Profitable Habitat Conservation And Forest Management

ontario forest creek fall yellow

Profitable Habitat Conservation And Forest Management

Whether you own hundreds of acres of farmland, a small backyard, or even just a apartment building balcony, you can reduce your carbon footprint by using that space to grow plants.  Plants are extremely effective at removing carbon from the atmosphere, but it isn’t always obvious how they can make you money.  Someone might choose to clear-cut and develop their land in hopes of accumulating riches, but they could be missing out on an even more rewarding revenue stream from habitat conservation and forest management.

The goal of this article is to explore some of the ways you can monetize your green space without sacrificing the beauty and biodiversity that nature offers.

1. Tax Incentives, Cost-Sharing, And Free Services

Many countries offer incentives for green initiatives like habitat conservation and forest management.  In Ontario, there are several green incentive programs that landowners and farmers can take advantage of.  Here are 4 that you can use as of January 28, 2021:

Managed Forest Tax Incentive Program

Eligible landowners can qualify for a 75% rebate on land taxes for all qualified land.

To qualify you need at least 4 hectares of continuous forested land and have a forest management plan approved by a government official.  A forest management plan can include other forms of monetization such as sustainable timber harvest and should be reviewed at least every 10 years.  

Managed Forest Tax Incentive Program | Ontario.ca

Conservation Land Tax Incentive Program

Eligible landowners can qualify for a 100% rebate on land taxes for all qualified land.

To qualify you need at least 1/5 of a hectare of eligible conservation land.

The 5 types of eligible land are:

  • geological or biological features of natural and scientific interest
  • Niagara escarpment natural area (basically a big cliff that runs from the US through the tip of Bruce Peninsula all the way to Niagara Falls)
  • habitats of endangered species
  • significant wetlands
  • community conservation lands

Conservation Land Tax Incentive Program | Ontario.ca

Managed Bee Health Targeted Intake

Eligible beekeepers can qualify for a 50% cost-sharing deal up to $3500 per beekeeping season.

Beekeepers in the Lake Erie and Lake St.-Clair watersheds may be eligible for more money thanks to additional local incentives.

Canadian Agricultural Partnership | OSCIA (ontariosoilcrop.org)

Farmland Health Check-up

Eligible farmers can qualify for free checkups on important land features.

Free assessments include:

  • water erosion
  • wind erosion
  • tillage erosion
  • subsurface compaction
  • organic matter
  • soil life
  • soil chemistry
  • phosphorous
  • nitrogen
  • pollinator health

Farm Health Check-Up | OSCIA (ontariosoilcrop.org)

2. Timber

timber stack by the road logs

Trees are the lungs of the Earth.  A woodlot or stand of trees is first and foremost an integral part of the larger ecosystem.  The most important part of a management plan is to find a balance between the needs of the landowner and the needs of the wildlife and the greater ecosystem.  Leave wetlands and endangered plants and animals alone.  With a good forest management plan and sustainable harvesting practices, a stand of saplings can produce income for several decades.  

A well managed forest is healthier and sequesters more carbon than old forests that are left alone.  Treated lumber can last for many generations in buildings and furniture without decomposing.  Not only does this offer a long-term storage solution for carbon, but it also replaces other construction materials like concrete or steel which can produce more carbon in their production.

More traditional stands will have rows upon rows of one species of tree.  This leaves the stand vulnerable to disease and pests so it’s better to diversify your selection of trees.  Diversity is crucial for sustaining wildlife and for receiving tax benefits.

Thinning And Harvesting Your Stand

A stand should be thinned after 10 or 15 years of planting (more regularly if you’re managing a pre-existing forest).  Thinning allows for removal of less than perfect trees that are using up valuable resources.  Trees should be carefully selected and marked by a professional forester before thinning.  These trees can be used as energy wood (firewood) or for pulp.  

The trees that are left will experience an increase in sunlight and nutrients from the soil, allowing them to reach a greater potential for “sawlog” timber.  Sawlogs are logs that are suitable for sawing into lumber.  They are made from the straightest, thickest trunks with the least knots.  The sawlog is the most financially viable part of any tree grown for timber.

Types Of Wood Used For Timber And Their Value

I used TREE VALUE CALCULATOR | How Much Is Your Tree Worth? (treeplantation.com) to estimate the timber value of different tree varieties.  To simplify, all the hypothetical trees are 75 feet tall and 25 inches around.  However, you should still consider growth rates and planting distance in your forest management plan as these will affect the value of your land over time. Remember, these are only estimates and do not reflect the specific market you find yourself in.

