F&W Forestry Report - Spring 2025

Forestry Report A PUBLICATION OF F&W FORESTRY SERVICES, INC.

SPRING 2025 | NO. 164

Policy News Trumps Price News This Quarter

By Marshall Thomas, President of F&W Forestry Services, Inc.

Timber prices remained flat and low in the first quarter compared to a few years ago (see graphs pages 9-12).

Unfortunately, housing market forecasts have been revised downward for 2025, meaning a recovery in sawtimber tree prices probably won’t happen this year.

As long as the broader economy remains sluggish, don’t expect improvements from the pulp and paper sector either, which means continued weak demand and low prices for small-diameter trees.

Unless, of course, tariffs on Canadian lumber reduce imports and boost sawtimber prices—though that could be offset by continued declines in exports to China… which could, in turn, be offset by reductions in lumber imports from Europe. You get the idea. There are so many moving parts that no one really knows how this year will shake out. See page 7 for a discussion on tariffs and some new executive orders you will find interesting—turns out, our trees might just be a national security issue.

Southern Yellow Pine (SYP) lumber prices have been fairly stable at just over $400/MBF for the last couple of years. They need to be in the $450 to $600 range to support a boom. Current SYP prices don’t suggest an imminent recovery—unless tariffs shift the market.

Same story: we just don’t know.

F&W’s lumber-adjusted housing starts are hovering just under 1.2 million units (annualized). The benchmark level for upward pressure on tree prices is around 1.2

million—so no good news there either (see graph on page 14).

And one last bit of economic bad news before moving on to non-economic policy news: the trade-weighted exchange rate (see graph page 14) shows a stronger dollar against our main trading partners. This means that the exchange rate is more favorable for imported products and less favorable for domestic producers, which typically puts downward pressure on domestic prices. Unless, of course, the tariffs offset this advantage, or cause the dollar to devalue….

Well, enough of that!

Lumber futures contracts have existed for a while, but they were not very useful for Southern producers.

They were tied to lumber deliveries of spruce, pine, and fir (SPF)—not necessarily good proxies for Southern Yellow Pine lumber—and they relied on taking delivery of an actual railcar of lumber. Not very practical. Now there is a new futures, based on SYP and settled in cash. That makes it much more accessible for Southern Pine growers and producers as a hedge against tree prices. It’ll be interesting to watch how this develops and how it is used. See page 3 for details.

Here is some genuinely good news. The Disaster Reforestation Act is gaining traction in Congress. This legislation would allow timber losses from wind, fire, and other casualty events to be deducted from income on tax returns at fair market value rather than cost.

That’s a big deal. Credit goes to the Forest Landowners (continued on page 3)

INSIDE THIS ISSUE PAGE 2

PAGE 3

PAGES 4-5

PAGES 6-7

PAGE 8

Disaster Reforestation Act

Southern Pine Futures Coming to Wall Street

F&W Reforestation Trends

Washington Update

Georgia Provides Disaster Aid

Bipartisan Push To Support Disaster Reforestation Act Bipartisan legislation aimed at helping private forest landowners recover from catastrophic timber losses due to natural disasters—such as Hurricane Helene—has been introduced in both the U.S. House of Representatives and the Senate.

The legislation is sponsored in the House by Representatives Buddy Carter (R-Ga.) and Terri Sewell (D-Ala.), and in the Senate

by Senators Bill Cassidy (R-La.) and Raphael Warnock (D-Ga.)—a true show of bipartisan support.

The Disaster Reforestation Act (DRA) seeks to provide essential tax relief to private forest landowners after devastating timber losses.

The introduction of this legislation comes at a pivotal moment as Congress prepares to negotiate on a comprehensive tax package.

Due to the long-term nature of a reforestation investment, forest landowners pay annual expenses and taxes without regular income from their forest “crop” while they wait decades for their timber to mature to market, usually 30 years for softwood and 40-plus years for hardwoods.

Under current law, forest landowners can only deduct the lesser of either the fair market value (FMV) or the cost basis, which is often $0 or a fraction of the fair market value. The DRA proposes to correct this by allowing forest landowners to deduct the full fair market value of the timber lost to disaster.

The DRA ensures that private forest landowners can deduct the full value of destroyed timber on their taxes, ensuring they have the financial resources necessary to reforest their land rather than abandon or convert it. Unlike other agricultural producers, forest landowners lack sufficient disaster recovery tools, making them particularly vulnerable to financial ruin following hurricanes, wildfires, pests, and disease outbreaks.

Forestry Report For further information on material in this report or to discuss your forestry needs, contact the nearest F&W office or the Albany headquarters at: PO Box 3610, Albany, GA 31706-3610 229.883.0505 / fax 229.883.0515 www.fwforestry.com Marshall Thomas, President Jeff Jordan, Chief Operating Officer Jody Strickland, Chief Business Officer Sonya Farmer, Chief Financial Officer Stephen Logan, Chief Information Officer Brent Williamson, Forest Operations The F&W Forestry Report is produced by: Bates Associates 770.451.0370 batespr@bellsouth.net ©2025 F&W Forestry Services, Inc.

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“Landowners currently have no tools to recover after a disaster destroys their forests,” stated Scott Jones, Forest Landowners Association CEO. “The Disaster Reforestation Act is not a handout or a subsidy—it simply corrects the casualty loss deduction so landowners can claim the true value of their damaged timber. This is a necessary step to ensure family forestry businesses can survive future disasters and keep our working forests intact.”

The urgency of the DRA is amplified by the increasing frequency and severity of natural disasters.

The destruction caused by Hurricane Helene highlights the need for this legislation. The storm damaged more than 2.3 million acres of forestland across Georgia, Florida, South and North Carolina, Tennessee,

and Virginia—resulting in timber losses exceeding $1.75 billion. The vast majority of the forest landowners impacted by the storm received little or no compensation for their trees and incurred huge financial losses.

By allowing deductions based on the fair market value, the DRA reduces risk and encourages continued investment in forestry, helping to keep forests intact and sustainable.

