Canadian Lumber Update

John Butt johnbutt at
Tue Dec 23 09:41:55 EST 1997

Larry,  How do you know this is a subsidy?  Doesnt all the land management
cost fall to the industry with this system.  Here on Fed land almost all
the cost falls to taxpayer in most places.  (There are exceptions like
Allegheny and West Coast National Forests 20 years ago).  

If you have any research on the economics of the Canadian system would be
interested in learning more about it.


In article <34964113.4556248 at>, larryst at (Larry
Stamm) wrote:

>> On Sun, 14 Dec 1997 11:42:30 -0400, "Todd" <tmac at> wrote:
>> >I don't want to start a war of words on this newsgroup. All I will say is be
>> >very careful when talking about "Canadian Lumber Exports". Do not paint
>> >every province with the same brush because agreements vary on a regional
>> >basis.
>> >
>> Very true.  But, with the exception of Prince Edward Island, every Canadian
>> province and territory enters into long term, renewable agreements with
>> multi-national timber corporations that gives such corporations
exclusive rights
>> to harvest timber over large tracts of Crown land for a set stumpage
(or a set
>> formula for determining stumpage).  Few, if any, of these agreements were
>> solicited on a really competitive basis.  To my knowledge, there is
nothing even
>> remotely like this practice happening in the US.  And at least in Western
>> Canada, the amount of privately owned timberland is relatively
miniscule while
>> there is a substantial amount of privately owned land being managed for
>> in the States.
>> My knowledge of eastern Canadian forestry regulations is hazy, so somebody
>> please correct me if this is wrong.
>> IMHO, the basic nature of the Canadian forestry tenures constitutes a huge
>> subsidy to the timber corporations, and does more harm than good to everybody
>> except the corporation owners.
>> --
>> Larry Stamm
>> PO Box 561
>> McBride, BC V0J 2E0

John Butt, President
Mediation & Public Management, Inc.
johnbutt at

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