Forestry potentials for Hawaii

[From the U.S. Government Printing Office, www.gpo.gov]

FORESTRY
POTENTIALS
FOR HAWAII

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STATE DEPARTMENT OF LAND AND NATURA
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STATE DEPARTMENT OF PLANNING AND ECONOMIC' DEVELOPMENT
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STATE DEPARTMENT OF PLANNING AND ECONOMIC DEVELOPMENT
U.S. FOREST SERVICE REGION 5

1976

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EXECUTIVE CHAMBERS

HONOLULU

FOREWORD
By George R. Ariyoshi
Governor, State of Hawaii

Our Administration is firmly committed to the search for and development
of new industries, and to expansion of our present ones. On January 26,
1976, 1 addressed the State Legislature in Joint Session and said: "We
also know we can grow many trees more quickly and in greater abundance
than in most places in the world. What we must devise is a vigorous
program of forestry which will allow a commercial timber industry to
develop, and at the same time permit the forests to serve as watersheds,
recreational areas and reserves for our wildlife--all in proper inter-
relationship with one another."

Thus, I firmly believe that Hawaii's forest resources have potential for
providing new jobs and new income for our people, without sacrificing
our environmental ideals.

This new report by three Government agencies shows us what can be done
to develop these forest resources. It tells us that almost half of the
total land area of our State is forest land. And half of that forest
land--about one million acres--is considered capable of producing usable
timber crops.

This report also offers three program-approaches to developing our forest
potentials. Furthermore, it shows that many side benefits can accrue
from carefully planned and vigorously carried out forest products
development.

I am grateful to the staffs of three Government agencies--The U.S.
Forest Service Region 5 Office, the Department of Land and Natural
Resources, and the Department of Planning and Economic Development,
for their work in jointly producing this excellent study. There is
a continuing need for similar working together of all Government and
private agencies, companies and individuals who can contribute to the
State's goal of forestry research and development.

Our State Legislators have a particular challenge in providing the
necessary long-term guidance, legislation and funding for programs to
make forestry a major Island industry. We know that every County and
every community in our State can gain some benefit from combining
forestry development with various recreation, preservation and conser-
vation programs. What is needed now is unity of effort and consoli-
dation of our resources to focus on the task of getting more trees
planted; establishing mechanisms for multi-use of commercially
developed forest lands; and a vigorous program of marketing to sell
what we produce.

This report provides a necessary data base and informational tool
toward these ends. I look forward now to continuing efforts to
achieve our forestry goals.

OCLC: 2966817 Rec stat: n
Entered: 19T70421 Replaced: 19950304 Used: 19921008
Type: a Bib lvl: m Source: Lang: eng
Repr: Enc lvl: Conf pub: 0 Ctry: hiu
Indx: 0 Mod rec: Govt pub: s Cont: s
Desc: i Int lvl: Festschr: 0 Illus: a
F/B: 0 Dat tp: Dates: 1976, %
$ 1 010 76-624149 %
$ 2 040 DLC 'c DLC %
$ 3 043 n-us-hi %
$ 4 050 0 SD144.H3 'b H38 1976 %
$ 5 082 333.7/5/09969 %
$ 6 090 'b %
$ 7 049 NOW %
$ 8 110 1 Hawaii. 'b Dept. of Land and Natural Resources. %
$ 9 245 10 Forestry potentials for Hawaii / 'c State Department of Land and
Natural Resources, State Department of PLanning and Economic Development, U.S.
Forest Service Region 5. %
$ 10 260 [Honolulu : 'b [State of Hawaii], 'c 1976. %
$ 11 300 68 p. : 'b ill. ; 'c 28 cm. %
$ 12 650 0 Forests and forestry 'z Hawaii. %
$ 13 710 1 Hawaii. 'b Dept. of PLanning and Economic DeveLopment. %
$ 14 710 1 United States. 'b Forest Service. 'b California Region. %

CONTENTS

I. SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

II. OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . 3

III. THE FOREST RESOURCE BASE . . . . . . . . . . . . . . . . . . . 6

The Native and Naturalized Forest . . . . . . . . . . . . 6
Forest land area . . . . . . . . . . . . . . . . . . . 6
Ownership . . . . . . . . . . . . . . . . . . . . . . . 6
Forest cover types . . . . . . . . . . . . . . . . . . 10
Timber volume . . . . . . . . . . . . . . . . . . . . . 10

The Plantation Forest . . . . . . . . . . . . . . . . . . 12
Some Implications of the Current Resource Situation . . . 12

IV. FOREST ENVIRONMENTAL SETTING . . . . . . . . . . . . . . . . . 16

Watershed Protection . . . . . . . . . . . . . . . . . . . 16
Esthetics . . . . . . . . . . . . . . . . . . . . . . . . 16
Wildlife Habitat . . . . . . . . . . . . * * ' , * * * I *17
Threatened and Endangered Plant and Animal Species . . . . 17
Recreation/Visitor Industry . . . . . . . . . . . . . . . . 18
Natural Area Reserves . . . . . . . . . . . . . . . . . . 18
Forest Protection . . . . . . . . . . . . . . . . . . . . . 19

V. FOREST ECONOMIC SITUATION . . . . . . . . . . . . . . . . . . . 21

Current Situation . . . . . . . . . . . . . . . . . . . . 21
Potential Situation . . . . . . . . . . . . . . . . . . . . 23
Timber Product Markets . . . . . . . . . . . . . . . . . . 25
Resource Supply Markets . . . * * , , * * * * * , , * , *28
Problems That Have Prevented Realization of
Greater Commercial Forestry Potentials in the Past 34
Low Volume and Quality of Raw Material . . . . . . . . . . 34
Restrictive Land Use Policy . . . . . . . . . . . . . . . 35
Labor Supply . . . . . . . . . ... . . . . . . . . . . . 36
Lack of Developed Markets . . . . . . . . . . . . . . . . . 36
Processing or Utilization Problems . . . . . . . . . . . . 36
Lack of Timber Production (Growing) . . . . . . . . . . . . 37

VI. ALTERNATIVE PROGRAM PROPOSALS . . . . . . . . . . . . . . . . . 38

Program A (Present Problem). 86,000 Acre Land Base . . . 38
Program B. 200,000 Acre Land Base . . . . . . . . . . . . 44
Program C. 410,000 Acre Land Base . . . . . . . . . . . . 50

CONTENTS (continued)

VII. ECONOMIC IMPACTS . . . . . . . . . . . . . . . . . . . . . . . 53

Program A . . . . . . . . . . . . . . . . . . . . . . . . 53
Program B . . . . . . . . . ... . . . . . . . . . . . . . 54
Program C . . . . . . . . . . . . . . . . . . . . . . . . 55
Economic Impact Summary . . . . . . . . . . . . . . . . . 56

VIII. ENVIRONMENTAL IMPACTS . . . . . . . . . . . . . . . . . . . . 58

Program A . . . . . . . . . . . . . . . . . . . . . . . . 58
Program B . . . . . . . . . . . . . . . . . . . . . . . . 60
Program C . . . . . . . . . . . . . . . . . . . . . . . . 61

IX. FEDERAL TECHNICAL ASSISTANCE PROGRAMS . . . . . . . . . . . . . 63

Cooperative Forest Management (CFM) . . . . . . . . . . . 63
Tree Nurseries (CM-4) . . . . . . . . . . . . . . . . . 63
Tree Planting (Title IV) . . . . . . . . . . . . . . . 63
General Forestry Assistance Programs (GFA) . . . . . . 64
Improved Harvest Program . . . . . . . . . . . . . . . 64
Resource Conservation and Development . . . . . . . . 64

INCENTIVE PROGRAMS . . . . . . . . . . . . . . . . . . . 65
Forestry Incentives Program . . . . . . 65
. . . . . . 65
Agricultural Conservation Program (ACP@ , * * * * *

Forest Protection . . . . . . . . . . . . . . . . . . . 65
Fire Prevention and Control . . . . . . . . . . . . 65
Insect and Disease Protection . . . . . . . . . . . 66
Plant and Animal Pests . . . . . . . . . . . . . . . 66

EXPANSION OF FEDERAL ASSISTANCE PROGRAMS
UNDER LEVELS B AND C . . . . . . . . . . . . . . . . . 67

USDA FOREST SERVICE RESEARCH SUPPORT TOWARDS THE GOAL
OF ENLARGING HAWAII'S FOREST-BASED INDUSTRY . . . . . . 67

ACKNOWLEDGMENTS

This report was made possible by the joint efforts of many Federal and
State Government personnel, assisted by many others in private industry
and the community.

We are grateful for their assistance, and for the cooperation shown in
working together toward the goal of an expanded Hawaii forestry program
and industry.

We especially want to acknowledge the following who gave noteworthy
assistance:

From the State and Private Forestry Division, Region 5, U. S. Forest
Service, U. S. Department of Agriculture: William M. Cannon, Multi-
Regional Specialist; Adolph R. Groncki, Cooperative Forest Management
Staff; Michael J. Skinner, Area Planning and Development Staff.

Rogers Skolman, Wood Technologist, Pacific Southwest Forest and Range
Experiment Station.

From the Department of Land and Natural Resources: Tom Tagawa, Forestry
Division Head; Nobuo Honda, Land Use Technical Forester; William Sager,
Protection and Development Forester; Edwin Pettys, Timber Survey Forester.

From the Department of Planning and Economic Development: James Cook,
Economic Development Division; Virginia Macdonald, Planner, Planning
Division.

Christopher Cobb, Director Hideto Kono, Director
State Department of Land and State Department of Planning
Natural Resources and Economic Development

Members of the State Board of Land and Natural Resources are:
Christopher Cobb, Chairman, Moses Kealoha, Shinichi Nakagawa, Hisao
Munechika, Manuel Moniz, Jr., and Larry Mehau.

------------

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Mixed Eucalyptus
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Eucalyptus Microcorys, Lapa Eucalyptus Saligna, planted in
Ridge, Kauai. 1939, Kainehe, Hawaii.

SUMMARY

The objective of this report is to describe the contribution that
an expanded commercial forest products industry could make toward
the desired socio-economic and environmental goals of Hawaii.
Development of the timber resource would help to (1) provide a base
to maintain rural populations on the outer islands, (2) provide
rural jobs and income, (3) diversify the economic base, (4) contri-
bute to environmental quality, and (5) complement management of
other resources in conservation, agricultural, and urban districts.

Hawaii has about two million acres of forest land, almost half the
total land area of the State. About one million acres, or half the
total, are considered capable of producing usable timber crops
and are not reserved for restrictive uses. However, because of low
quality of timber, and low yields of sawtimber volumes per acre,
the native forests have not provided an attractive resource base
for sustained large industrial operations. Unlike the native
forests, planted forests of exotic species yield high volumes of
sawtimber -- 15,000 board feet per acre or more -- in most stands
30 years old or older, and log quality is generally higher. But
the total supply in the State is limited and there is no large
inventory on any island. Additional development of the timber
resource is essential to the survival and growth of a forest based
industry in Hawaii.

This report presents three alternative levels of program develop-
ment for consideration. A 30-year period to achieve full develop-
ment was assumed for each alternative. Following is a brief summary
of each alternative program proposal, in terms of supporting land
base and management, costs and net revenues, job opportunities
created, forest product manufacturing facilities, and environmental
impact.

Program A (present program) -- A modest level of development,
committing 86,000 acres of commercial forest land to intensive
timber production. Annual costs would range between $300,000 and
$500,000 for timber resource development. Net returns to forest
landowners would be negative for the first ten years, but would
increase to between $1.3 million and $1.8 million in about 30 years.
About 300 jobs would be generated by timber management, harvesting,
and forest product manufacturing activities at full development.
This level will not support a diversified industry, but will
enable an expansion of present ongoing activities. These include
two small sawmills, a craftwood industry, chip export, and in-
cidental forest products. This program requires that only 4% of
Hawaii's forest land be managed for commercial timber production.

Implementation is fully compatible with environmental quality and
will have a beneficial effect on several environmental quality
components.

Program B -- A moderate level of development committing 200,000
acres of commercial forest land to intensive timber production.
Annual costs would range between $1.1 million and $1.3 million for
timber resource development. Net returns to forest landowners
would be negative for the first 20 years, but would increase to
between $3 million and $4.5 million in about 30 years. About
800 jobs would be generated by timber management, harvesting,
and forest products manufacturing activities at full development.
This level is capable of supporting a well diversified basic in-
dustry including sawmills, veneer and plywood mills, hardboard
and particle board plants, a chipping operation, and possibly a
pulp plant or paper mill. This program requires that 10% of
Hawaii's forest land be managed for commercial timber production
at full development. With proper site selection and management
practices, this program could be implemented and also be compatible
with the State's environmental quality goals.

Program C -- A high level of development, committing 410,000 acres
of commercial forest land to intensive timber production. Annual
costs would range between $2.4 million and $3 million for timber
resource development. Net returns to forest landowners would be
negative for the first 30 years, but would increase to between
$6.4 million and $9.4 million at full development. About 1900 jobs
would be generated by timber management, harvesting, and forest
products manufacturing activities at full development. This level
would support an extensive industry similar to industry components
described for Program B. The increase over level B would primarily
be in exportable products, and the product mix would depend on
world-wide markets at the time of full development. This alter-
native requires that about 20% of Hawaii's forest land be managed
for commercial timber production at full development. Even at
this highest level, it is our belief that an acceptable level of
environmental quality could be achieved. However, this determina-
tion would require a detailed soil survey of forest lands, and
designation of critical habitats for endangered and threatened
species.

