Daily News for March 08, 2023

Today’s Takeaway

Without fire, reducing the fire problem is likely to fail

The Tree Frog Forestry News
March 8, 2023
Category: Today's Takeaway

Wildfire expert Bruce Blackwell on what we’ve learned two decades after the Kelowna Mountain Park Fire. In related Wildfire Resilience Week news: the Nature Conservancy’s roadmap forward; Jasper, Alberta’s risk reduction work; and the import of the Goldilocks effect to improve forest health. Meanwhile: a new study on logging near salmon-bearing streams; mass timber’s pending green revolution; and Real Cedar’s upcoming summit and cedar school.

In Business news: Pactiv Evergreen to close its Canton, North Carolina paper mill; CP Rail announces US Midwest agreement; as CN Rail faces strike action in Canada; and Stella-Jones reports positive Q4, full year results. On the Market front: ERA’s Kevin Mason opines on the highly challenging year ahead; Fannie Mae on homebuyer’s sentiment; and Realtor.com on the US housing shortage.

Finally, Drax’s Liezl van Wyk celebrates women in forestry on International Women’s Day.

Kelly McCloskey, Tree Frog Editor

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Special Feature

Twenty years since the Kelowna Mountain Park Fire of 2003 – What have we learned?

By Bruce Blackwell, M.Sc. RPF RPBio
Tree Frog Forestry News
March 8, 2023
Category: Special Feature
Region: Canada, Canada West

[This article is part of our partnership with the Western Canada SFI Implementation Committee and our jointly hosted Wildfire Resilience and Awareness Week.]

This summer will mark the 20-year anniversary since the Kelowna Mountain Park fire destroyed 238 homes and burned approximately 26,000 ha. It marks a critical turning point in fire management in B.C. and I believe for Canada. … While we have made some progress to address the wildfire problem it is obvious there is still a long way to go.

A key issue that requires complex solutions is the continued growth of development into the wildland urban interface. Local governments in B.C. have been unable to halt the expansion of homes into fire prone areas of the Province. While a few communities have adopted FireSmart bylaws through the Development Permit Area process, these bylaws often don’t go far enough and are limited in. …In my opinion the growing development of vulnerable interface communities can only be managed through a provincial mandate that enforces FireSmart standards in high fire risk areas of the province. …Governments need to direct industry to assist in wildfire risk reduction beyond the current wildfire hazard reduction obligations. … Given the current public forest land management and tenure model in B.C., these costs should be borne by the Crown.

The cheapest and most effective treatment is prescribed fire, and even though it has been highlighted as a big part of the solution we have failed to act on these recommendations. Without prescribed fire our hope of significantly reducing the fire problem is likely to fail.

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Opinion / EdiTOADial

2023 will be a challenging year for commodities and companies with exposure to the US housing market: ERA

By Kevin Mason, managing director
ERA Forest Products Research
March 8, 2023
Category: Opinion / EdiTOADial
Region: Canada, United States

Kevin Mason

We are already two months into 2023, yet it feels as if we are still holding our breath to understand the general direction of the year ahead. One of the largest drivers in our space will be China’s appetite for commodities as the country exits its COVID-lockdown era. …The largest overhang, however, is likely the geopolitical situation, with China’s relationship with Russia driving fears of potential Western trade sanctions and contributing to very cautious consumer sentiment. …Another big macroeconomic wild card for 2023 is what happens with the Fed funds rate. We have seen expectations around U.S. monetary policy flip-flop several times already this year, but stubbornly high inflation and blockbuster job numbers for January now suggest the Fed could continue hiking through the middle of the year, and the next rate-cut cycle may not begin until 2024.

Sentiment around the broader housing market has flip-flopped in recent months. …However, [January’s] optimism didn’t last too long. Commentary on Q4 earnings calls was quite sobering, and, with sticky January inflation numbers and a more hawkish tone in the latest Fed meeting minutes, it feels like we are back at square one—with at least another couple of quarters of weak housing demand seemingly assured. …After two-plus years of heightened volatility around the pandemic (commodities, stock market and housing were all impacted), it is perhaps understandable that minor changes in underlying data often garner an outsized (over)reaction. However, we have seen little concrete evidence to date that suggests 2023 will be anything but a highly challenging year for commodities and companies with exposure to the U.S. housing market. 

