replaces
the existing USDA Coordinating Committee with a new Forest Resource
Coordinating Committee, composed of the heads of four USDA agencies (and
chaired by the Chief of the Forest Service) and representatives of state agencies,
academia, and interest groups. The Committee is to provide coordination and
direction to the USDA agencies and to coordinate with state agencies, focused on
achieving the national priorities identified above.
Competitive Funding. The 2008 farm bill (§ 8007) requires the Secretary
to allocate a portion of funds available under the CFAA on a competitive basis. The
portion to be competitively allocated is “to be determined by the Secretary,” in
consultation with the Forest Resource Coordinating Committee.
The bill (§ 8008) also allows the Secretary to competitively allocate up to 5%
of cooperative assistance funding for “innovative national, regional, or local
education, outreach, or technology transfer projects” that contribute substantially to
achieving the national priorities. These projects require a 50% matching
contribution.
Emergency Reforestation. The farm bill (§ 8203) adds an Emergency
Forest Restoration Program to the existing Emergency Conservation Program under
Title IV of the Agricultural Credit Act of 1978 (P.L. 95-334; 16 U.S.C. §§ 2201-
2205).5 The original program focused on emergency protection and rehabilitation of
wind- or water-eroded agricultural lands. The expanded program provides up to 75%
of the costs (up to $50,000 annually) for landowners to rehabilitate or restore forest
lands damaged by storms, fires, drought, invasive species, or insects or diseases.
Other Provisions
Tribal-Forest Service Cooperative Relations. Subtitle B (§§ 8101-8107)
addresses authorities for cultural and heritage cooperation. One section authorizes
the use of national forest lands, with federal assistance for reburial of human remains
and cultural items. Another section authorizes temporary closures of national forest
lands historically used by Indians to assure access for traditional and cultural uses.
A third section authorizes free use of trees and forest products for traditional and
cultural (but not commercial) purposes. The final substantive section generally
prohibits disclosure of information on reburials as well as information on tribal
resources, cultural items, uses, or activities.
Reauthorizations. The 2008 farm bill reauthorizes and/or extends several
programs through 2012:
5 The CFAA contains a permanently authorized Emergency Reforestation program (16
U.S.C. § 2106a) that has not been funded since FY1993.

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! § 8201, the Rural Revitalization Technologies Program, under §
2371(d)(2) of the Food, Agriculture, Conservation, and Trade Act of
1990 (the 1990 farm bill; 7 U.S.C. § 6601(d)(2));
! § 8202, the Office of International Forestry, under § 2405(d) of the
Global Climate Change Prevention Act of 1990 (Title XXIV of the
1990 farm bill; 7 U.S.C. § 6704(d)); and
! § 7413, the Renewable Resources Extension Act of 1978 (P.L. 95-
306; 16 U.S.C. §§ 1671-1676).6
The bill (§ 8205) also extends and modifies funding for the Healthy Forest
Reserves. These reserves were authorized through 2008 in the Healthy Forests
Restoration Act of 2003 (P.L. 108-148; 16 U.S.C. §§ 6571-6578). The extension
requires the Secretary to provide $10 million annually for the program from the
Commodity Credit Corporation for FY2008-FY2012.
Illegal Logging. The farm bill (§ 8204) amends the Lacey Act Amendments
of 1981 (P.L. 97-79; 16 U.S.C. §§ 3371-3378) to expand the restrictions on and
penalties for importing wild plants or plant parts (e.g., logs and lumber) removed in
violation of domestic or foreign laws.7 It excludes crops, cultivars, and plants and
plant parts (e.g., seeds, roots, and cuttings) intended for planting in the United States.
It also expands and clarifies for plants the definition of taken or possessed illegally,
and establishes a process for legal plant imports.
National Forest Modifications. The bill includes provisions affecting
national forest lands:
! §§ 8301 and 8303, modifying the boundary of the Green Mountain
National Forest (VT), and authorizing the sale or exchange of
specific lands to the Bromley Mountain Ski Resort, with specific
directions on using any proceeds generated by the sale or exchange;
! § 8302(a)-(e), directing the conveyance, without consideration, of
certain USDA lands in New Mexico to the Chihuahuan Desert
Nature Park; and
! § 8302(f), directing the conveyance, without consideration, of
certain lands in the George Washington National Forest (VA) to the
Central Advent Christian Church of Alleghany County.
National Forest Timber Contract Options. The farm bill (§ 8401) allows
purchasers of non-salvage Forest Service timber sale contracts awarded between July
1, 2004, and December 31, 2006, to request a modification to their contracts. The
options available are to cancel a portion of the contract, to have the payment rate
recalculated (called a rate redetermination), or to substitute an approved Producer
Price Index for the index specified in the contract. The Secretary may agree to the
contract modification if the several specified terms and limitations are met.
6 This was included in the forestry title of the Senate-passed bill (§ 8201), but was in the
research and related matters title (Title VII) in the House version and the enacted law.
7 See CRS Report RL33932, Illegal Logging: Background and Issues, by Pervaze A. Sheikh.

