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1 1 (April 27, 2020)

handle is hein.crs/govdadx0001 and id is 1 raw text is: i% 'N\ x Forest Service Announces Timber Sale Contract Relief April 27, 2020 On April 15, 2020, the Forest Service (FS) announced options for timber purchasers to extend the terms of their contract to harvest timber from the National Forest System (NFS). (Rcad the ahnn~uceme r.) The FS, within the Department of Agriculture (USDA), sells timber to willing buyers in the private sector (timber purchasers) pursuant to specified contract terms. Although timber sales generally must be completed in a set amount of time, the FS may extend that time if it finds a substantial overriding public interest (referred to as a SOPIfinding) in doing so. The SOPI finding articulated in the announcement is in response to global timber market impacts from the coronavirus (COVID-19) pandemic, ongoing trade disputes, and other factors. The FS contends that these flexibilities will prevent adverse impacts to timber markets and rural communities. Forest Service Timber Contract Relief The FS sells forest products from NFS lands to willing buyers (this product will refer to the most popular forest product, timber) pursuant to a contract between the timber purchaser and the FS. Each contract formalizes the terms of a timber harvest, such as what timber is to be cut, the methods for harvesting the timber, the length of time to complete the harvest, and other provisions. By law, conitracts may be ip to I 0 years in hength, but they are often shorter, generally around 2-3 years. Multiyear contracts allow timber purchasers sufficient time to build necessary roads and prepare harvest sites, as well as some limited flexibility to respond to weather conditions and market fluctuations. Timber market conditions over the period of the contract can substantially affect purchasers' ability to profitably harvest timber-for example, if timber prices decrease. According to the FS, adverse timber market conditions can lead to contract defaults, mill closures, bankruptcies, job losses, and other short- and long-term impacts to timber markets and rural communities. These conditions also could result in reduced timber revenues and increased contract default enforcement costs to the federal government. The USDA has the authority to modify timber contracts to provide relief to purchasers if adverse timber market conditions develop. The Secretary of Agriculture (Secretary) may extend tIhe leigth of timber sale comtracts if the Secretary finds that a substantial overriding public interest (SOPI finding) justifies the extension. In addition, if specific advecrse wood products rnarket conditions develop, this constitutes an automatic SOPI finding. FS regulations define these conditions as a specified porcoatage dccrcase ovcr Congressional Research Service https://crsreports.congress.gov IN11364 CRS INSIGHT Prepare'd for Members and C o m m it'e e s o ; c o q g re s s ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

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