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impact that appeals will have on the small businesses and local economies. In the 

 fiscal year 1993, there may be a shortage of up to 20 percent of available timber on 

 UFSF land due to frivolous appeals and the lack of action taken to correct an ap- 

 peals process. We need to help end the abuse of a system that was intended to give 

 the public an opportunity to object to governmental abuses, not federal policy. 



Recently there have been many closures and losses to the timber industry in the 

 Black Hills. Most of them have been family mills which can no longer afford the 

 cost of doing business with the government or could not respond as quickly as was 

 needed to the changes caused by a decrease in timber supply and an increase in 

 financial outputs for timber. Included have been such local businesses as Custer 

 Lumber, Wood's Sawmill, Northern Hills Forest Products, the ST. Regis Mill, Dick- 

 son Forest Products, and individuals such as Francis and Gene Potter. And most 

 recently, the Little River Lumber Company, as well as Hamm's Wood Products have 

 announced their closures this month. These closures have had a detrimental effect 

 on local economies. These losses may have been totally unnecessary. 



Private lands are currently an option for the industry to turn to. The Tree Farm 

 program encourages timber production, forest management, and resource develop- 

 ment on private lands. In addition, small businesses are subsidizing the high cost of 

 prices paid for timber on federal land by purchasing private timber, where financial 

 requirements are more reasonable. However, with a significant cut in volume on 

 Forest Service land, timber on private lands will be maximized and no longer avail- 

 able. But even then, preservationists continue to misuse the intent of the name Tree 

 Farm, and in some parts of the country, the preservationists are attacking private 

 land uses. Neighbors need the same consideration and respect in the Black Hills 

 Region that they would receive from neighbors throughout South Dakota or Wyo- 

 ming. 



In order to maintain both healthy ecosystems and a healthy socioeconomic struc- 

 ture, the government must insure sustainable outputs of all kinds from public lands. 

 In order to achieve this, local government entities must be involved in the economic 

 and ecological assessment of the Federal Land Use Planning if Ecosystem Manage- 

 ment is to exist. 



Here are some things that would create a positive climate for small businesses 

 associated with the timber industry. 



L There needs to be a sustainable timber availability on the BHNF that is 

 not subject to attacks by presevationists. 



2. There needs to be assistance in obtaining financial loans and bonding, or 

 else the USFS must consider changing their financial requirements on timber 

 sales. 



3. Sales must be planned with size sensitivity. Without small sales available, 

 a small operation cannot consider bidding on Forest Service timber. 



4. Slash and road deposits need to be re-addressed. Now that the BHNF is out 

 of the Below Cost issues, the government should consider standing the cost of 

 slash and road materials rather than the small business timber purchaser 

 shouldering the whole of those costs thereby reducing these costs. 



5. Escalation clauses on timber sales further discriminate against small busi- 

 nesses, for we cannot adjust to market prices in our completely different mar- 

 kets from those the USFS uses to appraise timber and prices. Flat rates may 

 prove to be more suitable to small businesses. 



When small businesses fill government lumber orders, there are no outlandish 

 cash deposits, escalation clauses or bonding requirements attached to our agree- 

 ments. We simply fill the order and wait for payment. 



In conclusion, there exists in the timber industry, especially concerning small 

 businesses, issues that must be resolved in order to insure the future of a stable 

 socio-economic environment and a healthy forest ecosystem that make up a well 

 managed national forest. These issues concern values and questions that can be ad- 

 dressed and re-addressed to compromise and suit those involved, all that needs to be 

 done is to commence with affirmative actions. 