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Business & Politics

CP announces ratification of new collective agreement with locomotive engineers and trainmen in U.S. Midwest

By Canadian Pacific
Cision Newswire
March 7, 2023
Category: Business & Politics
Region: Canada, United States

CALGARY, Alberta – Canadian Pacific announced the ratification of a new collective agreement with the Brotherhood of Locomotive Engineers and Trainmen representing hundreds of CP and Kansas City Southern (KCS) locomotive engineers and trainmen in U.S. Midwest locations, which will take effect upon the consummation of the proposed CP-KCS combination, which remains subject to receipt of regulatory approval by the U.S. Surface Transportation Board. The new collective agreement includes CP employees on the Dakota, Minnesota & Eastern South territory in Iowa, Illinois, Missouri and Minnesota, as well as KCS employees in Kansas and Missouri. …Keith Creel, CP President and CEO… “These innovative agreements will create predictable schedules for conductors and engineers, pending regulatory approval, a combined CPKC connecting Canada, the U.S. and Mexico.” …An STB decision is expected in first quarter of 2023.

Related coverage from Unifor: CN workers vote overwhelmingly in favour of strike action

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Reflecting on representation in forestry this International Women’s Day

By Liezl van Wyk, Sr. VP Operations
Drax Northern Region Pellet Group
March 8, 2023
Category: Business & Politics
Region: Canada, Canada West

Liezl van Wyk

I am the Senior Vice President of Operations for Drax’s Northern Region Pellet Group. Drax is a renewable energy company engaged in renewable power generation and the production of sustainable biomass, with a strong focus on building out bioenergy with carbon capture and storage. My role is to oversee our 10 pellet operations across British Columbia and Alberta, including the connecting rail logistics and the Westview export terminal in Prince Rupert. …I am very proud to work for Drax and with our teams across the company, as the work we do is critically important to help achieve the climate goals of net zero and negative emissions globally. I feel I am contributing by being part of it and bringing my education and experience to the business while addressing challenges as they arise.

I celebrate the women in the forestry industry. Resource and extractive industries can have some rough edges, and women who do well tend to be focused, hard workers and embrace a professional style, which creates very high calibre female role models who embody a willingness to collaborate, coach others and empower colleagues to live a work life balance. On International Women’s Day, I am reminded of the importance of bringing women together to help build that community which is very important for all companies to embrace and cultivate. 

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Canton paper mill closure is a victim of corporate consolidation

The Mountaineer
March 6, 2023
Category: Business & Politics
Region: United States, US East

CANTON, North Carolina — News the Canton paper mill will be closed within three months sent shock waves through Haywood County Monday evening, leaving workers and the greater Canton community torn between grief, fear and anger. The mill’s closure apparently comes down to the bottom line of the corporate owner, Pactiv Evergreen. Pactiv is consolidating operations for its factories that produce coated cardboard used for milk cartons, juice cartons and to-go coffee cups. …Michael King, CEO, said the mill’s satellite facility in Waynesville — which provides the waterproof coating to the cardboard — is not affected by the closure at this time. …Evergreen is closing a converter facility in Olmstead Falls, Ohio, at the same time. About 1,300 workers in Canton and at the Ohio plant will lose their jobs. The closures are part of a restructuring of Pactiv Evergreen’s beverage merchandising segment and reorganization of the company’s management structure. 

