Rural South Reeling From Pulp Mill Closures, Could Changes To RFS Rules Revive Rural Communities?
By Marshall Thomas, President of F&W Forestry Services, Inc.
The recent closure of a pulp mill in Cedar Springs, Ga., got me thinking about the human impact of these mill shutdowns. Cedar Springs is a town of about 75 people. Early County, where it sits, has a population of around 10,000, half of whom live in Blakely, 16 miles from the mill. The mill employed over 500 workers, so this is a massive blow to Early County. The hit to the tax base will be damaging to schools, public services, and roads, and will likely result in city and county job cuts.
It doesn’t end there. The mill relied on many loggers to supply their wood. Now, with nowhere to send their harvests, more jobs will be lost, and bankruptcies are likely.
We’ve seen this story unfold before. It happened a few years back in Perry, Fla. Last December in Georgetown, S.C. Across the Southeast, similar shutdowns have hit communities hard. In larger cities, the impact is more muted, but it’s still there. In rural places like Cedar Springs and Perry, the consequences are profound.
The rural South recovered from the Great Depression, in large part, riding the explosion of pulp and paper mills across the South. Roughly 100 mills were built between 1930 and 1977, driving employment and local economies. But now, due to changing markets, lack of reinvestment, failure of some industry players to innovate, and government policy, we are losing this industry. Meanwhile, as pulp and paper production is declining in the U.S.,
it is expanding overseas. Combined with the current struggles in agriculture, this paints a troubling picture for the rural communities.
We have abundant forests. Trees are a renewable “green” raw material. We can deliver them to mills at competitive prices. So why aren’t more industries flocking to the South to turn our trees into the green products the world is demanding?
One reason is the federal Renewable Fuel Standard (RFS) regulated by the Environmental Protection Agency (EPA). The RFS requires transportation fuel sold in the U.S. to contain a minimum volume of renewable fuels. When first enacted in 2005, the EPA allowed commercially-grown trees to be used for renewable energy, much like corn for ethanol. But when the RFS was expanded in 2007, the EPA changed the rules, effectively excluding whole trees and limiting eligible wood feedstocks to forest residuals and first thinnings.
This single regulatory shift derailed major opportunities. For example, Georgia Power scrapped plans to convert a coal plant east of Cedar Springs to a wood-and-coal cofired facility—a project that would have created another significant market for wood, along with jobs and tax revenue. Instead, government policy chose corn over plantation-grown Southern pine as a renewable fuel source.
This is a local story, but it is also playing out across the South, echoing the decline once seen in the Rust
Federal Officials Set Timeline For Helene Aid
In December, Congress allocated $21 billion in disaster recovery funding to the U.S. Department of Agriculture (USDA) to support agriculture and timber producers affected by catastrophic weatherrelated events in 2023 and 2024.
One of the most devastating events was Hurricane Helene. The September storm swept through Florida’s Big Bend region, across Georgia and Upstate South Carolina before triggering historic flooding in Western North Carolina, Eastern Tennessee, and Southwestern Virginia. With an estimated $78.7 billion in total damages—including more than $1.9 billion in timber losses—Helene ranks as the seventh costliest disaster in the U.S. since 1980.
To distribute the aid, USDA is utilizing a combination of programs,
including block grants to states to cover losses related to crop, timber, livestock, and on-farm infrastructure damages. These block grants are designed to complement, not duplicate, other USDA aid programs. Individual state grant amounts have not been released.
The USDA must negotiate individual agreements with each state before releasing the block grant funds. Once finalized, eligible producers and timberland owners would apply for assistance through their state departments of agriculture. States that have submitted block grant requests include Florida, Georgia, North Carolina, South Carolina, Tennessee, and Virginia.
Although USDA published a detailed timeline for executing these agreements, it appears that no state
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has finalized one to date. As a result, it may still be several months before compensation reaches farmers and timberland owners.
In Georgia, lawmakers approved new state laws during the 2025 legislative session to provide tax relief to timber owners and farmers who suffered economic losses from Hurricane Helene. These laws include exempting federal disaster aid payments from state income taxes, temporarily suspending ad valorem taxes on timber harvests, and a tax credit for landowners to assist with restoration and reforestation expenses.
FOR MORE DETAILS, GO TO THE USDA 2023/2024 SUPPLEMENTAL DISASTER ASSISTANCE QUICK LINK
EFRP Deadline Extended
Forest landowners impacted by hurricanes in 2024 now have more time to apply for federal recovery assistance programs.
The USDA has extended the application deadline for the Emergency Forest Restoration Program (EFRP) to Aug. 4, 2025, for landowners affected by Hurricanes Helene, Milton, and Debby.
