Unit 3 - Managing Canada's Forests

Lesson 3: Forest Companies

Companies wishing to harvest trees on crown land in Canada must enter into a forest tenure agreement with the provincial territorial or government. A forest tenure agreement, such as a Forest Management Agreement (FMA) for example, allows the company to lease Crown forest from the government and harvest the trees on a certain area of land. These land leases are long term and renewable; however, the company must comply with all current legislation and requirements.
In return for the right to harvest trees, the company pays the provincial government a fee. This is known as a stumpage fee.

Roles and responsibilities of forest companies operating in Canada include

  • preparing a forest management plan which addresses how the operator will manage  forest values other than timber. For example, how will wildlife be protected? How will rivers and streams be safeguarded?

  • assisting the provincial or territorial government in fire protection

  • working in partnership with the province or territory to protect forests from insects and disease

  • planning and implementing day-to-day operations, such as reforestation, in accordance with current legislation and regulations





Click on the video above and fast forward to 8:10, which is Part 3: Land Use and Planning

Take notes as there will be questions on the quiz, from this video.


In Alberta, reforestation is the responsibility of those who harvest forest trees and must take place in all areas where trees are cut down. This means that even the temporary access roads must be reforested after a forest company is finished harvesting trees in a particular area. Furthermore, forest companies are obligated to carry out reforestation in accordance with provincial standards and to pay for reforestation costs. In general, the type of tree regenerated must match the original dominant species of that area. In other words, if a white spruce forest is harvested, then a white spruce forest must be regenerated. By law, reforestation activities must begin within two years of harvesting and may be either natural or artificial.

Did You Know?


Alberta was the first province in Canada to legally require reforestation where trees are harvested for commercial use. In fact, reforestation has been the law in Alberta for over 30 years. Basically, the amount of timber harvested each year (example, the Annual Allowable Cut) cannot exceed the amount grown. Today, for every tree cut down in Alberta, four trees are regenerated. Proper reforestation of harvested areas ensures there will perpetually be a new forest reaching maturity in time for the next harvest. It also ensures that other forest values are protected.