II. OBJECTIVES

One of the objectives of the encouragement of a Forest-
based industry in Hawaii is to aid rural development and
provide job opportunities in the rural areas of Hawaii,
most importantly on the outer islands.

Today, many of the young leave their islands to move to
Oahu where the greatest opportunities for employment
exist. This situation is aggravated by the recent decline
in the number of jobs available in the previously strong
agricultural areas of sugar and pineapple. Another
problem in this area has been the fact that the jobs
remaining on the outer islands are generally lower-paying
than those available in Honolulu. For instance, during
1973 the average annual wage for a working person on Oahu
was $8,038; on Hawaii it was $7,352; on Maui it was
$6,835; and on Kauai $6,721.

The development of a forest-based industry would seek to
fulfill this objective by providing jobs in construction,
transportation, harvesting, milling, and possibly in the
manufacturing of finished wood products. Since roughly
86% of the state's present commercial forest land is on
the outer islands the heavier industrial activities
associated with a timber industry would be located on
those islands.

Tied directly to the above objective is the second goal
of facilitating population redistribution. To more
equitably distribute Hawaii's population is one of the
present administration's policies. In 1974, 691,200 of
the state's 346,900 people lived on the island of Oahu.
This means that roughly 82% of our population lives and
works on only one of the islands -- Oahu.

By meeting the first objective of seeking to provide more
and better paying jobs on the outer islands the develop-
ment of a forest-based industry would help lead to the
fulfillment of this second objective.

A further objective of encouraging the growth of a forest-
based industry is to expand the economic base of the state
and create a climate of greater economic stability.

At the present time Hawaii's major economic activities
include defense activities and spending, agriculture
(primarily sugar and pineapple), and tourism. Granted, a
certain amount of growth will occur in these areas but it
will be far short of the amount of growth needed to create
enough jobs for future generations. A Forest-based
industry could contribute towards providing some of the
jobs and, more important, provide these jobs on the
islands that need them.

An improvement in the state's balance of trade in timber
products could result if Hawaii would utilize locally-
grown hardwoods for a number of purposes for which soft-
woods and some hardwoods are now imported from the main-
land. The state now imports approximately 98% of its
lumber needs from the mainland, Canada and the Orient. To
significantly reduce this amount would contribute greatly
to our economy.

A Forest-based industry can not, by itself, provide the
solutions to Hawaii's economic problems. It is only one
of a number of potential activities which as a whole will
contribute to making Hawaii's economy a little stronger.

A secondary objective of increased timber'resource develop-
ment is to provide benefits to environmental quality com-
ponents whenever possible. It is recognized that some
adverse effects on environmental quality will occur from
timber management activity, however, these can be minimized
by proper site selection and management practices.

Increased stocking of present forest stands and refor-
estation of marginal pasture and cultivated lands
would help to protect and improve the condition of
vegetative cover and soil to retard rapid run-off of
storm flows, prevent soil erosion, and help ensure
water yields of the quality and quantity needed.
Experience has s@liown that the production of timber
crops on a sustained yield basis can be compatible
with watershed protection when proper logging practices
are followed.

More intensive timber management activity would benefit
the protection and enhancement of wildlife habitat,
including habitat for rare and endangered birds. Re-
establishment of Acacia koa on marginal grazing lands
would provide addif"f`ional habitat for rare and endangered
native birds. In areas where native koa forest is

deteriorating and heavily infested with the noxious
banana poka vine, controlled logging followed by
intensive poka control, may be the only way to regen-
erate the native forest.

An increased forest protection program - fire, insect,
disease, noxious weed control, and proper management
or exclusion of livestock - that would be needed in an
intensive timber management program, would also have
environmental benefits. In addition to direct protec-
tion measures, more intensive management of timber
resources would assist in reducing losses of timber
volume from these causes, by harvesting at maturity.

Another objective of timber resource development will be
to provide secondary multiple benefits to other resource
management in conservation, agricultural, and urban
districts.

While recreational demand in Hawaii has traditionally
been shoreline oriented, the State Comprehensive Out-
door Recreation Plan of 1971 notes a growing preference
and need for expanded recreation opportunities in
forest and mountain areas. Much of Hawaii's forest
land has a vegetative cover of brush, staghorn fern,
and other types of vegetation detracting from the use
of the land for hiking, hunting, picnicking, and other
recreational uses. Reforestation of even relatively
small areas,on both public and private lands, can
provide favorable recreation habitat, and eventually
marketable timber resources. Furthermore, harvest of
timber in such areas need not be at a major sacrifice
of the recreation activities.

Where feasible, the growing of timber in combination
with controlled grazing, would be beneficial to wild-
life and watershed resources and could provide supple-
mental income for ranchers.

Roads built and rights-of-way acquired for timber
access and reforestation would also provide access for
recreational use, game management, and protection
activity.

III - THE FOREST RESOURCE BASE

The most recent inventory I/ indicates that Hawaii has 1,986,000
acres of forest land (Table 1). Nearly half of this, 948,000 acres,
is considered commercial forest land - capable of growing timber
crops of commercial use and not reserved for other use such as parks,
critical watersheds, natural areas, or other restrictions. Some
46,000 acres of this commercial forest land are contained in plan-
tations, while the remainder is in native and naturalized forests,
the majority on the Island of Hawaii.

The Native and Naturalized Forest

Forest land area

The native and naturalized forest outside of parks and other areas
of restricted use consist of 1,826,000 acres, of which 902,000 acres
are suitable for growing commercial crops of timber. Slightly over
60 percent of all the commercial forest land is on the Island of
Hawaii. However, only 238,000 acres, or 26 percent, of the total
commercial forest land is presently growing timber stands that are
currently or potentially of commercial use (Table 3). All of these
stands are on the Island of Hawaii. The remaining 664,000 acres
are occupied by noncommercial forest types consisting of shrubs and
trees with no, or at least extremely limited, potential for commer-
cial use. While these acres are scattered over most of the islands,
nearly half, 313,000 acres, are on the Island of Hawaii.

Ownership

Statewide, the commercial forest land is fairly evenly divided be-
tween public holdings, 423,000 acres or 47 percent, and private
owners, 479,000 acres, 53 percent (Table 2). The distribution is
also nearly equal on the Island of Hawaii, but not so over the
other islands, where, as a whole, public holdings amount to only
40 percent compared to the 60 percent in private holdings.

The State of Hawaii owns 97 percent of the commercial forest land
that is classed as being in public ownership. Land in private owner-
ship is divided between corporate owners who hold 283,000 acres, or
59 percent, and individual owners with 195,000 acres or 41 percent.

l/ Conducted jointly by the Forest Survey project of the U.S.
Torest Service and the Hawaii Department of Land and Natural Re-
sources, Division of Forestry, in 1969-70. A detailed report of
the findings is in preparation.

Table 1. Area by land class and island, State of Hawaii, 1970
(in thousand acres)

Land Class State Hawaii Kahoolawel Kauai Lanai Maui Molokai Niihau Oahu
I Total

Forest Land:

Commercial:
Plantations 46.1 18.1 5.6 1.0 10.6 2.6 8.2
Native and
naturalized forests 901.7 551.3 140.3 3.5 56.9 31.4 118.3_
Total 947.8 569.4 145.9 4.5 67.5 34.0 126.5_

Noncommercial:
Productive reserved 114.4 71.5 -- 2.3 -- 30.3 .3 10.0
Unproductive 924.2 511.6 15.8 71.7 39.4 142.0 43.8 31.1 68.8_
Total 1,038.6 583.1 15.8 74.0 39.4 172.3 44.1 31.1 78.8_

Total Forest Land: 1,986.4 1,152.5 15.8 219.9 43.9 239.8 78.1 31.1 205.3_

Total Nonforest Land 2,123.4 1,431.2 13.0 131.3 45.4 226.2 88.9 13.4 174.0

Total, All Land Classes 4,109.8 2,583.7 28.8 351.2 89.3 466.0 167.0 44.5 379.3

l/ Includes areas of water less than 40 acres in size defined by the Bureau of Census as land.

Table 2 - Area of commercial forest land in n ative and naturalized forest, by ownership classes
by Island, Hawaii, 1970 Y

(In thousand acres)

Ownership classes State Hawaii Kauai Lanai Maui Molokai Oahu
Total

A. Public:

State:
Hawaiian homes 34.0 6.3 2/
Other State 377.4 278.0 T/

Miscellaneous Federal 11.8 --

Total public 423.2 284.3 75.0 0.0 16.9 11.7 35.4

B. Private:

Miscellaneous corporate 283.4 140.5 2/

Miscellaneous individual 195.1 126.5 21

Total private 478.5 267.0 65.3 3.5 40.0 19.7 82.9

All classes - native and
naturalized 901.7 551.3 140.3 3.5 56.9 31.4 118.3

I/ There is no commercial forest land on Kahoolawe and Niihau
Acreage breakdown by class of public and private ownership is not readily available for the other islands. CO

Table 3. - Area of commercial forest land in native and naturalized forests, by forest type and owner group,
Hawaii, 1970

(In thousand acres)

State Island of Hawaii All Other Islands
Forest Types State Total Total
Total Public Private Public Private Public I.Private

Commercial:

Ohia 174.1 95.3 78.8 174.1 95.3 78.8
Koa 18.6 2.7 15.9 18.6 2.7 15.9
Ohia-koa 43.2 23.1 20.1 43.2 23.1 20.1
Monkey-pod 2.2 2.2 2.2 2.2

Total commercial types 238.1 121.1 117.0 238.1 121.1 117.0

Noncommercial:

Kukul 6.3 6.3 6.3 6.3
Ohia-koa 382.9 185.3 197.6 247.1 141.5 105.6 135.8 43.8 92.0
Other tree types 13.0 12.4 .6 13.0 12.4 0.6
Shrub types 261.4 98.1 163.3 59.8 15.4 44.4 201.6 82.7 J 118.9

Total noncommercial types 663.6 302.1 361.5 313.2 163.2 150.0 350.4 138.9 211.5

Total all forest types 901.7 423.2 478.5 551.3 284.3 267.0 350.4 138.9 211.5

The corporate/individual ownership pattern is essentially the same
on the Big Island, but differs substantially on the remaining
islands, where, generally, corporate holdings amount to two-thirds
of the total private ownership.

Forest cover types

Only 238,000 acres of the 902,000 acres of commercial forest land
are presently occupied by stands with current or potential value
for timber products (Table 3). Ohia-lehua (Metrosideros collina)
is the predominant species on 174,000 acres, 73 percent of the area;
koa (Acacia koa) occupies 8 percent; and a combination of ohia and
koa Withneither predominating exists on 18 percent. Monkey pod
(Pithecellobium saman) occupies the remaining one percent of the
area.

On the 664,000 acres of commercial forest land currently occupied
by noncommercial types, the ohia-koa mixture predominates, occur-
ring on 383,000 acres or 58 percent of the area (Table 3). Shrub
types rank next with 261,000 acres, 39 percent of the area. A mis-
cellaneous mixture of tree species make up the reamining 3 percent,
with kukui (Aleurites moluccana the major species. While the
ohia-koa mixture is the predominant noncommercial forest type overall
and is by far the major such type on the Island of Hawaii, the shrub
types predominate over the other islands, occupying 58 percent of
the area to 39 percent for ohia-koa.

Timber volume

The 1969-70 inventory indicated a total volume of 140.9 million
cubic feet of wood in trees of commercial species 5.0 inches and
larger in diameter and 760.7 million board feet of sawtimber in
trees 11.0 inches in diameter and larger, all on the island of
Hawaii (Table 4). Three-fourths of the total volume in sawtimber
trees is ohia, slightly more than half in State ownership. However,
koa volume, 187.3 million board feet, is 73 percent privately
owned. The ohia volume is heavily concentrated in the ohia forest
type, while koa on the other hand is well distributed among all
three commercial forest types - ohia, koa, and ohia koa.

Table 4. - Volume of growing stock and sawtimber on commercial
forest land in native and naturalized forests, classified
as commercial forest types by species and owner group,
Island of Hawaii, 1970.

Species All Public Private
Owners I
- - - - - Thousand cubic feet - - - - - -

Growing stock:
Ohia 115,331 62,090 53,241
Koa 25,218 6,764 18,454
Monkey-pod 303 303

All species 140,852 68,854 71,998

- - - - - - Thousand board feet - - - - - -
Sawtimber (Internat'l.
1/4-inch rule):
Ohia 571,509 321,193 250,316
Koa 187,265 51,642 135,623
Monkey-pod 1,945 1,945

All species 760,719 372,835 387,884

The estimates of the volume of ohia on the Island of Hawaii were
developed prior to the study of the decline in ohia by Petteys,
Burgan, and Nelson. 2/ This study indicates that the area showing
severe decline in liVe ohia increased at the rate of 6,500 acres
per year from 1965 to 1972. Projecting that rate of loss of acreages
for the years 1970 to 1975 inclusive, with the average volume per
acre of the ohia type, indicates the loss since 1969 could approach
119 million board feet or 24 million cubic feet. Such losses would
reduce the volume of ohia in 1975 to something in the neighborhood
of 92 million cubic feet and 460 million board feet.

2/ Petteys, Edwin Q. P., Robert E. Burgan, and Robert E. Nelson.
T975. Ohia Forest Decline - its spread and severity in Hawaii.
U.S. Forest Service Research Paper PSW-105, 12 pp., illus.