In addition, due to widespread damage from the Southern pine beetle in Georgia, the USDA has approved EFRP aid for all 159 counties in the state. The application window for beetle-related assistance began May 14 and runs through Aug. 14, 2025.
EFRP provides cost-share and technical assistance to help private forest landowners recover and reforest damaged lands. The program
covers up to 75 percent of the cost of debris removal, site preparation, replanting, erosion control, and other restoration activities.
Eligible applicants include nonindustrial private forest landowners in counties designated for hurricane disaster relief or Georgia forests impacted by Southern pine beetles. Applications must be submitted through local USDA Farm Service Agency (FSA) offices, which will determine eligibility and approve restoration practices.
QUICK LINK
FOR MORE INFORMATION, CONTACT YOUR LOCAL FSA OFFICE OR VISIT EMERGENCY FOREST RESTORATION PROGRAM (EFRP) | FARM SERVICE AGENCY
EUDR: U.S. Listed As Low Risk But Concerns Remain
The European Commission’s long-awaited release of country risk classifications under the EU Deforestation Regulation (EUDR) has been met with a mix of praise, skepticism, and concern from industry stakeholders and environmental watchdogs alike.
Announced on May 22, the country benchmarking exercise classified all 27 EU member states, along with major trade partners like the United States, China, Canada, and the United Kingdom, as “low risk.” Just four nations—Russia, Belarus, North Korea, and Myanmar—were deemed “high-risk,” while major exporters of forest commodities like Brazil, Indonesia, and Malaysia received a “standard risk” designation.
Countries classified as low-risk are allowed to follow a simplified due diligence process, while standardor high-risk countries must meet additional requirements, including conducting risk assessments and implementing mitigation measures. However, all countries—regardless of risk level—are still required to provide geo-location data and supply chain documentation.
The classifications are a key component of the EUDR, which aims to prevent the import of commodities linked to deforestation and forest degradation, including wood, cattle, cocoa, coffee, oil palm, rubber, and soy. Depending on a country’s risk designation, EU authorities will conduct compliance checks on 1 percent (low), 3 percent (standard), or 9 percent (high) of shipments entering the European market.
PUSHBACK ON METHODOLOGY
Environmental and industry groups have criticized the Commission’s benchmarking process for being too broad and potentially misleading. Environmental group Forest Trends warned that the system fails to factor
in crucial governance issues such as corruption and weak law enforcement in countries deemed “low risk.” Others noted that the Commission appeared to assess risk across all commodities collectively, rather than analyzing risk levels for each commodity individually.
Particular concern has been raised over low-risk designations for transshipment hubs like China, Vietnam, and Turkey—countries known to re-export high-risk timber— potentially enabling laundering of deforestation-linked materials into EU supply chains.
LIGHTER BURDENS
For many companies, the predominance of low-risk classifications means a lighter compliance burden.
“It feels as if EUDR has been watered down somehow, with so many countries classified as low risk,” said Alejandro Mata, European director for packaging and graphic paper at Fastmarkets.
“True, even low-risk countries need to provide geo-location coordinates, but the level of inspection and amount of data behind the due diligence statements (DDS) will make most companies under ‘low-risk’ more likely to comply,” Mata said. “That said, countries with clear deforestation practices will still face difficulties.”
INDUSTRY REACTION
However, leaders in the U.S. forest products sector remain deeply concerned, warning that the regulation represents a non-tariff trade barrier threatening over $3.5 billion in U.S. exports to the EU.
“The regulation’s requirements remain overly prescriptive and fail to acknowledge that the U.S. forest products industry supply chain does not contribute to global deforestation,” a coalition of nine U.S. forest sector trade groups said in a joint statement.
“Until necessary obligations of the regulation—particularly geolocation and traceability for low-risk supply chains—are modified or eliminated to be more proportionate to the negligible deforestation risk in the U.S., millions of private landowners, U.S. manufacturing jobs, and critical exports to the EU remain in jeopardy.”
Indeed, EUDR’s geolocation requirements are particularly burdensome for the U.S., where roughly 90 percent of fiber is sourced from nearly 11 million small, privately owned forest tracts. Mapping and verifying each individual parcel for compliance will impose exponentially higher costs compared to countries with more consolidated land ownership.
The regulation also mandates full traceability of secondary materials, such as sawmill by-products and forest residues, which account for about 40 percent of U.S. fiber inputs. These materials are often blended multiple times throughout production, making it virtually impossible to trace them back to a specific plot of land—a requirement many in the industry say is unworkable.
WHAT’S NEXT?
Originally enacted on June 29, 2023, the EUDR was scheduled to take effect in late 2024.