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Hispanic-Serving Institutions. The 2008 farm bill (§ 8402) authorizes a
program of competitive grants for undergraduate scholarships to recruit, retain, and
train Hispanics and other under-represented groups in forestry and related fields. The
program is authorized through 2012 at “such sums as may be necessary.”
Forestry in Other Titles
Forestry practices and woody biomass are addressed elsewhere in the 2008 farm
bill, as well. Many conservation programs include forestry practices that qualify as
conservation activities for cost-share assistance purposes. Also, many of the existing
and proposed bioenergy programs include woody biomass as a possible feedstock.
Programs that include forest-related activities, but are not focused primarily on these
activities, are not included in this report; two specific woody fuel energy programs
in the 2008 farm bill are described below. The provisions addressing softwood
lumber imports from Canada and taxation of forests and forestland owners are also
discussed briefly.
Conservation. The conservation title of the 2008 farm bill (Title II) modifies
numerous agricultural conservation programs to include forestry practices on
nonindustrial private forest lands as approved activities for the program.8 Forestry
practices and nonindustrial private forest lands are now accepted for the Conservation
Stewardship Program (Subtitle D), Farmland Protection and Grassland Reserve
(Subtitle E), Environmental Quality Incentives Program (Subtitle F), and other
conservation programs (Subtitle G).
In addition, § 2709 adds a new § 1245 to the 1985 farm bill (the Food Security
Act of 1985, P.L. 99-198) addressing environmental services markets.9 The section
requires technical guidelines to facilitate the development of environmental services
markets, with priority on carbon markets. It directs that the guidelines establish
procedures to measure benefits, protocols to report benefits, and a registry to track
benefits. It also specifies that the guidelines provide for verification of the benefits,
including possibly by independent third parties. While not establishing markets for
environmental or ecosystem services (discussed below), the guidelines would likely
create the infrastructure to allow such markets to develop.
Softwood Lumber Imports. Imports of softwood lumber from Canada have
been of concern to U.S. lumber producers for many years.10 A 2006 Softwood
Lumber Agreement provided a temporary respite from the dispute, but some U.S.
producers have asserted that the Canadian producers are not paying the export fees
required by the agreement. A provision (§ 3301) in the agricultural trade and aid title
8 See CRS Report RL32940, Agriculture Conservation Programs: A Scorecard, by Tadlock
Cowan and Renée Johnson.
9 See CRS Report RL34042, Environmental Services Markets: Farm Bill Proposals, by
Renée Johnson.
10 See CRS Report RL33752, Softwood Lumber Imports From Canada: Issues and Events,
by Ross W. Gorte and Jeanne J. Grimmett.