The Plantation Forest

There are 46,000 acres of plantations in Hawaii. The Island of
Hawaii has the most, 18,000 acres. Maui and Oahu rank second and
third, with 10,600 and 8,200 acres, respectively. Approximately
34,000 acres of these plantations are considered to have commercial
species and quality. The remaining 12,000 acres are occupied by
stands of noncommercial species or quality (Table 5).

Various species of eucalyptus make up about half of the commercial
plantation - notably E. robusta, and E. saligna. Other hardwoods
Australian redcedar (Too-naciliata va-r. australis), nepal alder
(Alnus nepalensis), (Albizzia m cana), plus others - occupy about
25 percent of the area; conifers about 15 percent; and miscellaneous
species about 10 percent. Fourty-four percent of the commercial
plantations are over 35 years old and thus at or approaching merchant-
able size. One-third are less than 15 years old and the remainder
15 to 35 years of age.

As of 1970, the plantations contained about 64 million cubic feet
of wood in trees 5.0 inches in diameter and larger and 299 million
board feet in sawtimber trees 11.0 inches in diameter and larger
(Table 6).

The Big Island alone has 39 percent of the total volume, while the
three islands - Hawaii, Maui, and Oahu - contain over 85 percent of
the total volume in plantations.

The two eucalyptus species, E. robusta and E. saligna, make up nearly
three-quarters of this volume.

Some Implications of the Current Resource Situation

The current timber resource situation reveals some areas which offer
opportunities for the expanded use and management of these resources
in a way that will increase their contribution toward reaching the
State's goals for improving local employment, local income, popula-
tion distribution, and general betterment.

One of these areas is to accelerate the harvest and use of those
stands, native and plantation, which are already of merchantable
size and quality, in a way that insures a continuing sequence of
future crops with acceptable environmental impacts. The opportunity
for utilization of the native species, however, is rather limited.
Low quality timber and low volumes per acre in ohia and koa stands
make for high logging costs. Koa is scarce and most stands are decadent.
Land clearing and grazing have depleted this valued resource. Ohia

Table 5. Area of forest plantations for all ownerships by island and forest type, Hawaii, 1970

Total non- Total Commerc al type
Total commercial commercial Other
Islands all types types types Eucalyptus Hardwoods Conifers Unclassified

Hawaii 18,060 2,691 15,369 6,367 6,591 384 2,027

Kahoolawe

Kauai 5,588 2,164 3,424 1,698 475 1,251

Lanai 1,064 470 594 262 55 80 197

Maui 10,624 4,561 6,063 3,465 492 2,106

Molokai 2,636 533 2,103 1,267 30 806

Niihau

Oahu 8,188 2,139 6,049 3,615 1,025 195 1,214

All islands 46,160 12,558 33,602 16,674 8,668 4,822 3,438

Table 6. Volume of growing stock and sawtimber in forest plantations for all ownerships, by species and
island, Hawaii, 1970

Species Stat waii Kahoolawe Kauai Lanai Maui Molokai Niihau Oahu
tota I I I I I I-
- - - - - - - - - - - - - - - - Thousand cubic feet - - - - - - - - - - - - - - - -
Growing stock:

Eucalyptus 56,739 22,524 4,852 613 17,412 3,958 7,380

Other hardwoods 4,964 2,154 1,104 163 429 1 1,113

Conifers 7,289 980 1,528 100 3,498 758 425

All species 68,992 25,658 7,484 876 21,339 4,717 8,918

- - - - - - - - - - - - - - - - Thousand board feet - - - - - - - - - - - - - - - -
Sawtimber (International
1/4-inch rule):

Eucalyptus 260,069 107,795 19,950 2,188 84,572 14,015 31,549

Other hardwoods 17,786 6,895 5,978 690 1,360 -- 2,863

Conifers 18,017 2,666 2,526 63 10,492 284 1,986

All species 295,872 117,356 28,454 2,941 96,424 14,299 36,398

is in greater supply but is difficult to mill and season. On the
other hand, the two percent of the commercial forest land occupied
by planted sawtimber stands, contains almost 40 percent of the present
supply of sawtimber in the State.

Another area is the situation raised by the decline in the ohia forests,
particularly on the Big Island. Loss of the dominant tree cover over
large areas may have serious and long-term consequences. Even if the
epidemic stops, regeneration of the native forest is not a certainty.
Aggressive adventure plants invading areas of decline may limit or
prevent native forest regeneration. One possible course of action
would be to assist the rehabilitation process with a vigorous program
to bring selected areas into productive status as soon as possible
by planting them with fast-growing species with greater potential
for supplying useful products, employment, and income as well as pro-
tecting the soil, water, wildlife, and recreation aspects. More in-
formation on the cause of decline and expected vegetation successional
trends is needed, however, to help guide management decisions regarding
this forest resource.

A third area deserving careful consideration is the 664,000 acres of
commercial forest land occupied by noncommercial forest cover. This
is land capable of producing usable crops of wood with all the social
and economic benefits flowing therefrom, along with the physical and
esthetic environmental benefits. But it is not now doing so. Nor
will it without a determined program of action to change the situation.
This land is found on all the major islands. A possible program
would be to seek out good timber growing sites in this category,
and, if compatible with environmental objectives, convert them to
fast growing species of proven desirable qualities. This would seem
to offer real potential to increase the contribution of the State's
forest lands toward meeting the State's total social, economic, and
environmental goals.

IV. FOREST ENVIRONMENTAL SETTING

Watershed Protection

Water has long been recognized as the most important resource
of Hawaii's forest lands. These lands are the source of almost
all the water upon which we depend for our agricultural, industrial,
and social well being.

The condition of each watershed determines to a large extent the
amount of water that can be developed, the quality of water, and
the amount lost as surface runoff and floods. Today, most forest
lands are in good hydrologic condition. A 70-year policy of
watershed protection has resulted in dramatic improvement from
the acute conditions that prevailed at the turn of the century
after vast areas of forest had been destroyed by uncontrolled
browsing and hoof damage by feral animals, as well as heavy
cutting for fuelwood and the sandalwood trade, and other factors.

On the other hand, large areas of forest land have been converted
to urban areas, cultivated crops, and pasture. Studies have
shown that conversion of forest land to other uses, and intensive
grazing of forest lands, contribute to greater run-off and erosion,
resulting in less percolation to recharge the ground water
supplies.

An intensive timber management program can and must be compatible
with the conservation of water resources. Increased stocking of
poorly stocked forest stands and reforestation of brushlands
would improve watershed cover. Probably the greatest potential
for improvement of watershed condition would be in the reforest-
ation of marginal grazing and cultivated lands.

Esthetics

The outstanding scenic resources of Hawaii's forests - the
distinctive tropical vegetation, the fascinating pali land, the
cascading waterfalls - attract tourists and residents alike.
Vegetation types are of extreme diversity from dense rain forest
to desert and high mountain scrub forest. These lands provide
many of the scenic and inspirational values that contribute so
much to the quality of life. Esthetic values are adversely
affected by fire, insects, disease, domestic and feral animals,
and noxious plants.

There is a potential to reduce damage to esthetic values by these
destructive agents through more intensive forest protection
activity which would accompany a more intensive timber management
program. Although increased reforestation and timber harvest
activities could adversely effect the visual resource, the very
rapid growth rate of young hardwoods would result in extremely
short visual impact periods.

Wildlife Habitat

Hawaii has no native game mammals. The nene, or Hawaiian goose,
and several native and migratory water birds, which were hunted
in the last century, are now considered endangered and have been
protected for many years. Nevertheless, the forests provide
highly productive habitat for feral pigs, goats, sheep, and other
game animals and birds which have been introduced to the Islands.
But the presence of large populations of these animals, as well
as mongooses, dogs, cats, and rats, in some areas for almost
200 years, have had a detrimental impact on native forest
ecosystems - including the habitat of native birds now listed as
rare and endangered. While hunters generally desire more abundant
and more diverse game populations, others place much greater
value on the native fauna, and other values of wildlife, than as
objects of sport shooting and food.

There is undoubtedly a potential to develop and maintain high
quality habitat for both game and non-game species while pro-
tecting habitat for the rare and endangered forest birds. How-
ever, wildlife managers need more information about the habitat
needs of various species and the limiting factors. When these
needs are known, vegetation could be manipulated to provide
habitat needs. An accelerated timber management program could be
designed to assist in habitat improvement.

Threatened and Endanered Plant aa-rid Anima Specie

Hawaii, because of its isolation, contains unique biological
systems. Many native plants, birds, and insects are endemic;
that is, they are native only to Hawaii. It has been estimated
that 2,000 species of fauna and flora in the Islands are rare and
in danger of extinction. While most of these endangered orga:nisms
are insects and mollusks, many are native plant species, and 20
kinds of endemic forest birds are listed as endangered. Therefore,
preservation of native biota must be considered in developing
forestry plans for Hawaii.

The Division of Forestry is committed to a policy of preserving
threatened and endangered species. This is being accomplished
through protection of existing and proposed natural areas and the
propagation and outplanting of rare endemic species.

Recreation/Visitor Industry

Hawaii's forests attract many kinds of recreation activities
besides providing the scenic backdrop which helps make the
Islands so attractive to residents and tourists. Hikers, hunters,
campers, picnickers, photographers, and nature lovers each have
a stake in the forest recreation resource despite some conflicts
in use among them.

State forest lands, and some private forest lands as well, will
become increasingly important for outdoor recreational use because
of the rapid growth of resident and tourist populations, more
leisure time, greater mobility of the people, and over crowding
of beach and shoreline areas. With proper planning and develop-
ment, forest recreation opportunities can be expanded and the
productivity of forests for recreation can be increased.

Natural Area Reserves

Preservation of natural forest ecosystems is a difficult task
in the face of expanding activities by man, damage by domestic
and feral animals, damage by fire, and invasion by non-indigenous
plant, insect, and disease pests.

Preservation of natural areas has been aided by the system of
forest reserves established in the early years of this century to
protect watersheds. While these efforts have probably resulted
in more nearly natural vegetation than existed 75 years ago, most
of the reserves are not in a wholly pristine condition - in some
the native species are deteriorating rapidly And not regenerating
in the face of competition by invading plants. Moreover, the
increasing use of the reserves for products and services in
addition to water has caused the Department of Land and Natural
Resources to take a more selective approach to natural area
preservation. In 1964 the Department officially set aside 9,939
acres of land on Kauai as the "Alakai Wilderness Preserve." In
1969-70 the Department developed criteria for selection and
management of natural areas and selected more than 96,000
additional acres of land worthy of preservation.

The 1970 legislature provided for a Natural Area Reserve System.
A Commission was established and empowered to nominate sites in
establishing a system of natural areas. To date, only two addi-
tional sites (2,685 acres) have been nominated by the Commission
and approved by the Board of Land and Natural Resources bringing
the total official natural area to 12,638 acres. Nevertheless,
the Department is administratively managing as natural area the
additional 93,829 acres it had proposed, bringing the total
existing and proposed natural area to 106,467 acres.

Forest Protection

The total adverse impact of fire, insects, disease, animals, and
plant pests on the uses and values of forest resources is very
difficult to measure. Destructive agents kill and destroy,
retard or prevent regeneration and growth, and impair and damage
unique native ecosystems, as well as man-made forests, rangelands,
and watershed vegetation. Directly or indirectly, they also harm
wildlife, and diminish opportunities for recreation.

Although generally forest fire protection has not been considered
a major activity in Hawaii, risk, or the potential of fires
starting, is increasing each year as more residents and tourists
utilize forest, brush, and grasslands for recreation and other
uses.

Many destructive insect pests and disease organisms have been
identified and shown to threaten Hawaii's forest resources. An
alarming epidemic rate of death of ohia, the predominant tree
species in Hawaii's rain forests, has recently affected an esti-
mated 200,000 acres of forest on tile Island of Hawaii. The
Division of Forestry, in cooperation with the U. S. Forest Service
and other agencies, is participating in concentrated research
studies on the decline. Other recent infestations included the
Eurasian pine aphid, the Acacia psyllid, the Black twig borer,
the Monkey Pod-Kiawe caterpillar, the koa rust, and a needle cast
on pine. Several biological control projects are now in progress
as part of the overall effort to eliminate these forest pest
problems.

Noxious weeds are an increasing problem as they invade and alter
forest wildlife communities. For example, at Laupahoehoe, on the
Island of Hawaii, banana poka, an ag-gressive vine that can climb
and eventually smother trees 70 feet tall, was introduced in 1930
as an ornamental in a forest clearing. Feral pigs and other

vectors have spread the vine over at least 25,000 acres, drasti-
cally altering the forest in some areas. It has been estimated
that at least 150,000 acres are infested with undesirable exotic
plants such as black wattle', firetree, banana poka, melastoma,
lantana, gorse, and blackberry.

Damage from destructive agents could be reduced by more intensive
forest protection activity which would accompany an accelerated
timber management program.

V. FOREST ECONOMIC SITUATION

Current Situation

There are at present three sawmills that produce standard lumber
and one whole-log chipping operation in Hawaii. Two of the saw-
mills are in Hilo, and one near Puunene, Maui. The chipper is a
portable rig currently operating on the north Hamakua coast mauka
of Pauuilo.

These operations are supported by various timber supplies under
several ownerships and levels of management. The sawmill on
Maui clearcuts privately-owned pure stands of Eucalyptus robusta
and E. globulus with the intention of obtaining coppice regenera-
tion. One of the two in Hilo cuts State-owned ohia and koa
managed on a selection system. The other operates partly on
privately-owned koa harvested from a land clearing operation and
partly on State-owned eucalyptus plantation timber which is clear-
cut for coppice. The chipping operation clearcuts for coppice in
upper elevation Eucal ptus qlobulus stands.

