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Currently at risk in the Black Hills National Forest are about 25 

 forest products companies involving nearly 1,700 employees. Most 

 of these companies are small businesses. In the upcoming forest 

 plan on the Black Hills National Forest, the local timber industry 

 must have a sustainable yield to survive. 



Pressures that preservationists are placing on public lands not 

 only impact businesses directly involved on public lands but also 

 those businesses which support the sawmills, ranchers, mining, and 

 recreation. 



Within the past 6 months, like the Senator said, our allowable 

 cut has gone from an estimated 118 million board feet to 85 million 

 board feet. We cannot continue to operate under these conditions. 



Small businesses especially are impacted by pressures induced 

 upon the industry because of lack of financial capital to outlast the 

 artificial restrictions of timber supply due to such things as lengthy 

 court appeals, budget cuts, et cetera. An artificial shortage of 

 timber availability drives up the cost paid for timber on the nation- 

 al forest land. 



The U.S. Forest Service timber appraisal systems continue to es- 

 calate minimum bid prices without consideration to local markets 

 or artificial pressures which disturb the local timber program, thus 

 adds further deterrence to small business with restricted cash re- 

 serves. 



Appeals have taken a toll on the Black Hills National Forest. In- 

 dustry has voiced its concerns, and evident concerns lie in the 

 backlog of timber sales available for sale. Lack of action is taken to 

 correct a system that was intended to give the public opportunity 

 to object to government abuse and not federal policy. And we have 

 all seen many closures. I think nearly every city in the Black Hills 

 has lost at least one timber-producing company. And I think each 

 one of us know who those losses are. 



Currently private lands are an option for industry. The Tree 

 Farm program has encouraged timber production, forest manage- 

 ment, and resource development on private lands. However, with a 

 significant cut in volume on U.S. Forest Service land, timber on 

 private land will be maximized and no longer available. 



In order to maintain both a healthy ecosystem and a healthy 

 social economy, government must insure sustainable outputs from 

 all lands. In order to achieve this, local government entities must 

 be involved in the economic assessment of the federal land use if 

 ecosystem management is to exist. 



I have included a few things that would create a positive climate 

 for small business on the Black Hills National Forest. There needs 

 to be sustainable timber availability on the Black Hills National 

 Forest that is not subject to attack by preservationists. There needs 

 to be assistance available for small business to obtain loans and 

 bonding, or the U.S. Forest Service must consider changing their 

 financial requirements for timber sales. Timber sales must be 

 planned with size sensitivity. Without small sales available, a small 

 operation cannot consider bidding on U.S. Forest Service timber. 

 And basically when small business fills government lumber orders, 

 there are no outlandish cash deposits required. There are no esca- 

 lation clauses or bonding requirements attached to our agreements. 

 We simply fill the orders and wait for payment. 



