2005 Harvest of Forest Products

November 2006

In 2005, Mississippi’s forest industry (including private, nonindustrial landowners, independent harvesters, and forest industry) harvested and delivered $1.45 billion worth of forest products to mills and other processors. The total value of Mississippi’s 2005 timber harvest delivered to the first point of processing (such as a pulpwood yard or sawmill) was $1,454,903,891. This harvest value is 15.7% higher than 2004. The year 2005 was the 13th straight year Mississippi’s timber production value was over $1 billion. Timber was the second most valuable agricultural commodity in 2005. Poultry and eggs were the most valuable at $2.23 billion, timber was second at $1.45 billion, and cotton third at $469 million. Mississippi’s forest landowners collected $943 million for their standing timber in 2005. The estimated value of the logging and transportation sector was $511,879,840.

Severance tax collections on timber were $3,728,651, or 3.5% higher than 2004. Twenty percent of severance tax collections, or about $745,730, were returned to the counties where the timber was harvested. Eighty percent, or about $2,982,921, went to the Forest Resource Development Program (FRDP) to provide cost share funds to private, nonindustrial forest landowners for reforestation and other forest management practices.

The value of Mississippi’s timber harvest increased 15.7% in 2005. This increase resulted primarily from increases in delivered prices (despite the impacts Hurricane Katrina had on 4th quarter prices). Table 1 shows the estimated value of the 2005 timber harvest.

The harvest volume of pine sawlogs increased significantly by 9.5% and their value also increased 9.5%. Pine pulpwood volume remained level with a very slight increase. Pine pulpwood value however increased 25.5%. The volume of pine poles decreased 1% but their value increased 31.9%. Hardwood sawlog volume decreased 13.2% while value increased 5.2%. Hardwood pulpwood harvest volume increased by 5.4% and the value increased dramatically by 59%. Crossties had a slight increase in volume and a 25% increase in value. Table 2 shows a comparison of 2004 and 2005 of harvest volumes and delivered values by product category.

Mississippi’s forest economy is changing as companies merge, realign, sell assets, and adapt to an increasingly global marketplace. Hurricane Katrina caused much damage, approximately two year’s timber harvest volume. The initial salvage and recovery of forest products started as soon as possible and continued well into 2006. The 2005 4th quarter prices decreased due to this damage. Despite these price decreases, 2005 saw a 15.7% increase in delivered value. In spite of these changes, Mississippi forest landowners are in a good position to supply domestic and international timber markets. The long-term outlook for Mississippi timber remains bright.

Table 3 shows harvested volumes of forest products for Mississippi counties divided into two regions. For current representative prices for Mississippi forest products, consult the Mississippi Timber Price Report 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,

Marc Measells
Research/Extension Forester