A Revolving Loan Fund Could Help Protect Watersheds, Biodiversity and Public Access in America’s National Forests

The Forest Service manages 193 million acres across 154 National Forests, grasslands, and other land designations. Of this vast landscape, nearly 40 million acres are inholdings (i.e., private and other public lands within National Forest System (NFS) boundaries). The resulting patchwork of land ownerships can complicate Forest Service management objectives and negatively impact the ecosystem services - clean water, clean air, recreation opportunities - flowing from the land. Acquiring important inholdings within National Forests is often prioritized by the Forest Service - contiguity and connectivity within the forests reduces management and stewardship expenses and can increase ecological resilience, watershed protection, and public access and recreation opportunities for the public.

The primary source of funding to pay for acquiring inholdings is the Land and Water Conservation Fund, permanently authorized at $900 million per year. Despite the presence of this reliable funding source, in practice, the federal process associated with purchasing land can take anywhere from two to ten years. This creates a lengthy waiting period for landowners who are planning to sell their property to a federal agency such as the Forest Service.

This study assesses the feasibility and potential design of a revolving loan fund that would provide conservation NGOs and other third parties with financing necessary to pre-acquire, from willing sellers, lands within National Forest boundaries for eventual conveyance to the United States Forest Service.