For the last 18 months, the Georgia Forestry Association’s (GFA) Government Affairs team has been honing its strategy for the 2022 session of the Georgia General Assembly. GFA’s policy priorities include three main focus areas that aim to protect landowners from illegal actions that erode land value, and to support fairness with how land and equipment are taxed. 

​“For the past five years, we have advocated for and successfully passed more than 12 pieces of legislation to increase the competitiveness of our entire sector by reducing supply chain inefficiencies and removing barriers to healthy markets,” said GFA President and CEO Andres Villegas. “A key to our success is strong support from our members through our Forest Resource Teams and ForestPAC, which allow us to ensure that our issues are front and center with all Georgia legislators.”

Why It Matters:
Georgia is the number-one forestry state in the nation and widely recognized as a global leader in forestry. Maintaining this leadership position depends on advancing policies that ensure investments in forest land and manufacturing are competitive and profitable.

Dig Deeper:
For more than 100 years, GFA has served as the voice for working forests, protecting private property rights, encouraging sensible taxes and regulation, and promoting healthy markets for forest products. This year’s priorities, as outlined below, represent a continued commitment to laws and policies that support forest landowners, forest product manufacturers and forest-based businesses. 

---

1 Increasing Penalties for Hunting Without Permission
Current loopholes in codes related to trespassing and hunting without permission allow individuals who are illegally hunting on private property to get away with a simple warning, while landowners suffer the financial burden. GFA is advocating for changes that make it easier for law enforcement to identify and penalize people who are hunting without permission and who are multiple offenders.

Why it matters: For landowners in Georgia, hunting leases for deer, turkey and other species provide a critical additional source of annual income, and hunters are willing to pay a premium for hunting opportunities not accessible on public land.

What they are saying: “Revenue from those hunting leases provides our land with a steady source of income, and in return, our hunters are given the opportunity each year to chase their trophy buck,” says Joe Hopkins, private forest landowner from Folkston. “When trespass and hunting without permission occurs, it reduces the value of our hunting leases, and it makes it difficult to renew those leases when clubs feel like their exclusive access has been tainted. Forest landowners need this legislation to maintain the economic value of our land while maintaining our private property rights.”

By the numbers: According to a 2012 survey of forest landowners by the University of Georgia, deer hunting leases in Georgia were worth, on average, about $15.00 per acre (ranging from $10.00 to $30.00 or more).
Total acreage of leases for big game in Georgia in 2012 was approximately 11.2 million acres.

Where it stands: Last year, GFA helped introduce House Bill 343, sponsored by Rep. Trey Rhodes (R-Greensboro), which was approved overwhelmingly by members of the House of Representatives. Since the 2022 session is a continuation of a two-part session, debate on the bill will be picked up in the Senate. 

2 Reforming Timber Severance Taxation
When a landowner harvests standing timber, it is subject to a severance tax of 100% of its fair market value. GFA is proposing a constitutional amendment that would reduce the severance tax rate to be assessed on 40% of the fair market value, which is on par with other real property (e.g. homes, vehicles, etc.).

Why it matters: Landowners don’t always get annual returns, but they still pay annual taxes. In Georgia, forest landowners pay — in addition to severance tax — property tax (ad valorem), state income tax and federal income taxes. A more equitable severance tax that treats timber like other real property would help ensure landowners’ ability to continue owning timberland and improve Georgia’s competitiveness with other timber- producing states.

What they are saying: “As a private landowner, our family uses our own resources and income generated off the timber sales to reforest the land after harvest and to properly manage the land for the next 10-20 years before our next opportunity to collect substantive revenue from a timber sale,” says Dr. Johnny Bembry, a tree farmer in Hawkinsville. “When you understand the cumulative effect of all the taxes that are levied on landowners, it becomes difficult to justify additional investments in land management or purchasing more land.”

By the numbers: More than half (55%) of forestland in Georgia is owned by private, non-industrial (or non-corporate) landowners. Studies have shown that the average cost of services provided to residential properties is $1.19 per dollar of revenue raised. However, working and open lands receive only $0.37 on average for each dollar of revenue raised (similar returns are experienced by commercial properties). This imbalance between property types is not sustainable, because while the vast majority of property value is held in residential properties, this use is being subsidized by commercial owners and working lands. 

What’s next: Stay up to date on the introduction of legislation in 2022. If the legislation is passed with a 2/3 vote by the Georgia General Assembly, voters will be asked to approve the Constitutional Amendment on the November General Election Ballot.

3 Fairness in Ad Valorem Tax on Logging Equipment
Logging companies must pay an ad valorem (property) tax on forestry equipment used to prepare or plant, cultivate or harvest timber. However, farm equipment used for similar purposes in the agriculture industry is exempt from the ad valorem tax. GFA is working to secure equal treatment for forestry and farm equipment.

Why it matters: A more equitable tax on forestry equipment would improve the competitiveness of the logging sector, which is a vital part of the forestry supply chain already under stress from other economic factors. 

What they are saying: “In Georgia, low log-truck weight limits, rising log-truck insurance premiums, and stiff competition for truck drivers result in higher hauling costs than in other states. Simultaneous increases in wages, fuel, equipment and hauling costs mean profit margins have been erased for many logging operations,” says Dr. Joe Conrad, Assistant Professor of Forest Operations at the University of Georgia’s Warnell School of Forestry & Natural Resources.

By the numbers: Georgia leads the nation in volume of timber harvested. More than 1,000 logging contractors in the state serve as the vital connection between woods and the mill. These companies have to invest in several pieces of heavy equipment, ranging in cost from $250,000 to $1 million. On the other hand, the source of income is far from stable. The ability to harvest, get paid and make equipment payments depends upon multiple factors (natural disasters, wet weather, tract availability and consumer/ mill demand) outside the control of loggers.

What’s next: Stay up to date on the introduction of legislation in 2022. If the legislation is passed with a 2/3 vote by the Georgia General Assembly, voters will be asked to approve a referendum on the November General Election Ballot. ■
​
Matt Hestad is the vice president of engagement for the Georgia Forestry Association.


​

---