In total, all operations together harvest about six million board
feet per year from about 200 acres. The chipping operation, cut-
ting about four million board feet per year is by far the biggest
of the group. About one million board feet of privately-owned
koa and one-half million board feet of privately-owned eucalyptus
timber is cut each year. The rest are all State-owned,

The most recent production figures that have been obtained are
for 1969. Since this time the industry has changed considerably
so that the figures have little relationship to the present. There-
fore, the following figures have been estimated based on local
knowledge of the current situation. These estimates should be
viewed with the realization that they are estimates only and not the
result of a survey of the industry.

There are about two million board feet of lumber and veneer cants
and about 12,000 BDU's (bone dry units = 2400 lbs. each) of chips
currently produced per year. About one million board feet of the
lumber is koa - about 2/3 of which is lumber and 1/3 in veneer
cants. The rest of the lumber is eucalyptus, a mixture of Eucalyp-
tus robusta, saligna, and globulus. The chips are virtually all
E. globulus, both on Hawaii and on Maui where a small volume of
whole logs have been converted to chips for fuel in recent months.

A considerable amount of mill residue has just started to be used
as fuelwood, but we have no estimates of volume so used as yet. In

1969, 1,720 cords of fuelwood and 10,100 fence posts were produced.
These are reasonable estimates of present production. Last fiscal
year 11,300 cubic feet of treefern were produced.

Inflation has hit both the costs of production and the prices
received for forest products and until both become more stabilized
the future of the small industry is most unclear. For example,
although the price received for koa veneer cants has risen by
one-third in the past three years, the price of diesel oil, the
main fuel used in logging, has tripled in less than two years, and
top-of-the-line replacement parts for almost all equipment are
difficult to obtain. Because of the slow housing market, the
price of wood has not kept pace with the rise in food, clothing,
and transportation costs. It is best to consider the industry
island by island.

On Maui, the sawmill is in financial difficulty. It has experienced
difficulty marketing eucalyptus lumber and has had to use a very
low price structure. At the low prices, it has been impossible to
produce much really good quality, well manufactured lumber. The mill
is capable of producing about five million board feet a year. it
has a small dry kiln, a planing mill, and a pallet plant. In full
operation it employs about 20 people.

The larger of the two Hilo sawmills finds markets for most of its
production in Southern California and Japan although a small amount
of koa is sold locally. The main uses for its output are veneer and
furniture manufacture from the koa.and pallet manufacture (in Los
Angeles) from the eucalyptus. The mill has a band headrig and re-
saw and can produce eight million board feet per year on a single
shift. It has attached dry lumber storage sheds, a planing mill,
and a flooring plant. It employs about 30 people when in full
operation.

The other mill is a very small circular mill with a production
capability of about one million board feet per year. It cuts koa
and ohia - currently only on a one day a week or so schedule. Most
of the koa produced is used in the craftwood industry to make
carved and turned bowls. The rest is used by local furniture
manufacturers. Most of the ohia is used in heavy construction.
The mill has an attached general woodworking plant. It employs
five or six people.

The chipping operation consists of a large portable chipper located
in the field, and several large trucks. Chip storage is on State-
owned land at Kawaihae Harbor. The operation consists of felling
the trees, skidding them to the chipper, chipping them, and
blowing them into a van in which they are hauled to Kawaihae.

There they are stored until a ship comes in from Japan, when they
are loaded, using a bulk sugar loading device. This operation
employs about 20 people.

There are certain peculiarities about the lumber business in
Hawaii that should be pointed out to those thinking of entering
it. Some of these are:

1. The local market is predominantly for softwood yard lumber,
not for rough-green or rough-dry hardwood.

2. A planing mill is necessary to produce hardwood lumber that
will compete with planed softwood - this necessitates a dry-kiln.

3. The existing wholesale and retail yards have indicated little
interest in carrying or inventorying local woods. Local saw-
millers must generally carry their own inventories.

Potential Situation

The volume of standing timber in Hawaii can sustain a somewhat
larger cut than is being made at present. The island of Hawaii
has 761 million board feet of timber, eleven inches or larger,
suitable for commercial use. This volume is distributed fairly
evenly on State lands and private lands. The availability of
additional native ohia and koa is less certain. There is very
little koa in accessible stands, either public or private. The
existing stands are estimated to last ten years at present rates
of logging.

Maui could also support a larger cut than it presently does.
Although it has no native commercial sawtimber, its plantation
timber could support a cut of eight to ten million board feet
per year. Molokai could probably support a very small portable
mill cutting pine construction lumber. Kauai could also support
a small mill cutting softwood and hardwood lumber.

The main potential, however, is in the timber that has been planted
recently and is still too young to harvest and in the timber that
could be grown. In its Waiakea Forest Reserve are some eight
thousand acres of Australian toon, Queensland maple and other species
that will reach merchantable size in about ten more years. This
timber sould supply a moderate sized woodworking industry in near-
by Hilo, but only if the industry can look to a continuing supply
once the Waiakea timber begins to be cut heavily. This continuing
supply can be a mixture of koa, toon, Queensland maple, Eucalyptus
saligna, qrandis. and deglupta planted on sites suitable for them.

Also as present robusta stands are cut they can be underplanted
with better species - this has long been the Division of Forestry's
intent.

It is very doubtful that hardwoods grown in Hawaii will ever be
used to a significant extent as construction lumber. Softwoods
are much better suited to this use and will continue to be avail-
able from the West Coast. Any softwood produced in Hawaii will
be readily marketable, however, and the planting of forests of
pine and other species should be encouraged. But hardwoods grow
much better in Hawaii than do conifers, and our forestry future
must be with them.

Koa has been and will continue to be the premier wood of Hawaii.
Most of the koa forest has been converted to pasture. Selected
lands can be converted back again to koa, once it becomes evident
to the landowner that koa is a valuable product. Koa lumber and
veneer can be used for an enlarged furniture and craftwood in-
dustry and can also be exported, although retaining as much manu-
facturing in Hawaii as possible is more desirable.

Eucalyptus saligna stands can be grown on short eight- to ten-year
rotations to supply fiber and fuel to the pulp and energy pro-
ducers. Some saligna lumber can be used in pallets and heavy con-
struction.

Queensland maple and Australian toon can be used in furniture and
cabinetry both as lumber and veneer. They can also be exported.

One large stumbling block is the high cost of doing business in
Hawaii. Wood products of Hawaii must compete in a world market
with those produced elsewhere. This is just as true for wood
products as it is for pineapple or bananas, neither of which com-
pete well on the open market if produced in Hawaii. The only
competitive area in which Hawaii has an obvious advantage is in
the rate of tree growth. Trees grow faster in Hawa.ii than in
temperate regions (but no faster than in other tropical areas).
In all other aspects - labor and material costs, land costs,
transportation costs - Hawaii is at a moderate to large competi-
tive disadvantage. Lumber shipped from Hawaii to the mainland goes
in US bottoms. Southeast Asian lumber is shipped on much cheaper
foreign ships. Whether these are "constraints" or merely "problems"
remains to be seen.

Growing trees for fuel presently looks favorable in Hawaii. Else-
where it has been shown that the large land area required to grow
a significant amount of kilowatts in the form of wood is untenable.
In Hawaii, it may not be, because of faster tree growth, closeness

of forest land to the users, and the fact that wood fuel is used
as a supplement to oil rather than as a main source.

An enlarged forest based industry in Hawaii will have to compete
effectively in both the market for timber products and the market
for resource supplies to be successful. Important characteristics
of both of these markets are described below.

Timber Product Markets

The market for timber products is composed of six major segments.
In terms of growth, only plywood and veneer, pulp product, and
log export markets have grown significantly since 1950. The lack
of growth in lumber, miscellaneous product and fuelwood markets
has resulted from increased costs of these products relative to
substitute materials as well as changing consumer tastes. l/
In terms of size, the largest markets are for lumber and pulp
products. (See tables I and 2)

l/ Major trends contributing to the lack of growth in these markets
include: increased construction of multifamily dwellings and mobile
homes; increased use of concrete slab foundations; use of carpeting
directly over subfloors and foundations; use of plywood and hard-
board for sheathing and subflooring; increased use of plywood,
hard-board, and plastics in furniture; increased use of concrete,
metal, and plastic instead of wood in industrial buildings, shipping,
etc. There is some evidence that some of these trends may slow or
reverse in the future if the energy situation continues to de-
teriorate.

Table 1. U.S. Timber Product Market Growth Between 1950 and 1974
by Major Product.

Average annual rate of market growth l/
Major Product Hardwoods Softwoods
-- Percent --
Lumber 0 A/ 0 4/

Plywood and veneer 2 8
Pulp products 2/ 7 2

Misc. products -3 -1

Log exports 8 19

Fuelwood -7 -8

l/ Computed market growth rates are based on wood volume equiva-
Tents of products exported or consumed in the U.S. domestic market.
A comparison of wood volumes marketed in 1950-51 and 1973-74 was
used to compute average annual growth rates.

2/ Includes pulpwood and the pulpwood equivalent of wood pulp,
paper, and board.

3/ Includes cooperage logs, poles and piling, fenceposts, hewn
-fies, round mine timbers, box bolts, excelsior bolts, chemical
wood, shingle bolts, and miscellaneous items.

4/ Lumber market growth averaged less than one-half of one percent
per year.

Source: Calculations based on data contained in Phelps, Bruce B.,
The Demand and Price Situation for Forest Products 1974-75, Forest
Service, USDA, Septem6er 1975.

Table 2. U.S. Timber Product Market Size by Major Product

Hardwoods Softwoods

:Market size,:Percent of:Market size,:Percent of
:million cu. :hardwood :million cu. :softwood
:feet of :market :feet of :market
Major Product :round wood : :round wood :
:equivalent : :equivalent :

Lumber 1,135 32.4 5,575 48.7

Plywood & veneer 300 8.5 1,135 9.9
Pulp products@-/ 1,420 40.5 3,950 34.5

Misc. products 220 6.3 255 2.2

Log exports 32 .9 440 3.8

Fuelwood 400 11.4 100 .9

I/ Market size estimates are based on wood volume equivalents of
products exported or consumed in the U.S. domestic market. Market
volumes for the years 1973 and 1974 were averaged to estimate
market size.

2/ Includes pulpwood and the pulpwood equivalent of wood pulp,
paper, and board.

3/ Includes cooperage logs, poles and piling, fenceposts, hewn
Ties, round mine timbers, box bolts, excelsior bolts, chemical
wood, shingle bolts, and miscellaneous items.

Source: Calculations based on data contained in Phelps, Bruce B.,
The Demand and Price Situation for Forest Products 1974-75, Forest
Service, USDA, September 1975.

Although the export market for all hardwood and softwood pro-
ducts currently accounts for only 10 percent of the total wood
volume marketed, it is growing much faster than the market as a
whole. Between 1950 and 1974, wood volume marketed in export
markets increased at an average annual rate of more than nine
percent while domestic market volume increased at an average annual
rate of less than one percent. Major export markets are Japan,
Canada, and Western Europe - Japan is by far the largest customer.

An expanded forest-based industry in Hawaii would initially have
to sell products of higher quality or lower price than its com-
petitors in order to obtain a share of existing markets. Expansion
into those market segments that continue to show little or no growth
would be at the expense of existing firms in the industry.

Because timber product markets are mature and closely linked to con-
struction activity, the industry is highly cyclical. The boom or
bust nature of the market combined with the relatively large number
of small firms in the industry has led to a fairly rapid pace of
industry consolidation in recent years. Many of the weaker firms
have either gone out of business or been absorbed by the stronger
and larger firms in the industry.

Resource Supply Markets

An enlarged forest-based industry in Hawaii must compete success-
fully with other industries for available land, labor and capital
resources. The possibilities for forest industry growth will be
reduced where resource prices relative to timber product prices
are higher in Hawaii than in other timber producing regions.
Approximate U.S. average and Pacific Coast hourly earnin@s of
production workers in forest-based industries are shown in
Table 3. Although earnings per worker in the State of Hawaii are
higher than in the U.S. as a whole or in Pacific Coast states,
Hawaii's wage rates are influenced greatly by the Honolulu labor
market. Wage rates outside Honolulu are substantially lower, and
an enlarged forest-based industry could pay competitive wages in
these areas.

To attract new investment capital, U.S. manufacturing industries
generally must earn an after tax return of about nine percent.
The more successful enterprises in the forest products industry
earn in excess of ten percent on invested capital. l/ If raw
material (stumpage) costs, harvesting costs, manufa-Eturing costs,
and marketing costs are low enough relative to timber product
prices, an enlarged forest products manufacturing industry could
produce sufficient returns to attract investment capital. Achieve-
ment of relatively low harvesting, manufacturing, and marketing
costs is of course dependent on the establishment of efficiently
sized and well managed operations.

l/ Data contained in Forbes Twenty-eighth Annual Report on
Tmerican Industry, Jan'uary 1, 1976, indicates that the median
after tax return on total capital for the 929 largest U.S.
companies was 8.6 percent over the five year period 1971 through
1975. Median returns for the forest products industry were 8.2
percent in the same period. Median returns for 1975 were somewhat
lower with all industries earning 8.2 percent while the forest
products industry earned 8.3 percent.