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of the 2008 farm bill (Title III) adds a new Title VIII (Softwood Lumber) to the Tariff
Act of 1930 (19 U.S.C. §§ 1202 et seq.). The provision requires softwood lumber
importers to declare imports and fees paid, allowing the federal government to verify
and reconcile data on softwood lumber imports and to assure implementation of the
Agreement.
Woody Biomass Energy. The energy title of the 2008 farm bill (Title IX)
includes two provisions to expand the use of woody biomass in energy production.11
Both provisions are in § 9001, which revises the energy title of the 2002 farm bill
(also Title IX). The first provision (§ 9012) creates a competitive research-and-
development grant program for using woody biomass, with priorities for low-value
biomass, processes integrated with biorefineries, wood-derived transportation fuels,
and improved yield from energy plantations. Funding is authorized at $5 million
annually for FY2008-FY2012.
The other provision (§ 9013) creates a new Community Wood Energy Program.
This is a grant program for state and local governments to develop a community
wood energy plan and acquire wood energy systems for public buildings. Project
priorities are to be determined considering energy efficiency and appropriate
conservation and environmental criteria. The state or local government monies are
required to match the federal grant. Funding is authorized at $5 million annually for
FY2008-FY2012.
Timber Tax Provisions. The tax and trade provisions of the 2008 farm bill
(Title XV) include provisions affecting forests and forest landowners. The first
(§15316) authorizes, in limited amounts, tax-exempt private activity bonds whose
proceeds are to be used to finance private forest conservation efforts. This would
allow, for example, a non-profit organization to use tax-exempt bonds to acquire
private timberlands that were threatened with conversion to non-forest uses, such as
residential developments.
Another provision (§ 15311) adds a new § 1203 to the Internal Revenue Code
to permit taxpayers to elect to deduct up to 60% of any timber gains from taxable
income. The remaining 40% would be taxed at ordinary-income rates.
Finally, several provisions (§§ 15312-15315) alter and clarify the tax treatment
of timber real estate investment trusts (REITs). In recent years, most wood products
companies that own timberlands have separated the timberlands from wood
processing (and other) operations, with the timberlands administered under a REIT
because of more favorable tax treatment for REIT timber income than for wood
processing company timber income. The provisions in the 2008 farm bill are to
clarify, update, and make minor modifications to timber REIT taxation.
11 See CRS Report RL32712, Agriculture-Based Renewable Energy Production, by Randy
Schnepf.

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Possible Forestry Issues for a Future Farm Bill
Reauthorization of the many agriculture programs is a prime reason for the
periodic farm bills, but most forestry programs are permanently authorized. This
may reduce the pressure to include a forestry title in upcoming farm bills.
Nonetheless, interest groups have raised various forestry issues other than the
authorization levels for possible discussion within a future farm bill, such as forestry
assistance funding, wildfire protection, invasive species, economic diversity, and
markets for ecosystem services that have not traditionally been marketed.
Forestry Assistance Funding. Federal funding for forestry assistance
programs has generally been rising, but the increase has not been spread equally
among the various programs. Since the severe 2000 fire season and the development
of the National Fire Plan, funding for cooperative fire programs (assistance to states
and volunteer fire departments) has risen substantially (more than triple pre-2000
funding), and has remained at very high levels. Funding for Forest Legacy
(acquisition of lands or easements on lands threatened with conversion to non-forest
uses) has also risen substantially, from less than $4 million in FY1998 to $50 million
or more annually since FY2001 (and a request of $100 million for FY2005). In
contrast, the Administration has proposed terminating funding for the Economic
Action Program (economic assistance to rural, forest-dependent communities), and
funding has fallen from a peak of $54 million in FY2001 to less than $5 million in
FY2008 (with no funds in FY2007).
The adequacy of funding for private landowner assistance programs has been
a concern for many. These programs have provided cost-shares to qualified
landowners for various forestry practices that increase tree growth, improve wildlife
habitat, protect watersheds (thus improving water quality), and more. One of the
changes enacted in the 2002 farm bill was to replace two programs — the Forestry
Incentives Program (FIP) and the Stewardship Incentives Program (SIP) — with the
Forest Land Enhancement Program (FLEP). Because funding for FIP and SIP had
been discretionary and either stagnant (FIP) or absent (SIP), FLEP was given
mandatory funding through the Commodity Credit Corporation of $100 million total
through the end of FY2007. However, some FLEP funds were borrowed to pay for
firefighting and other funding was cancelled; in total, about half of the $100 million
“guaranteed” for FLEP was actually spent on landowner assistance.
Even the existence of landowner cost-share assistance is in doubt. Forestry is
included in many conservation programs that provide financial assistance to private
landowners, but FLEP was not reauthorized in the 2008 farm bill. For the first time
since 1978, no forestry-specific landowner assistance program is authorized. Some
question whether a modest forestry-specific assistance program is needed, since a
small share of the much larger conservation programs might provide more forestry
assistance funding. Nonetheless, Congress may revisit the issue of separate funding
for forest landowner assistance programs.
Wildfire Protection. The threat of wildfire damages to resources and
property seems to have increased in recent years. Attention has focused on high
biomass fuel levels (particularly in federal forests) and on homes in or near at-risk

