OFA Update
Register for the 2025 Annual Meeting
The meeting will be held at the Hyatt Regency Columbus. The event begins on Wednesday, February 5 with our President’s Reception to be held at Land-Grant Brewing. We have reserved the Land-Grant Extension and the Winter Garden. This is sure to be a fun evening of networking with your peers. Try your hand at brewery curling, ride the ice bumper boats or just hang out in a heated igloo and catch up with friends. The meeting will continue Thursday with a full day of industry sessions, ½ day of landowner sessions and our annual awards luncheon. We hope to see you there!
If you would like to sponsor the meeting and be listed on the registration mailing, please see the options below and let Jim Harding know of your interest. Jim can be reached at 888-388-7337 or by email.
We are seeking sponsors for the following:
President's Reception $1000 - Includes 1 Registration for the Annual Meeting
Awards Luncheon $1,000 - Includes 1 Registration for the Annual Meeting
Shuttle Bus Sponsor $750
Continental Breakfast/Break Sponsor $750
Bar Sponsor During Breaks $750
Student Attendee Sponsorship $250
Make your reservations online here or call the hotel at 614-463-1234 and ask for the OFA rate code G-MBS0.
Conservation Award Nominations are open; please submit your nominations online here.
Legislative Update
From our national partner, the Forest Resources Association
Congress/Administration
On Wednesday, the race for control of the House of Representatives was called, with Republicans claiming the magic number of 218 seats compared to 209 Democrat-held seats. There are a few races yet to be called, which will dictate the GOP's margin of control, which will be slim. With Republican control of both Houses of Congress and the White House, the table is set for the majority to use the budget reconciliation process to move their agenda in early 2025. Recall that this is the process that was utilized to enact the Affordable Care Act under President Obama, the Tax Cuts and Jobs Act under President Trump, and the Inflation Reduction Act under President Biden. Simply put, the process allows for a simple majority vote in the Senate instead of the 60-vote threshold that is required to cut off debate and move to a vote. There are, however, fairly strict sideboards around what can and cannot be pursued through the budget reconciliation process. One of these is the so-called Byrd Rule, named eponymously for the late Senator Robert Byrd (D-WV). This sideboard excludes provisions that do not have a direct impact on the federal budget. It was enacted in 1990, and its purpose has been to limit Members of Congress from loading up a reconciliation bill with extraneous provisions. Successful reconciliation efforts in the past have undergone an extensive "Byrd Bath" process to ensure that the measure complies with the letter and spirit of the law.
Preparations are already underway to develop a budget resolution with accompanying reconciliation instructions to various committees on policy priorities and deliverables. Extension of the Tax Cuts and Jobs Act (TCJA) tax benefits that have lapsed, are phasing out, or are scheduled to expire at the end of next year is a top priority. Also under consideration is the Inflation Reduction Act (IRA) and the many clean energy tax incentives and climate provisions that were part of that statute. It remains unclear whether the GOP will attempt to repeal the law outright or take a more surgical approach. There are Republicans in Congress who originally opposed the IRA but have come to appreciate the fact that many projects underwritten by the IRA have resulted in job creation in rural, red districts across the country.
This week, leadership elections were held. Senator John Thune (R-SD) prevailed in a secret ballot over Senators John Cornyn (R-TX) and Rick Scott (R-FL) to become Senate Majority Leader. In the House, the House Republican Conference reelected Speaker Mike Johnson (R-LA) and Majority Leader Steve Scalise (R-LA).
Regarding cabinet appointments, nominees for several high-profile positions were announced this week. One that has not yet been announced is the Secretary of Agriculture. Several names have been floated, including House Agriculture Committee Chairman Glenn "GT" Thompson (R-PA) and Senator Cindy Hyde-Smith (R-MS). Also under consideration are Kip Tom, former Ambassador to the United Nations Agencies for Food and Agriculture, and Sid Miller, currently the Texas Agriculture Commissioner. Ted McKinney, former Undersecretary for Trade and Foreign Agricultural Affairs in the first Trump Administration, is another name that is surfacing.
European Union Deforestation Regulation (EUDR)
This week, the European Parliament approved the European Commission's proposal to delay implementation of the EUDR for one year. The motion prevailed by a fairly wide margin with a vote of 371 to 240. There were 30 abstentions.
One of the amendments floated just hours before the vote that was ultimately approved would establish a new "no risk" compliance tier. This category would be reserved for those countries that could satisfy several criteria. The primary benefit of qualifying as "no risk" is that the onerous geolocation requirements would not apply to countries in this tier. The amended text defines "no risk" to refer to "countries or parts thereof" that meet the following assessment criteria:
Forest area development has remained stable or has increased compared to 1990.
