Community-based forest management (CBFM) schemes are often cited as ideal for rehabilitating denuded forestlands and alleviating upland poverty in developing countries. This article examines the Philippine CBFM in the context of the forestry industry: It tracks the outcome of community-based reforestation and undertakes a simple input-output analysis. It presents three propositions for the future success of CBFM in the Philippines. First, it must secure farmers’ access to financial returns from tree plantations. Second, industrial policy must link the demand for timber from other industries to the forestry industry. Third, CBFM needs to be integrated with livelihood opportunities for the poor.