Crown timber charges for forestry companies

Crown timber charges are composed of: 1. stumpage price 2. Forestry Futures Trust charge 3. Forest Renewal Trust charge The stumpage price is made up of 3 components: 1. minimum price: adjusted annually and set by species and product sector on April 1 of each year 2. residual value price: adjusted monthly and varies based on market prices of product sectors and species 3. administration: $1.00/cubic metre for trees exported outside Canada for manufacturing Stumpage prices (minimum and residual value) are calculated by using the Ontario Crown Timber Prices (Stumpage) monthly tables. The licensee or Agent for the Crown is responsible for paying Crown charges. The Forestry Futures Trust provides funding to renew forest areas affected by natural disasters like fire, blowdown or disease. Funding could also be provided in the event of an insolvency of a major licensee. The Forest Renewal Trust charge provides dedicated funding for forest renewal. This charge, which is set annually, varies depending upon anticipated renewal costs.

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