Support for the legislation is strong, with more than 70 state and national organizations representing agriculture, forestry, conservation, and business sectors endorsing the bill. These organizations recognize the crucial role forests play in providing clean air and water, carbon sequestration, wildlife habitat, and biodiversity—making their preservation a national priority.

While Congress approved a disaster relief package in December to support communities affected by recent natural disasters, industry leaders warn that relying on ad hoc relief efforts is not a long-term solution.

“The Disaster Reforestation Act provides a permanent fix by correcting the tax code to ensure landowners can recover and reforest after catastrophic losses,” said Craig Anderson, FLA’s vice president of government affairs.

As Congress moves forward with tax policy discussions, forest landowners are encouraged to contact their elected representatives in Congress and voice their support for the Disaster Reforestation Act. QUICK LINK FOR MORE INFORMATION ON THE ISSUE AND TO FIND INFORMATION FOR CONTACTING YOUR REPRESENTATIVES, CLICK HERE

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Made-In-America Lumber Futures Set To Debut In a major shift for the U.S. lumber market, Southern yellow pine (SYP) futures began trading on March 31 through CME Group, providing a new tool for managing price swings in the Southern timber industry. This marks a departure from the Canadacentric futures currently dominating the market, as rising export taxes on Canadian lumber have driven up benchmark prices well above the rates paid for Southern yellow pine.

The new SYP contracts will allow tree growers, foresters, sawmills, and builders in the U.S. South to hedge against price volatility with futures linked directly to their regional product. Unlike the existing lumber futures, which are tied to deliveries of Canadian spruce, pine, and fir (SPF), the SYP futures will reflect the Southern market more accurately.

While SPF lumber is favored for home construction due to its light weight and easy nailing, Southern yellow pine is denser and preferred for outdoor structures like fences and decks because it absorbs waterproofing and stain effectively.

The introduction of Southern yellow pine futures comes as Canadian lumber faces increasing export taxes, which have weakened its competitiveness in the U.S. market. In 2024, duties on Canadian softwood lumber nearly doubled, averaging 14.4 percent due to anti-dumping and countervailing measures. Later this year, these duties are expected to rise again. On top of those existing duties, President Trump wants to impose an additional 25 percent tariff on Canadian imports to the U.S., which could raise the total tariff on softwood lumber imports to 39.4 percent, which will likely drive builders to seek cheaper alternatives.

The price disparity between the two lumber types is growing. According to Fastmarkets’ Random Lengths, the Southern Pine Composite Index closed the week of March 21 at $430 per thousand board feet, while traditional lumber futures surged to $680—the highest in 30 months—as traders reacted to tariff uncertainties.

The pressure on Canadian lumber producers has accelerated

a migration of sawmills to the U.S. South, where private timberlands and a surplus of pine trees keep log prices low despite rising lumber prices. Over the last decade, Canadian lumber giants West Fraser, Interfor, and Canfor—which operate mills in both Canada and the U.S.— have been shrinking production in their home country while expanding their Southern footprint. In fact, more than half of the softwood lumber produced by these three companies is now manufactured at their U.S. facilities, according to Forisk’s report on the top North American lumber producers in 2024.

Market experts believe SYP futures could eventually outpace traditional lumber contracts, thanks to strong demand and less volatility. Unlike the existing lumber futures, which involve physical deliveries of boards, the new contracts will be cash-settled. This makes them more attractive to hedge funds and other speculators, who can trade on price movements without handling the physical wood.

Marshall Thomas (continued from page 1) Association (FLA) for pushing this issue forward. FLA does a great job representing the interests of private forest landowners at the federal level. If you aren’t a member of FLA, you should be. (Join at https://forestlandowners.com/flamembership/.) Several members of Congress deserve recognition too— see page 2 for details and names.

F&W’s reforestation numbers are up in the most recent tree planting season. We’re also seeing some interesting trends among our client base, including reduced trees per acre. In some cases, landowners are choosing not to replant due to poor market conditions and rising land values. See the article on pages 4-5 for this discussion.

Meanwhile, Georgia landowners hit hard by Hurricane Helene are getting assistance from the state to help offset losses and support reforestation efforts. See page 8 for details.

And here’s one last bit of good news: Even though tree prices are down, timberland values rose 26 percent since 2021. So while landowners may not be making much in timber sales income, they are

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gaining through asset appreciation.

While you can’t use appreciation to live on, at least something is going the way of forest landowners. See the article on page 6.

All in all, this should be an interesting year. By the time the next newsletter is published, we’ll probably know whether the tariffs stick and what kind of impact they’re really having. We’ll also have a better idea of where housing and the overall economy are headed.

So grab your seat and hang on for what promises to be an interesting year for tree growers.

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2024-2025 Reforestation Trends: Insights From F&W Managers The surge in timber sales from 2020 to 2023, fueled by high stumpage prices during the pandemic, led to an increase in tree planting over the last few years.

However, this trend appears to be leveling off as timber markets adjust and economic factors evolve.

Meanwhile, wildfires in the West have contributed to heightened reforestation efforts along the West Coast.

mill closures and low timber prices made replanting less viable.

During the 2024-2025 tree planting season, F&W managers oversaw reforestation on more than 35,000 acres, a 5 percent increase from the previous season, according to a recent F&W survey. This rise is directly linked to strong timber markets during the pandemic, which encouraged landowners to market mature pine stands through clearcut sales. However, managers note that weakening timber markets and mill closures are beginning to impact reforestation efforts.

“A job that should take 10 weeks is now taking 15 weeks or more due to tighter quotas—primarily pulpwood,” Worrell said.

The annual survey, which gathers data and insights from regional managers, focuses primarily on the South and Western U.S., where tree planting is a common forestry practice. In the Northeast and Central regions, which are dominated by hardwood species, reforestation occurs primarily through natural regeneration.

A MIXED PICTURE Tree planting levels varied across locations. Some areas, such as Albany, Ga., experienced a notable increase in reforestation, driven by landowners completing harvest cycles and reinvesting in timber production.

