Friday, August 22, 2008

The Work of Foundations: Doing What Others Can't or Won't

We plan to do few things and to do those very well. The Endowment’s Board of Directors has made a commitment to invest in those things where, but for the Endowment’s engagement, there is little chance of progress. The catch phrase that has guided us since our creation is to be “systemic, transformative and sustainable” in our work.

In this regard we point to one of our current activities as an example of what one might expect of the Endowment.

Growing Markets
One of our earliest initiatives considers the potential of agricultural “check-off” programs to be used as a vehicle to grow the market pie for softwood lumber in North America. Check-offs have been successfully used by nearly every agricultural product in America – from “Beef, It’s What’s for Dinner” to “Got Milk?” – two of the better known check-offs that have been used to grow markets for beef and milk, respectively. Forest products are eligible for these “voluntary, self-funded” mechanisms, yet, none has ever been attempted at the national level.

Some would say that growing markets is industry’s role alone. We agree; but, we also think there is a role for us as well. First, it is extremely difficult for a highly-diversified and competitive industry to do the work necessary to give full consideration to an effort that would bring all together for the good of the whole – especially where that “good” goes beyond profits to address broader societal values. As an independent third-party “without a dog in the fight,” the Endowment can truly do something that others can’t – conduct an independent study of the potential of check-offs and then serve as a convening catalyst to bring industry leaders together to consider the benefits of such an initiative.

A Sustained Source of Funds to Keep Forests in Forests and Jobs in North America
As we near the end of the assessment phase of the potential to use a check-off to grow softwood lumber markets in the U.S., we also remind others of what’s in it for the Endowment. While we would not be the recipient or manager of funds generated under a program if one were to be adopted, a check-off could generate between $30-50 million annually on an on-going basis to promote the environmental and other attributes of wood products – especially those produced here. We believe that such a program would have several benefits that match the Endowment’s mission and objectives.

First, and foremost, we want to see wood products jobs retained here at home. Second, markets for products link directly to the ability to keep forests in forests and to keep those forests healthy. Jobs, economic value to landowners and retention of manufacturing facilities in rural communities with all of their attendant benefits would multiply a very small Endowment investment many times over. We think that’s a wise investment of the Endowment’s limited resources that could pay-off for generations to come.

Learn More
If you are interested in learning more about the potential of ag-type check-offs to benefit forests, forest product markets and keep jobs in North America, read a copy of the project Overview report that can be found on the Publications page of our website.

2 comments:

Anonymous said...

I need a little help understanding what softwoods lumber would be advertising "against" so I can picture how the campaign would help save jobs. In the case of milk, competitors are other beverages, readily available in the same stores, so getting milk top-of-mind makes sense. Beef's competitors are pork, fish, chicken, etc. and the whole notion of vegetarianism. What are the competitors to softwoods that the campaign would/should fight against? Is this to encourage people to use softwood lumber over steel framing or concrete block framing, for example, or is there something else encroaching on the softwoods market?

U.S. Endowment said...

Every product category has competition; wood products are no different. And yes, steel and concrete are among the most recognizable for wood. Yet, a check-off is much, much more than being "against" product substition -- especially where there are numerous environmental benefits that accrue from favoring one product over the other. The reality is that the biggest gain comes in "growing the market pie" -- in short, creating new and/or improved uses for environmentally-preferable wood products.