Table 3. Approximate U.S. average and Pacific Coast hourly
earnings of production workers in forest-based
industries, 1974.

1 U.S. average Pacific Coast
Industry hourly wage rate hourly wage rate
-- Dollars

Sawmills and planing mills 3.80 5.10

Paper and allied products 4.50 5.70

Millwork, veneer, plywood
and fabricated structural
wood products 4.00 5.20

Furniture and fixtures 3.50 4.70

Source: U.S. Department of Labor, Bureau of Labor Statistics.

To obtain the needed forest land base commitment, timber production
costs must be low in relation to stumpage revenues to provide
adequate returns to the landowner. Average annual timber revenues
should exceed the average annual costs of site preparation and
planting, precommercial thinning, and other management costs. Net
returns preferably should equal or exceed the returns from alter-
native land uses such as cattle grazing.

Estimated net returns per acre for timber production and livestock
grazing are shown in Tables 4 and 5. Average annual net returns
per acre realized from sustained yield management are equal to or
greater than the returns that can be realized from livestock
grazing..j/ Special subsidy programs designed to encourage timber
production on privately owned lands provide additional incentives
for investment. Existing timber subsidy programs include: special
property tax treatment of timberlands in Hawaii, capital gains
treatment of income from owned timberland under federal tax laws,
and payments under the Forest Incentives Program.

l/ Note that if all costs and returns were amortized at 6-1, percent
compound interest, revenues that could be obtained from timberland
development probably would be insufficient to cover investment costs.
However, the returns generated by livestock ranching enterprises
also are generally insufficient to cover all investment costs at
61-2 percent compound interest.

Table 4. Estimated average annual net returns per acre from
timber production.

Land use activity Net returns per acre
Dollars

Eucalyptus grown for pulpwood
under a coppice system:

Average annual net returns during the first 5.30
30 years (includes initial average develop-
ment costs of $140 per acre and three
harvests at ten year intervals).

Average annual net returns in succeeding 9.00
periods (does not include initial develop-
ment costs).
Hardwoods grown for sawtimber: 21

Average annual net returns during the first 21.60 - 36.60
30 years (includes initial average develop-
ment costs of $260 per acre and one
harvest).

Average annual net returns in succeeding 22.30 - 57.30
periods (includes costs that are lower
than initial development costs).

l/ Growth rates of 1500 board feet per acre per year and stumpage
prices of $4.00 per cord are assumed.

2/ Growth rates of 500 board feet per acre per year and stumpage
prices of $60 - $90 per thousand board feet are assumed.

Source: Estimates by Hawaii Division of Forestry and U.S. Forest
Service

Table 5. Estimated average annual net returns per acre from
livestock grazing.

Parcel size class, acres Appraised agricultural
value
dollars per acre

0-1000 6.87-9.00

1000-5000 1.81-4.05

over 5000 2.99-4.14

Appraised or "upset rent" is used to represent
agricultural values. Actual rents received
through lease auctions are considerably higher,
but represent unique characteristics of the
lessee's operation or tax position as well as
the agricultural value of the land parcel. A
similar situation may be expected for timber-
land leases.

Source: Based on data from State of Hawaii pasture lease sale
held August 28, 1975.

Problems That Have Prevented Realization of Greater Commercial
Forestry Potentials in the Past

There are important local forest products industries in the Islands.
However, these are small in relation to mainland industries, in
relation to total wood products used in Hawaii, and in relation to
existing and potential timber resources. Several factors contribute
to the low level of commercial forestry activities.

Low Volume and Quality of Raw Material

One important factor is the volume and quality of existing timber
supplies. The total sawtimber resource is less than one billion
board feet. Hawaii consumes the equivalent of this volume of wood
products every seven years. This is not a large resource base.
And not all of the timber is available for harvest. Much of the
native timber, which consists essentially of ohia and koa, is in
stands yielding very low volumes of sawtimber, barely 500 board
feet per acre on the average. The costs of logging such stands
are relatively high. Additionally, the quality of timber, expressed
by grades of logs, is quite low. Thus, the potential for recovery
of high grade lumber at the sawmill is low.

Different species of wood have different characteristics which de-
termine their end uses, their processing requirements and, thus,
their value. Ohia is a heavy hardwood and difficult to process.
Although highly valued for some uses, special markets would need
to be developed for any sizable increased output of ohia. Koa, on
the other hand, is similar to walnut in most characteristics other
than color. It is readily marketable at high prices. Unfortunately,
koa timber is not in great supply.

Generally, then, because of low total volumes, low Yields of saw-
timber per acre, and low quality of timber, the native forests have
not provided an attractive resource base for sustained large in-
dustrial operations.

Timber in planted stands presents a different potential. But the
total supply in all the islands amounts to only 300 million board
feet of sawtimber. There is no large inventory on any island. Most
of the planted timber is in stands less than 50 years old so it has
just recently become available as a potential resource base for in-
dustry. Until 1965, there was very little information about the
volume and quality of timber in planted forests. Unlike the native
forests, the planted forests of exotic species yield high volumes
of sawtimber - 15,000 board feet per acre or more - in most stands
30 years old or older. Log quality is generally higher than for

native timber. However, most of the planted timber is eucalyptus.
And the characteristics of the wood of most eucalypts restrict its
uses. It is heavy and hard, with high shrinkage on drying. Thus
it requires special processing and special markets or end uses. And
market resistance to new hardwoods is predictable, especially in a
typical softwood using area such as Hawaii, or the western United
States.

The sawtimber volume in planted stands other than eucalypts totals
about 40 million board feet. Some of this timber, both of hardwood
and softwood species, is of excellent quality. However, it is in
small acreages scattered here and there throughout the islands.

Thus, while planted forests seem to hold significant potential they
have not yet formed the base for large commercial enterprises, for
several reasons:

1. Attractive volumes have only recently become available.

2. The species of timber available are not known in the
American trade.

3. The eucalyptus timber requires special processing and marketing.

4. Volumes of higher quality hardwoods and softwoods are as yet
too small to support a significant local wood processing
industry.

Restrictive Land Use Policy

Another significant deterrent to commercial forestry has been land
use policy. From about 1915 to 1960, government and sugar planters
policy with respect to forest resources, emphasized watershed pro-
tection. In fact, species selection for reforestation was at times
purposely directed to trees that would not entice the lumberman's
axe. There was great fear that logging would damage water sources
so important to the sugar industry. Forestry during this period
dealt mainly with watershed protection and rehabilitation, not
timber values.

There has been no major commitment of land to growing good timber.
Even the valuable koa forest was ignored as a renewable resource.
Land from which koa was harvested is all now pastures. Large areas
of koa forest land, both private- and public-owned, have been converted
to pasture without utilization of the koa timber. Most of the lands
on which planted timber now grows were not actually committed to
timber production. The older forests were planted to protect water-
sheds or to provide fuel for sugar mills and domestic use.

Until about 20 years ago, as a matter of policy, timber in the
forest reserves was not available for industry. Regulations in con-
servation districts are still extremely restrictive of any commer-
cial uses. For example, a public hearing is required prior to
issuing a permit for commercial harvest of Norfolk-island pine
seed.

Labor Supply

Competition for labor was also a deterrent to industry development.
Labor to support the profitable sugar and pineapple enterprises was
not in surplus supply. Therefore, there was no significant support
for diversification of enterprises in Hawaii until about 1955 when
labor began to be in surplus.

Lack of Developed Markets

There has been no major commitment by,the large wood products
dealers in support of processing and marketing local woods. While
they have, in some cases, been willing to process an order, they
have not focused their technological and marketing forces on this
developmental problem. Apparently, local forest products have
offered minor incentives for exploitation in competition with or
relative to imports. Imported softwood a-nd hardwood products have
long held established positions in the local markets for which
local products might compete. Until recently, no major commitment
had been made to develop and hold an export market.

Processing or Utilization Problems

Market development is critically dependent on product quality and
the product characteristics in terms of usefulness for the purpose
at hand. The small local sawmills have experienced considerable
difficulty in maintaining product quality. Negative market res-
ponses have occurred as a result of inadequate seasoning, improper,
or lack of, grading the lumber, uneven dimensions of boards and
milled stock, lack of culling of defective materials, and other
processing faults. Most faulty processing is due to the lack of ex-
peri-ence of labor and management, especially when processing hard-
wood products. Negative market responses have also occurred when
local users found that local hardwoods were not necessarily good
substitutes for that particular use, especially as a replacement for
softwoods. Difficulties with machining, high shrinkage and swelling,
difficulty in nailing, and heaviness are some negative factors. In
the Eastern United States, and in Australia and Asia, processing
and marketing technology pretty much eliminated these "faults" of

hardwoods many years ago. Also, in other market channels, estab-
lished industry grading rules are applied. These rules are ap-
plicable to Hawaii products but are not used. Consequently, some
disagreements on product quality have adversely affected marketing.

Lack of Timber Production (Growing)

While a high stumpage price might be a significant deterrent to
timber purchasing and processing, low stumpage price is a dis-
incentive to land owners who might be interested in growing timber
as a renewable crop. Past stumpage prices have obviously not been
high enough to encourage land owners to grow timber. For example,
practically all areas from which koa has been harvested have been
converted to grazing use.

The greatest barrier to sustained production of timber on private
lands, and to the commitment of public lands for timber production,
is low stumpage price offerings by industry, regardless of the
reasons for the low offerings.

Stimulation of sustained commercial timber production in Hawaii will
require two conditions: (1) Demonstration by industry that they will
pay prices for timber that make timber growing a profitable enter-
prise for the landowners and (2) Demonstration by landowners that an
adequate supply of good quality timber can and will be grown on a
sustained basis.

This seems to be a chicken and egg situation. Nevertheless, such
stimulation was initiated in government programs about 15 years ago.
Reforestation programs were authorized and funded by the Hawaii
legislature. The objective was to increase the supplies of better
quality timber. This was a modest effort at best. But the degree
of commitment was even less than modest. Support and commitment
wavered and evaporated under adversity, such as complaints by those
who objected to introducing exotic trees into Hawaii's forest lands;
or the failure of a sawmill to turn a profit in a very short time.

At present, forestation programs are not being sustained at levels
necessary to significantly improve the timber resource base.

VI. ALTERNATIVE PROGRAM PROPOSALS

The forest resources in Hawaii have the potential of supporting
a substantial forest-based industry capable of providing a
significant number of jobs and varying levels of economic
return. There are an infinite number of increments between the
present or low level of activity and the maximum possible.
While a moderately increased program would be generally bene-
ficial to environmental goals, a high level of development could
cause unacceptable environmental impacts.

We are presenting three levels of program development for
consideration:

1. A low level of development committing 86,000 acres of com-
mercial forest land to intensive management out of a potential
948,000 acres or 9% of the total available.

2. A medium level of development, committing 200,000 acres or
21% of the total commercial acreage available.

3. A high level of development, committing 410,000 acres or 43%
of the total acreage available.

This section will describe the program levels within each of
these proposals. The economic impacts and environmental impacts
of these three programs will be dealt with in Chapters VII and
VIII respectively.

Program A (Present Program). 86,000 Acre Land Base.

This program level is the one contained in the publication "A
Program for the State Forest Lands of Hawaii" prepared by the
Forestry Division of the Department of Lands and Natural
Resources in 1975. This is a modest level of development and
will not create a wide based or diversified forest products
manufacturing industry. At full implementation it will support
an expansion of present on-going activities listed below:
1. one sawmill on the Island of Hawaii (increase annual pro-
duction to 10 MMBM)
2. one sawmill on Maui (increase annual production to 10 MMBM)

3. a crafts industry
4. a chip export industry
5. a variety of incidental forest products, such as ;iapuu
This level of development may create anough fiber to support a
secondary products industry such as hardboard manufacture or
veneer and plywood manufacture, but probably not both.

Program level A calls for planting 1200 acres per year for a
30 year period. This is the planned rotation period for hardwood
sawlogs. Acreage planted with pulp species would be harvested
on a 10 year rotation. Planting of these lands would also be
planned to reach maximum acreage at the end of 30 years. This
schedule could be changed if it is necessary to reach maximum
pulp production at an earlier date.

There are approximately 50,000 acres in plantations and managed
native stands already. Although this acreage could be programmed
to achieve full production before the end of the 30 year rotation,
we have scheduled it at the same rate to accomplish aii even flow
of products and allow necessary time for industry to grow with
the resource. This schedule could also be increased if required
by economic need. Table 1 displays the gradual programming of
this existing plantation acreage. Volume figures are in millions
of board feet. Acreage figures are in actual units. All of
these stands are not now mature. They are presently capable of
sustaining the 12 million board feet per year harvest, and will
support the 55 million board feet harvest in 30 more years.

TABLE I

EVENFLOW PROGRAM FOR HARVESTING EXISTING PLANTATIONS

Volumes in Millions of Board Feet

1976 1986 1996 2006

Vol. Ac. Vol. Ac. Vol. Ac. Vol. Ac.
Pulp
State 5.7 3 80 14.8 988 23.9 1596 34.2 2280
Pulp
Pvt. 1.8 120 4.7 312 7.6 504 10.8 720
Pulp
Sub-total 7.5 -500 19.5 1300 31.5 2100 45.0 13000
Sa,vilogs
State 3.4 223 4.8 319 6.2 410 7.6 1 507
Sawlogs
Pvt. 1.1 72 1.5 101 1.9 130 2.4 160
Sawlogs
Sub-total 4.5 3-00 6.3 420 8.1 540 10.0 667
TOTAL 12.0 800 25.8 1720 39.6 T2640 1 55.0 13667

In addition to the existing volumes already in plantations, the
"Program Plan" calls for planting an additional 1200 acres per
year. Half of these acres will be planted to pulpwood species
and half to sawlog species. At the end of the 30 year rotation
there will be a total of 86,000 acres in production: 38,000
acres in sawlog production and 48,000 acres in pulpwood
production.

