How can RFFI reduce harvest and service its loans at the same time?

RFFI paid market value for the Usal Redwood Forest based upon projected harvest levels that would be permitted under the California Forest Practices Act. However, RFFI’s Conservation Plan that projects lower harvest than allowed under the Act guides the 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 its Conservation Plan; 2) a sale of the conservation easement to a nonprofit and/or public organization; and, 3) the sequestration, registration and sale of carbon credits or other ecosystem services. The Bank of America patient financing provides great value in that it allows RFFI to implement its conservation scenario while it secures funds from these various sources.