The Paris Agreement and international conventions on human rights and on preventing deforestation have been signed by those countries and parts thereof, and
Regulations on preventing deforestation and forest conservation at the national level are strictly implemented and enforced in full transparency and monitored.
While several states enforce their own forest practices acts, there is no such statute at the federal level. In addition, the President-elect has indicated that withdrawing the United States from the Paris Agreement would be one of his first actions after he is sworn in next year.
For the EUDR changes to become law, Parliament, the Council, and the Commission will have to finalize an agreement before the end of this year to avoid implementation starting in 2025. The next sitting meeting of members of Parliament during which these changes will be discussed is November 25. FRA remains close to the action and will keep you apprised of developments.
Corporate Transparency Act
This week, nearly 50 House members signed a letter to Treasury Secretary Janet Yellen and Financial Crimes Enforcement Network (FinCEN) Director Andrea Gacki requesting an implementation delay of this obscure but onerous law. Although the statute and its reporting requirements took effect this year, the letter notes that FinCEN has received only 10 percent of the required submissions. This low compliance rate is due to a lack of awareness among small business owners, and additional time is needed for regulators and other stakeholders to continue their outreach to affected small businesses.
As we have noted in previous reports, this statute is odd in that it only applies to entities with less than $5 million in annual revenue and fewer than 20 employees. In other words, it targets small and medium-sized companies that are least equipped to comply. In addition to Congressional pressure, we are hearing that several Cabinet appointments and the Vice President himself are adamantly opposed to the CTA.
Market Update
HardwoodReview Forecasting
While most contacts still indicate demand for hardwood lumber is historically low, production has clearly fallen below demand, and five of our six headline price forecasts are for increases over the next two months. And, of the 28 other items we forecast, only Cherry, upper-grade White Oak, flooring-grade Red Oak, and crossties are expected to decline. Modest demand increases get partial credit for market stability, including a surprise late-summer jump in exports to Europe, which came before the announced delay in EUDR implementation. And, single-family U.S. housing starts were actually higher this year than last year in six of the eight months through Aug, providing some additional demand lift. There remains some concern that seasonally slower log exports will stimulate more lumber production than the market can handle by early next year, but, at least through Dec, logs will remain scarce and expensive. In addition, weak #2 Com demand and softening low-grade markets will disincentivize large production increases.
Sustained stress on U.S. consumer budgets will continue to provide inroads for less-expensive imports of wood and nonwood substitute products. Through Aug, hardwood moulding imports were up 54%, and engineered flooring receipts have climbed 54% since the spring of 2023.
RAHC Update
Back in 2019, leaders in the hardwood industry decided it was time to stop talking about the threat of look-alike wood products and to actively do something about it. They tasked the associations they belonged to – local, regional, and national – with collaborating to combine resources and finances to create awareness about the benefits and uses of real wood products. From this vision, the Real American Hardwood Coalition was formed.
Since then, more than 30 organizations have worked together to reach both consumers and prosumers, and the results have been impressive:
Total consumer website views (launched 2022): 402,000
Total designer/architect website views (launched 2024):15,000
Total Build Your World TV & streaming impressions (launched 2023): 98,000,000
Total Build Your social media and digital impressions (launched 2023): 49,000,000
These combined efforts have reached more than 147 million people raising awareness about Real American Hardwood® products. It takes an entire industry to help reverse the trend toward fake wood look-alikes.
Encourage your industry colleagues to contribute to the RAHC!
If you’re already a donor, thank you for helping RAHC reach these significant milestones. If you have not contributed yet, now is the time. Look-alike products are affecting our industry and our businesses. Help the RAHC maintain this momentum to grow sales for Real American Hardwood products: https://www.realamericanhardwood.com/industry/how-to-get-involved
Additional Links
ECOFA December Newsletter
NEOFA November Newsletter
Upcoming Events
Master Logger Chapter Meetings
Steel Valley Loggers Chapter Meeting
11/21/2024
Location: DeNoon Lumber, Bergholz, Ohio Time: 5:30 PM
Scioto River Valley Loggers Chapter Meeting
11/21/2024
Location: Scioto Township Fire Hall, Wakefield, Ohio Time: 7:00 PM
Northeastern Ohio Loggers Chapter Meeting
12/11/2024
Location: Middlefield, Ohio
Northwest Ohio Loggers Chapter Meeting
12/11/2024
Location: Findlay, Ohio
Southeastern Ohio Loggers Chapter Meeting
12/11/2024
Location: Shawn Sexton's Lodge, Jackson, Ohio Time: 6:00 PM
2025 Annual Meeting
2/5/2025 » 2/6/2025
Location: Hyatt Regency, Columbus, Ohio
OFA Proudly Supports
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