Table 2 displays the programming of new plantation acreages.

TABLE 2

LEVEL A HARVEST PROGRAM OF NEW PLANTATIONS

Volumes in Millions of Board Feet

1986 1996 2006

Vol. Ac. Vol. Ac. Vol. Ac.
Pulp
State 6.8 456 13.7 912 20.5 1368
Pulp
Pvt. 2.2 144 4.3 288 6.5 432
Pulp
Sub-total 9.0 600 13.0 1200 27.0 1 1800
Sawlogs (0-9) (912)
State 0.5 456 0.9 912 6.3 456
Sawlogs (0.3) _P88T_
Pvt. 0.1 144 0.3 233 2.2 144
Sawlogs 1 1 1 1 (1.2)1 (120O)l
Sub-total (0.6) (600) (1.2) (1200) 9.0 600
TOTAL 9.6 1200 19.2 2400 137.2 1 3600

I/ Volume and acreage figures in parens are from intermediate
thinnings.

The acreage columns in Table 3 show the actual harvest acreage
per year and the total acreage planted or in production. Harvest
acreage is approximately 1/30 of the total sawlog acreage in
production, plus acres on which thinning is occurring,-plus
1/10 of the total pulpwood acreage in production.

Table 3 provides the combined information from Tables 1 and 2.
These will be the actual harvest acreages and volumes for this
program level.

TABLE 3

LEVEL A HARVEST PROGRAM

Volumes in Millio-ns of Board Feet

1976 1986 1996 2006
Ac. Ac. Ac. Ac. Ac. Ac. Ac. Ac.
Vol.lHarv. Plant. VoldHarv. Plant. Vol. Harv. Plant. Vol. Harv, Plant.
Pulp
State 5.71 380 22,800 21.711444 27,360137.6 2508 31,920 54.7 3648 36,480
Pulp
Pvt. 1.81 120 7,200 6.81 456 8,640 11.9 792 10,080 17.3 1152 11,520
Pulp I
Sub-total 7.5 500 30,000 28.511900 36,000 49.5 3300 42,000 72.0 4800 48,000
Sawlogs
State 3.4 228 15,200, 5 21 @75 19,760, 7.1 1322 24,320 15.4 1875 28,880
Sawlogs I
Pvt. 1.1 72 4,800 1.71 245 6,240 2.2 418 7,680 4.3 592 9,120
TE q I -og s 11 A 1 1- I
Sub-total 4.51 300 20,000 6.911020 26,000 9.3 1740 32,000 20 2 2467 38,000
T 1 1
12.01 800 50,000 1129201 162,000,58.8 5040 7 7267 86,000
TOTAL 35.4. 4,000192.2

l/ Figures include volumes and acreages from thinnings.

Under program level A there is a gradual increase in annual
harvest volume from the present 12 million board feet to a
maximum of 92 million board feet attained in the year 2006. This
is a considerable volume of fiber, and although capable of support-
ing the industries listed on page 38, is not enough volume to
attract the variety and mix of large secondary operations necessary
1
7t4
0

0
5: 40

for a broad based, diversified industry.

The employment figures presented in Table 4 are projections of
employment created directly by this program. It does not include
indirect or multiplier effect employment that would be created.

Some would be new positions needed on the State Forester's staff
to support this program. Included would be business management
and clerical staff, foresters, forest fire technicians, and
laborers to plant trees, weed, fertilize, and collect seed.
Private sector employment would include timber fallers, bulldozer
operators, loader and chipper operators, truck drivers, and
sawmill workers. The private sector would also employ a number
of foresters and business management people, but to a lesser
extent than the State because of smaller acreages involved.

Additional road building will be necessary. Most of this will be
accomplished through c-ontract provisions of the timber sale
contracts, but some access roads for planting will have to be
built by the State and private industry.

The table below indicates the numbers and kinds of employment
that will result from these activities in both the State and
private sectors.

TABLE 4

EMPLOYMENT TIMETABLE - LEVEL A
STATE AND PRIVATE SECTOR
1978 1980 1984 19891 1994 1999 20041 2006
Business
Management Staff 1 2 3 31 4 4 5 5
Forest Service I r-
Liaison 1 (no cost to StateP 1 1 1 1
Culturists 1
Timber Staff 2 1 6 1 6 9 9 15 15
Service
Forester 1
Fire Detection
& Prevention - 1 2 @_@2 2 2 2 2
Planting 2 2
Foremen 2 (constant level) 2 2 2 2 2
Planting Labor 1 15 1 15 1
15 (constant level) 15 15 15 15 15
Harvesting & Manu-
facturing Employment - - 40 40 93 93 1147 1147 254
TOTAL 19 65 5 1129 1183 1190 .297

The employment table above provides job projections for all
activities related to this program. Forestry jobs are based on
comparable organizations on the mainland, laborer jobs are based
on Hawaii Division of Forestry experience, and Harvesting and
Manufacturing jobs were estimated from U. S. Forest Service
Research's paper PNW-189, "A Technique and Relationships for
Projections of Employment in the Pacific Coast Forest Products
Industry."

Program B. 200,000 Acre Land Base.

This program level can support a well diversified basic forest
industry. It is capable of supporting a mix of the following
types of industry:

sawmills
veneer mills
particle board plants
hardboard plant
plywood plant
composite board plant
chipping operation
pulp plant and/or paper mill

The particular mix of activities that develop will be dependent
on the desires of investors. Complete utilization of the
resource may be obtained with as few as three of these oper-
ations, viz. sawmills, chipping operations and hardboard pro-
duction. Experience indicates, however, that the presence of a
stable source of basic material will eventually produce a fully
diversified use of the resource. Such diversity provides flexi-
bility and elasticity to changing market conditions.

Construction of a paper mill does not seem economically feasible
since such a small percentage of the product would be used within
the State. Shipping charges to the mainland in U. S. bottoms
would preclude any price advantage to a paper mill located in the
State of Hawaii.

Production of high grade pulp, however, would be an operation
worth considering. The U. S. imports high grade pulp from other
countries now, and these needs are predicted to increase.

Following is a discussion of changes in various programs to
accommodate this level of development.

Program level D calls for planting 5,000 acres per year for 30
years. This will result in 150,000 acres of new plantations.
With the 50,000 acres already in plantations, the total under
this program level is 200,000 acres.

Table 1 below is a repeat from page 40. This table displays the
gradual programming of existing plantation volumes into an even-
flow schedule.

TABLE 1_

EVENFLOW PROGRAM FOR HARVESTING EXISTING PLANTATIONS

.Volumes in Millions of Board Feet

1976 1986 1996 2006

Vol. Ac. Vol. Ac. Vol. Ac. Vol. Ac.
Pulp i
State 5.7 380 14.8 988 23.9 1596 34.2 2280
Pu7p
Pvt. 1.8 120 4.7 312 7.6 504 10.8 720
PuTp
Sub-total 7.5 500 19.5 1300 31.5 2100 45.0 3000
Sawlogs
State 3.4 228 4.8 319 6.2 410 7.6 507
Sawlogs
Pvt. 1.1 72 1.5 101 1.9 130 2.4 160
Sawlogs
Sub-total 4.5 300 6.3 420 8.1 540 10.0 667
TOTAL __ 1 12.0 1 800 25.8 11720 1 39.6 2640 55.0 T3667

Table 5 displays the programmed harvest from new plantations
under level B activity.

TABLE 5

LEVEL B HARVEST PROGRAM OF NEW PLANTATIONS

Volumes in Millions of Board Feet

1986 1996 2006
Pulp Vol. Ac. V-01. -Ac. Vol. Ac.
State 24.0 1600 48.0 3200 72.0 4800
Pulp
Pvt. 13.5 900 27.0 1800 40.5 2700
Pulp
Sub-total 37.5 2500 75.0 5000 112.5 7500
Sawlogs 24 0 1600
State 1.6 1600 3.2 3200 (3.2) (3200)
Sawlogs 13.5 900
Pvt. 0.9 -900 1.8 1800 (1.8) (1800)
Sawlogs I T T 37.5 2500
Sub-total (2.5) (2500) @5.0) (5000) (5.0)1 -(500O)l

TOTAL 40.0 5000 80.0 001000 155.0 15,000

l/ Volume and acreage figures in parens are from intermediate
thinnings.

Acreage figures in Table 6 are both harvest figures and total
acres in production. Harvest acreage consists of 1/30 of total
acreage in saiflog production, 1/10 of acreage in pulpwood
production, plus some additional acreages from thinning
operations.

Table 6 is the combined program under level B of existing
plantations and new plantations.

TABLE 6.

LEVEL ir)' HIARVEST PROGRAM

Volumes in Millions of Board Feet

1976 1986 1996 2006
Ac. Ac. Ac Ac. Ac. A Ac. I Ac.
Vol.lHarv. Plant. [email protected] Plant. Vol. Harv . @Plant. Vol. Harv. Plant.
Pulp
State 4.8 320 19,200136.5@2432 35,200k8.2 4544 151,200100.36720 67,200
Pulp
Pvt. 2.7 180 9300 20.5 1363 19,800 38.3 2556 28,300 56.7 3780 37,300
Pulp
Sub-total 7.5, 500 30,000 57.0 3800 55,000 106.5 7100 80,000 157.5 1(@50C 105,000
Sawlogs
State 2.91 192 12,3001 5.611869 _28,300 8.4 3546 -441,800 33.6 5227 60,800
Sawlogs
Pvt. 1.61 108 7,2001 3.211051 16,200 4.7 1994 125,200 13.9 2940 34,200
Sawlogs 1 1 1 1 1 1
Sub-total 4.51 300 20,0001 8.8 2920 45,000 13.1 5540 70,000 52.5 3167 95,000
1 1 l____7 1 1--7-
TOTAL 12-01 800 50,000165.8 6720 1100,00 119.6 12,64-0150,[email protected]@,66 20(@000

l/ Figures include volume and acreage figures from intermediate
thinnings.

Under program level B there is a gradual increase in annual har-
vest volume from the present 12 million board feet to a maximum
of 210 million board feet in the year 2006.

This volume of fiber will support a diverse forest products
industry as previously discussed.

Following is a discussion of State and private sector employment
projections for this program level. Additional staff for the
Hawaii Division of Forestry will be necessary to administer the
planting and harvest activity under this program.

Additional culturists will he necessary to plan, schedule and
record the planting, fertilizing, release, thinning and harvest
operations for each plantation. Specific prescriptions for each
stand class will need to be written. Maps and detailed records
of treatments will also be necessary.

Timber management staff will be necessary to cruise stands; lay
out roads, landings and skid trails; appraise timber values;
prepare, advertise and award contracts; and administer sale
contracts on the ground, including scaling of products and billing
for stumpage.

Roads for logging need to be designed to permit safe and efficient
delivery of products to market with minimum impact on tfie environ-
ment. Such road design and construction costs may be borne by the
state, or may be made a part of contractual costs to purc,)asers
of timber. The State Forester will need an engineering staff to
provide design and control activities for planned road construction.

The largest impact on forest fire activities will be the increased
risk from additional roads and harvest activities. Some addi-
tional fire prevention and detection staff will be necessary to
deal with the increased risk. Some increase in physical hazard
will occur due to planting of pasture lands to timber. Grass
cover under young stands of hardwoods will be a hazard until the
canopies close and shade out the grass. Management of native stands,
however, may decrease the fuel load and therefore some existing
hazards. The net result will be an increase in hazard. The
increased values will warrant increased protection. The added
hazard will be dealt with tilrough provisions of timber sale
contract such as:
1. After-hour patrols during periods of high fire danger.
2. Fire tool caches required at all harvest sites.
3. Water trucks, hose and pumps required at all harvest sites.
The following activities will also deal with tflis added hazard.

All Hawaii Division of Forestry staff will carry fire suppression
tools in their vehicles.

Fire prevention and detection patrolmen will carry fire tools and
slip-on tanker units on their vehicles for initial attack purposes.

A more efficient cooperative fire fighting operation consisting
of county, National Park Service, OF, military, and private
industry will be developed.

An inter-island radio network for fire and administrative purposes
should be designed and constructed.

Private sector employment would include business management and
clerical staff, foresters, engineers, timber fallers, bulldozer
operators, truck drivers, loader and chipper operators, sawmill
and other plant operators.

The following table displays total proposed employment projections
for these activities in both state and private sectors.

TABLE 7

EMPLOYMENT TIMETABLE - LEVEL B
STATE AND PRIVATE SECTOR
1978 19801 1984 1989 1994 1999 2004 2006+
Business Management
& Clerical 1 3 5 6 7 8 9 10
U.S.-Forest Service i I I - r--F i
Liaison 1 (no cost to State) I
Culturists

Timber Sale
Foresters 2 7 13 18 24 32 42 42
Service Foresters 17

Fire Detection l/
& Prevention 2 4 5 5 5 5 5
Engineering
Staff 2 3 3 3 3 3 3
Planting & Cultural (constant 1@vel)
Foremen 10 10 10 10 10 10 10
Planting & Cultural (cons@tant 1?-vel)
Laborers 63 63 63 63 63 63 63
R-arvesting & Manufacturing
Employment, Pvt. Industry - 40 40 154 154 269 269 664

TOTAL 5 131 146 268 275 399 410 806

l/ Fire detection and prevention and Service Forestry activities
will be State responsibilities.