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Finance & Economics

Stella-Jones reports positive Q4, 2022, full year results

Stella-Jones Inc.
March 8, 2023
Category: Finance & Economics
Region: Canada, Canada East

MONTREAL – Stella-Jones announced financial results for its Q4 and year ended December 31, 2022. Sales for the fourth quarter increased by 22% to $665 million, compared to sales of $545 million for the same period in 2021. The growth was driven by the sales of the Company’s infrastructure-related businesses, namely utility poles, railway ties and industrial products. …Gross profit was $112 million in the fourth quarter 2022, versus $65 million in Q4 2021. …Sales in 2022 were up 11% to $3,065 million, compared to $2,750 million in 2021. Excluding the impact of the Cahaba and TEC acquisitions of $66 million and the currency conversion of $73 million, pressure-treated wood sales rose $206 million or 8%. Gross profit was $524 million in 2022 compared to $456 million in 2021, representing a margin of 17.1% and 16.6%, respectively. …“Stella-Jones concluded 2022 on a very strong note, and I am proud of the robust performance we delivered,” said Eric Vachon, President and CEO.

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US Homebuyers and Home-Sellers Express Caution About Current Market Conditions

Fannie Mae
March 7, 2023
Category: Finance & Economics
Region: United States

WASHINGTON, DC – The Fannie Mae Home Purchase Sentiment Index® (HPSI) decreased 3.6 points in February to 58.0, breaking a streak of three consecutive monthly increases and returning the index closer to its all-time survey low set in October 2022. Overall, four of the HPSI’s six components decreased month over month, most notably those associated with job security and home-selling conditions. While both components remain positive on net… year over year, the full index is down 17.3 points. Doug Duncan, Fannie Mae Chief Economist… “The decline was partly driven by a substantial decrease in consumers’ sense of home-selling conditions, with most respondents who indicated it’s a ‘bad time to sell’ citing unfavorable economic conditions. With home-selling sentiment now lower than it was pre-pandemic – and homebuying sentiment remaining near its all-time low – consumers on both sides of the transaction appear to be feeling cautious about the housing market. 

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The US housing market is short 6.5 million homes

By Anna Bahney
CNN Business
March 8, 2023
Category: Finance & Economics
Region: United States

The United States is not building enough homes to account for the number of people setting up their own households. As a result, there is a sizable shortage of new homes after more than a decade of under-building relative to population growth, according to a new analysis from Realtor.com. The gap between single-family home constructions and household formations grew to 6.5 million homes between 2012 and 2022. …If multi-family construction is included — which is predominantly rental units — this gap is cut to 2.3 million homes. …The rate of overall housing starts slowed in 2022 while completions climbed. In 2022, roughly 1 million single-family homes were started, which is 10.6% fewer than in 2021, though still more than in any other single year back to 2012. …Multi-family housing can ease ongoing housing affordability challenges… but while a single-family home typically takes 7 months to complete, multi-family housing takes 15 months.

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Wood, Paper & Green Building

Real Cedar announces Cedar Summit and Cedar School 2023

Western Red Cedar Lumber Association
March 8, 2023
Category: Wood, Paper & Green Building
Region: Canada West

This year, the Western Red Cedar Lumber Association’s Cedar Summit and Cedar School will take place in May. The Cedar Summit will be held in Victoria, BC at the beautiful Ocean Pointe Resort from May 17-19, 2023. Space is limited, so be sure to book your spot today. The Cedar School will be available in both Vancouver (at the Hilton Vancouver Airport Hotel) and Victoria (at the Ocean Pointe Resort). There is a maximum of 50 students that can attend.  Each member company can send up to 5 students.

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Canada’s single-use plastic ban faces its first legal test

By David Thurton
CBC News
March 7, 2023
Category: Wood, Paper & Green Building
Region: Canada, Canada East

Canada’s single-use plastic regulations face their first legal test today as the plastics lobby and the federal government head to court. A federal court judge, who is not expected to deliver a ruling for months, must consider whether Ottawa was justified when it listed plastic products as toxic under the Canadian Environmental Protection Act. …A federal judge hearing arguments from governments, environmental groups and plastic companies about whether the ban is justified. …The plastic industry accused the government of introducing a plan with “fatal flaws.” It’s not the federal government’s place, the complainants argue, to regulate plastic pollution when the provinces and territories typically handle waste management. …The plastics industry also alleges the federal government failed to demonstrate it had enough scientific evidence. …A York University researcher  said he believes the federal government’s plastics policies, although well-intentioned, are rooted more in politics than science.