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forests, an area known as the wildland-urban interface (WUI).12 The 2002 farm bill
(§ 8003) created a new Community and Private Land Fire Assistance Program to
assist communities and private landowners in planning and other activities to protect
themselves from wildfires. The program was authorized at $35 million annually
through FY2007 and “such sums as are necessary ... thereafter.” The USFS has
included such expenditures as authorized activities in its State Fire Assistance
Program. However, Congress has not appropriated funds explicitly for this program.
Protecting private lands and structures from wildfires continues to garner
congressional attention, as the threat of wildfire persists. How to assist private
landowners and communities, how to combine this assistance with other assistance
and incentive programs, and how to fund such assistance could be debated in the
farm bill context.
Invasive Species. Invasive species — non-native plants and animals that are
displacing native ones — are becoming recognized as a substantial problem.13 In a
speech to the Idaho Environmental Forum on January 16, 2004, then-USFS Chief
Dale Bosworth identified invasive species as one of the four major threats to the
nation’s forests and rangelands.14 The USFS’s Forest Health Management Program
has evolved from a mechanism to survey and control insects and diseases, to a
program to address all forest pests, including invasive species. Several times, the
Bush Administration proposed an Emerging Pests and Pathogens Fund to address
rapidly developing problems of invasive species, but the Appropriations Committees
rejected the request both years. In its deliberations over a future farm bill, Congress
could address the structure and financing of programs to prevent and control invasive
species on federal, state, and private forests.
Economic Diversity. The economies of many rural communities have
evolved around the use — finding, extracting, processing, and selling — of natural
resources. In some of these areas, one resource (e.g., timber, minerals, livestock) has
traditionally dominated the local economy, but the economies of such areas can be
devastated when that resource is depleted or when its markets are depressed
(permanently or even temporarily). Many communities have sought approaches to
diversifying their economies, to mitigate the economic and social disruption that can
occur when a dominant economic sector is depressed. The National Forest-
Dependent Rural Communities Economic Diversification Act of 1990 was enacted
in §§ 2372-2379 of the 1990 farm bill to authorize forestry and economic
diversification technical assistance to “economically disadvantaged” rural
communities. Under the title Economic Action Program, funding rose from $14
million in FY1996 to $54 million in FY2001, but has declined since, and President
12 See CRS Report RS21880, Wildfire Protection in the Wildland-Urban Interface, and CRS
Report RL34517, Wildfire Damages to Homes and Resources: Understanding Causes and
Reducing Losses, both by Ross W. Gorte.
13 See CRS Report RL30123, Invasive Non-Native Species: Background and Issues for
Congress, by M. Lynne Corn, Alejandro E. Segarro, Eric A. Fischer, Eugene H. Buck, and
Jean M. Rawson.
14 The other three identified threats are fire and fuels, unmanaged recreation, and loss of
open space. See [http://www.fs.fed.us/projects/four-threats].

