NR 320
Managed Forest Law
Managed Forest Law, also known as MFL, is a program designed to promote good forestry management. The incentive to enroll in the program comes in the form of reduced property taxes. Whether you enter MFL Open or MFL Closed along with your current property tax rate, determines the exact tax reduction. Managed Forest Law Open reduces taxes about seven dollars per acre per year, while Managed Forest Law Closed reduces one or two dollars per acre per year. However, being entered into MFL Open requires the land owner to allow public recreation such as hunting, fishing, site seeing, hiking, and cross country skiing in addition to the other requirements. Prior to all harvests, a cutting notice must be submitted to the DNR and a cutting report after. Also, yield taxes must be paid on all timber sold. This tax is based on timber volume and current DNR rates. All timber harvests must be done within a few years of the plans set date. Not following the management program submitted will result in expulsion from the program.
The program can be terminated before the end of the determined period; however a withdrawal form must be submitted to the DNR. After terminating any contract early, all tax reductions from previous years must be paid in full along with an additional three hundred dollar fee. If any land entered into the Managed Forest Law is sold, the contract still stands.
The benefits of enrolling in an MFL plan are quite basic. A land owner can save money on his or her property taxes, and the land will be managed by a professional forester. Furthermore, the owner can give input into the land management goals, cut firewood, and implement salvage cuts in response to natural events such as a strong winds or insect infestation.
However, there are some negative sides to entering into the MFL as well. Logging can’t be done outside of the plan. This means that even if the log prices go up or the land owner enters into an economic crisis, he or she still cannot cut until the scheduled date. A special yield tax needs to be paid after any logging. The contract transfers with ownership; this is important to remember because this could reduce the property value in some potential buyers’ eyes. Also, a certified plan writer will have to be paid to check the land and write the management plan, plus withdrawal from the program cost money.
The pros and cons of the MFL system change depending on every situation. Land value, land use, timber value, tax rates as well as the owner’s personal beliefs and goals should all be considered when deciding to enter.
Joe Grapa, a certified forester
"Managed Forest Law - Division of Forestry - WDNR." Welcome to the Wisconsin Department of Natural Resources Website... Web. 10 Feb. 2011.
3 comments:
Fred-
This is interesting, I previously didn't know anything about MFL, so thank you for the information! Do you know is there a required minimum of forest acreage that a private land owner must have to be able to enroll in a MFL program?
Also, it's clear that a private land owner who enrolls in a Open MFL will benefit more financially because their property taxes get reduced more so than Closed. If someone enrolls in a Closed MFL what is the DNR allowed to do on this land? Would it be used only for timber resources as opposed to the Open plan which allows for public recreation?
MFL seems like a legit program, hopefully lots of land owners are aware of it, and take advantage, however knowing that people these days can be ignorant when it comes to natural resource incentives, I bet not.
Minimum acres to enter MFL is ten. Closed MFL is a program that is meant to promote sustainable forestry. Though that is what the landowner is agreeing to, they are not limited in any land activity that does not interfere with the program. Any logging or management of the land set up by the participating forester will come from the Wisconsin Silvicultural Handbook. It's available on the WDNR website if you want to look.
Nice job of summarizing this program, Fred! We've been enrolled long enough that we need re-certification next year. I this it is a really good management program, as it also allows for personal goals like wildlfe management.
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