Millions of federal dollars promised to Maine woodland to improve harvest practices has been stalled for months without explanation.
Landowners and logging companies are increasingly anxious about the funding blockade, and will have to make tough decisions if the money doesn’t come through.
Baskahegan Co. Vice President Kyle Burdick said it was banking on federal reimbursements to sustain logging operations on its Down East timberland this year.
But if the money doesn't come through, it will have to reconsider its plans and potentially lay off logging contractors.
"By June we’d really like to know if this program is going on or not, if we need to make adjustments to our workforce or logging capacity," Burdick said.
Baskahegan was one of six Maine landowners that last year agreed to try out forestry practices that thin out woodlands to encourage bigger tree growth. The pilot project, funded through a $32 million climate smart commodities grant from the U.S. Department of Agriculture, was intended to store more greenhouse gases and generate valuable wood products in the future.
But the funding has been blocked since President Donald Trump put money promised under the Biden administration under review.
Now timberland owners, already under pressure from a downturn in the wood pulp market, are uncertain how to proceed.
And the freeze could affect logging jobs too. Dana Doran, executive director of Professional Logging Contractors Northeast, said the federal funding provided some relief to weather the tough economy.
"Without the funds here, some of the contractors that were going to do the work, they might not be able to keep people working. And without that bridge to the other side, they may not be able to hang on" until the market rebounds, Doran said.
Foundation deputy director Andrea Colnes said between $11 million and $12 million from the award is dedicated to reimbursing Maine companies for forestry work. And without knowing if the funding is coming through, the foundation is unable to execute the contracts it signed with landowners, she added.
"It puts everything in limbo because forestland owners and Maine companies can’t invest in practices without confidence that payments will flow as required,” Colnes said.
The foundation has not received a detailed explanation of the continued funding block, Colnes added.
The USDA did not immediately respond to questions about the program.