“Tree planting is up in our region,” notes Chad Hancock, manager of the Albany office. “The acres planted have doubled from five years ago.”

Conversely, areas reliant on pulpwood markets saw a decline, as F&W FORESTRY SERVICES, INC.

“Papermill closures have decreased planting. We did not plant any acres in 2024,” observed Rick Sluss, manager of the Clinton, Tenn. office.

In Virginia, Manager Glen Worrell reported a decrease in acreage planted due to a significant reduction in timber sales last year and increased time needed to complete harvesting projects due to quotas.

In South Carolina, Nathan McClure noted a reduction in planting, particularly in the western part of his territory, due to lower timber prices and demand. Reforestation efforts were further hindered by wet weather and damage from Hurricane Helene, which delayed site prep on several tracts, pushing planting until next season.

On the West Coast, Tom Young reported that while overall tree planting levels have remained steady, recent wildfires have prompted increased planting in burned areas following logging.

Garrett Kleiner, manager of F&W’s newest office in Sandpoint, Idaho, noted that recent harvests managed by his team have been mostly focused on forest health and typically do not create openings large enough to necessitate reforestation.

“Management prescriptions focused on improving forest health are leading landowners to design harvests that don’t require replanting,” Kleiner explained. “Selective harvesting to address forest health issues can maintain sufficient stocking levels, eliminating the need for planting. In some cases, stands may have enough species diversity that removing small amounts

of Douglas fir and Grand fir can result in a healthier stand of larch or Ponderosa pine. The resulting increase in spacing can also improve the stand’s fire resilience, another key management goal.”

MARKETS DRIVING DECISIONS Many landowners are adjusting their planting strategies in response to weak pulpwood markets and declining timber prices. Some are opting for lower planting densities to reduce future thinning costs, while others have delayed reforestation altogether.

In several regions, landowners and foresters are moving toward lower tree densities per acre as a hedge against market uncertainty.

Planting fewer trees per acre can reduce long-term management costs, particularly in areas where thinning is becoming more difficult due to market constraints. However, managers note this shift often requires higher-quality seedlings with improved genetics to maintain productivity.

“Thinning has been a critical management tool for the growth and development of plantations, but weakened pulp markets have made it difficult to execute thinning operations in a timely fashion—if at all—as almost all volume harvested in a thinning is pulpwood,” notes T.R. Clark, manager of F&W’s LaFayette, Ala., office. “To offset the risk of not being able to thin, reducing the trees planted per acre may allow plantations the ability to reach small sawtimber size without thinning.”

In Southeast Georgia, Statesboro Manager Wade McDonald shared: “We’re considering lowering planting density by about 10 percent to 450 trees per acre.”

Chris Bartley in East Texas said that “Landowners are considering lower-density planting or natural (continued on page 5) SPRING 2025 • WWW.FWFORESTRY.COM

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2024-2025 Reforestation Trends (continued from page 4) regeneration to mitigate pulpwood concerns in the future.”

SEEDLING CHOICES Hand planting remains the dominant method, while machine planting—typically a more expensive option—is used when terrain allows or where soil preparation is needed.

Across the South and Mid Atlantic regions, F&W managers primarily planted loblolly pine seedlings (85 percent), followed by slash pine (11 percent), and Longleaf pine (4 percent). On the West Coast, managers planted Ponderosa pine (50 percent), Douglas fir (40 percent), and a mix of Incense cedar, White fir, Red fir, and Sugar pine, depending on the site. In Idaho, Kleiner said they planted Western larch, Ponderosa pine, and Western White pine.

CONTAINERS GROWING Containerized seedlings continue to gain popularity due to their higher survival rates, despite their higher costs. Managers report early growth, better establishment, and higher survival rates with containerized seedlings, leading to a shift away from bareroot stock.

Additionally, pre-season or “hot” planting of container seedlings allows managers to plant outside the traditional planting season. In areas where weather conditions permit, this practice has had good results and reduced logistical bottlenecks during peak planting months.

Tom Young in California exclusively plants container seedlings and noted: “In areas of high elevation with persistent spring snow, fall planting has been highly effective when ground moisture is good.”

Container seedlings also give managers the confidence to reduce planting densities due to their higher survival rates.

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“Five years ago, we switched to containerized seedlings and reduced planting densities to 545 trees per acre (TPA),” explained Glen Worrell of the Virginia office. “Next planting season, we plan to reduce planting density to 505 TPA due to the high survival rates we experience with container seedlings.”

“Landowners are skeptical of the viability of forestry, especially in Florida,” said Orange Park Manager Bryan Croft. “Timber buyers, mills, and loggers see mills closing, while landowners wonder if the market will return.”

Worrell reported an average container seedling survival rate of 95 percent from the previous planting season, with many sites achieving 100 percent.

“Land use is changing [in Southeast Georgia] with the Port of Savannah, Hyundai development, and rising residential demands. Mill closures and development will continue to make landowners reconsider forestry,” he said.

LAND USE CHANGES Urban expansion and industrial development are reshaping reforestation trends, particularly in Georgia and Florida. The expansion of ports, manufacturing hubs, and residential developments is driving up land values, leading some landowners to reconsider long-term timber investments. In certain areas, county land preservation programs are also influencing land-use decisions, creating new dynamics in how forests are managed.

Statesboro’s McDonald echoed this sentiment.

The 2024-2025 manager’s survey underscores both opportunities and challenges in reforestation.

While some areas are experiencing increased planting activity, others are scaling back due to market instability, mill closures, and shifting land use priorities. As landowners and foresters navigate these evolving conditions, adaptability in planting density, methods, and species selection will be crucial in sustaining long-term forestry operations.

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Rollins Takes Helm At USDA, Appoints New Forest Chief President Donald Trump’s pick to lead the U.S. Department of Agriculture (USDA), Brooke Rollins, was confirmed as Secretary of Agriculture in February, stepping into one of the most influential cabinet positions at a time of mounting challenges for American agriculture, forestry, and rural communities.

