The role of the public and private sectors in managing US forest resources has been debated for more than a century. In recent years, federal policymakers in the executive branch and Congress have questioned the need for public programs to develop, manage, or even protect the nation's forests. Many states also are examining their funding for forestry programs, and several have enacted significant budget cuts. Forestry budgets are unlikely to improve any time soon, and the scrutiny of public programs is apt to continue and perhaps intensify - both at the state and national level. In today's climate, what should be the role of public programs and policy in maintaining and developing forest resources. Can the marketplace effectively produce and allocate forest resources. If not, should public funds be spent to improve marketplace outcomes or are imperfect markets still superior to less than perfect government programs. These questions are addressed in this article.