Here are some good native options for timber:

White Pine – One of the fastest growing trees in Canada growing up to 5 feet per year in the right conditions.  It is light and workable which makes it perfect for framing buildings.  It isn’t very expensive but has a high turnover rate thanks to it’s quick growth.  It is recommended to plant them every 6 feet.  Value: $3468.75

Red Oak – A medium-fast growing tree (up to 3 feet a year) prized for its color and beauty.  This makes it a popular choice for hardwood floors.  They have wide-reaching roots and should be planted 20 feet away from buildings and other trees.  Value: $4031.25

Sugar Maple – Sugar maples are highly valued for their hard, heavy wood.  An added bonus of these trees is that they can be tapped for syrup long before they are ready to be harvested for lumber.  They have a medium growth rate of about 2 feet a year and should be planted 25 feet apart.  Value: $4575

Balsam Poplar – Another medium growth tree growing 2 feet per year.  The flexible wood is popular for many uses such as plywood, boats, and snowboards.  These trees can be planted very close to each other (4 feet apart) which makes them ideal for filling in gaps in your forest plan.  They are also valued for the alleged medicinal value of their resin.  Value: $656.25

American Beech – Don’t be fooled by the name, this beautiful tree can be found natively in most of eastern Canada.  This tree is very slow growing sometimes growing less than a foot per year.  Plant 20 feet apart for best results.  Value: $1987.50

Black Walnut – This tree is slow growing at only about 1-2 feet a year but have the added revenue stream of fresh walnuts.  They are valued for their durability and unique color and grain.  They should normally be planted at 6 feet apart but, if you’re planting from seed, plant them every 4 inches as the squirrels will surely find some of them.  Value: $7218.75

There are dozens of other varieties that you can use but just remember: diversify, diversify, diversify.

3. Food Crops

Food crops are the fastest way to start receiving income from your managed forest.  There are many trees that can provide crops like the walnuts and maples mentioned above, but that is only the beginning.  Berry-producing shrubs and root crops like ginseng can be grown on the forest floor.  Smaller trees like plum trees (that aren’t generally used for timber) can be grown while other trees are small and not producing timber

I’ve already talked about building food forests in another blog post (The 7 Layers of an Ontario Food Forest – Carroll Property Services) but I didn’t touch on mushrooms so let’s talk about them now.

Edible Mushrooms

baskets full of wild mushrooms

Fungi like mushrooms, yeast, and mold are distinguished from plants by their lack of chlorophyll (the stuff that makes plants green).  They have root like filaments called hyphae that digest nutrients externally before absorbing them.  Fungi live on organic matter which they decompose (with the help of bacteria) and turn into nutrient-rich soil improving soil and plant health.

You can eat a lot of wild mushrooms but you need to know exactly what you’re looking for or you could accidentally poison yourself.  Foraging for mushrooms in the woods can be a lot of fun and even profitable if you find the right mushrooms just bring an expert!

Foraging For Mushrooms In Ontario

Here are some mushrooms you can find in Ontario and how much you can sell them for. I found the Ontario native species on Northern Bushcraft – Foraging in the Pacific Northwest and Canada and I used the lowest price I could find on Amazon.ca:

Black Morel: $14.35/oz (dried)

Black Trumpet Mushroom: $28.34/4oz (dried)

Chantrelle: $24.85/oz (dried)

Comb Tooth Mushroom: $26.33/living culture

Lions Mane: I couldn’t find this one as whole mushrooms but it’s in all kinds of trendy supplements right now going for upwards of $30 per bottle.

There are 28 other delicious species of mushroom in Ontario like the giant puffball that have virtually untapped markets.

Growing A Mushroom Colony

If you want a little more control over what mushrooms you get, you can actually grow your own mushrooms.  Shitake mushrooms are easy to grow and very tasty and marketable.  First things first, you need something to grow the mushrooms on.

To grow your own mushrooms you will need:

  • a shady area close to a water source
  • a growing medium (like a log)
  • a mushroom spawn
  • a drill
  • an inoculator
  • wax (bees wax, soy wax, etc.)