A lawyer and policy strategist, Rollins previously served as chief for domestic policy in Trump’s first administration and was most recently CEO of the American First Policy Institute. Now, she oversees the vast federal agency responsible for nearly all aspects of the nation’s food system, farm subsidies, forest management and conservation programs, food assistance, and more.

One of her first major personnel decisions was the appointment of Tom Schultz as the 21st Chief of the U.S. Forest Service, replacing Randy Moore, who retired at the end of February. Notably, Schultz is the first Forest Service Chief to be selected from outside the agency.

A NEW ERA Founded in 1905, the Forest Service manages 154 national forests and 20 grasslands across 43 states, playing a central role in federal land policy, natural resource conservation, and wildfire response. As chief, Schultz is tasked with overseeing the agency’s mission, including wildfire prevention,

sustainable timber management, and balancing conservation with economic land use.

Prior to his appointment, Schultz served as vice president of resources and government affairs at Idaho Forest Group, where he oversaw timber procurement operations and government relations. A former U.S. Air Force officer, Schultz also held leadership roles as director of the Idaho Department of Lands, where he managed several million acres of endowment lands, and in Montana’s Department of Natural Resources and Conservation, overseeing trust lands and water resources.

ROCKY ROAD Rollins and Schultz enter their roles facing a host of pressing challenges.

The Trump administration’s recent budget freezes, funding cuts, and federal workforce reductions have sparked concerns about the agency’s ability to fulfill its core responsibilities effectively. News reports indicate approximately 3,400 Forest Service employees—roughly 10 percent of its workforce—were laid off, with the majority of cuts affecting staff with less than two years of service. These reductions have raised questions about the agency’s capacity to effectively manage key functions such as wildfire prevention, forest restoration, trail maintenance, and watershed protection.

Staffing reductions have also impacted other USDA branches, including those providing technical and financial assistance to farmers and landowners for forestry and conservation projects. These cuts could delay or disrupt key initiatives focused on providing assistance to farmers and forest landowners recovering from natural disasters like Hurricane Helene and other major events.

Beyond the internal challenges, the USDA and Forest Service must also contend with significant external pressures, including trade disruptions stemming from tariffs affecting agriculture and wood products. In March, President Trump unveiled a sweeping set of levies, including a 10 percent tariff on all imports and even higher rates for some nations.

In response, other countries have announced retaliatory measures, many of which specifically target American agricultural exports.

LOOKING AHEAD Rollins and Schultz will face close scrutiny from stakeholders across the political spectrum as they settle into their leadership roles in a complex and evolving landscape. With concerns over funding and workforce reductions, wildfire management, and trade disruptions, the road ahead will require leadership, strategic coordination, and policy innovation.

Timberland Transactions Stumble In 2024 Amid Rising Prices U.S. timberland transactions remained sluggish in 2024, with approximately 1 million acres changing hands, according to a new analysis by Forisk Consulting. This figure mirrors 2023 levels but falls significantly below the decade-long average of 3 million acres per year.

Meanwhile, the NCREIF Timberland Index reveals a 26 percent increase in implied per-acre valuations since 2021. This surge, coupled with political and economic uncertainties—exacerbated by the 2024 election cycle and subsequent policy shifts—has made both buyers

and sellers more cautious. Potential sellers are retaining their high-value assets, while buyers struggle to justify acquisitions at elevated prices.

Forisk highlighted that 2016 data was skewed by the Weyerhaeuser/ Plum Creek merger, which accounted for 6.3 million acres. Similarly, 2022 (continued on page 7)

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New Administration Signals Major Shift In Forest Policy The second Trump presidency has been defined by controversial decisions and sweeping changes.

Within weeks of taking office, President Trump implemented policies that disrupted federal operations, strained international relations, and ignited widespread debate.

These federal policy shifts are expected to significantly impact the forestry, paper and packaging, and lumber industries. Funding freezes and cuts, government workforce reductions, new tariffs, and executive orders aimed at shrinking and reshaping the U.S. government creates a landscape for landowners, forestry professionals, and industry stakeholders that is rapidly evolving.

NEW TARIFFS Shortly after taking office in January, President Trump announced tariffs on key U.S. partners to address trade imbalances and national security concerns. These measures—which include imported timber, lumber, and derivative products—could provoke retaliatory actions while boosting domestic production by making foreign imports less competitive.

Some in the U.S. forestry sector support the move, believing it will boost demand for domestically grown wood, while others worry that the U.S. operators currently don’t have the

capacity to meet a significant uptick in demand. Furthermore, there are concerns that reduced international demand will lower exports, harm local timber markets, and lead to mill closures—especially among operations with slim profit margins.

projects. It also reduces bureaucratic hurdles—including modifications to Endangered Species Act consultations—and directs agencies to suspend regulations considered burdensome to timber production.

Rising domestic demand may boost softwood lumber prices and benefit forest landowners through higher stumpage values. However, these higher costs, along with rising interest rates, could also slow new home construction—the primary driver of domestic softwood demand.

These executive orders represent a major shift in federal forest policy, prioritizing economic growth and timber production on federal lands over environmental protection. In the Western U.S., where federal land is plentiful, increased timber production could intensify competition and adversely effect markets and private forest landowners. Although funding cuts and reductions in Forest Service staffing could hamper efforts to manage timber harvests on federal land.

EXECUTIVE ORDERS In addition to the new tariffs, the president issued two major executive orders in March, signaling a push to reshape the federal government’s timber policy: 1. Addressing National Security Threats from Imported Timber and Lumber: This order initiates an investigation to assess the risks of relying on imported timber and determine whether domestic production can meet national demand, ultimately aiming to secure a stable supply chain.