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Local Lumber Grading Bill Introduced

The Sit News
March 6, 2023
Category: Wood, Paper & Green Building
Region: US West

Jesse Bjorkman

Senator Jesse Bjorkman (R-Nikiski) introduced Senate Bill 87 last week to allow Alaskan sawmill operators who have been State certified to produce and grade dimensional lumber for use in some residential construction applications. Representative Jesse Sumner (R-Wasilla) expects to introduce companion legislation in the House on Friday. “Allowing for local lumber grading in Alaska will create economic opportunities for small businesses, provide an opportunity for Alaskans to purchase local products, and perhaps offer building materials at a lower cost than dimensional lumber from the lower 48,” said Senator Bjorkman. “It will also encourage higher value-added use of materials harvested from forest thinning and hazardous fuels reduction projects that would otherwise be piled and burned.” Alaska is struggling to meet housing shortages across the state. Currently, dimensional lumber used in construction must be graded and stamped by third-party grading agencies in order to meet lender requirements and building codes.  

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Can mass timber construction usher in a green revolution?

By Adriano Amorese
Property Week
March 7, 2023
Category: Wood, Paper & Green Building
Region: International

Andrew Waugh

UK — A highlight of January’s Property Week climate crisis summit was listening to Andrew Waugh extol the virtues of mass timber construction while assuaging the myriad concerns of his audience. There is excitement within the industry about the decarbonising potential of mass timber (MT) and it is encouraging to see the number of MT projects now coming through planning. There are, however, still misconceptions that continue to impede its widespread adoption. Obtaining construction and property insurance is more difficult than for steel and concrete, but not impossible… provided insurers are engaged early in the design process and given the opportunity to understand, and influence the management of, key risk factors. Preconceived notions about the limitations of MT when building at scale or at height are also being challenged. …Preconceived notions about the limitations of MT when building at scale or at height are also being challenged.

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Mass timber should always start with forest health

By Ben Dreith
Dezeen Magazine
March 8, 2023
Category: Wood, Paper & Green Building
Region: International

Increasing use of mass timber in architecture is driving good forest management practices in the United States, says Forest Business Network (FBN) co-founder Arnie Didier… as part of our Timber Revolution series. Mass-timber manufacturers are seeking to emphasize the benefits for forestry and resource management in conversations with politicians and the construction industry as they try to encourage take-up. …The 2022 mass timber study released by FBN outlines how, in order to manage fires, forest stewards often strip trees and implement controlled burns so as to thin out the stock and preserve the more mature trees traditionally used in timber products. …Lech Musynski, a professor at Oregon State University, agreed that converting otherwise-useless trees to manage fires into mass timber could incentivize better practices. By utilizing wood that would otherwise get burned, mass timber allows for more carbon to be sequestered.

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Forestry

Fish in hot water: decades of logging tied to warmer temperatures in unprotected salmon-bearing streams

By Ainslie Cruickshank
The Narwhal
March 7, 2023
Category: Forestry
Region: Canada, Canada West

As a cold-blooded species, salmon are at the mercy of the water they swim in when it comes to their internal temperature. Globally, fish are feeling the heat from climate change, but in interior B.C. decades of logging in the headwaters of salmon streams has cranked those temperatures even higher, new research shows. As trees are cut down along waterways, small streams are exposed to more direct sunlight, while logging across watersheds can change the way water flows throughout the whole system. The combined effect can leave wild salmon swimming in waters that are warmer than they’d like. …“Forestry is exacerbating the impacts of climate change,” Jonathan Moore, a biology professor at Simon Fraser University and co-author of the study published said. It’s pushing these river systems “closer to a place where they can no longer support thriving species that rely on cold water, like salmon.”