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CRS-10
Bush has proposed terminating the program in several budget requests. In its future
farm bill deliberations, Congress might consider ways to perpetuate economic
assistance programs for traditional wood products-dependent communities, either as
a continued USFS program or as part of other USDA rural assistance programs.15
Markets for Ecosystem Services. Forests provide a broad array of
environmental services — clean air and water, wildlife habitats, pleasant scenery, and
more — for which private landowners are generally not compensated, because these
services are typically not bought and sold in a marketplace. A variety of interests
have examined the possibilities of finding ways to compensate landowners for
continuing to provide ecosystem services.16 One means would be to develop such
markets, and the 2008 farm bill included a provision (§ 2709, discussed above) that
could facilitate such a development. Alternatively, some proposals are for federal
“green payments” to directly reward farmers and other landowners who provide
environmental benefits through their land management practices. Green payments
for forest and other landowners’ ecosystem services might be discussed in Congress’s
deliberations in a future farm bill.
15 See CRS Report RL31837, An Overview of USDA Rural Development Programs, by
Tadlock Cowan.
16 American Forests, the Southern Environmental Law Center, and others held a workshop
to discuss landowner compensation for ecosystem services provided in Washington, DC, on
May 18-20, 2005.

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CRS-11
Appendix A:
House, Senate, and Enacted Forestry Provisions of the 2008 Farm Bill
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P.L. 110-246)
AMENDMENT (H.R. 2419)
Farm Security and Rural Investment Act
Farm, Nutrition, and Bioenergy Act of
Food and Energy Security Act of 2007 [§
Food, Conservation, and Energy Act of
of 2002 [7 U.S.C. § 7901 note]
2007 [§ 1]
1]
2008 [§ 1]
AGRICULTURAL TRADE AND AID (TITLE III)
U.S.-Canada Softwood Lumber Agreement
No comparable provision.
No comparable provision.
Sense of Senate that the President should
Amends the Tariff Act of 1930 to require
act to ensure that imports of softwood
a softwood lumber importer declaration
lumber from Canada are consistent with
program to verify and reconcile data on
the U.S.-Canada Softwood Lumber
softwood lumber imports, to assure im-
Agreement. [§ 11903]
plementation of U.S.-Canada Softwood
Lumber Agreement. [§ 3301]
FORESTRY (TITLE VIII)
Cooperative Forestry Programs
The Forest Land Enhancement Program
No reauthorization provision, allowing
No reauthorization provision, allowing
No reauthorization provision, allowing
provided financial aid for private forest
program to terminate.
program to terminate.
program to terminate.
practices (mandatory spending of $100
million for FY2002-07). Only about half
of $100 million was spent; the remainder
was borrowed for firefighting or can-
celled by Congress. [16 U.S.C. § 2103]
General authority is provided for under

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CRS-12
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P.L. 110-246)
AMENDMENT (H.R. 2419)
the Cooperative Forestry Assistance Act
of 1978 (CFAA, P.L. 95-313), as
amended, authorizes USDA to establish a
variety of cooperative programs to
protect and manage nonfederal forest
lands. [16 U.S.C. §§ 2101-2114]
No comparable CFAA provision.
Adds new priorities: (1) conserving
Similar to the House bill, but with subtle
Adopts House provision with minor
working forests, (2) protecting forests
differences in priorities for protecting and
changes. [§ 8001]
from natural threats and restoring forests,
restoring forests and for enhancing
and (3) enhancing public benefits from
benefits. [§ 8001]
private forests. [§ 8001]
No comparable CFAA provision.
No comparable provision.
Authorizes new cost-share grants for
Adopts Senate provision. [§ 8003]
local governments, tribes, and non-profits
to acquire lands threatened by conversion
to non-forest uses and provide public
benefits. [§ 8002]
No comparable CFAA provision.
Adds requirements for financial
Adds new requirements for financial
Adopts House provision with minor
assistance: state-wide forest assessment
assistance: statewide forest plan to
changes. [§ 8002]
of conditions, trends, threats, and
identify critical areas; address regional
priorities and strategies to address threats
needs; and plan for managing and moni-
and describe resources. [§ 8002]
toring forests, achieving national
priorities. [§ 8004]
§ 2109(d)(1) of the CFAA defines
Replaces “Trust Territory of the Pacific
Same as the House bill. [§ 8005]
Adopts House provision. [§ 8004]
“State” to include “Trust Territory of the
Islands” with “the Federated States of
Pacific Islands.” [16 U.S.C. § 2109]
Micronesia, the Republic of the Marshall
Islands, the Republic of Palau.” [§ 8003]

