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Land Board Hearing Recap

Tuesday, August 19, 2025

• All board members present
• Review the Final Agenda
• Download the Meeting Materials

Department Report

Timber Sales Revenue

• Attachment: Trust Land – Timber Sales

• 6 endowment sales in July had competitive bidding, selling 35% above appraised value.

• 26.8M board feet sold for $10.8M ($404.18/MBF).

• August auction: 10 sales, 64.6M board feet, valued at $11.2M.

• Current contracts: 474M board feet, 175 contracts, worth $145.5M.

• FY25 receipts: $8.7M in July; $13.8M expected in August.

• FY25 targets met; 2.3M board feet still in process.

• FY26 program: 74.5M board feet sold/in process; cedar pole targets over halfway met.

• Timber receipts at 96% and harvest volume at 103% of 3-year averages.

• Lumber prices slightly up (tariffs on Canadian imports); high mortgage rates still affecting construction.

• Strong sales have pushed stumpage prices higher.

• Attachment: Trust Land – Leases and Permits

• 3 endowment instruments issued in July (leases, assignments, land use permits).

• 3 easement projects completed in July.

• Leasing revenue is $200K above projections due to:

  • Late cropland lease payment not in FY26 forecast.

  • Cottage site lease split into two payments.

  • Early commercial retail lease payment.

• Permanent Fund revenue: Over $300K deposited in July.

  • 93% from sand and gravel leases.

Fire Season Update

• Attachment: Fire Season Update

Land Revenue Forecast

• Attachment: Land Revenue Forecast

• Forecast Scope: Projects 4 years of endowment income based on timber sales, lease revenue, and expenditures.

• FY25 Gross Revenue: $91.7M — up $1.7M from FY24 and $11.5M above 10-year average.

• FY25 Net Income: $62.6M — up $3.5M from FY24 and $10M above 10-year average.

• Timber Revenue: ~92% of gross revenue and ~96% of net income.

• Methodology: Timber projections use Monte Carlo simulations based on 10 years of stumpage price and harvest data (FY24 harvest target: 328 MMBF).

• Stability Factors: Lease revenue remains steady year to year; premium lease bids excluded from models.

• Growth Potential: Additional revenue opportunities possible through commercial ground leases, subject to Land Board policy.

Resource Protection and Assistance Report

• Attachment: Resource Protection and Assistance Report

• Navigable Waters Program: FY25 revenue $1.2M; fund balance $2.6M; rulemaking completed with 8 meetings, 42 comments, 1,369 words cut.

• Perpetua Resources (Valley Co.): Construction phase approved with conditions; startup Q3 2025; no mining/milling/cyanide allowed.

• Thompson Creek Mine (Custer Co.): Phase 8 plan approved; prep underway; startup Q2 2026.

• Integra DeLamar Mine (Owyhee Co.): NEPA permitting; FEIS/ROD expected 2027; mine plan issued July 2025.

• Liberty Gold Black Pine (Cassia Co.): Early planning; mine plan expected Q4 2025; MOU signed with state/federal partners.

• Mine Oversight: 1,579 sites under reclamation plans; 28 dredge/placer permits; bonding through traditional methods or Bond Assurance Fund.

• Abandoned Mine Lands: FY25 revenue $10,977 from Mine License Tax.

Consent Agenda

Approved 5-0

July 2, 2025 Live Auction, Mineral Lease E600126

• Attachment: July 2, 2025 Live Auction, Mineral Lease E600126

• Lease Auction: Held July 2, 2025, for mineral lease E600126 (120 acres, sand & gravel, near Emmett, Gem County).

• Lease Terms: 10-year lease; annual rent $320; minimum royalty $2,500; royalty $1.05/short ton.

• Results: 2 participants; high bid $1,000 from Desert View LLC.

• Process: Conducted per statute; no fraud or collusion observed; department recommends awarding lease to high bidder.

• Market Context: Small lease drew limited interest; rates/royalties believed consistent with market. Larger leases in past auctions have drawn bids exceeding $500,000.

• Board Discussion: Questions raised on comparability to private/federal lease rates, adequacy of royalty ($1.05/ton), and lease adjustment provisions. Department will provide follow-up data..

Updated Strategic Plan FY2026-FY2029

• Attachment: Updated Strategic Plan FY2026-FY2029

• Requirement: Annual 5-year plan per Idaho Code §§ 67-1901–1904; due to DFM by Aug. 29, 2025.

• Update: Revision adds stronger focus on forest management with USFS, per Secretary McGrane’s feedback.