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Wildfire risk reduction work in full swing in advent of wildfire season

By Scott Hayes
The Jasper Fitzhugh
March 7, 2023
Category: Forestry
Region: Canada, Canada West

Since before wildfire season began on March 1, Parks Canada has been hard at work doing wildfire risk reduction work. A few weeks ago, Parks began fireguard work near the base of Signal Mountain. This last week saw the start of further efforts near Pyramid Lake Resort including along a section of trail 2. Crews are doing a thinning as part of a larger vegetation management practice over the last several years. They have been working in response to the mountain pine beetle outbreak. Some of the work started from FireSmart guidelines, but crews have modified them for an enhanced protection zone around structures. “Typically, in FireSmart, it’ll extend from 10 to 30 metres from a structure. We’ve modified it slightly so that we’re extending 30 metres approximately from the leasehold, which typically is pretty close to 30 to 40 metres from structures,” said Katie Ellsworth, fire management officer with Jasper National Park.

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Group of professionals know what they’re talking about

Letter by Edward Rhodes, Duncan, BC
Lake Cowichan Gazette
March 6, 2023
Category: Forestry
Region: Canada, Canada West

Mr. Larry Pynn, like so many environmentalist journalists, panders to the green movement but, like most of us, lives the modern lifestyle. He takes ‘bemusement’ in disparagement of Mr. Jeklin and his professional colleagues who question the report of the UBC partnership which has presented a report suggesting a choice of four forest management routes. Mr. Jeklin and colleagues have worked for free and also professionally for North Cowichan for many years and are highly respected. …Throughout his career he has been a registered professional forester having graduated from the forestry program of UBC. (It appears that none of the so-called UBC Partnership Group are registered professionals. From my perspective as a professional engineer and past university president I cannot understand how one teaches a profession without being registered as one oneself!)

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Conservation preferred option for North Cowichan’s public forests

By Robert Barron
The Cowichan Valley Citizen
March 6, 2023
Category: Forestry
Region: Canada, Canada West

NORTH COWICHAN, BC — The results of an online survey held on how North Cowichan’s 5,000-hectare municipal forest reserve should be managed indicate that the vast majority of respondents favour conservation scenarios for the public woodlands. More than 40 per cent of the almost 2,000 respondents to the survey said they would prefer the municipality move towards active conservation management of the forest. …Almost 30 per cent of survey respondents said they would prefer the passive conservation option, which is to let the forests within the MFR develop with minimal human intervention. …Approximately 20 per cent of respondents said they would prefer the status-quo option, which calls for the historical harvesting practices within the MFR to continue as they were before harvesting stopped three years ago. …The least popular option, which calls for reduced harvesting, received just 12 per cent support among the survey’s respondents.

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Lichen again puts Crown land tree harvesting plan on hold in Annapolis County

By Francis Campbell
The Saltwire Network
March 7, 2023
Category: Forestry
Region: Canada, Canada East

NOVA SCOTIA – Tree harvesting plans approved for Crown land in the Goldsmith Lake area of Annapolis County have been put on hold, say members of the citizens’ group opposing the cut. “Ten days ago we discovered logging starting up in one of the parcels near Goldsmith and got quite worried,” said Lisa Proulx, one of the group that includes members of Extinction Rebellion. “Learning that the Department of Natural Resources and Renewables has put a hold on all the harvests planned for the area right around the lake is a huge relief,” Proulx said. “Even better is learning that they are not just applying individual buffers, they are reconsidering how to manage this forest.” Proulx and the group said they learned March 1 that, thanks to their efforts and the existence of rare and at-risk lichens in the area, the department has suspended harvest plans.

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Roadmap for Wildfire Resilience: How to Get There from Here

The Nature Conservancy
March 8, 2023
Category: Forestry
Region: United States

In recent years, a surge in catastrophic wildfire events has strained local, state, and federal resources destroying communities, lives and livelihoods. These wildfire events have become more frequent and severe, resulting from more than a century of fuel build-up, past land and fire management practices, fire exclusion, growing populations moving into and expanding the wildland-urban interface, the effects of climate change, and a lack of funding streams to support wildfire resilience. …“We need a paradigm shift on how the country approaches wildfire,” says Cecilia Clavet, Senior Policy Advisor for Forest Restoration and Fire with The Nature Conservancy (TNC). “We needed to write a new chapter in how we live with fire, a vision for fire-prone forests and forest-adjacent communities, and a roadmap to show us how to get there from here.”

