Demonstrates that these forests are key to our national infrastructure
CHARLOTTE, N.C. (December 9, 2009) – A new study, commissioned by the National Alliance of Forest Owners (NAFO) and conducted by Forest2Market, quantifies the economic impact of private, working forests on the U.S. economy. The study found a significant gap between the contributions made by privately-owned forests over other ownership types. On average, they generate $277,000 in state GDP per 1,000 acres, while public forests generate just $41,000 per 1,000 acres.
The study also concludes that the national average economic contribution per 1,000 acres of private, working forest includes 8 jobs, $270,000 in payroll, $9,850 in state taxes (income and severance taxes only) and $733,000 in annual sales.
“The study completes the picture of the contributions that working forests make,” says David P. Tenny, President and CEO of NAFO. “We all know that private, working forests provide clean water and air, open space, wildlife habitat, recreation, and other environmental benefits. This study demonstrates the significant economic benefits these forests provide: family waged jobs, a strong tax base, and the economic foundation of the forest products industry. They are fundamental to both the economic and environmental infrastructure of our nation.”
The study, which looks at economic contribution by state and region as well as nationally, is the first of its kind. “To our knowledge, no one else has taken a comprehensive look at the total contribution that forests make to the economy,” says Pete Stewart, CEO and President of Forest2Market.
“This study demonstrates that private working forests support local and state economies,” says Stewart. “While the industry is struggling from the depressed housing market and the wider recession, it’s important to know exactly how much working forests contribute in jobs, taxes and GDP. With a clear view of the total contribution, we can better understand the consequences of public policies and market factors that limit how much work these forests can do.”
Results of the study are available using the interactive map on NAFO’s website.
About Forest2Market
Headquartered in Charlotte, N.C., Forest2Market provides supply chain expertise, from the forest to the market. Serving forestry, wood products, paper, lumber and bioenergy companies, Forest2Market provides customers with sound data and information to meet critical business needs. Offerings include pricing services, delivered price benchmarks, forecasts, raw material availability and pricing studies, and consulting services.
About NAFO
NAFO is an organization of private forest owners promoting federal policies that protect the economic and environmental values of privately-owned forests at the national level. NAFO membership encompasses more than 75 million acres of private forestland in 47 states.
Contacts:
Suz-Anne Kinney, Communications Manager
Forest2Market
14045 Ballantyne Corporate Place, Ste. 150
Charlotte, NC 28277-2845
Email: suz-anne.kinney@forest2market.com
Phone: (704) 540-1440
Dan Whiting, Director of Communications
National Alliance of Forest Owners
2025 M St, NW, Suite 800
Washington, DC 20036
Email: dwhiting@nafoalliance.org
Phone: (202) 747-0746
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Tags: Working Forests
The Economic Impact of Privately Owned Forests shows the value added by privately-owned forests to the economy. But what about the additional potential value added if more private landowners used silviculture? It is substantial. According to the Society of American Foresters, only 22% of private landowners sought professional advice before harvesting timber. Instead of silviculture, private landowners often have their woodlots selectively cut – i.e. high-graded. Consequently, according to a recent report from the University of Tennessee, millions of acres of degraded hardwood stands in the eastern hardwood region have little left to manage. The National Alliance of Forest Owners should develop new initiatives to encourage sustainable management of privately-owned forest land with silviculture.