While Westwind Forest Stewardship Inc. is a not-for-profit corporation, it must still be economically viability in order to continue to provide the service to its industry partners and to ensure that the requirements of the Sustainable Forest License can be met. The Westwind Board of Directors has the responsibility to ensure the economic viability of the Corporation and has a Finance Committee that reviews and approves quarterly financial reports and proposed annual budgets as presented by the General Manager before Board approval. As of 2024, Westwind remains in a positive financial position to meet current needs as well as planning for future challenges and contingencies. Financial records are reviewed by a chartered accountant annually to verify accuracy and that appropriate financial records are maintained.
To support forest management activities undertaken or managed by Westwind, different sources of funding are used. There are two main areas which require funding: Operations and Silviculture.
Operations
For work not related to silviculture – e.g. a large portion of forest management planning, compliance, communications and education – Westwind uses its core funding that is provided by the companies harvesting in the forest. A Management Fee is paid each quarter by each company holding an overlapping licensee agreement with Westwind. The amount each company pays is based on the proportion of the harvest share they hold. (e.g. a company that has rights to 10% of the available harvest volume would pay 10% of the operations budget).
Silviculture
For silviculture work, Westwind may access two sources of funding: Forest Renewal Trust (FRT) and Forestry Futures Trust (FFT). The MNRF website https://www.ontario.ca/page/forest-renewal-trust-and-forestry-futures-trust can be consulted for more information and current rates.
The Forest Renewal Trust fund is the main funding source and is maintained by part of the stumpage companies pay when they harvest wood. The amount is based on the renewal fee for the species and grade being harvested. For instance, in 2017/18, the renewal fee is $11 per cubic meter for Grade 1 White and Red Pine, $4 per cubic meter for Grade 2 White and Red pine and $2 per cubic meter for hemlock.
The renewal fee varies between management units and is approved by the MNRF Regional Director each year after proposed rates and rationale are provided by a Renewal Charge Committee comprised of Westwind and industry. The renewal rates are set to provide adequate funding to renew and maintain the forest.
The FRT pays for direct silvicultural activities such as tree marking, site preparation, planting and tending as well as supportive activities such as silviculture prescription development, tree marking auditing and silvicultural effectiveness monitoring work such as surveys. Renewal fees collected from wood harvested within the French-Severn Forest can ONLY be spent on silviculture within the French-Severn Forest.
Logging companies must also pay a Forestry Futures Trust charge when they harvest wood. These monies are held in trust by the Forestry Futures Trust Committee. The monies may pay for:
- The rehabilitation of forests damaged by fire, insects or disease;
- To carry out necessary silviculture if a company becomes insolvent;
- To carry out intensive forest management such as stand improvement, rehabilitation of degraded areas or other programs;
- To fund Independent Forest Audits;
- A separate charge pays into an inventory fund to renew forest resource inventories; and
- Potential other projects as directed by the Minister of the MNRF.
These monies are collected on a provincial basis and applications must be made for the funding. Westwind has been very successful in its applications and delivery in carrying out many stand improvement and rehabilitation projects since 1998 including stand improvement in partial cut stands, red pine plantation thinning, treatment of backlog areas, stand conversion projects, red oak renewal work and beech regeneration control. More information on Forestry Futures can be found at www.forestryfutures.ca/ .