2. Immediate Expansion of American Timber Production: This order relaxes forest regulations to speed up timber harvesting and streamline approvals for federal forestry

MOVING FORWARD The new administration’s policies pave the way for a more aggressive push toward domestic timber production, with fewer regulations and stronger incentives for harvesting U.S. forests. However, the long-term effects of workforce cuts, tariffs, and deregulation remain uncertain. As the industry adjusts, landowners, forestry professionals, and policymakers must navigate both the challenges and opportunities presented by these changes.

Timberland Transactions (continued from page 6) figures were inflated due to The Forestland Group’s sale of 1.7 million acres to Blue Source Sustainable Forests (now Aurora Sustainable Lands) and The Ontario Teachers’ Pension’s redemption transaction of 870,000 acres from Resource Management Services. When these

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anomalies are excluded, the adjusted 10-year average stands at 2.1 million acres, still significantly higher than the transaction volumes of 2023 and 2024.

investors to adopt a “wait and see” approach, resulting in reduced transaction activity within the timberland sector.

Forisk’s findings suggest that current market conditions—marked by heightened valuations and ongoing uncertainties—are prompting

“If the appeal of timberland is low volatility with a decent coupon from harvesting timber, it seems like it’s doing just that,” concludes Forisk.

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Georgia Lawmakers Provide Aid To Forestry Sector Hurricane Helene wreaked havoc across the Southeast in late September, leaving a trail of destruction that prompted Georgia Governor Brian Kemp and state lawmakers to launch an ambitious recovery and relief effort.

Carving a path from Florida’s Big Bend through eastern Georgia and upstate South Carolina before triggering historic flooding in western North Carolina and east Tennessee, Hurricane Helene ranks as the seventh-costliest tropical storm to hit the U.S. since 1980. In Georgia alone, the storm is estimated to have caused $5.5 billion in damage to the state’s agriculture and forestry industries—the largest economic sector in Georgia—according to research by the University of Georgia. Losses to standing timber from the storm are estimated to have reached nearly $1.3 billion, according to the Georgia Forestry Commission.

The extensive damage to Georgia’s timber resources has spurred a series of executive and legislative actions aimed at supporting affected forest landowners and farmers.

STATE FUNDING Shortly after the storm, Georgia Governor Brian Kemp allocated $285 million in state funding to provide low-interest loans to farmers ($100 million) and grant funding for landowners ($185 million) to help with cleanup efforts aimed at removing downed trees from private lands—a crucial step to reduce fire hazards and facilitate safe recovery operations.

The state 2025 mid-year budget, approved by lawmakers and signed by the Governor in early March, includes an additional $113 million to continue the state’s emergency response efforts related to Hurricane Helene and $50 million to fund the state and local matching funds for

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debris removal from roads and rightsof-ways.

CONGRESSIONAL RELIEF Disaster funding from the federal government should be on its way to states soon.

In the final days of the 2024 Congressional term, Congress passed a continuing resolution that earmarked $21 billion in disaster aid specifically to support farmers and timberland owners across Georgia, Florida, and other affected states. Although the timing for this disaster aid has yet to be revealed, a bipartisan group of U.S. Senators and Representatives, led by Senators Ted Budd (R-N.C.) and Raphael Warnock (D-Ga.), sent a letter to Agriculture Secretary Brook Rollins urging her to prioritize disaster assistance and quickly publish clear guidelines on administering disaster relief aid for landowners and farmers impacted by the storms.

LEGISLATIVE AID During the 2025 legislative session that ended April 4, Georgia lawmakers approved several measures targeted to help mitigate the economic blow to the state’s timber sector. The legislation includes: • Temporary Tax Suspension: The county tax on harvested timber will be suspended from the last quarter of 2024 through the end of 2025 for the 66 counties under the federal emergency declaration. This measure is designed to ease the financial burden on timber producers as they work to salvage timber and recover from the storm’s impact.

Lawmakers allocated $17.4 million to offset the lost revenue for counties.

• Per-Acre Credit for Timberland Owners: Timberland owners affected by Hurricane Helene can receive a credit of up to $550 per acre for timber losses, provided they

replace at least 90 percent of the lost trees. This incentive is aimed at encouraging rapid reforestation and sustainable recovery practices.

Under the program, affected taxpayers must apply to the Georgia Department of Revenue for preapproval of tax credits based on their timber casualty losses by Dec. 31, 2025. Tax credits can only be claimed in the taxable year in which the restoration or replanting is completed. To qualify, reforestation efforts must restore each affected acre to a condition where it is expected to yield forest products or ecological services or produce timber at maturity valued at a minimum of 90 percent of the loss incurred. Timber must be replanted within the same county where the loss occurred, with projected values based on timber market conditions as of Sept. 25, 2024. Lawmakers set aside $200 million for this tax credit program.

• Tax Exemptions for Recovery Assistance: The legislation exempts federal crop insurance and disaster payments related to Helene’s damage from Georgia state income taxes—an estimated benefit of approximately $140 million. Additionally, state and local sales taxes on building materials used to rebuild essential agricultural structures such as chicken houses, barns, fences, and similar facilities, will be waived.

Hurricane Helene has left a profound impact on Georgia’s forestry and agriculture sectors, underscoring the need for coordinated federal and state responses. With billions in damages and widespread economic disruption, the combination of disaster relief funding, legislative tax relief measures, and targeted recovery initiatives represents a comprehensive effort to rebuild and revitalize the state’s key industries.

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New Partnership To Turn Pellets Into Aviation Fuel British power giant Drax Group has reached a multi-year agreement with U.S.-based Pathway Energy LLC to supply more than 1 million tons of sustainable biomass pellets annually for Pathway’s planned sustainable aviation fuel (SAF) plant in Port Arthur, Texas.

The deal marks a significant step in decarbonizing aviation and opens a potential new market for wood products in reducing emissions in one of the hardest-to-abate industries.

The proposed plant will produce 30 million gallons of carbon-negative jet fuel annually—equivalent to 150 million gallons of carbonneutral blended SAF. This output could power 5,000 long-haul flights

annually, significantly reducing aviation’s carbon footprint.

of CO2 annually while powering the SAF plant.

