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Overview
The New Brunswick forest industry is comprised of many different mills that produce a wide range of forest products and is a significant contributor to the provincial economy with a total gross domestic product (GDP) contribution of about $1.5 billion annually. There are about 9,700 direct and another 14,100 spinoff jobs linked to the forest sector.
Crown Timber utilizations and allocations
The Crown forest management plan determines how much Crown timber is available for wood processing across the province.
Crown timber harvesting results in each tree being processed to maximize the value of primary forest products and that minimal wood waste occurs.
The department updates a utilization standard annually and provides these to Crown licensees identifying the expectations regarding minimum specifications for merchantable products and maximum allowable waste tolerances. Regional Inspectors and Results-based Forestry Teams assess harvesting operations adherence to the Crown Timber Utilization Standards (PDF 1 MB) through operational site visits.
Access to Crown timber is granted through Forest Management Agreements with the department. Approved mills are known as Licensees and Sub-licensees, based on requirements outlined the Crown Lands and Forests Act, including:
- owning, operating or agreeing to construct a wood processing facility in the province
- submitting an industrial plan outlining 10-year production, investment, employment and wood requirements from all sources
The amount, and type, of Crown timber available to approved mills is specified in Schedule 2 of the Forest Management Agreement.
Fifteen First Nation communities in New Brunswick hold commercial harvesting agreements, representing about 5% of the Crown forest’s annual allowable harvest. Communities may harvest and sell wood through local members or forestry contractors, and they receive a share of royalties from the sale of Crown timber allocated to them.
Crown wood scaling, tracking and timber royalty
To ensure proper use and fair compensation for Crown timber:
- all harvested Crown wood is tracked, scaled and reported
- department staff conduct truck inspections to verify Transport Certificates (TCs)
- timber is scaled at mills to measure volume by species and product
- mills report this data to Licensees, who submit it to the department
The fair market value (stumpage) of Crown timber is set annually (see Schedule A of the Timber Regulation) and is informed by a private land stumpage study from the NB Forest Products Commission. Royalty rates are adjusted under the Private Woodlot Sustainability Act, based on commodity market performance.
Licensees are responsible for collecting and remitting royalties based on mill deliveries. The department calculates total royalties owed and invoices licensees monthly.
