Changes of ownership of large tracts of industrial forestlands have been quietly underway in the United States during the past several decades. This has resulted, just as quietly, in reduced wildlife management capability and public recreational opportunities on those lands, according to the Wildlife Management Institute.

This situation is being driven by escalating land values and changes in the tax code, which provide substantial economic incentives for the timber industry to convert ownership of their land holdings to real estate investment trusts (REITs) or sell them outright to timber investment-management organizations (TIMOs). Tax savings as large as 30 cents on the dollar can be realized through these mechanisms. Conversion of ownership of these lands to REITs and TIMOs have occurred to the extent that private investors have replaced the forest products industry as the largest source of ownership of private forestlands in the country.

REITs, which are publicly traded trusts whose shareholders who can buy and sell their shares, and TIMOs, which are owned by private investors, often have substantially different objectives for owning these lands than companies engaged in the forest industry. Whereas the forest industry for decades viewed owning the lands as a long-term investment to provide a stable, reliable source of the raw products needed to operate their businesses, REITs and TIMOs frequently are driven by the objective of maximizing returns on their owners' investments in the shortest possible period of time. This leads to ownership fragmentation, as higher value tracts, such as those associated with waterfronts, are separated and sold for development usually at a substantial profit.

With fragmentation, the opportunity for effective wildlife management across that landscape deceases due to the different objectives many of the landowners have for their properties. In addition, when owned by the forest products industry, many of the intact forestlands were open to public access for recreation. REITs and TIMOs recognize that additional revenues can be generated by charging access fees, thereby resulting in a loss of recreational opportunities for the general public.

Forest products, such as pulp and timber cut for lumber, still are harvested on many of these REIT and TIMO lands, but often on a schedule driven by short-term profits rather than at a slower, sustainable pace over the long term, which is more beneficial to wildlife.

REIT and TIMO investors now control and estimated 30 million acres of forestland in the United States and that acreage figure likely will increase.

By such means as purchasing easements that preclude development on parcels of high wildlife value, conservation agencies and organizations are attempting to mitigate REIT and TIMO impacts of forest fragmentation. However, informed observers note that, with the accelerating rate of forestland ownership change, more aggressive actions are needed to stem further loss of wildlife, wildlife management and wildlife-related recreation on these lands. (pmr)