Construction of the $2 billion plant is set to begin in 2026, with commercial production expected by 2029.

While no final investment decisions have been made, Drax could support the project with a $10 million convertible loan note. The partnership also opens the door for Drax to supply biomass to additional SAF projects by Pathway in the future.

Made from renewable biomass, SAF offers an alternative to traditional jet fuels, a major source of global emissions. The International Air Transport Association estimates SAF could deliver 65 percent of the emissions cuts needed for aviation to achieve net-zero emissions by 2050.

Pathway’s Port Arthur facility will use bioenergy with carbon capture and storage (BECCS), a cuttingedge technology that captures and stores carbon dioxide. The system is projected to remove 1.9 million tons

Drax’s U.S. manufacturing operations are strategically located in the Southeast, where it produces biomass pellets in Mississippi and Louisiana, and at smaller satellite plants in Alabama and Arkansas, which are co-located with lumber mills for efficiency.

INLAND NORTHWEST TIMBER PRICES NORTH IDAHO AND THE INLAND NORTHWEST LOG PRICES

Timber Price Averages (TONS) $60 PULPWOOD $40 $60 $60 $20 $40 $40 $20 $20

2025 First Quarter Price Range (TONS)

TONWOOD

2021

2022

2023

2024

2025 Q1

2021 2021

2022 2022

2023 2023

2024 2024

2025 2025 Q1 Q1

Timber Price Averages (MBF)

PULPWOOD TONWOOD

$20

$40 $45 $45

$0

$20

$40

$60

$80

2025 First Quarter Price Range (MBF)

$600 PONDEROSA PINE

HEMLOCK $600 $600 $500

WESTERN WHITE PINE GRAND FIR/WESTERN LODGEPOLE PINE DOUGLAS FIR/WESTERN LARCH

$500 $500 $400 $400 $400 $300 $300 $300

2021 2021 2021

2022

2023

2022 2022

2023 2023

2024 2024 2024

Timber Price Averages (MBF) WESTERN RED CEDAR

$2500 $1750 $2500 $2500 $1000 $1750 $1750 $1000 $1000

2025 Q1 2025 2025 Q1 Q1

PONDEROSA PINE WESTERN WHITE PINE GRAND FIR/ WESTERN HEMLOCK LODGEPOLE PINE DOUGLAS FIR/ WESTERN LARCH

$325

$390 $390

$415

MidAtlantic $385

$405 West Gulf MidAtlantic Central Hardwood MidAtlantic West Gulf $430 Southeast West Gulf Central Hardwood $200 $300 Central Hardwood$400 Southeast Southeast

$480 $480 $500 $500

$600

2025 First Quarter Price Range (MBF)

CEDAR POLES WESTERN RED CEDAR $950 CEDAR POLES

2021

2022

2023

2024

2025 Q1

2021 2021

2022 2022

2023 2023

2024 2024

2025 2025

$850

$1,275 $2,100 $1200

$1550

$1900

$2250

Q1 facilities in the Inland Northwest. Landowners can often achieve better prices by working with a consulting Note: These figures reflect gatewood prices paid by competitive domestic Q1 forester. Prices are based on average-sized logs and standard log lengths—typically 16’6” and 33’. Higher prices may apply only in select locations within the Inland Northwest and may involve long haul distances from a landowner’s property. Additionally, pole values can vary significantly based on length. MBF stands for Thousand Board Feet.

F&W FORESTRY SERVICES, INC.

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9

SOUTHERN TIMBER PRICES PINE PULPWOOD ($/TON) Timber Stumpage Price Averages By Region SOUTHEAST

CENTRAL REGION

2025 First Quarter Price Range

WEST GULF

MID ATLANTIC

$20

$15

$10

$5

$0

2021

2022

2023

2024

2025 Q1

$0

PINE SMALL SAWTIMBER ($/TON) Timber Stumpage Price Averages By Region SOUTHEAST

CENTRAL REGION

WEST GULF

Q2 Q3 Q4 MID ATLANTIC

$25 $20 $15 $10 $5

2021

2022

2023

2024

2025 Q1

SOUTHEAST

WEST GULF

MID ATLANTIC

$25

$20

2021

F&W FORESTRY SERVICES, INC.

2022

2023

2024

$5

$5 $10 $15 $20 $25 $30 $35 $40

$5 $10 $15 $20 $25 $30 $35 $40

2025 First Quarter Price Range Q2 Q3 Q4

$30

$15

$20

$13 $32 LAFAYETTE, AL $15 $37 ORANGE PARK, FL $18 $28 MARIANNA, FL $24 $34 ALBANY, GA $16 $22 MACON, GA $6 $26 STATESBORO, GA1 $14 $18 FOUNTAIN INN, SC MidAtlantic $5 $5 CLINTON, TN West $4 Gulf $6 PARIS, TN Central Hardwood $8 $12 EL DORADO, AR Southeast $12 $17 CORINTH, MS 2 $12 $16 ANTLERS, OK $8 $12 HUNTSVILLE, TX $15 $18 CHARLOTTESVILLE, VA $0

PINE LARGE SAWTIMBER ($/TON) Timber Stumpage Price Averages By Region $35

$22

2025 First Quarter Price Range

$30

$0

$4 $12 LAFAYETTE, AL $4 ORANGE PARK, FL $4 $10 MARIANNA, FL $4 ALBANY, GA $12 $4 $10 MACON, GA $1 STATESBORO, GA 1 $6 $10 FOUNTAIN INN, SC MidAtlantic $0.50 CLINTON, TN West $2 Gulf $6 PARIS, TN Central Hardwood $0.50 $2 EL DORADO, AR Southeast $1 $3 CORINTH, MS $5 $10 ANTLERS, OK 2 $1 $6 HUNTSVILLE, TX $5 $10 CHARLOTTESVILLE, VA