Implementation has since been delayed to Dec. 31, 2025, amid mounting pressure from global trade partners and stakeholders calling for adjustments.
While the EUDR marks an ambitious step toward deforestationfree supply chains, many in the forestry sector argue that without greater flexibility and realism in its enforcement, the regulation may do more harm than good—especially for countries like the U.S. with strong forest governance and sustainable practices.
New England States Take Aim At Forest Carbon Programs
The two most forested states in the U.S. have taken significant steps toward greater oversight of forest-based carbon offset initiatives, reflecting growing concern about transparency, tax implications, and long-term impacts on forest management.
As carbon markets expand, companies are offering landowners lucrative financial incentives to shift from managing their forests for timber production to carbon sequestration. While climate benefits are clear, communities in Maine and New Hampshire are raising red flags about the loss of critical tax revenue and the potential disruption to local economies and the forestry sector.
Lawmakers in these states passed legislative measures this year to take a closer look at the carbon sequestration programs that are tying up vast amounts of forests in their states.
Maine’s Public Law Chapter 96 now requires landowners to report when their forestland is enrolled in carbon credit programs. The measure
Marshall Thomas
defines key terms like “forest carbon credit” and mandates that landowners disclose key details, including program and registry names, acreage enrolled, enrollment periods, and the identity of the project developer.
Applicable to both voluntary and regulatory carbon markets, the law requires annual reporting each January. Landowners already participating in carbon programs must file an initial report by July 1, 2026. The measure is designed to give state officials a clearer picture of carbon-related land use and to track how carbon markets may be affecting forest management across Maine.
Neighboring New Hampshire passed House Bill 123, a more sweeping measure that imposes a temporary moratorium on new carbon sequestration agreements involving forest tracts larger than 500 acres. The ban took effect July 1 and will remain in place until Nov. 1, 2027.
In the interim, a newly formed Carbon Sequestration Programs Study Commission will investigate
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Belt. The damage is real and largely irreversible. And we have failed to develop a replacement industry, in part because of the government policy I just described.
The EPA recently announced updates to the RFS, but did not propose changes to the eligibility of wood-based feedstocks. However, the agency is seeking public input on “program enhancements to increase the use of qualifying woody biomass to produce renewable transportation fuel.”
Now is the time for landowners, the forestry sector, and rural communities to advocate for the expanded use of responsibly harvested wood under the RFS. Let lawmakers and the
EPA know that you want the same sustainably grown plantation trees that are hauled for pulpwood to also qualify under the RFS program. By pushing for expanded definitions and new pathways, we can ensure that commercially grown wood-based renewable fuels receive the same recognition and incentives long given to crops like corn—driving critical investment into forests, mills, and biofuel infrastructure across our heavily forested regions.
There will no doubt be opposition. In our next issue, we’ll report on the progress of the RFS standard and who’s for and against policy shift. I think you will find it interesting. Also,
how carbon credit agreements impact state and local tax revenue, forest management practices, the viability of the state’s logging industry, and whether purchasers of carbon credits generated from New Hampshire forests should be taxed by the state. Existing carbon agreements are allowed to continue, but landowners must provide documentation confirming enrollment.
To offset potential financial losses to municipalities, the law also introduces an optional payment-in-lieu-of-taxes provision, allowing landowners to compensate towns for the difference between historical timber tax revenue and current tax contributions.
Together, the new laws signal a growing effort to strike a balance between the environmental promise of carbon markets and their fiscal and regulatory consequences. While Maine is focusing on transparency and data gathering, New Hampshire has opted for a pause-and-study approach, aiming to legislate with clarity and foresight.
bringing attention to this issue also gives you a chance to comment and to help shape public policy in favor of rural communities. We need a collective voice.
This is personal for me. I know people who live and work in Early County—people who log the trees that supported the mill, and landowners who’ve grown trees in anticipation of the market the mill provided. I’m seeing firsthand how devastating these closures are to families and entire communities. That’s why I’ve deviated from my usual article format this issue but thought it was appropriate to share. I’ll return to my standard article next time.
Arkansas Mill Getting $1B Infusion
Green Bay Packaging has broken ground on a $1 billion expansion of its kraft paper mill in Morrilton, Ark., offering a glimmer of hope for pulpwood markets in central Arkansas which have struggled in recent years.
Dubbed Project PowerPack, the multi-year initiative will modernize the 60-year-old facility, more than doubling its production capacity, and significantly reducing its environmental footprint. Company executives say the investment reflects Green Bay Packaging’s long-term commitment to sustainable operations and economic growth in Arkansas.