  • Additional focus on Shared Stewardship Agreement, Good Neighbor Authority.

  • Alignment: Supports Trump administration forest management directives and Governor Little’s Make Forests Healthy Again Act (EO 2025-04).

  • Next Steps: Finalize new shared stewardship agreement with USFS; submit revised plan by deadline.

• Board Feedback: Add prior-year performance results (goals vs. outcomes) in Appendix A for accountability.

Regular Agenda

Endowment Fund Investment Board

• Attachments:
  • EFIB Manager's Report
  • EFIB Investment Report

  • FY2027 Beneficiary Distributions and Transfers

• Approved 5-0

• Investment Performance (FY27 YTD):

  • Portfolio up 0.3% in July, +1.9% YTD.

  • Gains driven by strong tech earnings (NVIDIA, TSMC, Micron) and optimism on U.S. trade policy.

  • U.S. trade agreements reached with UK & Japan; China talks extended 90 days.

  • Labor market strong (unemployment 4.2%); Fed holding rates, possible cut in September.

  • Board Discussion:

    • Concern over underperforming equities, especially international.

    • Callan and managers continue monitoring; performance swings expected.

    • Example: WCM underperformed this month but has averaged +3% over benchmark since inception, adding ~$300M in value.

    • Other managers (Dodge & Cox, PineStone) under review for recent underperformance.

• FY27 Beneficiary Distributions

  • $117.3M, a 6.3% increase from FY26

  • Earnings Reserve Transfers: $206.4M moved into Permanent Fund to grow future distributions.

  • Endowment Performance: FY25 returns +11.7%; FY24 +12%; timber revenue FY25 $61.6M

  • Reserves: All beneficiaries above 7-year target; State Hospital South distribution held flat (~5.4%)

  • Policy Alignment: Distributions based on 5% of 3-year average Permanent Fund; excess reserves reinforce fund growth.

FY2027 Department of Lands Budget Enhancements

• Attachment: FY2027 Department of Lands Budget Enhancements

• Approved 4-0, Governor Abstains

• Submission Requirement: Budget request due to DFM by Aug. 29, 2025; full budget presented to Land Board in September.

• Original Request: $1.9M in General Fund enhancements (3 FTEs + $1.25M fire radios).

• Revised Proposal: General Fund items removed (except small placeholder for inflation/CEC for Timber Protective Associations).

• Decision Units (6 total):

  • Replace obsolete fire radios ($1.25M).

  • Shift staff time from AML program → Navigable Waters (fund shift, no net cost).

  • Build vehicle storage facility at Priest Lake (one-time, earnings reserve).

  • Purchase 3-passenger UTV with tracks for Mica office.

  • Adjust legal fund allocations to reflect greater Navigable Waters workload.

  • Provide annual inflation/CEC adjustments for Timber Protective Associations.

• Characterization: Maintenance-level budget; includes standard base items (CEC placeholder, health insurance, inflation, contracts, replacement items).

Information Agenda

Proposed Rule IDAPA  20.03.02

• Attachment: Proposed Rule IDAPA  20.03.02

• Process: Rulemaking conducted in 3 phases (negotiated, proposed, pending).

  • Negotiated Phase: Feb 2024 – Jul 2025; 11 public meetings; 66 written comments; rule reduced 2% in word count and 26% in restrictive words.

• Proposed Rule Phase:

  • Published in Idaho Administrative Bulletin Oct. 1, 2025.

  • Public hearing Oct. 7, 2025 (Boise).

  • Written comment period ends Oct. 22, 2025.

• Next Steps: Pending rule presentation to Land Board Nov. 18, 2025; legislative review early 2026.

• Benefits: Clarifies “affected land” definitions, streamlines reclamation plan applications—especially for small aggregate producers, improves clarity and transparency.

115th Anniversary of Great Fire of 1910

• Great Fires of 1910: Burned 3M acres across ID, MT, WA; ~87 deaths, mostly USFS firefighters and civilians.

• Historical Impact: Helped establish modern fire suppression policy and foundation for today’s firefighting practices.

• State Report (1910): Idaho spent ~$50K on fire protection; timber losses ~$75K (1910 dollars).

• Pulaski Tunnel Story: Ranger Ed Pulaski saved most of his crew by sheltering them in a mine tunnel near Wallace, ID—a lasting symbol in fire history.

• Reflection: Importance of learning from past fire events; ongoing modernization through Idaho’s fire strategic plan.

• Board Comments: Recognition of improved cooperation among state, federal, and local firefighting partners; need for continued active forest management to sustain revenue and reduce fire risks.

Executive Session

None

Adjournment