Forest Resource Development Program (FRDP)

The Forest Resource Development Program (FRDP) has undergone recent changes that greatly benefit Mississippi forest landowners. Specifically, in the mid-1970s, this program began encouraging landowners to enhance or reforest their timberland tracts. Severance tax funds this cost-share assistance, which effectively offsets planting costs, site preparation, silvicultural practices, and other expenses. Furthermore, it is now possible to receive up to 75% cost-share assistance for approved practices, capped at $10,000 per landowner per year. To take advantage of these benefits, it’s recommended that you consult with a professional forester who can help guide you through the process.

Forest Resource Development Program Process 

Three owners jointly own the land as an “undivided interest,” meaning that no single owner has a particular 80- or 40-acre parcel. Your professional forester will help you with the paperwork and submit it to the state for review after harvesting your timber. Submitting the paperwork as soon as possible is crucial since the FRDP has limited funds. Sometimes, the landowner’s property ownership circumstances can complicate the process.

Case Study

The following is a sort of “Case Study” to give you an example of how things can get complicated, and it’s best to use a registered forester to assist you. For this blog, the names have been omitted, and some details have been slightly changed to maintain the landowner’s privacy.

FRDP Senario #1

The Riverland tract, a family-owned 160-acre property, has been under my guidance as the family’s forestry consultant for the past 30 years. It’s important to note that three related family members own this land, with one holding a 50% stake (80 acres) and the other two holding 25% ownership (40 acres each). Understanding these numbers and how they impact the cost-share practice is crucial since the land is owned jointly by all three owners as an “undivided interest.”

FRDP Senario #2

Let’s pretend this tract has been divided and is now set up to take advantage of reforestation cost-share practices as best as possible. We can assume that total replanting costs roughly $250/acre to get trees back growing on these 160 acres. Each landowner would apply, and if they successfully recovered cost-share, they would be repaid up to 75% of the approved practices, not to exceed $10,000. 

So remember, the first owner had 80 acres, at $250/acre, to reforest. If he paid this cost out-of-pocket, he’s looking at roughly $20,000. With FRDP approval and partitioning, he would likely get the entire $10,000 in assistance. This would leave him with only $10,000 out of pocket. The two owners of the 40-acre tracts would have spent only about $2,500 out of pocket on their reforestation. The cost-share would pay the other $7,500.

Basically, this example is about as complicated as it gets. Nonetheless, most cases are simple, just a matter of timely application. I encourage you, as a landowner, to lean on your consultant. Certainly, they are digging into these programs provided by the USDA and other agencies. 

Contact Your Professional Forester 

Your forester or agent should guide you through the Forest Resource Development process. This process helps you maximize the potential of your land ownership. However, it’s not always as simple as just “cutting wood,” and that’s it. A lot goes into maximizing your investment and taking advantage of everything provided to help.

So, sustain our forest resources. Your attorney can handle a partitioning suit. With help from your forester, you can acquire ownership of your property as an individual owner who can benefit from all the things that land ownership brings, including cost-share programs as well as other programs through your local and state governments.

There is a multitude of programs to enhance and improve your land. You can receive assistance from Technical Service Providers (TSPs) who can help you and your forester obtain these benefits. Additionally, registered foresters who specialize in land management can offer their expertise to landowners through TSPs. Please take advantage of the programs our state has in place. Mississippi landowners have incentives to make their timberlands productive and sustainable. The state relies heavily on agriculture and the timber industries.