Forestry Incentives Program

Published on AidPage by IDILOGIC on Jun 24, 2005

Administered by:

Purpose of this program:

To bring private non-industrial forest land under intensified management; to increase timber production; to assure adequate supplies of timber; and to enhance other forest resources through a combination of public and private investments on the most productive sites on eligible individual or consolidated ownership of efficient size and operation.

Possible uses and use restrictions...

Cost-sharing of up to 65 percent of the total cost is available under the Forestry Incentives Program for tree planting, timber stand improvement, and site preparation for natural regeneration. Special forestry practices may be approved if needed for a significant and unique local condition for which national FIP practices are not adequate. Owners of non-industrial private forest lands of 1,000 acres or less, capable of producing industrial wood crops are eligible for Forestry Incentives Program cost-sharing. In order for an individual within a county to receive Forestry Incentives Program funds, the county or a portion of the county must be designated as eligible for Forestry Incentives Program assistance. This county designation is made by the State Conservationist, in consultation with the State Forester. A forest management plan developed by the State Forester and landowner is required for participation in FIP.

Who is eligible to apply...

A private individual, group, association, Indian Tribe or other native group, corporation (except corporations whose stocks are publicly traded) or other legal entity which owns "non- industrial" private forest lands capable of producing industrial wood crops is eligible to apply for cost-sharing assistance. Cost-share agreements are limited to eligible ownership of land of not more than 1,000 acres of non-industrial private forest land, capable of producing at least 50 cubic feet of wood per acre per year, except by special approval. This program is available to eligible landowners in the United States and Puerto Rico and is also available to eligible leaseholders in Hawaii.

Eligible Applicant Categories:
Eligible Functional Categories:

Identification as an eligible person, and proof of contribution to the cost of performing the practice. This program is excluded from coverage under OMB Circular No. A-87.

Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.

About this section:

This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy. For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree, 3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible. Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they must satisfy.

Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs, the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.

How to apply...

Application Procedure:

Eligible persons will make application for annual cost-sharing agreements. Applications may be filed at any time during the year at the NRCS office for the designated county in which the land is located. This program is excluded from coverage under OMB Circular Nos. A-102 and A-110.

Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.

Award Procedure:

Not applicable.

Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check. Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office, or by an authorized county office. The assistance may pass through the initial applicant for further distribution by intermediate level applicants to groups or individuals in the private sector.

Deadlines and process...



Note: When available, this section indicates the deadlines for applications to the funding agency which will be stated in terms of the date(s) or between what dates the application should be received. When not available, applicants should contact the funding agency for deadline information.

Range of Approval/Disapproval Time

Generally from 30 to 60 days.

Preapplication Coordination

None. This program is excluded from coverage under OMB Circular No. A-102 and E.O. 12372.

Note: This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units prior to the submission of a formal application to the federal funding agency.


Participants may appeal to the National Appeals Division.

Note: In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).


Extension of time to complete a practice may be granted, if requested by the applicant before approval expires or within 15 days after the expiration date.

Note: In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.

Who can benefit...

A private individual, group, association, Indian Tribe or other native group, corporation (except corporations whose stocks are publicly traded) or other legal entity which owns "non-industrial" private forest lands capable of producing industrial wood crops is eligible to apply for cost-sharing assistance. Cost-share agreements are limited to eligible ownership of land of not more than 1,000 acres of non-industrial private forest land, capable of producing at least 50 cubic feet of wood per acre per year, except by special approval. This program is available to eligible landowners in the United States and Puerto Rico.

About this section:

This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.

What types of assistance...

Direct Payments for Specified Use

Financial assistance from the Federal government provided directly to individuals, private firms, and other private institutions to encourage or subsidize a particular activity by conditioning the receipt of the assistance on a particular performance by the recipient. This does not include solicited contracts for the procurement of goods and services for the Federal government.

How much financial aid...

Range and Average of Financial Assistance

$50 to $10,000 per year. Average: $1,781.

Note: This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.


(Direct payments) FY 03 $1,877,013; FY 04 est $3,847,950; and FY 05 est $2,500,000 Note: From carryover funds.

Note: The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.

Account Identification


Note: Note: This 11-digit budget account identification code represents the account which funds a particular program. This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.

Examples of funded projects...


About this section

This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.

Program accomplishments...

In fiscal year 2001, 7.2 million in cost-share and technical assistance was awarded to owners of 151,015 acres of forest land in 2001.

Criteria for selecting proposals...

Not applicable.

Assistance considerations...

Length and Time Phasing of Assistance

The Forestry Incentives Program is based on annual cost-share agreements. There may be certain restrictions on time limits on certain practices to be performed. Cost- shares are paid when the practice is performed. The assistance is awarded by performance.

Formula and Matching Requirements

Essential factors used to allocate funds to States are based on: (1)the acreage of private commercial forest land; (2) the potential productivity of such land; (3) the number of eligible owners in each State; (4) the need for reforestation; and (5) the enhancement of other forest resources. Cost- shares under Forestry Incentives Program are limited to not more than 65 percent of the total cost.

A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.

Post assistance requirements...



Note: This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.


Recipients are subject to audit by Office of Inspector General, USDA.

Note: This section discusses audits required by the Federal agency. The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133. These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year, as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period, rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).


Maintained in NRCS office and Federal record centers for a specified number of years.

Note: This section indicates the record retention requirements and the type of records the Federal agency may require. Not included are the normally imposed requirements of the General Accounting Office. For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C. For other programs, record retention is governed by the funding agency's requirements.



Cooperative Forestry Assistance Act of 1978, Public Law 95-313, 16 U.S.C. 2103.

Note: This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).

Regulations, Guidelines, And Literature

Program is announced through news media and notices to all applicants and private forest owners on record and all interested governmental agencies and agricultural organizations. Program regulations published in the Federal Register, Part 701.

Contact information...

Web Sites
Regional Or Local Office

For more information on this and other related programs, consult the local telephone directory for location of the USDA Service Center where your land is located. If a listing is not available, contact the appropriate State NRCS office.

Note: This section lists the agency contact person, address and telephone number of the Federal Regional or Local Office(s) to be contacted for detailed information regarding a program such as: (1) current availability of funds and the likelihood of receiving assistance within a given period; (2) pre-application and application forms required; (3) whether a pre-application conference is recommended; (4) assistance available in preparation of applications; (5) whether funding decisions are made at the headquarters, regional or local level; (6) application renewal procedures (including continuations and supplementals) or appeal procedures for rejected applications; and (7) recently published program guidelines and material. However, for most federal programs, this section will instruct the reader to consult the so-called Appendix IV of the Catalog due to the large volume of Regional and Local Office Contacts for most agencies. This information is provided in Additional Contact Information (see below).

Headquarters Office

Natural Resources Conservation Service, Department of Agriculture, P.O. Box 2890, Washington, DC 20013. Telephone: (202) 720-1845.

Note: This section lists names and addresses of the office at the headquarters level with direct operational responsibility for managing a program. A telephone number is provided in cases where a Regional or Local Office is not normally able to answer detailed inquiries concerning a program. Also listed are the name(s) and telephone number(s) of the information contact person(s) who can provide additional program information to applicants.

Additional Contact Information (Appendix IV)

Due to the large volume of regional and local office contacts for most agencies, full contact information is also provided separately here in a PDF format: