2004 Harvest of Forest Products

December 2005

Mississippi’s forest industry (including private landowners, independent harvesters and forest industry) harvested and delivered $1.25 billion worth of forest products to mills and other processors in 2004. The total value of Mississippi’s 2004 timber harvest delivered to the first point of processing (such as a pulpwood yard or sawmill) was $1,254,202,873. This harvest value is 14.5 percent higher than 2003. The year 2004 was the twelfth straight year Mississippi’s timber production value was over $1 billion. Timber was the second most valuable agricultural commodity in 2004. Poultry and eggs was the most valuable with a $2.1 billion value, timber was second at $1.25 billion and cotton was third at $591 million. Mississippi’s forest landowners collected $862 million for their standing timber in 2004. The estimated value of the logging and transportation sector was $392,027,334.

Severance tax collections on timber were $3,602,064. This total is 1.8% lower than 2003. Twenty percent of severance tax collections, or about $720,413 were returned to the counties where the timber was harvested. Eighty percent or about $2,881,651 went to the Forest Resource Development Program (FRDP) to provide cost share funds to private, non-industrial forest landowners for reforestation and other forest management practices.

The value of Mississippi’s timber harvest increased 14.5% in 2004. This strong increase resulted from a modest increase in most harvest volumes and increases in delivered prices. Pine sawlogs and hardwood pulpwood saw the greatest increase in value. Table 1 shows the estimated value of the timber harvest for 2004.

The harvest volume of pine sawlogs increased by 9.4% and their value increased 21.1%. Pine pulpwood volume decreased by 5.3% but value increased 8.2%. Pine plywood log volume held steady but value increased 8%. The volume of pine poles increased 5% and their value increased 2.1 percent.

Hardwood sawlog volume increased 2.3% and value increased 7.6%. Hardwood pulpwood harvest volume decreased by 13.9% but value jumped 15%. Hardwood veneer logs volume and value increased. Crossties increased in both volume and value in 2004. Table 2 shows a comparison of 2003 and 2004 by product category.

Mississippi’s timber harvest value increased in 2004 for the second consecutive year. Volumes for all sawlog categories were higher and pulpwood volumes were lower in 2004. Delivered prices were higher for all products. Delivered prices for pine sawlogs in north Mississippi and pulpwood in all areas of the state experienced double-digit increases. Table 3 shows a comparison of average prices by product and region for 2003 and 2004.

The strong increase in timber harvest value for 2004 continued a trend that began in 2003. A record-setting U.S. softwood lumber demand and an expanding economy in 2004 helped to reverse the previous trend. A persistently strong US housing market fueled the pine lumber market and the southeast US continued as the most active housing construction region. Pine lumber production moved ahead in 2004 to record levels. Southern pine lumber production region-wide for the year 2004 was a new record 18.1 billion board feet. Since pine sawlogs account for 62.5 percent of Mississippi’s timber harvest value, this market helps steady the state’s timber value performance in 2004.

Hardwood sawlog markets continued to improve in 2004. For the year, Mississippi hardwood log harvest volume was about 3% higher and delivered log prices improved about 7%.

Mississippi’s pulpwood economy continued to adjust in 2004. Pulpwood harvest volumes decreased in 2004 but prices improved as the paper industry rebounded. Standing pulpwood prices increased in almost all areas of the state. Delivered prices all increased more than 10 percent for the second year in a row but pulpwood prices are well below historical highs in 1999. Pine pulpwood value increased 8 percent and hardwood pulpwood value jumped 15 percent. Overall, pine and hardwood pulpwood accounted for about 23.4 percent of the harvest value.

Mississippi’s forest economy continues to change. Increasingly forest industry forestlands are being sold to investor groups. In 2004, International Paper Company became the latest forest products firm to announce their intentions to sell their timberland holdings. Our forest economy continues to be excessively concentrated on pine sawlog products. Since over 62 percent of the state’s forest harvest value is dependent on pine sawtimber the forest economy is less balanced than it was 10 years ago. Economic development officials would do well to concentrate on economic development efforts to attract companies that use hardwood logs and pulpwood-size pine timber.

In spite of these changes Mississippi forest landowners remain in good position to supply domestic and international forest products demand. The long-term outlook for Mississippi timber production, especially for pine, remains positive.

Table 4 shows harvested volumes of forest products for Mississippi counties within the Mississippi Timber Price Report regions. For current representative prices for Mississippi forest products consult timber price information available on-line at www.msucares.com. Select “Forestry” then “Timber Price Reporting for Mississippi.”

For more information on timber marketing procedures and timber prices contact your County Extension Service or the Mississippi State University Department of Forestry, Box 9681, Mississippi State, MS 39762.

Sincerely,

Dr. Bob Daniels
Extension Forester