January 25, 2024

By Lynda Kiernan-Stone, Global AgInvesting Media

Exemplary Forestry Management, New England Forestry Foundation (NEFF), Maine Mountain Collaborative (MMC), and Quantified Ventures have partnered to launch Exemplary Forestry Investment Fund (EFIF), and have leveraged private, philanthropic, and public capital to acquire the fund’s first asset – the 3,000-acre Scammon Ridge Headwaters from the Haynes Family. 

Forty percent of Maine’s North Woods is understocked, resulting in lower quality and quantity of timber, while 80 percent has changed hands at least one time in the past 40 years, representing higher risk for forest fragmentation and land use conversions, explained Quantified Ventures.

Exemplary Forestry Management was launched by NEFF and MMC as a separate entity to manage the EFIF, which can bring this forest land under long-term timber management that is economically viable, environmentally positive, and socially equitable for investors seeking a stable, long-term vehicle offering financial returns and measurable, real-world results. 

“We are proud to have played a role in the development of this blended capital model to enhance the biodiversity, climate, and community outcomes delivered by Maine forestlands,” said Seth Brown, vice president, Quantified Ventures. “This innovative partnership and fund approach creates a new potential pathway for institutions and individuals to invest in the future of the Maine woods and support the many co-benefits that come from long-term forest health.”

The fund has two goals: to raise $90 million, and to eventually own 100,000 acres of Maine forest to be managed using its own climate smart Exemplary Forestry approach, which is to improve carbon storage, long-term forest health, wildlife habitat, and sustainable timber value and production in partnership with local communities.

Other key goals for the fund include:

~ To prove that a long-term investment model that delivers environmental and financial returns is viable in the U.S. forestry sector. 

~ To conserve 100,000 acres under Exemplary Forestry Management in the largest intact mixed temperate forest in the eastern U.S. 

~ To sequester up to 30 metric tons of C02e per acre above present levels, and to produce third-party verified carbon credits that can be sold for additional revenue. 

~ To increase timber stocking to 25 cords per acre, or nearly 50 percent higher than current levels, and reach the landscape’s potential for timber productivity, volume, and quality. 

~ To access new sources of capital by connecting project outcomes to a wider network of stakeholders. 

To achieve these goals, the EFIF blends sources of capital from private equity, government funding, and philanthropy to produce monetizable climate and community outcomes that deliver multiple revenue streams while the EFIF has the opportunity to be a long-term steward producing durable forest health, carbon sequestration, improved wildlife habitats, and high-value forest products. 

“I’m delighted we’ve reached this milestone after considerable research, planning, and collaboration that went into crafting the Exemplary Forestry Investment Fund, which is genuinely unique in the conservation field,” said Robert Perschel, executive director, NEFF and board member, EFIF.

“Now we’ll focus on judiciously scaling up this innovative program and building momentum, as we believe the Exemplary Forestry Investment Fund has immense potential to demonstrate to a global audience how productive, climate smart forestry can be accomplished at scale.”

As a start, the Scammon Ridge Headwaters property encompasses several important ecosystems, spanning a high-elevation ridge located between Lower Wilson Pond within the Penobscot River watershed and the Prong Pond within the Kennebec River watershed. 

A significant aspect of this acquisition was the sale by EFIF of a conservation easement to the Forest Society of Maine, which raised the funding for the easement together with the Friends of Wilson Ponds Area. This easement will serve to ensure that the forest will remain available for recreational purposes on a year-round basis while continually being managed for forest products, which will boost the regional economy. 

“This effort comes out of the conservation community in Maine,” said Bryan Wentzell, executive director, MMC. “We are looking to create a new landownership and investment model whose financial goals are aligned with the ecological carrying capacity of the forest. We see this new landowner as a conservation and investment tool to complement existing conservation efforts.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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