2025 Q1

$18 $42 LAFAYETTE, AL $20 $37 ORANGE PARK, FL $26 $35 MARIANNA, FL ALBANY, GA $33 $51 MACON, GA $22 $29 STATESBORO, GA 1 $8 $26 FOUNTAIN INN, SC $20 $30 MidAtlantic CLINTON, TN West Gulf PARIS, TN Central Hardwood EL DORADO, AR $17 $32 Southeast CORINTH, MS $20 $14 ANTLERS, OK 2 $29 $33 HUNTSVILLE, TX $20 $30 CHARLOTTESVILLE, VA $17 $24 $5

$10 $15 $20 $25 $30 $35 $40 $45

$0

$5 $10 $15 $20 $25 $30 $35 $40

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SOUTHERN TIMBER PRICES (continued) HARDWOOD PULPWOOD ($/TON) Timber Stumpage Price Averages By Region SOUTHEAST

$15

CENTRAL REGION

2025 First Quarter Price Range

WEST GULF

MID ATLANTIC

$12 $9 $6

$3

$0

2021

2022

2023

2024

2025 Q1

$0

HARDWOOD SAWTIMBER ($/TON) Timber Stumpage Price Averages By Region SOUTHEAST

CENTRAL REGION

WEST GULF

MID ATLANTIC Q2 Q3 Q4

$70 $60 $50 $40 $30

2021

2022

2023

2024

$2

$4

$6

$8 $10 $12 $14 $16

2025 First Quarter Price Range

$80

$20

$3 $12 LAFAYETTE, AL $1 $12 ORANGE PARK, FL $4 $7 MARIANNA, FL $9 ALBANY, GA $4 $3 $7 MACON, GA $3 $13 STATESBORO, GA 1 $5 $9 FOUNTAIN INN, SC MidAtlantic $0.50 $3 CLINTON, TN West Gulf $2 $6 PARIS, TN Central Hardwood $2 $5 EL DORADO, AR Southeast $2 $7 CORINTH, MS 2 $6 $8 ANTLERS, OK $4 $5 HUNTSVILLE, TX $4 $10 CHARLOTTESVILLE, VA

2025 Q1

$22 $45 LAFAYETTE, AL $20 $35 ORANGE PARK, FL $20 $32 MARIANNA, FL $28 $38 ALBANY, GA $18 $35 MACON, GA $21 $36 STATESBORO, GA 1 $34 FOUNTAIN INN, SCMidAtlantic $18 West Gulf $45 CLINTON, TN Central Hardwood $30 $45 PARIS, TN $25 $50 EL DORADO, AR Southeast $30 $35 CORINTH, MS $20 $25 ANTLERS, OK 2 $28 $30 HUNTSVILLE, TX $35 $15 CHARLOTTESVILLE, VA $0

$65

$10 $20 $30 $40 $50 $60 $70 $80

All prices based on sales handled by or reported to F&W offices. If no sales occurred, prior quarter’s sales and other data are used to compile price range. Price ranges are due to proximity to mills, timber quality, logging conditions, type of harvest, and other local market conditions (i.e. weather, mill downtime, fuel cost, etc.).

Tax Tips For Forest Landowners Q2 Q3 Q4 With tax season underway and many forest landowners facing casualty loss deductions due to Hurricane Helene and other natural disasters in 2024, updated tax guidance is now available.

The Tax Tips for Forest Landowners: 2024 Tax Year fact sheet provides essential insights on timber-related income, deductions, tax incentives, and reporting requirements for private landowners managing F&W FORESTRY SERVICES, INC.

timber and forestland.

The fact sheet covers: • Timber sale income & capital gains • Deductible forestry expenses & reforestation incentives • Conservation tax benefits & casualty loss deductions

Timber Price Footnotes The lower range of timber prices reported

by Statesboro and other Southeastern locations during the first quarter likely reflects storm-damaged salvage wood harvested in the aftermath of Hurricane Helene.

1

Timber price data for Texarkana, Texas, are now being reported under F&W’s new Antlers, Okla., office.

2

Timber price data for Clarion, Penn., was discontinued in 2023 and is no longer being reported. Pennsylvania pricing is now reported from F&W’s office in New Oxford.

3

QUICK LINK DOWNLOAD THE FACT SHEET FROM THE USDA HERE.

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11

NORTHERN TIMBER PRICES RED OAK (MBF) Timber Stumpage Price Averages By Region NEW ENGLAND ADIRONDACKS, NY NEW OXFORD, PA BLUEFIELD, WV

2025 First Quarter Price Range

HERKIMER, NY

$600

RUMFORD, ME I $500

$400

$300 MONTPELIER, VT Herkimer, NY

$400

I

BLACK CHERRY

New England

I $300 ADIRONDACKS, NYAdirondacks, NY

$400

HERKIMER NY I

$300

Lorem ipsum

$200 $100

$300

New Oxford, $300PA

2022

2023

2024

$500

Bluefield, WV

NEW OXFORD, PA D

$535

$415

BLUEFIELD, WV D 2021

$425

$125

$225

$0

$300 $450

$150

$600

$750 $900

2025 Q1

BLACK CHERRY (MBF) Timber Stumpage Price Averages By Region

2025 First Quarter Price Range

ADIRONDACKS, NY HERKIMER, NY NEW OXFORD, PA BLUEFIELD, WV $1000

RUMFORD, ME

$800

MONTPELIER, VT

hard maple

I

ADIRONDACKS, NY

$600

HERKIMER NY

$400

$300

$400

Herkimer, NY New England

I

$400

$700

Adirondacks, NY D

BLUEFIELD, WV

Bluefield, WV

D

$100 $0

2021

2022

2023

2024

NEW ENGLAND ADIRONDACKS, NY NEW OXFORD, PA BLUEFIELD, WV

$200 $150

$300 $450

HERKIMER, NY

Q2 Q3 Q4

RUMFORD, ME I

$700

MONTPELIER, VT

$600

I

$275

$400

$275

$400

Herkimer, NY

$300 ADIRONDACKS, NY I New England

$500 $400

HERKIMER NY I

$300

NEW OXFORD, PA D

$200

BLUEFIELD, WV D 2023

2024

$500

Adirondacks, NY New Oxford, PA

$500

Bluefield, WV $157

$175 $0

2022

$750 $900

2025 First Quarter Price Range

$800

2021

$600

2025 Q1

HARD MAPLE (MBF) Timber Stumpage Price Averages By Region

$100

I

PA NEW OXFORD, PA $100New Oxford,$300

$200

$0

I

$150

$800 $542

$300 $300 $450

$600

$750 $900

2025 Q1

F&W FORESTRY SERVICES, INC.

