Timber producers urged to act quickly to keep subsidy alive
Tashi Farmilo
Published January 29, 2025.
MRC PONTIAC: Private forestry markets in the Pontiac are grappling with significant challenges that threaten the economic health of the region’s timber industry. Once a cornerstone of the local economy, forestry now faces mounting struggles due to its distance from major mills, tariffs, and declining demand for timber.
In response, the Ministry of Natural Resources and Forestry (MNRF) launched the Programme exceptionnel d’Ă©coulement des bois feuillus (PEEOL) in September 2023. The program aimed to create a temporary market for hardwood pulp by subsidizing the transportation of timber from Pontiac to Domtar’s mill in Windsor, Quebec. This initiative provided local producers access to previously unavailable markets.
Under PEEOL, producers initially transported 6,350 cubic metres, followed by 7,750 cubic metres of timber in separate phases. Later, an additional 16,200 cubic metres was granted, with roughly 11,000 to 12,000 cubic metres still available. However, with no clear indication from the MNRF about the program’s renewal, producers are increasingly concerned about the future.
“It was a solution for an area that has seen significant decline, and it won’t be renewed unless it’s fully utilized,” said Cash Allard, general manager of the Pontiac Wood Producers Board. He emphasized that the program’s temporary nature means its continuation depends on producers fully using the subsidies. “If we use all the subsidies allotted to the Pontiac, it will demonstrate the ongoing need for this program in our region,” he added.
To encourage continued harvesting, Domtar has introduced a $2-per-cubic-metre incentive for landowners. While this provides financial support, it also underscores the urgency of maintaining market activity. Without continued harvests, the market’s viability is at risk.
Compounding the sector’s challenges are invasive pests such as the emerald ash borer and beech bark disease, which have devastated ash and beech tree populations in the region. As these trees decline, their timber loses market value. Without intervention, much of it could become unmerchantable within a few years, further straining the market.
The Agence régionale de mise en valeur des forêts privées (ARMFP) plays a critical role in offering financial assistance for forest management. The agency provides funding for forest management plans, silvicultural treatments, and recovery of diseased or pest-infested timber. Martin Boucher of the Groupement forestier du Pontiac highlighted the importance of these plans, which are essential for accessing subsidies.
“Once producers have a forest management plan, they can secure funding for activities like prescribed clear-cutting or selective cutting,” Allard explained. These practices improve forest health and prepare timber for future harvests.
The MNRF is also addressing pest-related challenges through prevention, detection, and pest control strategies. “The ministry deploys strategies on managed forest land to ensure tree health and reduce potential wood losses,” said Maïté Blanchette Vézina, Minister of Natural Resources and Forestry. Financial aid is available to help forest owners mitigate the impact of pests and maintain forest productivity.
Regarding PEEOL’s future, the minister confirmed the program is scheduled to end on March 31, 2025. “We will have to wait for the 2025-2026 budgetary announcements to determine whether the program will be renewed,” Blanchette Vézina said. Landowners are urged to follow budget developments closely.
With PEEOL’s future uncertain, it is crucial for producers to maximize its benefits while it lasts. Fully using the subsidies not only supports the hardwood pulp market but also demonstrates to the government the program’s continued importance to the Pontiac.