The state forester shall assume control over all lands so designated and proceed to develop and improve the same by applying thereto accepted good forestry practices in the management and improvement thereof for the purpose of protecting and improving the forest potential of such lands and producing income through sustained yield management by the sale of forest products produced thereon, such sales to be made under the direction and at the discretion of the state forester. The state forester further may issue permits for the cutting and removal of hay on and from the land under the state forester’s control at a price to be determined by the board of university and school lands, subject to the rules and regulations adopted by the state forester and board of university and school lands.