Within the next few weeks, the USDA is expected to publish the Hardwood Checkoff draft for 60-day comment, with an industry vote expected to take place by March 2012. While debate continues over the fee structure and other components of the initiative, I challenge anyone to say that the hard-hit hardwood industry doesn’t need a program of this type to provide funding for promotion, education and research efforts.

For those unfamiliar with the concept, checkoff programs are collective marketing efforts funded by the product producers and run by an industry-governed board; coordinated through the USDA. Currently, there are a number for the agriculture, meat and dairy industries — "Pork: the Other White Meat," "Beef: It's What's for Dinner," "Got Milk" and "The Incredible, Edible Egg." The softwood industry passed a checkoff program on June 10, 2011 and the paper and packaging industry will vote this fall on one. A Christmas tree checkoff takes effect, quite naturally, at Christmas 2011.

But none currently exists for the hardwood industry, something that a number of producers are working actively to correct. Under the Hardwood Checkoff draft initiative, funding for the program would come from sawmills producers and kiln operating facilities with annual sales in excess of $2 million. These companies would be required to pay $1 per $1,000 on sales on the raw product. Value-added – though still considered unfinished – products, such as dimensioned components, S4S, etc., will also be subject to a checkoff fee, but at a reduced rate. Hardwood plywood mills producing more than 10 million square feet annually would pay $4 per 1,000 square feet of production. However, companies are given a “credit” for lumber purchases, which is deducted from their fee.

James Howard, president of Atlanta Hardwood Corp. and a member of the Blue Ribbon Committee behind the Hardwood Checkoff initiative, gave the following example in a presentation before members of the Wood Component Manufacturers Assn. at the fall meeting.

A lumber and moulding producer posts annual sales of $8.5 million. Of that, $1.5 million is lumber, $5 million is moulding, $1 million is primed moulding, and $1 million is cabinet doors. The fees would be as follows: $1,500 on the lumber, $3,750 on the moulding, $0 on the primed moulding and $0 on the cabinet doors (the latter two are considered finished products). However, the company receives a credit of $4,250 for lumber purchases of $4.250 million. Therefore, the total fee paid will be $1,000.

If passed, the projected revenue, Howard says, could generate $9.15 million annually for the promotion and research of domestic hardwoods, as well as educating specifiers on the benefits of this sustainable product. The producers involved in the initiative (see list below) have already donated thousands of dollars to get this off the ground. Learn more about the initiative at HardwoodCheckoff.com. Watch for your opportunity to comment and get your voice heard. We’re all in this together.

(Blue Ribbon Committee members behind the Hardwood Checkoff are: Co-chairman Jim Howard, Atlanta Hardwood Corp.; Co-chairman Ted Rossi, Rossi Lumber; Nancy Arend, Northwest Hardwoods; Victor Barringer, Coastal Lumber; Chris Bingaman, Bingaman & Son Lumber Inc.; Bill Buchanan, Buchanan Hardwoods; John Crites, Allegheny Wood Products; Don Finkell, Anderson Hardwood Floors Inc.; Jamey French, Northland Forest Products Inc.; Pem Jenkins, Turn Bull Lumber; Jeff Meyer, Baillie Lumber Co. Inc.; Jack Shannon, The Shannon Group; Brad Thompson, Columbia Forest Products; and Chris Zinkhan, The Forestland Group LLC.)

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