Allocation versus completion: Explaining the distribution of the Forest Development Program fund in North Carolina

• Published in: Forest policy and economics Vol. 132; p. 102594
• Main Authors: Chizmar, Stephanie, Parajuli, Rajan, Frey, Gregory E., Bardon, Robert E., Sills, Erin
• Format: Journal Article
• Language: English
• Published: Amsterdam Elsevier B.V 01.11.2021; Elsevier Science Ltd
• Subjects: Administrators; Allocation of public funds; Allocations; Conservation; Cost-share program; Costs; Development programs; Foothills; Forest management practices; Forest products; Forests; Funds; Incentives; Landowner assistance; Natural resource management; Natural resources; Public policy; Regression; Resource management; Shearing; Sustainability management; Taxation; North Carolina; United States > US; Regression; Forest management practices; Public policy; Allocation of public funds; Landowner assistance; Cost-share program
• ISSN: 1389-9341; 1872-7050
• DOI: 10.1016/j.forpol.2021.102594

The Forest Development Program (FDP) is a nationally renowned state-administered cost-share assistance program for forest landowners in North Carolina, primarily funded through taxation on primary forest products across the state. While the demand for FDP cost-share funds often exceeds available resources, over one-fourth of annual allocations on average go unused, due primarily to application cancellations and the divergence of actual costs and treated acres from the amounts approved originally. This study evaluates various factors related to the utilization of allocated funds based on actual cost-share fund usage data in the last six years. Results suggest that FDP applications associated with the piedmont region, shearing and chemical site preparation, hand-planting activities, and larger applied acres are more likely to be completed as defined in the initial application. The methods and findings of this study provide useful insights to administrators of other similar public incentive programs. The need for similar analyses evaluating the utilization of public funds will likely grow as state and federal governments increasingly rely on incentive programs to meet ambitious goals in conservation and sustainable management of natural resources. •On average, about 77% of applications are finalized and 23% are cancelled.•14% of the approved acres on average may not receive the treatment.•Location and treatment practices are significant predictors in project completion.•Ownership category and fiscal year are significant determinants in project completion.