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CRS-13
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P.L. 110-246)
AMENDMENT (H.R. 2419)
Subsections of the CFAA provide for a
Replaces USDA Committee with new
Exempts projects proposed by Indian
Adopts House provision with minor
USDA Coordinating Committee, to
Forest Resource Coordinating Com-
tribes from State Coordinating Com-
changes. [§ 8005 & 8006]
coordinate among agencies, and for State
mittee, to coordinate among agencies,
mittee recommendations. [§ 8003]
Coordinating Committees, to coordinate
state agency representatives, and others.
with state foresters and other interested
[§ 8004] Modifies state committee
parties. [16 U.S.C. § 2113]
duties to include recommendations
concerning the new state-wide forest
assessment and strategies. [§ 8005]
No comparable CFAA provision.
Requires a Secretary-determined portion
No comparable provision.
Adopts House provision. [§ 8007]
of funds to be allocated competitively
among states. [§ 8006]
No comparable CFAA provision.
Authorizes up to 5% of funding for cost-
No comparable provision.
Adopts House provision. [§ 8008]
shared competitively-allocated innova-
tive education, outreach, or technology
transfer projects. [§ 8006]
CFAA permanently authorized an Emer-
Authorizes a new Emergency Reforesta-
Establishes new emergency landscape
Adopts House provision with changes —
gency Reforestation program. [16 U.S.C.
tion program as part of the Emergency
restoration program to rehabilitate
definitions of disaster; and authorization
§ 2106a] It has not been funded since
Conservation program (16 U.S.C. §§
croplands, grasslands, and private non-
of such sums as needed. [§ 8203]
FY1993.
2201-2204). [§ 8102]
industrial forests following natural
disasters. [§ 2398]
Other Forestry Provisions
No comparable provision.
No comparable provision.
Includes definitions and makes tribes
No comparable provision.
eligible for Forest Legacy funding [16
U.S.C. § 2103c] and forest management
assistance. [§§ 8101-8112]

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CRS-14
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P.L. 110-246)
AMENDMENT (H.R. 2419)
No comparable provision.
No comparable provision.
Authorizes Cultural and Heritage Co-
Adopts Senate provision. [§§ 8101-
operation, with purposes, definitions, and
8107]
prohibition on disclosing information,
and provides for reburial of human
remains and cultural items; for temporary
area closures for traditional and cultural
purposes; and for free use of forest
products for traditional and cultural
purposes. [§§ 8121-8127]
The Healthy Forests Restoration Act of
Extends program with $10 million from
Moves program into Food and Security
Adopts House provision with changes —
2003 (P.L. 108-148) authorized
the CCC annually through FY2012. [§
Act of 1985, authorizes such sums as
$9.75 million annually for FY2009 —
easements through FY2008 to protect
8101]
necessary, replaces 99-year easement
FY2012; permanent easements instead of
private forests for endangered species
option with permanent easement, and
99-year easements; and encouragement
and biodiversity. [16 U.S.C. § 6578]
encourages tribes to participate. [§ 2331]
for tribal participation. [§ 8205]
The Renewable Resources Extension Act
Extends the program through FY2012.
Extends the program through FY2012.
Extends the program through FY2012.
of 1978 (P.L. 95-306) authorized educa-
[§ 7507]
[§ 8201]
[§ 7413]
tional and technical aid via state exten-
sion agencies and eligible universities
and colleges. [16 U.S.C. §§ 1671-1676]
The Global Climate Change Prevention
Extends the program through FY2012.
Extends the program through FY2012.
Extends the program through FY2012.
Act of 1990 within the 1990 farm bill
[§ 8103]
[§ 8202]
[§ 8202]
authorized the Forest Service Office of
International Forestry through FY2007.
[7 U.S.C. § 6704(d)]
The 1990 farm bill, as amended,
Extends the program through FY2012.
No comparable provision.
Adopts House provision. [§ 8201]
authorized Rural Revitalization Through
[§ 8104]
Forestry via technology transfer, business

