Henderson nacaa

Economic Impact of Mississippi’sForest Resources

Logging, Solid Wood Products,Pulp and Paper, and Wood Furniture Manufacturing

James E. HendersonAssistant Extension Professor

Department of Forestry

Mississippi’s Forest Resources

• 19.6 million acres• 65% of the state’s total

land area• Major component of

Mississippi’s economic base

Source: Forest Inventory & Analysis Factsheet Mississippi 2006, U.S. Forest Service

< 25%

25 – 49

50 – 74

>75%

Percentage of land in forest by county

Mississippi’s Forest Resources

• Over $1 billion worth of forest products harvested annually and delivered to mills and other manufacturing plants

• Timber harvesting and product manufacturing has impact on state economy

Source: Forest Inventory & Analysis Factsheet Mississippi 2006, U.S. Forest Service

< 25%

25 – 49

50 – 74

>75%

Percentage of land in forest by county

Photo by Laurie Grace

• The importance of forestry and forest products is well documented at the state level.

• But what impact does it have at the county level?

• Introducing a new publication series to address that question.

Economic Impact of Forest Products Industry

Henderson, J.E., I.A. Munn, G. Perez-Verdin, D.L. Grebner. 2008.

The Economic Contribution of Forestry and Forest Products to Mississippi Counties

Forest Products Industry Impacts Economy In Three Ways:

Direct Effect

Indirect Effect

Induced Effect

Total Effect

Forestry & Forest

Products

Purchases from

supporting sectors

Employee spending

Input – Output Analysis

• Economy divided into 440 sectors.

• Depicts inter-industry relations of an economy.

• Shows how output of one industry is an input to other industries or sectors of the economy. IMPLAN: input-output modeling software

Economic Impact on Mississippi’s Economy Measured by:

• Employment – the number of full- and part-time jobs in the sector

• Employee compensation – the wages paid by the sector

• Output – the sector’s total value of production

• Value-added – total sector output minus the costs of purchased

inputs

The Economic Contribution of Forestry and Forest Products to Mississippi Counties

The Economic Contribution of Forestry and Forest Products to Mississippi Counties

JobsDirect Effect• 695 jobs• 17.6% of countyIndirect and Induced• 590 jobs• 14.9% of countyTotal Impact• 1,285 jobs• 32.5% of county

IncomeDirect Effect• $58 Million in income• 36.3% of countyIndirect and Induced• $18 Million in income• 11.5% of countyTotal Impact• $76 Million in income • 47.8% of county

OutputDirect Effect• $352.8 Million• 46% of countyIndirect and Induced• $57 Million• 7.5% of countyTotal Impact• $410 Million• 53.5% of county

Value AddedDirect Effect• $95.5 Million• 35% of countyIndirect and Induced• $33.9 Million• 12.5% of countyTotal Impact• $129.4 Million• 47.6% of county

Timber Harvest Value (2007)

Forest Products Facilities

Source: U.S. F.S

Population

Economic Impact:Greater in rural countiesSmaller in urban counties

Total Jobs ImpactAs Percent of County Total

Total Jobs ImpactDirect, Indirect, & Induced

Economic Impact:Greater in rural countiesSmaller in urban counties

Total Jobs ImpactAs Percent of County Total

Total Jobs ImpactDirect, Indirect, & Induced

Economic Impact:Smaller in urban counties

Total Jobs ImpactAs Percent of County Total

Total Jobs ImpactDirect, Indirect, & Induced

Economic Impact:Greater in rural counties

Standing Timber Value

Estimation process:

2007 Product Prices applies to standing timber volume estimates:

Hardwood and SoftwoodSawtimber and Pulpwood

Source:Mississippi Institute for Forest Inventory (MIFI)

Standing Timber Value

The Economic Contribution of Forestry and Forest Products to Mississippi Counties

This information is available online!

www.MSUCares.com

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