The above employment table provides information for all jobs
that could be created directly by this program. The Forestry or
Resource management positions are based on comparable mainland
forestry organizations., Laborer jobs are based on Hawaii Division
of Forestry experience. Harvesting and Manufacturing jobs were
estimated from U.S. Forest Service research paper PNW-189, "A
Technique and Relationships for Projections of Employment in the
Pacific Coast Forest Products Industry."

Program C. 410,000 Acre Land Base.

Thi,s program level is based on planting 12,000 acres per year for
a 30 year rotation. This would produce 360,000 acres of new
plantations. With the 50,000 acres already in plantations, the
total would be 410,000 acres.

This level program will support an extensive timber based
industry. It would be somewhat similar to the mix of activities
described under level B, but with a difference in magnitude and
product mix. Since the increases over those in level B would have
to be in exportable products, the changes that would occur would
be dependent on world-wide markets at the time of development,
somewhere near the year 2000.

Table 3 displays the program of harvest for these 410,000 acres
of forest plantations. This includes the distribution of existing
acres of plantations shown in Table 1.

TABLE 3.

LEVEL C HARVEST PROGRA14

Volumes in Millions of Board Feet

1976 1986 1996 2006
Ac. Ac. Ac . Ac Ac. Ac. Ac.
Pulp Vol.lHarv. Plant. Vol. Harv.- Plant. Vol. [email protected]. Vol. Harv. Plant.
State 4.31 320 19,200170.1 4672 57,600 135.4 9024 96,000 201.6 13,440 134,400
Pulp
Pvt. 2.7 180 10,800 39.4 2623 32,400 76.1 5076 54,000 113.417560 75,600
Pulp
Sub-totall 7.5 500 30,000 109.57300 90,000 21 .5 14,1001150,000 315.0 21,000 210,000
Sawlogs 1 1 1 1 1 1
State 2.9 192 12,300 7.9 4109 51,200 12.9 3026 89,6 71.7 11,947 12@,000
Sawlogs 1 1 1 1
Pvt. 1.6 103 7,2001 4.4 12311 28,800 7.2 4514 50,400 40.3 6720 72,000
Sawlogs 1 1 1 1
3 ; @ 8,6671200,000
Sub-to-tal 4.5 300 20,000 12. 0 20.1 12,540 @l 40, 000 11 Z 0
,6420 00,00
TOTAL UUU 1bU,Onn 1 69,66T]41@000
LO i 21.811:@720117 0001231.616,640@9(@000427.0

I/ Volui,,ie and acreage figures include those from intermediate
thinnings.

Staffing necessary for this program level is not a strict doubling
of those shown in level 3) since some economies of size will be
realized. Most of the increases will be in field personnel.

The following table displays total employment projections for
these activities in bot:(i the state and private sectors.
0000
, t6O @O

TABLE 9

EMPLOYMENT TIMETABLE - LEVEL C
STATE AND PRIVATE SECTOR
1978 1980 19841 1989 1994 1999 2004j 2006
Business Management
& Clerical 1 2 5 9 11 13 15 17
U.S. Forest Service 1 -1-7 1 T-
Liaison I (no cost to State) I 1 1 1
Culturists

Timber Sale
Foresters 10 18 26 35 50 65 65
Service Foresters l/
1 2 4 5 6 6 6 6
Fire Detection I/
Prevention 2 4 5 6 6 6 6
Engineering
Staff - 1 2 4 5 6 6 6 6
Planting @(constant level)
Foremen 15 1 15 1 15 1 15 15 15 15 15
Planting i(con@lt-ant level)
Labor 150 @150 1 150 1150 150 .150 150 150
Harvesting & Manufacturing
Employment, Pvt. Industry - 40 40 266 266 583 583 1617
TOTAL 1170 1224 243 486 501 836 853

l/ Fire detection and prevention and Service Forestry activities will
be a State responsi6ility.

As mentioned under Table 7 for level B employment projections,
these employment figures are based on Hawaii Division of Forestry
experience, comparable forestry experience on the mainland,
and research on Pacific Coast Forest Industry employment.

VII. ECONOMIC IMPACTS

Estimated economic impacts of the alternative programs shown in
Chapter VI are described in this chapter. Economic impacts are
described in terms of revenues, costs, and net cash flow accruing
to forest landowners and in terms of employment generated by I/
timberland management, harvesting, and manufacturing activities-

Program A

Program A includes a sustained harvest program on 50,000 acres of
existing forest plantations, the development of an additional
18,000 acres for pulpwood production, and the development of an
additional 18,000 acres for sawlog production. Pulpwood stumpage
would be sold and then processed into chips for export or used
as fuel for power generation. Sawtimber stumpage would be sold
and then processed into lumber, veneer, craftwood or other
products. Wood obtained from commercial thinning of sawtimber
stands and sawmill residue would be used for chip exports or
fuel.

Economic impacts of Program A are shown in Table 1. Although
annual net returns to forest landowners would be negative for
the first ten years, net returns would increase to between
$1.3 million and $1.8 million in about 30 years when markets and
the land base are fully developed. About 300 jobs would be
generated by harvesting, manufacturing, and timberland management
activities at full development.

l/ Some additional employment would be generated by the distri-
ffution of manufactured timber products. However, Hawaiian timber
products sold in local markets would tend to displace marketing
activity currently associated with products produced elsewhere.
Marketing activity associated with timber product exports would
tend to be located at the consuming market rather than in Hawaii.
However, employment effects induced by the respending of the
income earned by the forest based industry in Hawaii could result
in employment opportunities equal to or greater than direct
employment in the industry.

TASLE 1 - Average Annual Economic Impacts of Program A.

Year Forest landowner costs and returns 11 Eme o4ent
T_ I Net
Revenues costs cash flow.Iliarvesting & Mfg.lTimberland mgt.
--thousands of dollars-- --number of employees--

1976-1986 100 300 -200 40 15

1986-1996 600-800 400 200 to 400 93 32

1996-2006 900-1100 500 400 to 600 147 36

2006+ 1800-2300 500 1300 to 1800 254 43

Source: Estimates by Hawaii Division of Forestry and U. S. Forest
Service. Stumpage prices of between $60 and $90 per thousand
board feet of sawtimber and $4 per cord of pulpwood are assumed.

Pro2ram B

Program B includes a sustained harvest program on 50,000 acres of
existing forest plantations, the development of an additional
75,000 acres for pulpwood production, and the development of an
additional 75,000 acres for sawlog production. Pulpwood stumpage
would initially be sold and then processed into chips for export
or used as fuel for power generation. Construction of facilities
for the manufacture of particleboard, hardboard, and other board
products capable of using about one fourth of the pulpwood pro-
duced in about 30 years is assumed. Sawtimber stumpage would be
sold and then processed into lumber and miscellaneous timber
products. Wood obtained from commercial thinning of sawtimber
stands and sawmill residue would be used for chip exports, fuel or
board manufacturing.

Economic impacts of Program B are shown in Table 2. Due to high
land base development costs, annual net returns to forest land-
owners would be negative for the first 20 years. About 800 jobs
would be generated by harvesting, manufacturing, and timberland
management activities at full development. If about one half of
the sawtimber volume was used by plywood and veneer mills instead
of by sawmills, an additional 80 jobs could be generated.

TABLE 2 - Average Annual Economic Impacts of Program B.

Year ' Forest landowner costs and returns 11 Emplo4ent
Revenues I Costs I Net cash flow JlHarve@@tinq & Mfg.11-imberla
--thousands of dollars-- --number of employees--

1976-1986 100 1100 -1000 40 91

1986-1996 800-1000 1200 -400 to -200 154 114

1996-2006 1400-1600 1300 100 to 300 269 130

2006+ 4100-5600 1100 3000 to 4500 664 142

Source: Estimates by Hawaii Division of Forestry and U. S. Forest
Service. Stumpage prices of $60 and $90 per thousand board
feet of sawtimber and $4 per cord of pulpwood are assumed.

Program C

Program C includes a sustained harvest program on 50,000 acres
of existing forest plantations, the development of an additional
180,000 acres for pulpwood production, and the development of an
additional 180,000 acres for sawlog production. Pulpwood stumpage
would be sold and then manufactured into chips for export, hard-
board, pulp or fuel.

Economic impacts of Program C are shown in Table 3. Due to
heavy land base development costs, annual net returns to the
forest land base would be negative for the first 30 years. How-
ever, net returns generated in the first four to seven years
after full development would exceed all deficits incurred during
the development period. About 1,900 jobs could be generated by
harvesting, manufacturing, and timberland management activities
at full development.

TABLE 3 - Average Annual Economic Impacts of Program C.

Year Forest landowner costs and returns EmploXment
Revenues I Costs _I Net cash flow arvesting & Mfg.lTimberland Mgt.
--thousands of dollars-- --number of employees--

1976-1986 100 2400 -2300 40 184

1986-1996 1300-1500 2700 -1400 to -1200 266 219

1996-2006 2200-2500 3000 -800 to -500 583 252

2006+ 8600-11,600 2200 6400 to 9400 1617 271

Source: Estimates by Hawaii Division of Forestry and U. S. Forest
Service. Stumpage prices of between $60 and $90 per thousand
board feet of sawtimber and $4 per cord of pulpwood are
assumed.

Economic Impact Summary

All three programs have increasing landowner returns and employ-
ment over the next 30 years. This reflects increasing harvest
levels as plantings mature and a diversification of manufacturing
activities. Development costs, employment, and the share of
total costs borne by the private sector increase with program
scale. However, investment risks do not vary in proportion to
program scale. With Program A there is a risk that the volume
of raw material produced may be insufficient to stimulate
investment in efficiently sized and diversified forest product
manufacturing facilities. Program C would require much larger
investments and greater penetration of existing national and
international markets than Programs A or B. Program C may also
require development of lands with higher production costs and
greater environmental sensitivity.

Only harvesting, manufacturing, and timberland management
employment is shown in Tables 1, 2, and 3. Construction of

forest product manufacturing facilitiesY and respending of the
income earned by the forest products industry would generate
additional employment opportunities.

Development at a uniform rate is assumed for Programs A, B,
and C. Although this may be a reasonable assumption for land
base development in the public sector, it is less likely for
private sector activities. Land base development by the private
sector is likely to progress at a slow rate until the profit-
ability of forest land se development is demonstrated and
accepted by landowners . Once this acceptance is achieved,
development would progress at a more rapid rate. Timber harvests
would also be expected to fluctuate with market demand rather
than occurring at a uniform annual rate. Development of
additional manufacturing facilities is likely only after the
timber industry can be assured of an adequate supply of raw
material at reasonable prices.

1/ Total investment in manufacturing facilities of about $5 million
would be necessary for Program A. Manufacturing facility invest-
ment of more than $50 million is likely for Program C.

2/ Landowner returns from timber production can be much higher
fhan returns from livestock grazing. However, larger investments
and attendant risks are required for timber production.

VIII - ENVIRONMENTAL IMPACTS

Estimated environmental impacts of the alternative programs de-
scribed in Chapter VI are discussed in this chapter. The impacts
are expressed as broad general statements of positive or negative
effects on several environmental quality components - watershed
protection, esthetics, wildlife habitat, threatened and endangered
plant and animal species, recreation, natural area reserves, and
protection of forests from fire, insects, disease, and animal and
plant pests.

Impact estimates are based on land resource requirements for each
program level, present vegetation types and current land uses, and
experience of the Hawaii Division of Forestry and the U.S. Forest
Service. Evaluation of specific timber sites will require a more
detailed analysis of environmental impacts and is beyond the scope
of this report.

Program A

Program A would require about 30,000 acres of land presently occupied
by native forest types, 50,000 acres of land in forest plantations,
and 10,000 acres of land with shrub or herbaceous cover. About
1300 acres of the native forest, 2700 acres of the plantation forest,
and 1500 acres of the land with shrub-herbaceous cover is presently
used for grazing. Another 1000 acres of the land with shrub-
herbaceous cover is in some other agricultural use - mostly aban-
doned sugar cane or pineapple cultivation.

Timber Management activity is expected to have the following en-
vironmental impacts:

1. Watershed protection: Compatible to beneficial impact.
Increased stocking of poorly stocked forest stands and re-
forestation of lands in shrub or herbaceous cover would
improve watershed cover. Greatest potential for improvement
would be in the reforestation of land in grazing use and
abandoned cultivated lands.

2. Esthetics: Generally compatible to beneficial impact. Healthy,
vigorous forest stands resulting from an intensive timber
management program will be beneficial to esthetic values.
Reforestation of sites adjacent to pasture and cultivated
areas will enhance landscape diversity. Rapid growth rates
in Hawaii would result in extremely short visual impact
periods following harvest.

3. Wildlife habitat: Timber management activity can be de-
signed to assist in habitat improvement through various
forms of vegetative manipulation. However, wildlife
managers need more information about the habitat needs of
various species and the limiting factors.

4. Threatened and endangered plant and animal species - com-
patible to possible beneficial impact.

The Endangered Species Act, which went into effect on
December 28, 1973, directs high priority be given to the
preservation of critical habitats of endangered and threatened
wildlife, plant, and other forms of life. Critical habitats
have not yet been determined. As this low level program,
when fully implemented, will involve only 4% of Hawaii's two
million acres of forest land, it should be compatible with
the protection of threatened and endangered plant and animal
species.

