How can RFFI reduce harvest and service its loans at the same time?
RFFI paid market value for Usal based upon projected harvest levels that would be permitted under the California Forest Practices Act. RFFI’s Conservation Plan that projects lower harvest than allowed under the Act will, however, guide actual harvest. With this in mind, RFFI realized that it was necessary to secure financing that allows debt service to be paid by: 1) timber harvest revenues resulting from a its Conservation Plan; 2) a sale of conservation easement to nonprofit and/or public organizations; and, 3) the sequestration and sale of carbon credits or other ecosystem services. The Bank of America financing provides great value in that it allows RFFI to implement its conservation scenario while it is securing funds from these various sources. • What happens if RFFI cannot pay back its loan? To meet its conservation objectives while remaining in compliance with the financing package, RFFI must sell an easement, carbon credits and/or other ecosystem services at a value that refle