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CRS-15
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P.L. 110-246)
AMENDMENT (H.R. 2419)
assistance, and local training, through
FY2008. [7 U.S.C. § 6601(d)(2)]
No comparable provision.
Authorizes competitive forestry grants to
No comparable provision.
Adopts House provision. [§ 8402]
Hispanic-serving institutions to recruit,
retain, and train “Hispanics and other
under-represented groups.” [§ 8201]
No comparable provision.
No comparable provision.
Amends the Lacey Act Amendments of
Adopts Senate provision with changes —
1981 (P.L. 97-79; 16 §§ U.S.C. 3371-78)
definition of plant; exclusion of recycled
to expand restrictions on and penalties
materials; clarification of impact on
for importing wild plants/parts (e.g.,
exports; and regulations to further define
lumber, logs) removed in violation of
plant. [§ 8204]
U.S. or foreign laws. [§ 8204]
No comparable provision.
No comparable provision.
Expands boundary of Green Mountain
Adopts Senate provisions. [§ 8301 & §
National Forest (VT) to allow additional
8303]
land acquisition. Authorizes exchange/
sale of specific forest lands to Bromley
Mountain Ski Resort, with directions on
proceeds use. [§ 8203 & § 8205]
No comparable provision.
No comparable provision.
Authorizes certain land conveyance in
Adopts Senate provision, amended to
New Mexico. [§ 11075]
authorize a land conveyance in Virginia.
[§ 8302]
No comparable provision.
No comparable provision.
For non-salvage timber sale contracts
Adopts Senate provision with minor
awarded between 7/1/04 and 12/31/06,
changes. [§ 8401]
the purchasers may request that the
contract be cancelled, the contract
payment rate be redetermined, or a sub-

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CRS-16
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P.L. 110-246)
AMENDMENT (H.R. 2419)
stitute Producer Price Index be used.
USDA may agree to the contract
modification, if the specified terms and
limitations are met. [§ 8301]
TAX AND TRADE PROVISIONS (TITLE XV)
Timber Provisions (Part 1, Subpart B)
Tax-exempt bonds for forest
No comparable provision.
Establishes (in limited amounts) a new
Adopts Senate provision with modest
conservation. In general, interest on
type of tax-exempt private activity bond
changes. [§ 15316]
bonds issued by state and local
for bonds whose proceeds are used to
governments is tax-exempt if used for
finance forest conservation. [§ 12211]
governmental purposes (IRC section
103). However, not all state and local
bonds used to finance private activities
are tax exempt; private activity bonds are
subject to certain restrictions and are
subject to caps. [IRC §§ 141-142]
Deduction for qualified timber gain.
No comparable provision.
Adds new section 1203 to the Internal
Adopts Senate provision with changes.
For tax years beginning before 2011,
Revenue Code, which permits taxpayers
[§ 15311]
individuals’ long term capital gain is
to elect to deduct 60% of timber gain
taxed at reduced rates (generally, 15%;
from taxable income. (The remaining
section 1 of the tax code). Taxpayers are
40% would be taxed at ordinary-income
permitted to treat the cutting of timber as
rates.) [§ 12212]
a sale eligible for capital gains treatment.
[IRC § 631]

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CRS-17
SENATE-PASSED SUBSTITUTE
CURRENT LAW/POLICY
HOUSE-PASSED BILL (H.R. 2419)
NEW LAW (P.L. 110-246)
AMENDMENT (H.R. 2419)
Timber real estate investment trust
No comparable provision.
Includes several provisions affecting
Adopts Senate provisions. [§§ 15312-
(REIT) provisions. REITs are specially-
timber REITs, including clarification that
15315]
defined “pass through entities” that are
timber gain is qualified real estate income
permitted to deduct dividends they
for a REIT. [§§ 12213-12217]
distribute from taxable income, thus
eliminating corporate-level tax from
distributed income. [IRC §§ 856-859]
REITs are subject to several minimum-
distribution requirements and 75% of
REIT gross income must consist of
certain types of real estate income.

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