Harvesting

Our working capital is provided through revenues created by harvesting selected areas of the forest. In keeping with our FSC Certification these stands are sustainably managed, along with the rest of the forest.

 

What is Stumpage?

Stumpage is a term that refers to the tax-like charges that logging companies are obligated pay for the opportunity to harvest trees on Crown land.  These charges apply on a tree-by-tree basis, although wood is measured and reported in cubic metres (m3). To give an idea of scale, a logging truck you see on the highway carries about 40 m3 of wood.  

There are several components to stumpage:

Forest Renewal Trust Fund

The Sudbury Forest is one of over 40 Crown land forest management units in Ontario.  Each of those management units has a trust fund dedicated to renewing that forest.  On the Sudbury Forest, $0.50 to $10.00 is directed to that fund for each cubic metre harvested, depending on the species.  The rate reflects the effort and investment required to regenerate each species.

Forestry Futures Trust Fund

All of the 40-plus management units contribute to a single provincial fund.  This fund pays for special projects that enhance future wood supply.  Often the projects are to reforest burned areas or to do intensive thinning projects to accelerate wood production.  Managers of individual management units must prepare specific applications that may be fully, partially, or not funded.  This fund also manages and pays for Independent Forest Audits.  Finally, this fund is the source of funding for running the provincial Forest Resources Inventory (FRI) program.

Consolidated Revenue

The final category is Ontario Consolidated Revenues.  This money goes towards health care, education, roads, and all other government expenditures.

Calculating this portion of the stumpage is much more complicated.  Rates differ by species and by product to be manufactured from the logs.  These rates are adjusted monthly to reflect market value of the products.

Comprehensive and current stumpage rates are available at the Government of Ontario website.