FC, Southwest Mississippi forest trends remain in flux

The forecast for timber markets where forest interests in Franklin County — and Mississippi as a whole — are concerned remains lackluster at best for the foreseeable future due in large part to instabilities in the economy and other contributing factors.
Marc Measells, a senior Extension Service associate with the Mississippi State University Department of Forestry, presented an update on timber trends and projections during the Franklin County Forestry Association’s fall membership meeting held on Tuesday, Oct. 18 in Bude.
“What everything boils down to for you, as timber owners, is simply supply and demand,” Measells said. “That also translates to the number of mills we have within a certain distance of available resources competing for timber resulting in better prices.”

He said Mississippi, during the 1990s, had 235 timber mills in operation with less than half of that number — 108, to be precise — doing business as of 2021.

“Specifically, we went from 182 sawmills in the 1990s to just 63 ... so you can see how this would affect our landowners,” Measells said.

“Of the 108 mills that are presently operating, most are located south of Interstate 20. And while the markets in South Mississippi might seem bad right now, when you get up north the prices are a lot worse. The bottom line is that it’s not really rosy anywhere in Mississippi, but especially not north of I-20.”

In Franklin County and Southwest Mississippi, Measells noted a positive is that a lot of timber resources makes its way to mills in neighboring Louisiana.

Other factors impacting current wood prices include the location of timber — meaning every mile a logger has to drive to reach a mill is less return for the forest landowner.

“This is tied directly to the cost of diesel fuel that is still running between $4 and $5 per gallon,” he continued.

Additionally, Measells said current market conditions make it difficult for small properties — in the range of 20 to 30 acres — to be looked at for harvesting.

“Right now in North Mississippi, there are property owners with 60 to 70 acres that are having a hard time getting their timber harvested,” he continued. “A lot of that is tied to increased fuel and labor costs.”

Measells said the current average haul distance for logs is about 50 miles, but that doesn’t mean drivers won’t go further to get the resource if the demand for trees is there.

A big issue before the coronavirus pandemic was a shortage of log-hauling truck drivers, and Measells said the situation has only grown worse with the passage of time after the virus.

“This is something that is not unique to the forest industry, but in every sector from agriculture to stores like Walmart,” he went on to say.

Along transportation lines, timber producers are also at the mercy of poor road conditions and weight-restricted bridges.

Statewide, Measells said there are 10,570 bridges — with 1,838 of those that will not support heavy log truck loads.

Among the lowest weight-limited bridges in the Magnolia State’s 82 counties are those rated at less than three tons (6,000 pounds) and are still open to traffic.

“There are some pickups out there that weigh around 8,000 pounds,” Measells said. “A loaded log truck is around 80,000 pounds and can be up to 84,000 pounds with a harvest permit.”

He noted detours and alternative routes ultimately impact the bottom lines for everyone involved in getting trees to market because of the additional travel involved.

That’s especially true when fully loaded vehicles get about five to six miles to the gallon of diesel fuel.

In Franklin County, there are 106 bridges with 23 deemed low-weight (31.1 percent of all structures) that a log truck legally cannot cross.

Measells said state and county governments are working on infrastructure issues, but solutions to failing roads and bridges require tax-generated funds.

Weather also has an impact on timber prices — with wet conditions making harvesting difficult and those with land that can still be accessed in such situations getting a better price for their trees.

Measells said another benchmark is overall new home construction regionally and across the nation, which could be impacted by rising interest rates being put into place to keep inflation worries in check.

While many of these factors might seemingly put a dark cloud over the timber industry’s future, Measells said trees will continue to be a major contributor to the state’s overall economy.

“In 2021, the production value of timber across Mississippi was valued at $1.29 billion,” he noted.

Additionally, new sawmill construction and expansions — notably plans by CLAW Forestry Services to locate a state-of-the-art sawmill in nearby Gloster — are fostering renewed optimism about the sector locally.

The 65-acre site in Amite County was previously home to a Georgia Pacific mill, and is expected to be operation by late 2023 or early 2024.

The Gloster facility will require more than 1 million tons of timber annually to produce around 250 million board feet of lumber.