About 50 miles northwest of Duluth, you’ll find Sax Zim Bog, a 147,000-acre wetland and ecological powerhouse globally recognized for its interconnected habitats. This vast natural area hosts peat bogs full of mosses and organic material – acting as natural sponges that retain water and absorb carbon – lush forests, and a network of rivers, all together creating a home for more than 200 bird species, including the Great Grey Owl and Boreal Chickadee, and a wild refuge for black bears and moose.
Nestled within this critical peatland and renowned bird habitat is a block of 12,000 acres of school trust lands, which Minnesota’s Constitution directs the DNR to manage for revenue generation, through activities like timber harvesting or mineral leasing, for the state’s Permanent School Fund. However, Sax Zim Bog’s ecosystem services and conservation significance mean that the designated school trust parcels there are largely inaccessible and unproductive for revenue generation for Minnesota’s public and charter schools.
That also meant that the DNR needed to find a solution to uphold Minnesota’s fiduciary responsibility to generate income for the Permanent School Fund while ensuring the long-term conservation of Sax Zim Bog. In partnership with The Conservation Fund and St. Louis County, the DNR identified industrial timberlands with long-term revenue potential that the state could exchange for the school trust lands within Sax Zim Bog.
Ultimately, these land exchanges will safeguard the state’s economic land assets for the Permanent School Fund and Sax Zim Bog will remain a pristine natural area that is a popular stopover for migratory birds, home to several wildlife species, and a bucket-list item for outdoor adventurers worldwide.
The Sax Zim Bog land exchange involved six separate transactions between the DNR and The Conservation Fund. The map shows the location of the lands received by each agency in the exchange.
Sax Zim exchange I and II
Photo Courtesy of The Conservation Fund | Jay Brittain
In 2013 and 2018, earlier phases of the land exchange were completed when The Conservation Fund traded 4,750.91 acres of previously acquired timberlands for 13,137.70 acres of ecologically rich bog lands owned by the state of Minnesota and managed by the DNR and St. Louis County. These bog lands and their thriving habitat will be transferred to Ecosystem Investment Partners for restoration and long-term stewardship as a wetland bank.
Sax Zim III
In February of 2026, the final phase of the land exchange was completed when The Conservation Fund conveyed 1,014 acres of acquired forestlands located in St. Louis County to the state, and the state traded 1,796 acres of school trust lands managed by the DNR.
The benefits of the land exchange
This multi-transactional land exchange, which received unanimous support from the Legislative Permanent School Fund Commission and was endorsed by the Environmental Law and Policy Center, carries many benefits for the state and our conservation partners. By trading lands at equal value, the DNR and its conservation partners ensure that:
World-renowned Sax-Zim Bog will be protected and the visitor experience will be enhanced
School Trust Lands will acquire industrial timberlands with long-term revenue potential
The tax-forfeit land portfolio will have a greater potential for revenue generation
Public lands will be consolidated, providing better habitat and increased access and recreational opportunities
Restoration of thousands of acres of wetlands will occur within the watershed as preferred
A wetland bank at Sax-Zim will relieve pressure to provide mitigation for Saint Louis County outside the watershed
The Sax Zim Bog improvement project is an excellent example of counties and DNR working together with conservation groups and private companies to protect and manage natural lands’ ecological and recreational benefits for generations.