Stephen R. McHenry

The Maryland Forestry Economic Adjustment Strategy, developed by ACDS, LLC, provides a comprehensive roadmap for revitalizing the state's forestry industry. It outlines nine initiative areas and 53 actions, focusing on overarching goals to support existing entrepreneurs, raise industry awareness, encourage innovation in emerging sectors, and enhance local and international market opportunities. The strategy envisions fostering strong industry growth, vibrant communities, and a healthy Chesapeake Bay by leveraging Maryland's unique assets and developing sustainable markets for forest product entrepreneurs.

The meeting included the presentation and review of the FY 2025 Budget Summary, noting total programmatic expenditures reached a record $13 million, and a clean FY 2025 Annual Financial Audit Report with total assets of $68.2 million. The Board appointed the Audit Committee members. A guest speaker from the Maryland Department of Agriculture presented findings from the Value-Added Agriculture Statewide Guidance & Analysis document, which addresses regulatory challenges stemming from inconsistent definitions of agriculture across state agencies. The Board reviewed the FY 2025 Project Activity Report, highlighting 133 funded projects totaling $13 million. The Board approved three key recommendations from the Programs Committee: increasing the maximum loan amount for poultry house construction under the MRBIFF program, establishing a lower priority for public entities applying to the Maryland Wood Products Industry Equity Incentive Program (WPIEI) while setting conditions for reopening the program at a reduced cap if no suitable applications are received; and increasing the conservation easement purchase price cap for the SANG program from $4,000 to $6,000 per acre. The Board also approved the Project Acceptance Report and appointed a Nominating Committee for officer elections.

The meeting commenced with introductions of board directors and staff members. A key agenda item involved the presentation of findings from the most recent county-by-county economic impact study of Maryland's forestry and seafood industries, conducted by the Beacon unit at Salisbury University using 2023 data. The discussion covered total economic impacts, which exceeded $30.2 billion, supported by over 108,000 jobs, and generated nearly $1.1 billion in state tax revenue. Output figures were broken down by industry (Agriculture, Support, Forestry, Seafood), noting significant increases since the 2022 study. Regional outputs and employment impacts were also analyzed, with the Upper Shore of the Eastern Shore showing the largest regional output increase of 100%. Specific discussions addressed challenges in forestry output in Western Maryland and on the Lower Eastern Shore due to mill closures, contrasted with growth in Southern Maryland.

The meeting included introductions of new board members and staff. The board discussed financial updates for FY2025, noting a good year in terms of projects and dollar volume, with significant carryover and reverted funds. Key highlights included core loan principal repayments exceeding budget and strong performance in the NextGen program repayments. Operating expenses were generally under budget, except for contractual services due to increased legal costs. The programmatic expenditures showed a record dollar volume, particularly in core and specialty lending. The audit report was presented, highlighting a clean audit with strong current assets and a healthy net position. The board also discussed the appointment of an audit committee.

The meeting included a presentation from the Director of the Office of Agriculture, Frederick County, highlighting the county's agricultural initiatives and support programs. The board discussed and approved the FY 2025 budget, reviewed programmatic activities, and received updates on the loan loss reserve, average loan interest rate, early loan repayments, and legislation supported by MARBIDCO. The board also discussed participation in the Maryland Leaders in Environmentally Engaged Farming (LEEF) Program, updates on core and specialty loans, grant incentives, and the Next Generation/SANG Programs. Additionally, the board reviewed and approved the proposed FY 2026 operating budget and increased the Executive Director's sponsorship approval limit.