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Armstrong Redwoods Reserve made part of nationwide Old-Growth Forest Network

By Mary Callahan
The Press Democrat
March 7, 2023
Category: Forestry
Region: United States, US West

The Armstrong Redwood State Natural Reserve in Guerneville, a popular destination for locals and out-of-town visitors alike, has been incorporated into the nationwide Old-Growth Forest Network, a project aimed at protecting and promoting old growth forests around the country. The 805-acre reserve was dedicated Friday, becoming one of more than 185 forests in 32 states, primarily in the northeast and east, to receive the designation from the 11-year-old nonprofit network thus far. There are now 16 in California. …The hope eventually is to identify an old-growth landscape in every U.S. county that has one and can sustain it to ensure they are acknowledged and treasured for their rare longevity, complex beauty and ecological benefits, said Noelle Collins, southwest regional manager for the network.

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To help dry forests, fire needs to be just the right intensity, and happen more than once

By Skye Greenier et al, Oregon State University
Phy.org
March 8, 2023
Category: Forestry
Region: United States, US West

Oregon State University research into the ability of a wildfire to improve the health of a forest uncovered a Goldilocks effect—unless a blaze falls in a narrow severity range, neither too hot nor too cold, it isn’t very good at helping forest landscapes return to their historical, more fire-tolerant conditions. The study led by Skye Greenler, at the OSU College of Forestry, and Chris Dunn, an assistant professor, has important implications for land managers charged with restoring ecosystems and reducing fire hazard in dry forests such as those east of the Cascade Range. The findings, published in PLOS One, shed light on the situations in which managed wildfires, as well as postfire efforts such as thinning and planting, are likely to be most effective at achieving restoration goals. …Our study lets managers and researchers link forest restoration goals with maps of predicted post-fire conditions.”

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Montana State forestry programs top 31K acres

By Tom Kuglin
Helena Independent Record
March 7, 2023
Category: Forestry
Region: United States, US West

Montana’s state forestry programs topped 31,000 acres last year, topping the acreage from 2022 as the state pushes to increase the pace and scope of forest management. The office of Gov. Greg Gianforte and the Montana Department of Natural Resources and Conservation announced that state put more than 31,000 acres under forest management programs. The figure includes ongoing logging, thinning and prescribed fire projects that are ongoing or placed under contract in 2022. The acreage is a combination of state land timber sales, cross-boundary work that includes private lands, grants to private landowners and cooperative agreements with federal agencies. “Creating healthier, more resilient Montana forests through active management is one of our top priorities, and DNRC continues to deliver results for the people of Montana,” Gianforte said in a statement. “We’ve made incredible progress over the last two years to increase the pace and scale of forest management in Montana, and we’re not done yet.”

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Bill in Congress Seeks to Allow 16 and 17-Year-Olds to Work in Certain Logging Operations With Parental Supervision

Big Country News Connection
March 7, 2023
Category: Forestry
Region: United States, US West

WASHINGTON, D.C. – U.S. Senators Jim Risch (R-Idaho) and Angus King (I-Maine) and U.S. Representatives Jared Golden (D-Maine) and Glenn “GT” Thompson (R-Pa.) reintroduced the Future Logging Careers Act on Tuesday. The legislation would allow teenage members of logging families to gain experience in the logging trade under parental supervision so they may carry on the family business. The Future Logging Careers Act would amend the Fair Labor Standards Act to allow 16 and 17-year-olds to work in certain mechanized logging operations under parental supervision. “Idaho’s logging industry has long been a family trade, but current law is hampering its future by preventing young men and women from working in their family’s businesses,” said Risch. “The Future Logging Careers Act would give timber families the opportunity to pass down their trade. With a decline in labor and an aging workforce, we must empower the next generation of loggers ….”

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