Q2 Q3 Q4

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12

NORTHERN TIMBER PRICES (continued)

Lorem ipsum

SOFTWOOD SAWTIMBER (MBF) Timber Stumpage Price Averages By Region NEW ENGLAND

ADIRONDACKS, NY

2025 First Quarter Price Range

HERKIMER, NY

$250

RUMFORD, ME I

$225

MONTPELIER, VT I

$200

soft PULP

$180

$60

$180

Herkimer, NY New England

ADIRONDACKS, NY I

$110

HERKIMER NY I

$150

New $100 Oxford, PA

Lorem ipsum NEW OXFORD, PA

$400

Bluefield, WV

D

$125

BLUEFIELD, WV D 2021

2022

2023

2024

$0

2025 Q1

HARDWOOD PULPWOOD (TONS) Timber Stumpage Price Averages By Region NEW ENGLAND ADIRONDACKS, NY NEW OXFORD, PA BLUEFIELD, WV

$75

$150 $225

Q2 Q3 Q4

$6

RUMFORD, ME

Herkimer,$3NY

$3 NY Adirondacks,

ADIRONDACKS, NY

$4

New Oxford, PA

$2

NEW OXFORD, PA $1

$1

BLUEFIELD, WV $.50 2023

2024

SOFTWOOD PULPWOOD (TONS) Timber Stumpage Price Averages By Region NEW ENGLAND ADIRONDACKS, NY NEW OXFORD, PA BLUEFIELD, WV

$0

2025 Q1

HERKIMER, NY

Q2 Q3 Q4

$7

$4

$6

$4

$6

Bluefield, WV

HERKIMER NY

$3

$7

New England

MONTPELIER, VT

soft PULP

$5

2022

$375 $450

2025 First Quarter Price Range

$7

2021

$300

HERKIMER, NY

$8

$0

$200

Adirondacks, NY

$175

$100

$75

$5 $3 $4

$2

$6

$8

$10

$12

$6

$8

$10

$12

2025 First Quarter Price Range

$8

RUMFORD, ME

$7 $6

$2 NY Herkimer,

MONTPELIER, VT

$5

$1 $3 Adirondacks, NY

ADIRONDACKS, NY

$4

New Oxford, PA

$2

$4

$2

$4

Bluefield, WV

HERKIMER NY

$3 $2

NEW OXFORD, PA $1

$1

BLUEFIELD, WV $.25 $.25

$0

2021

2022

2023

2024

$0

2025 Q1

$4

New England

$4

$2

$4

All prices based on sales handled by or reported to F&W offices. If no sales occurred, prior quarter’s sales and other data are used to compile price range. Price ranges are due to proximity to mills, timber quality, logging conditions, type of harvest, and other local market conditions (i.e. weather, mill downtime, fuel cost, etc.). (D) = Doyle (I) = International (S) = Scribner F&W FORESTRY SERVICES, INC.

Q2 Q3 Q4

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TIMBER MARKET INDICATORS HOUSING PERMITS HOUSING STARTS

F&W’S LUMBER-USE ADJUSTED HOUSING STARTS

2.0

1.5

1.32 1.75

1.5

1.74

1.68 1.51

1.60

1.55 1.42

1.47 1.37

1.25

1.47

1.19

2024

1.16

2023

2024

0.9

0.6

0.3

2023

2022

1.14

1.43

1.0 2021

1.22

1.2

2025 Q1

IN MILLIONS OF UNITS (2025 AVERAGE THROUGH FEBRUARY)

2021

2022

2025 Q1

IN MILLIONS OF UNITS; TOTAL HOUSING STARTS WITH MULTIFAMILY STARTS REDUCED TO 40 PERCENT TO BETTER REFLECT LUMBER USAGE (2025 AVERAGE THROUGH FEBRUARY)

Source: US Department of Commerce

Source: US Census and F&W Forestry Services

LUMBER PRICES

RESIDENTIAL CONSTRUCTION

800

1000 800

922

919

866

799

923

$766

700

$704

600 500

600

$422

400 400

$362

$408

300 200

200

100 0

2021

2023

2022

2024

2021

2022

2023

2024

SOUTHERN PINE–$/MBF

Source: US Department of Commerce

Source: Random Lengths Southern Pine Composite Index

8

6.72%

6.83%

128

130

123

125

5.34%

6

2025 Q1

US DOLLAR

6.80%

7

5

121

120

2022

2023

120

2.96%

115

3 2

Q2

Q3

Q4

113

110

1 0

0

IN MILLIONS OF DOLLARS (2025 AVERAGE THROUGH FEBRUARY)

MORTGAGE RATES

4

2025 Q1

2021

2022

2023

2024

2025 Q1

105

2021

2024

2025 Q1

30-YEAR FIXED RATE

US DOLLAR VALUE AGAINST 26 MAJOR TRADING PARTNERS

Source: Freddie Mac

Source: Federal Reserve

F&W FORESTRY SERVICES, INC.

Q2

Q3

Q4

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14

F&W Forestry Services proudly serves a broad client base with comprehensive forest management solutions. Our team takes the time to get to know you, your land, and your goals to create a personalized plan for success.

OUR MISSION F&W’s mission is to help clients maximize the value and enjoyment of their land and forest resources according to their individual objectives, needs, and desires – whether economic, aesthetic, environmental, or recreational.

OUR SERVICES Timber Sales Property Management Field Support Services Forest Inventory & Mapping Forestland Accounting Technical & Analytical Real Estate Natural Capital