WHY WE ARE HARDNOSED IN REGENERATION CONTRACTS
Some landowners and many contractors for various activities in regeneration
think that we are unduly hardnosed in dealings connected with establishing
a new plantation. If we are, it's only because Mother Nature is equally
hardnosed in demanding that we must do things right the first time. Here's
why we do what we do.
Our regeneration proposals contain detailed forest-management plans that
forecast anticipated revenues from the plantations, and landowners accept
them with the understanding that we will deliver what we promised. Such
an agreement puts the squeeze on us. If we don't place firm orders for our
large-size seedlings before seed are sown in the nursery, they may not be
available for planting, and we'll miss our yield targets by 5%. If we can't
get second-generation seedlings, we'll miss by another 3% to 4%. If the
best site-prep contractors of all kinds are not lined up well in advance,
we might have to settle for less-than-perfect work and miss our targets
a lot.
We put pressure on landowners to decide in time for us to make our commitments,
and once they have decided, we press them to send us the necessary funds.
Regeneration costs usually range from $150 to $250 per acre, and our share
is less than 20%. Those who supply goods and services in regeneration require
advance or very prompt payment, and since we do not add a charge for extending
credit, we must insist on payment, usually in advance when the work is to
be done very soon.
Many regeneration contractors complain that we are too tough in insisting
on compliance. We have warned all of them of them in advance, telling them
that we are willing to pay for first-rate, effective work and that we expect
to get it. As we have said many times, "You can't fix a busted plantation."
Our lead article explains in detail why future yields of timber are almost
set in concrete the day the plantation is established and how important
this can be over a 20+-year investment period.
Everyone involved with us in regeneration needs us to be hardnosed. If we
aren't, we drop a bomb on some of the best investments in the U.S.
|
