Iron County Forestry and Parks report numbers mixed

HURLEY - The 2023 annual report of the Iron County Forestry and Parks Department includes both good and bad news.

On one hand, the report summarized, "2023 proved to be a challenging financial year for the ICFD. Declining stumpage prices, lack of consistent pulpwood markets, and continued high inflation caused lower revenues and a higher cost of doing business."

On the other hand, the report added, "The department still had another busy year with many recreational users visiting our county parks, trail systems, and forests. These recreational facilities and parks have turned into a profit center for the county, and continued maintenance and improvements should only further their popularity."

"We are the fourth largest county forest in the state," said Eric Peterson, Iron County forestry administrator on Tuesday by phone.

The ICFD manages about 175,000 acres of forest and also tends county parks and motorized and unmotorized trails.

The annual report explains problems in timber revenue as follows: "For the year, Forestry Department revenues fell 4.6% to $2,846,508. This reduction was due to lower than anticipated stumpage revenues for the year. Total income was the result of $1,708,405 in timber stumpage received, along with funds from $465,759 in snowmobile and ATV reimbursements, and $369,459 from County Parks. Miscellaneous smaller accounts provided the balance."

According to the report, any income generated - which also can include sand and gravel sales - is used for "labor, equipment and materials needed to manage the county forest," with excess revenues being returned to the county for purposes of relieving landowners' property taxes.

Meanwhile, total department expenses were $2,004,781 in 2023, a rise of 6.9% from the previous year. The report states that one major expense was the purchase of a skidsteer that had been budgeted in 2022 but had not been carried forward on the budget until delivery occurred in 2023.

As the report said, "Other budgeted expenses in 2022 included recreational trail expenses of $475,677, $229,942 for Parks and Harbor, and stumpage severance payments to the towns of $166,063."

Peterson, who prepared the report, said that park expenses were down by 13.3% in the past year because there were fewer park projects and fewer recurring expenses, as with supplies.

In fact, the report notes that camp revenues in 2023 rose 12.3% from 2022, resulting in about $120,000 of revenue combined from Lake of the Falls, Schomberg Park and Weber Lake. Peterson said that the Potato River Falls and Campground was not noted in that rise because, as a primitive camping area, it garners no income from fees.

He added that Saxon Harbor, which saw a profit of $104,000 last year, also experienced a 10.4% drop in expenses by dropping from four to three caretakers and by benefitting from a good stockpile of supplies.

The report also summarized other advantages, such as nearly $700,000 in grants that the ICFD received in 2023 for projects such as road improvement, culverts, the addition of a pit toilet at the B47 memorial, etc.

Peterson also is optimistic that the county soon may see revenue from carbon credits.

Overall, the report concludes, "The Iron County Forestry and Parks Department continues to be a strong source of revenue for the residents of Iron County."

As it stated, "Even with continued depressed wood markets, the Iron County Forestry Department offered its typical amount of timber sales and volumes. Thirty-one timber sales were offered on competitive bid with 27 being sold. The four sales that received no bidder interest are either planned to be offered at a later date or broken up into smaller blocks to facilitate sale."

The report added, "In response to the lower number of bidders, the department has increased the size of the timber sales that are offered. Larger acreage sales reduce the overall number offered and hopefully increase competition among bidders."

But there is also plenty of cause for caution.

"High inflation and economic uncertainties that hurt overall log and pulpwood markets do not seem to be alleviating, and the lower prices will continue to be realized over the next few years as the lower valued timber sales are harvested," noted the report, which added, "With the cost of logging and trucking only continuing to rise, it is becoming harder to encourage new investment in the logging industry."

Members of the Iron County Board of Supervisors approved the annual Forestry and Parks report at their March 26 meeting.

For more information, see the forestry department's website.