Dead trees like oaks, maples, birch, beech, hickory, and poplar are all good for growing shitakes.  Oaks are the best though because they are harder and take longer for the shitakes to eat through.  An inoculated oak log can produce shitakes consistently for 8 years.  You can harvest wood or use wood that has fallen naturally as long as there is no disease and the tree was alive less than 6 months ago.  Ideally, the bark on your log shouldn’t have any cracks to better retain moisture and keep unwanted fungi out.  

Now that you’ve picked a log it’s time to grow some mushrooms.  It is best to inoculate your logs in the spring after the last harsh frost but it can be done any time before the winter.

  1. With a 5/16 inch drill bit, drill 1-2 inch deep holes in a grid pattern on your log with 4-6 inches between each hole.
  2. Soak your logs or hose them down well for 10 minutes.
  3. Make sure your spawn is still moist and put some in each hole using the thumb inoculator.
  4. Heat the wax until melted then seal the holes using a paintbrush or a sponge.
  5. Lean logs up against a tree or stack them together, watering or soaking them regularly.
  6. Harvest your shitakes!  Shitakes start popping up after 6 months but don’t pick them until the next spring to make sure the logs are well colonized.

Shitakes are used commonly in restaurants and can be sold fresh or dried for about $7 an ounce.  Everything you need for growing a wide variety of mushrooms can be found at Mycosource Inc.

4. Green Energy

solar panels on a roof

Using green energy from solar panels, wind turbines, and other renewable sources reduces your energy costs and your impact on the environment.  If you produce enough electricity you can even sell it back to the grid.  This doesn’t really have anything to do with forestry or habitat conservation but I’m assuming you live on the property so this will help offset some of your carbon emissions.

Scott Bennett, resident of Brooklin, Ontario and small business owner, talks about his family’s income from the solar panels he had installed in 2010 on his website.  The initial investment for their system was $45,462 for 20 panels and they’ve been making over $4,000 of income a year on top of saving about $60 a month with all the free energy they’re getting.  In their first 5 years they made $21,796.10 and they expect their panels to become profitable at around year 9.5.  If their  calculations were correct, they should be making money now.  The panels have a 25 year warranty so it should be basically all profits for a minimum of 15 years.  I’ve reached out to the Bennetts to get an update on their small energy business and hope to share the update with you all soon.

Edit: Scott Bennett called me back and confirmed that his solar panels are paid and he’s now profiting $4200-$4500 year. He also reminded me that you need to have a section of roof that is facing either south or west to benefit from solar panels.

You can check out Scott’s woodworking business at Brooklin Woodworking by Wooden It Be Nice Custom Woodworking and his green initiative blog at Carbon Diet | Learn How to Go Green from the Green Basics to Advanced Green Topics

5. Ecotourism

People who love plants and animals are always looking for new outdoor experiences and getaways. Renting out your home can be a great way to give people access to your little slice of nature.  As you ad new plants to your growing forest and new animals move in, it will become an even more attractive vacation destination.  You can offer additional services and products like tours, workshops, and fresh produce from your forest.  This is when your brand starts to matter as much as your production.

Tech companies like Airbnb and Vrbo are making it easier than ever to advertise your home as a short-term rental property for tourists.  There are many factors that go into the pricing of a stay at your Airbnb like number of bedrooms, bathrooms, and if you have a waterfront property.  Driving distance from population centers and proximity to tourist destinations like beaches and wineries can also have a huge impact on your prices.  Parking, furniture and working appliances will be expected and extras like a pool table or a few kayaks can boost profits.

To give you an idea of how much money people are making on Airbnb I calculated the average cost of a weekend (2 nights) stay in a cottage in Muskoka, Ontario with at least 3 bedrooms and 2 bathrooms.  There was a total of 64 properties with an average weekend stay price of $1,648.64.  The most expensive properties had many rooms, amenities, and lakefront views.

You will need special insurance when renting out your home and you may have to work around some bylaws so make sure to make a plan with the help of a local real estate agent.

If you really want to lean into the ecotourism side of your business you will need to build additional lodging, but you can’t use Airbnb for that so it is really beyond the scope of this post.

6. Other Entrepreneurial Endeavors

This is more of an umbrella category for all the ideas that didn’t get their own headers.  There is truly an infinite number of ways for you to make money from growing and managing sustainable ecosystem. You can grow trees to sell for landscaping.  If you live close to a highway, you can rent out advertising space on a billboard.  If you have any sort of skilled craft from woodworking to baking, you can turn your home into an office for your own small business.  If you have enough land, you can lease it out to hunters.  You get the idea.  The sky is the limit.

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