The Morrilton mill produces premium liner board using virgin fiber sourced from the company’s lumber mill. The expansion will replace aging mill infrastructure, including the recovery and biomass boilers, and add an electric turbine generator designed to substantially reduce greenhouse gas emissions.
The mill’s kraft linerboard is used in corrugated packaging and supplies more than a dozen of the company’s converting plants and external customers.
Industry analysts noted the timing of the expansion amid broader market shifts. While new capacity can put downward pressure on prices, analysts from Truist Securities noted that the containerboard industry has already seen over 2.3 million tons in capacity closures in 2025 alone— about 5.5 percent of total supply.
“With the current supply reset and a multiyear timeline for this project, we believe the industry is better positioned today to handle additional capacity,” said Michael Roxland, senior packaging analyst at Truist.
As part of the investment, the company has also acquired 300 acres of land adjacent to the plant for potential future expansions. Green Bay Packaging currently owns more
than 11,600 acres in Conway County across 101 parcels.
Operating in Arkansas since 1965, the Wisconsin-based company now maintains five facilities across the state. The investment in Morrilton, located about 50 miles northwest of Little Rock, continues a string of strategic growth moves.
In a separate development, Weyerhaeuser Company has broken ground on a $500 million TimberStrand® facility near Monticello and Warren in Southeast Arkansas. The state-of-the-art facility will convert lower-quality logs and forest byproducts into high-value engineered wood products. With an annual production capacity of 10 million cubic feet once operational, the facility will source approximately 80 percent of its raw materials from companyowned land in the region. Currently, TimberStrand production is located exclusively in Canada.
Longleaf Restoration Milestones Reached In 2024
The America’s Longleaf Restoration Initiative marked a year of major milestones in 2024, reaching over 2 million acres of longleaf pine established since 2010 and surpassing 20 million acres of prescribed fire—a testament to one of the most successful forest conservation efforts in the nation.
The newly released 2024 Accomplishment Report underscores how public-private collaboration continues to transform landscapes across the Southeast. In fiscal year 2024 alone, partners recorded 2.7 million acres of longleaf management activity, including planting, thinning, controlled burns, and habitat maintenance on both public and private lands.
Longleaf pine forests not only offer superior-quality timber and bolster rural economies, but also deliver critical ecosystem services—clean air and water, habitat for rare species, recreational value, and even national security benefits. These fire-adapted forests reduce wildfire risk and help buffer military training installations from encroaching development, ensuring mission readiness.
At Fort Stewart in coastal Georgia— home to the Army’s 3rd Infantry Division—110,000 acres were burned and 200 acres of new longleaf planted in 2024. Across all Department of Defense installations, over 400,000 acres were burned and 11,000 new acres established, illustrating how longleaf restoration supports both
ecological and defense goals.
The report highlights the downlisting of the Red-cockaded Woodpecker from endangered to threatened—a milestone made possible by decades of prescribed fire and habitat restoration. Longleaf pine ecosystems have also gained new attention in the emerging mass timber market. Clemson University’s new mass timber forestry and conservation facility, built using sustainably sourced longleaf pine harvested from a South Carolina forest, exemplifies how conservation and innovation can go hand-in-hand.
“This initiative continues to prove that collaborative conservation works,” said 2024 Council Chair Jason Dockery.
Trump’s Second Term Sparks Turbulent Reset
The dramatic return of Donald J. Trump as the 47th President of the United States has ushered in a deeply polarizing chapter in American politics, marked by sharp contrasts, bold promises, and widening national divisions.
Launching his second term with a pledge to “finish what we started,” Trump has set a turbulent tone in Washington, vowing aggressive action on immigration, trade, and the federal bureaucracy. The result: a fast-moving and often chaotic wave of executive actions that are already reshaping the federal government, unsettling global markets, and putting key sectors—including forestry— on alert.
Below are key developments with implications for the forestry sector: TAXES
Senate Republicans are working on their version of President Trump’s sweeping tax-and-spending bill, making several significant changes to the House-passed legislation. The Senate plan preserves most of the 2017 tax cuts, which are set to expire on Dec. 31 unless Congress takes action. The plan also includes proposals drawn from Trump’s campaign pledges, such as eliminating taxes on tips, overtime pay, and Social Security benefits, and also would permanently increase the basic estate and gift tax exemption amount and the generation-skipping transfer tax exemption. Key differences from the House version include changes to clean-energy credit timelines and the reduction of the state and local tax (SALT) deduction cap to $10,000— setting up a clash with House Republicans from high-tax states.
Lawmakers are aiming to have the final version of the bill delivered to President Trump by July 4, but intraparty disputes over SALT,
energy credits, and other provisions may complicate efforts to unite Republicans behind the final package by that deadline.
