Mississippi Crop Report:
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State's timber holds billion dollar levelBy Linda M. Breazeale MISSISSIPPI STATE -- Prices and demand helped Mississippi's timber industry post another billion dollar year in 1994. Timber led the state's agricultural commodities in 1993 when it became Mississippi's first commodity to break the $1 billion mark. Agricultural economists are forecasting poultry and eggs to take the lead in 1994 and join timber in the billion dollar club. The estimated value of Mississippi's 1994 timber harvest "delivered" to the first point of processing (such as a pulpwood yard or sawmill) was more than $1.07 billion. The value of the timber harvest in 1993 was $1.02 billion. "The main force behind the good year was pine sawtimber," said Dr. Bob Daniels, extension forestry specialist at Mississippi State University. "Delivery prices for pine sawlogs, poles and ply logs were about 11 percent higher than in 1993." Daniels said lower demand contributed to a 4 percent decrease in hardwood prices in 1994. Softwood timber available for harvest in the northwestern United States has decreased about 25 percent because of spotted owl concerns and public policy changes on federal lands. This reduction in federal softwood timber supplies is causing the demand for Mississippi pine timber to increase. "Volume for Mississippi's timber products in 1994 remained near the previous year's levels," Daniels said. "1994 volume estimates are based on timber severance tax collection reports." Although collections through September ran almost 4 percent ahead of the previous year, rainy weather in late summer and fall will most likely reduce harvests for the final quarter. A more detailed harvest value will be available in early 1995 when all tax collections are final. Weather was a factor throughout most of 1994, beginning with the damaging ice storm in February. Daniels said the storm impacted markets only in North Mississippi where the damage occurred. George Butler, Northeast District forester with the Mississippi Forestry Commission in Tupelo, said landowners marketed a significantly larger number of trees because of ice damage. "A lot of trees had to be salvaged and were sold for a lower price because of their reduced quality," Butler said. "Some landowners sold out of fear their trees would not recover." Butler said while remaining trees continue to recover, there will be signs of the 1994 ice storm for the next 20 years. "We still don't know what damage may come in the future in the form of insect damage," Butler said. "Our biggest concern is the threat of fire." Work is beginning on a fire protection plan in the ice storm damaged area from a Federal Emergency Management Agency grant for $3.6 million. Daniels said an additional weather factor came in July and August in an unseasonably wet period. Wet conditions reduced supplies when stockpiling for the winter usually occurs. Although lower winter supplies will help boost prices in early 1995, Daniels said he expects volume and prices to remain near the 1994 average throughout 1995. "The fundamentals of the market are in favor of pine sawtimber," Daniels said. "Strong competition will help pine sawtimber remain the MVP of Mississippi forestry in 1995." Released:
Dec. 13, 1994 |
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