Introduction

The purchase or sale of seedlings between agencies is a standard practice allowing seedlings to be planted on the best available sites and minimizing the number of seedlings which are destroyed due to changes in planting programs.

The Ministry of Forests uses one page contracts for the purchase or sale of seedlings between agencies or funding sources. These contracts will be signed by the purchaser and seller as per normal sales practices, and will provide protection for both parties while ensuring that a fair market value for the seedlings is received by the seller. These contracts are the Seedling Sale Contract (FS 772) and Seedling Purchase Contract (FS 773). These forms can be obtained from the ministry’s Intranet Forms Index: http://gww.for.gov.bc.ca/gscripts/his/forms/forms.asp.

For 2002/2003, the following funding classes of seedlings are recognized by the Ministry of Forests: (1) Licensee-funded; (2) Crown funded (includes Current Reforestation, Catastrophic Losses and FRBC); and, (3) Small Business Forest Enterprise Program (SBFEP) funded.

Forest practices are now being regulated by the Forest Practices Code of British Columbia Act, Regulations, Standards, and Guidebooks. In 1995, the Seed and Vegetative Material Guidebook as well as the Silviculture Practices Regulation relating to transfer of seed and vegetative material were released. The guidebook states that the Seed Transfer Guidelines will apply at the time of seedling request or at the time of planting, if the stock is obtained through purchase/sale or moved from its originally planned location.

Use of the Contracts

Since these are Ministry of Forests’ forms, all transactions are viewed from the Crown funded program (i.e., the Crown is either purchasing or selling seedlings to programs funded from other sources).

Seedling sales and purchases occurring between the SBFEP and the Crown funded program will be handled as if the SBFEP funded program is an Industry funded program.

Seedling sales and purchases occurring between the SBFEP program and the industry funded program will be handled as if the SBFEP funded program is a Crown funded program.

Use of the Contracts Table

If accepted by the region and the nursery services officer, Crown purchase of licensee-funded seedlings which are substandard (not meeting ministry standards of height and diameter) should result in a reduction of seedling price. For determination of price reduction on substandard seedlings, please contact the local nursery services officer.

It is the selling district's responsibility when selling SBFEP funded seedlings to another district to complete the FS 772 and send copies to Forest Enterprises Branch (FEB). Since 2000, Forest Enterprises Branch has been administering funding for all SBFEP funded seedlings. 

Note: FEB now does require copies of all FS 772 and FS 773s, even between districts.

Any transactions involving SBFEP and FRBC funded seedlings must be clearly identified to ensure that debits and credits to the appropriate SBFEP and FRBC accounts occur. Seedlings can then be attributed to the appropriate district center.

Completing the Contracts

Both of these contracts follow standard contract format and should be relatively easy to complete. The following documentation will concentrate on those areas where difficulties may occur. Individuals are requested to contact FEB (387-8945) if any questions arise which are not covered in the following section.

FS 772 - Seedling Sale Contract

This form is used in the following situations:

Schedule "A" - Seedling Description

Each column of the Schedule A is to be filled out for all the categories of seedlings to be traded. A description of each of the columns is on the back of the contract. Columns 1 to 10 identify the seedlings in the transaction. Values for columns 11  to 14 are obtained from the tables supplied elsewhere on the Seedling Trades web site

Seedling Identity (columns 1 to 10)

It is important to correctly identify the seedlings involved in the transaction prior to establishing the value of the seedlings. Seedlings are identified by Species (2), Seedlot number (3), Request Key (4) and Funding (5).  The species, stock type, age class, and season of planting are required to determine the correct commercial equivalent rate and any additional charges for seed, storage, and transportation costs.  

Seedling Value (column 11)

The value of the seedlings for entry in column 10 is obtained from the table titled "Commercial Equivalent Rates for Seedlings Planted" (planted in current year). Choose the correct section of the table based on the age and basic stock type of the seedlings: either 1-0 container, 2-0 container, or bare root. Locate the species in the left hand column and move across to the right of the table, choosing the specific stock type (i.e., 313B) and finally the commercially equivalent rate in cents per seedling.

Seed Cost (column 12)

Seed cost is obtained from the table titled "Average Seed Cost per Seedling for Seedling Purchase/Sale", (please ensure it is the table for the correct year). Locate the species in the left hand column and move across to obtain the value in cents per seedling for either natural stand seed (genetic class B) or seed orchard seed (genetic class A), whichever is applicable. If unsure, use the Seedling Planning and Registry system to establish the genetic class of the seedlot.

Storage and Transport Costs (columns 13 and 14)

Storage and transportation costs are unique to each region of the province. Seedlings picked up at the producing nursery will not have accrued any storage and transport charges. Choose the table titled "Storage and Transport Costs" for the region where the seedlings will be planted. Choose the appropriate stock type and age class on the left and move across to the right to determine the correct line of values for the seedlings described. Spring planted seedlings will have both storage and transport costs while summer/fall planted seedlings (hot-lifted) will only have transportation costs.

Total Price (column 15)

The system will calculate the value entered in column 15.  The value will be the product of the total number of seedlings in thousands and the dollar value of the seedling, seed, storage, and transport costs. This will be the total price of the transaction (per request key).

The values in column 15 are summed by the system and entered in the "Sub-Total Price" box at the bottom of column 15. Taxes are added as follows: (1) only PST is added onto the FS 773 sub-total price; and, (2) both PST and GST are added onto the FS 772 sub-total price. The total price is calculated and entered into the "Total Price $" box and is also transferred to the clause section of the contract immediately below the Schedule A. Transactions between ministry and SBFEP do not require PST and GST.

Once the contract has been signed and witnessed by both parties and the 14-day inspection period has elapsed, copies are distributed as follows: one to the local Nursery Services officer, if necessary, one to Forest Enterprises Branch, attention Nursery Financial Clerk; one copy  to the purchaser; and one copy to the seller. FEB will invoice the purchaser for the contract amount. Colour copies are not mandatory.

FS 773 - Seedling Purchase Contract

This form is used in the following situations:

  The instructions given under the previous section apply to filling out this contract. The main difference between this form and the FS 772 is that the Grantor and Grantee sections have been reversed. The distribution of the copies is identical with the only addition being that an industry invoice for the seedlings they are selling must accompany the copies of the contract being sent to FEB, once the 14 day inspection period has elapsed. The actual date the goods and services were received should be signed by the applicable district prior to mailing to FEB. This will expedite payment for the seedlings.

A spending matrix has been set up that designates the district manager or appointed delegate to sign on behalf of the Director of  Forest Enterprises Branch as spending authority on the seedling purchase contract.

Example:
Suppose that Happy Valley Forest Products wishes to purchase 15.0 K 1+0 Fdi PSB313B seedlings, produced from natural stand seed, from the Ministry of Forests. The seedlings are currently in cold storage near the proposed planting site in Kamloops Forest Region and are due for spring planting.

1. Commercial Equivalent Rate for 1+0 Fdi PSB313B = 12.2¢ (column 11)
2. Seed Cost for Fdi Natural Stand Seed = 1.07 ¢ (column 12)
3. Storage Cost for Kamloops Forest Region 1+0 PSB313B = 1.81 ¢ (column 13)
4. Transport Cost for 1+0 PSB313B = 0.26 ¢ (column 14)
5. Total Cost = 15 000 seedlings x (12.2 + 1.07 + 1.81 + 0.26)
                                                           100
                    = $2301.00 (column 15)

The contact at Nursery Services Section, Forest Enterprises Branch is:

Allan McDonald, Nursery Planning Officer
allan.mcdonald@gems4.gov.bc.ca	250-387-8945