The new thrust toward finding ways to expand and regenerate
the decadent native koa forests for sustained timber pro-
duction could have beneficial effects on native forest bird
populations. It is anticipated that a majority of the
pasture land to be reforested is suitable for koa and will
be planted to that species, and about 3000 acres of koa now
heavily infested with noxious banana poka vine will be
managed to perpetuate the koa resource.

5. Recreation - Beneficial
Managed commercial timber stands of both native and intro-
duced species can provide more favorable recreation habitat
than the vegetative cover of brush, staghorn fern, and other
vegetation types on much of Hawaii's forest lands. Harvest
of timber in such areas need not be at a major sacrifice
of the recreation activities. Furthermore, roads built and
rights-of-way acquired for timber access and reforestation
would also provide access for recreational use.

6. Natural area reserves - No impact.
Program level A could be implemented without adverse impact
to the 12,638 acres of officially designated Natural Area
Reserves, or to an additional 93,829 acres currently being
managed as Natural Area by the Department of Land and Natural
Resources.

7. Forest Protection - Generally beneficial
Damage to forest resources from destructive agents - fire,
insects and disease, and animal and plant pests - could be
reduced by more intensive forest protection activity as more
stands are placed under management.

Program B

Program B would require about 110,000 acres of land presently
occupied by native forest types, 50,000 acres of land in forest
plantations, and 40,000 acres of land with shrub or herbaceous
cover. About 9000 acres of the native forest, 3000 acres of the
plantation forest, and 15,000 acres of the land with shrub-
herbaceous cover is presently used for grazing. Another 7000
acres of the land with shrub-herbaceous cover is in some other
agricultural use - mostly abandoned sugarcane or pineapple
cultivation.

Timber management activity at the Program B level is expected to
have the following environmental impacts:

1. Watershed protection: Compatible to beneficial impact. At
this level of accelerated program, sites could be selected
for timber production which would be compatible with water-
shed protection considerations. The greatest potential for
improvement would be in the reforestation of lands in grazing
use and abandoned cultivated lands.

2. Esthetics: Generally compatible to beneficial impact. (See
discussion under Program A)

3. Wildlife habitat: (See discussion under Program A).

4. Threatened and endangered plant and animal species - Assumed
compatible.
When fully implemented this moderately increased program would
require that about 10% of Hawaii's two million acres of forest
land be managed under intensive timber production. Although
critical habitats of endangered and threatened plant and
animal species have not yet been determined, it is considered
likely that a program of this magnitude could be implemented
compatibly with the protection of threatened and endangered
plant and animal species.

It is anticipated that a large proportion of the pasture land
to be reforested is suitable for koa and will be planted to
that species. This may have a beneficial effect on native
forest bird populations.

5. Recreation - Beneficial (See discussion under Program A).

6. Natural area reserves - No impact.
Program level B could be implemented without adverse impact
to existing Natural Area Reserves and additional areas proposed
and administratively managed as such by the Department of
Land and Natural Resources.

7. Forest protection - Generally, damage to forest resources
from destructive agents could be reduced by more intensive
forest protection activity which would accompany an accelerated
program. Fire risk, or the potential of fires starting, will
increase from increased accessibility to forest areas, and
harvest activities. A temporary increase in hazard will
occur on reforested pasture lands until forest canopies close
and shade out grass. Increased fire prevention, detection,
and preparedness measures will compensate for increased
risk and hazard.

Program C

Program C would require about 290,000 acres of land presently oc-
cupied by native forest types, 50,000 acres of land in forest
plantations, and 70,000 acres of land with shrub or herbaceous
cover. About 9000 acres of the native forest, 3000 acres of the
plantation forest, and 30,000 acres of the land with shrub-herbaceous
cover is presently used for grazing. Another 12,000 acres of the
land with shrub-herbaceous cover is in some other agricultural
use - mostly abandoned sugarcane or pineapple cultivation.

Timber management activity at the Program C level is expected to
have the following environmental impacts:

1. Watershed protection: Generally compatible but with possible
adverse impacts in some areas. This high level of timber
resource development may require activity on some forest sites
which would endanger watershed values, such as boggy sites
in the high rainfall zone mauka of Hilo, on the southern
Hamakua coast of the Big Island. On the other hand, benefi-
cial impact to watershed values would accrue on the majority
of sites in the program - particularly in the reforestation
of marginal pasture and abandoned cultivated lands.

2. Esthetics: Generally compatible, but some adverse impact
resulting from a more extensive and visible timber-based
industry. The beneficial impacts described for Program
levels A and B would also accrue in this program.

3. Wildlife habitat: (See discussion under Program A).

4. Threatened and endangered plant and animal species - possible
adverse impact.
When fully implemented this high level program would require
that about 20% of Hawaii's two million acres of forest land
be managed under intensive timber production. Critical habitats
of endangered and threatened plant and animal species have not

yet been determined. Compati@ility of a timber development
program of this magnitude will depend on the amount of
operable commercial forest land to be included in critical
habitat designation.

As in the other program levels, some of the marginal pasture
lands suitable for koa will be reforested with that species.
This could have a beneficial effect on native forest bird
populations.

5. Recreation - Beneficial (See discussion under Program A)

6. Natural area reserves - No impact (See discussion under
Program A and B)

7. Forest Protection - Generally beneficial (See discussion
under Program B)

IX. FEDERAL TECHNICAL ASSISTANCE PROGRAMS

(Cooperative Forest Management (CFM)

Technical assistance to the State Forester's organization is
available from the United States Forest Service. Most of the
assistance is through the Cooperative Forest Management program.
Two full-time Service Foresters are now funded on the State
Forester's staff from CFM funds. Service Foresters provide
planting, cultural and market utilization advice to small non-
industrial owners of forest land. Under program level A, one
additional Service Forester position is anticipated. Hawaii
presently receives $30,300 per year from the Federal Government
under this program. Hawaii Division of Forestry expends
$76,101 per year of its own funds on this program at the present
level.

Tree Nurseries (CM-4)

This cooperative program provides cost sharing assistance to
states to construct and develop tree nurseries. The objective
is to provide seedlings to private landowners at nominal cost.
Authority is the Clarke-McNary Act of 1924. States may receive
up to 50% of net costs from the Federal Government. Although no
funds have been provided to the State in recent years under this
program, the State is eligible for assistance on a special
project basis for the development of equipment, procedures, or
methods, or the expansion of nursery facilities needed for an
expanded program. The Hawaii Division of Forestry expends
$76,634 per year of state funds on its nursery program.

Tree Planting (Title IV)

This program provides assistance to states for planting its own
forest lands or for improving the genetic characteristics of its
planting stock. Authority is Title IV of Agricultural Act of
1956. Up to 50% of qualifying expenditures may be reimbursed by
the Federal Government. Hawaii received $38,000 in this program
this year (FY 76), and expended $613,713 of its own funds.

General Forestry Assistance Programs (GFA)

Assistance for special programs on a project basis is available
under the General Forestry Assistance program. Projects are
generally funded for a two-year period to promote or demonstrate
the effectiveness of a new activity. "A Program for the State
Forest Lands of Hawaii" recently published by the Department of
Land and Natural Resources was funded with a GFA grant. Grants
have also been used to fund specialists for specific jobs,
provide seminars or short courses, publish needed brochures, etc.

An expanded forest industry program in Hawaii may create needs
and opportunities for General Forestry Assistance projects in
the future.

Improved Harvest Program

The improved harvest program consists of five areas of assistance
all aimed at improving the supply of wood fiber. It is generally
administered through a grant to the State Forester's organization.
The five parts are:

1. Improved felling and bucking practices through use of
computer based felling studies.
2. Increasing the utilization of dead and dying trees
presently not being harvested. This is true more of
old over-mature stands rather than young ones.
3. Development of concentration yards to channel logs to
their highest potential use, e.g. Veneer logs, poles,
saw logs, piling, chip logs, etc.
4. Utilization of trees felled in Urban Development projects.
5. Formation of aggregates, associations or cooperatives
of small landowners to provide economies of size in
management and marketing activities.

Hawaii has not participated in this program as yet.

Resource Conservation and Development

This is an assistance program funded by the Soil Conservation
Service. Assistance on forestry projects, however, is channeled
to the State Forester's organization through the U.S. Forest
Service. Assistance is for forestry projects on private lands
and may cover any area from forest surveys to marketing. Funds

are scarce, however, and competition for funds is keen. The
Tri-Isle RC&D project is the one funded project in Hawaii. It
has not received funds for specific forest work measures as yet.

INCENTIVE PROGRAMS

Forestry Incentives Program

The Forestry Incentives Program (FIP) provides federal funds to
small landowners as an incentive to accomplish needed planting or
tree improvement work. The program is administered through
county committees maintained by the Agricultural Stabilization
and Conservation Service (ASCS). Up to 75% of private costs are
allowed for reimbursement under this program. It is designed to
provide an incentive-for small landowners to do something with
their forest resources. Nationally the program is funded at
$15,000,000 this fiscal year. Hawaii's allocation this year is
$10,000. The national appropriation in FY 75 was $10,000,000.
Hawaii's allocation could be larger if the need for more money is
demonstrated.

Hawaii received $1,000 to administer technical assistance under
this program.

Agricultural Conservation Program (ACP)

The ACP program is an incentives program provided to small farmers
and ranchers aimed at a whole array of agricultural practices such
as draining low lands, stabilizing soil, planting cover crops for
game, but also including tree planting and stand improvement
practices. Funds are made available through county ASCS committees.
The total national allocation for this program in FY 75 was
$175,000,000. Hawaii's allocation was $340,000 for all practices.
The State received $2,655 to administer forestry technical
assistance under this program.

FOREST PROTECTION

Fire Prevention and Control

Fire protection is presently provided to 1,929,000 acres of
forest, brush and grass lands in Hawaii. Included in this activity

is Planning, Prevention, Pre-suppression and Suppression.
Intensive planning efforts are needed to assess and analyze the
many changing factors affecting fire control activities. Pre-
suppression activities include the myriad details of interagency
agreements, purchase contracts for food, equipment and manpower,
helicopters, airplanes, communication networks, etc. Suppression
activities are self-explanatory, but include law enforcement
activities.

The Cooperative Fire Control program provides federal assistance
for all of these activities under the authority of Section 2 of
the Clarke-McNary Act (CM-2).

Hawaii presently receives $65,000 per year under this program,
and expends $518,000 of its own funds.

Insect and Disease Protection

Hawaii is not only blessed with a large number and variety of
plants, but also with a large number of insects that live on
these plants. Most insect and disease control activities are
carri-ed on by State personnel. An exception is the large scale
investigation into the Ohia decline presently being carried out
by the U.S. Forest Service's Institute of Pacific Island
Forestry.

Cooperative Insect and Disease protection funds are provided to
the State Forester by the U.S. Forest Service to work on normal
prevention, detection and suppression activities. Epidemic out-
breaks require emergency funds. Hawaii received $13,577 for its
endemic program in FY 76.

Plant and Animal Pests.

Some unusual plants and animals have been introduced into the
Islands that now constitute a threat to existing ecosystems.
Prominant among these is the banana poka plant that threatens
native Koa trees, and feral goats, sheep and cattle that eat a
variety of native and introduced plants. Funds to control such
pests may be obtained on a special project basis.

EXPANSION OF FEDERAL ASSISTANCE PROGRAMS
UNDER LEVELS B AND C

All of the Federal Assistance programs deal with assistance to
all fifty states. Levels of assistance to individual states are
determined from considerations of existing program levels, needs
within the state, estimates of effectiveness and efficiency, and
age of the program. It is difficult to predict, therefore, what
the funding levels for the State of Hawaii will be under an
expanded program. There will undoubtedly be more money made
available, but at what levels and for what specific programs
depends on the above factors plus availability of funds.

Since the proposed program for Hawaii is new and the benefits
appear to be great commensurate with costs, we can foresee good
justification for program increases.

USDA FOREST SERVICE RESEARCH SUPPORT
TOWARDS THE GOAL OF ENLARGING
HAWAII'S FOREST-BASED INDUSTRY

The Forest Service Institute of Pacific Islands Forestry conducts
research in Hawaii in the fields of forest and watershed manage-
ment, forest protection (fire, disease, and insect damage pre-
vention), and in the maintenance of forest ecosystems. The
research program encompasses many disciplines--from the study of
insects and fungi to engineering of better nursery systems.

A considerable portion of the overall research program is aimed
at problems directly related to enlarging Hawaii's forest-based
industry. One major undertaking is to develop a modern, sophis-
ticated nursery and seedling establishment system that will assure
success in plantation establishment at reasonable cost. Another
is to select or breed koa varieties that will grow well in
plantations for use in pasture plantings. A third is to develop
tree spacing, cultivation and fertilization schedules, thinning,
and harvest techniques to achieve maximum yields of eucalyptus
stands planted for pulpwood or fuel production.

Additional research is aimed at seeking out potentially good trees
from other parts of the world and trying them out in an attempt
to improve upon the species mix now used. All of these trees are
chosen for their superior wood qualities. Some in addition have
an ability to occupy problem sites while others will grow at
spectacular rates. Certain eucalyptus trees produce excellent

pulp or fuel wood, but wood that is undesirable for lumber. One
study is aimed at reducing growth stress--the main problem in
producing lumber from eucalypts.

The Forest Service research program is flexible and can be
oriented even more closely to industry related problems if the
need arises as the industry grows.

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