Forest Management Agreements
Last Review/Updated: February 6, 2006
Forest Management Agreements
Alberta uses timber permits, timber quotas and forest management agreements (FMA) to manage the province’s timber resources.
An FMA is an area-based tenure agreement between a forest company and the landowner (Government of Alberta), and provides the forest company with the right to grow, harvest and remove timber. Area-based tenures give a company rights and obligations within a specified land area, while volume-based tenures set the amount or volume a company may harvest. Harvest volumes for area-based tenures are set through forest management plans.
An FMA provides the forest company with:
- a greater security in fibre supply for their facilities;
- an agreement that is area-based not volume-based;
- an FMA is granted for generally a 20 year period with options for renewal (based on environmental performance and compliance); and
- the opportunity to receive timber damage compensation from the loss of timber when energy exploration, power line construction and other industries remove trees from a timber company’s FMA;
In return the FMA holder:
- takes on greater responsibility and accountability for forest management planning, which is consistent with the Government’s commitment to sustainable resource development;
- is required to provide an opportunity for public consultation, during the development of a Detailed Forest Management Plan for the area;
- must submit a new Detailed Forest Management Plan generally every ten years; and
- must manage timber on a long-term sustained yield basis, and must consider a broad range of forest values such as social, economic and environmental factors (watershed, environment and wildlife habitat).
Under an FMA agreement there is no transfer of land ownership to a private company.
- Brochure on Management of Alberta's Forest Resource
- Companies with Forest Management Agreements
- Map of Forest Management Agreement Areas (January 2006)
Questions and Answers on FMAs
- What is a Forest Management Agreement?
- Why is a FMA tenure important for forest management?
- Does an FMA mean that the forest company now owns the related forested lands?
- Are there planning and operating standards in place that an FMA holder has to meet as part of the requirements?
- Are there any opportunities for the public to get involved?
- What is the difference between a timber permit, a timber quota, and a forest management agreement?
- How many FMAs are there in Alberta?
- What is the size of an FMA?
Q1: What is a Forest Management Agreement?
A1: A Forest Management Agreement (FMA) is an agreement between the Government of Alberta and a forest company that enables the company to harvest, remove and grow timber from a specified area of land.
The government requires the forest company to prepare a Detailed Forest Management Plan for each FMA. The company will usually start with a preliminary forest management plan that is to be completed within a year after a FMA has been granted and a Detailed Forest Management Plan is usually completed within three to five years.
Alberta uses timber permits, timber quotas and forest management agreements as tenure systems (forest use agreement) to manage the province’s forest resource values. The province’s forested lands are managed on sustainable basis and harvesting is allowed considering its impact on other resources.
Q2: Why is a FMA tenure important for forest management?
A2:For timber companies an FMA:
- means more security in fibre supply for a timber company's facilities;
- is generally granted for a 20-year period with options for renewal;
- is an area-based not volume-based agreement (this means that the focus is on management of a geographic area rather than management of a quantity of fibre);
- holder is eligible to receive timber damage compensation from the loss of timber when energy exploration, power line construction and other industries remove trees from a timber company’s FMA; and
- can assist a company in receiving corporate financing from banks and lending institutions.
In return the FMA holder takes on a:
- greater responsibility and accountability for forest management planning, which is consistent with the government’s commitment to sustainable development;
- legislated requirement to participate in public consultation during the development of a Detailed Forest Management Plan for the area. A new Detailed Forest Management Plan must be submitted every 10 years.
- commitment to manage timber on a long-term sustained yield basis. The FMA holder must consider a broad range of forest values such as economic, recreational and environmental factors (watershed, environment and wildlife habitat).
Q3: Does an FMA mean that the forest company now owns the related forested lands?
A3:No. The Government of Alberta retains public ownership of the land base. The FMA holder has the right to harvest, remove and grow timber.
Q4: Are there planning and operating standards in place that an FMA holder has to meet as part of the requirements?
A4:Yes. The FMA holder must follow regulations, ground rules and the forest management plan that are specific to that FMA. These ground rules and regulations cover harvest planning and operations, sustainability and forest management.
Where possible, all timber harvesting should occur in a manner that will minimize the impact on:
- fish and wildlife;
- areas near recreation or tourism sites and facilities;
- legislated protected areas, watersheds, and registered trapping areas; and
- the visual quality of the landscape.
Q5: Are there any opportunities for the public to get involved?
A5:Once an FMA (or Joint-FMA) is awarded, the FMA holder must develop a Detailed Forest Management Plan. During the development of that plan, the public has the opportunity to comment and provide input on the long-term management of the forest.
Public consultation can include public advisory committees, town hall meetings, open houses within the community, presentations and information on the timber company’s website.
Q6: What is the difference between a timber permit, a timber quota, and a forest management agreement?
A6:All three are tenure systems that are used to ensure sustainability of our forest resources through effective forest management that provides the maximum benefit to all Albertans.
A Timber Permit – is generally a short-term agreement that can be in effect anywhere from 30 days to five years. It is generally used to make a specific amount of timber available to meet local demand for smaller timber operators.
A Timber Quota – is a 20-year agreement that can be renewed based on the environmental performance and practices of the rights holder. Companies are given a specific percentage of an allowable cut (volume-based) in the case of a conifer quota or a specified volume with a deciduous quota that they can harvest within a specific area in a forest management unit.
Although the province is responsible for most of the planning in the area, the timber quota holder must submit annual operating plans and general development plans that must be reviewed and approved by the government. Those plans outline how much timber they expect to harvest, where they plan to harvest that year, harvesting methods to be used and reforestation plans.
If the timber quota is located within a Forest Management Agreement (FMA), the quota holder must follow the management plans and ground rules for the FMA area.
A Forest Management Agreement (FMA) – is generally a 20-year area-based agreement that can be renewed. The FMA provides the holder with the right to harvest, remove and grow timber in a specific area.
An FMA requires the company to take responsibility and accountability for forest management planning and a commitment to manage timber on a long-term sustained yield basis within a sustainable forest management framework. This includes protection of watershed, environment and wildlife.
By law an FMA holder must use public consultation during the development of a Detailed Forest Management Plan for the area. A new Detailed Forest Management Plan must be submitted for review and approval every 10 years, and Albertans have the opportunity to get involved through the public consultation process.
In return the FMA holder benefits from:
- greater security in fibre supply for their facilities,
- an agreement that is area-based not volume-based,
- an FMA is generally granted for a 20-year period with options for renewal (based on environmental performance and compliance), and
- the FMA holder is eligible to receive timber damage compensation from various other industries such as oil and gas exploration.
Q7: How many FMAs are there in Alberta?
A7:Alberta presently has 20 FMAs, including two joint FMAs. These FMAs involve 17 companies.
Q8: What is the size of an FMA?
A8:The size of an FMA varies. In Alberta the largest FMA is managed by the Alberta-Pacific Forest Products Incorporated. Their FMA is located in northeastern Alberta and covers approximately
