Panama State Forest spans 1,224 acres in the town of Harmony, located south of Panama in the southwestern portion of Chautauqua County. It is a perfect setting for numerous outdoor recreational activities, including picnicking, cross-country skiing, snowshoeing, hiking, biking, birdwatching, primitive camping, and hunting. Panama State Forest provides habitat to a variety of wildlife species.
The forest is traversed by the Fred J. Cusimano Westside Overland Trail. The trail corridor navigates the State's various woodlots and access trails. Only bicycles, hiking, snowshoeing and cross-country skiing are allowed on the trail; motor vehicles and horses are not allowed.
Panama State Forest also provides habitat for a variety of songbirds, especially near heavily harvested areas where there is thick seedling-sapling cover.