TARIFF TURMOIL
Uncertainty regarding tariffs continues to challenge companies across industries. Overall, Trump’s tariff approach remains aggressive and fluid: steep increases on metals, selective trade deals with the UK and China, and legal battles ahead. July will be pivotal as paused tariffs expire and Congress, courts, and global partners press for resolution
FEDERAL LOGGING PUSH
The U.S. Department of Agriculture (USDA) unveiled a $200 million initiative to expand timber harvests on federal lands. The effort, led by Secretary Brooke Rollins, implements President Trump’s executive order to increase domestic timber supply and streamline federal forest management.
Under the new strategy, the Forest Service will ramp up logging on federal lands by 25 percent, opening up approximately 43 million acres for harvest, mostly in western states, with a harvest target of 4 billion board feet annually by 2028. A concurrent emergency declaration covers 112.6 million acres of highrisk federal lands, allowing expedited project approvals and regulatory waivers.
The Forest Service is directing regional offices to fast-track timber projects, expand partnerships with states and tribes, and use accelerated environmental reviews. The initiative also funds road and bridge work to support logging access and encourages the use of long-term contracts. Officials say the changes are essential to improving forest health, reducing wildfire danger, and supporting American wood markets.
Despite the ambitious target, the initiative faces several hurdles. A reduced Forest Service workforce is expected to hinder implementation efforts. Additionally, sawmills and logging infrastructure in the areas targeted are depleted—today’s capacity is only a fraction of what it was decades ago—limiting the impact of such a large directive. The plan also faces likely legal challenges, which could delay progress and drive up costs.
NEPA RULING
The federal government may get some relief from environmental litigation based on a recent unanimous U.S. Supreme Court decision that has significantly curtailed the scope of reviews required under the National Environmental Policy Act (NEPA).
In a landmark ruling, the Court held that federal agencies are not obligated to assess every possible indirect or speculative environmental impact of a project. Writing for the majority, Justice Brett Kavanaugh emphasized that NEPA only requires agencies to evaluate environmental effects they are directly responsible for—and courts must defer to those decisions.
The ruling, a win for resource developers and the Trump administration, is expected to accelerate permitting for forestry, energy, and infrastructure projects. Critics warn it weakens environmental oversight and public accountability.
WOTUS DEFINITION
The Environmental Protection Agency (EPA) and Army Corps of Engineers released new implementation guidance on Waters of the U.S. (WOTUS) and opened a public feedback process in response to the Supreme Court’s 2023 Sackett v. EPA decision. The guidance
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Trump’s Turbulent Reset
narrows the WOTUS definition under the Clean Water Act, requiring that adjacent wetlands must have a continuous surface connection to a traditional navigable water to fall under federal jurisdiction. This replaces the previously used “significant nexus” test.
As part of this process, the agencies rescinded prior interpretations that allowed wetlands connected via discrete features like ditches or culverts to be considered jurisdictional. The revised approach aims to increase national consistency and reduce regulatory ambiguity.
Industry groups, including the Forest Landowners Association, welcomed efforts to improve clarity and limit regulatory overreach, while emphasizing the need for durable definitions that protect water resources without imposing burdens on working lands. Environmental stakeholders remain concerned that the changes may reduce critical protections for wetlands and streams.
ESA ROLLBACK
The Interior Department has proposed a major rollback of a key regulation under the Endangered Species Act (ESA), seeking to eliminate habitat modification as a form of “harm” to protected species. The Fish and Wildlife Service and the National Marine Fisheries Service announced they will repeal the 1975 rule that defined “harm” to include significant habitat degradation, a long-standing interpretation used to protect ecosystems critical to species survival.
The agencies argue that the prior definition—upheld by the U.S. Supreme Court in the 1995 Babbitt v. Sweet Home decision— can no longer stand following the
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Court’s 2024 decision to overturn the Chevron deference. This legal doctrine had allowed federal agencies to adopt reasonable interpretations of ambiguous laws. Now, the administration claims it must adopt the “single best meaning” of the ESA and return to a narrower view of “harm,” echoing the dissent of the late Justice Antonin Scalia, who argued the ESA should not be used to broadly regulate private land.
Critics say the proposed change guts the ESA’s core protections, since habitat destruction is the leading cause of extinction and warn it will accelerate species loss. The proposal is expected to face legal challenges.
WILDFIRE OVERHAUL
President Trump signed an executive order in June directing the Department of the Interior and the Forest Service to merge their federal wildland firefighting programs within 90 days. The order aims to centralize firefighting efforts while also streamlining offices, budgets, and resources to improve the government’s response to increasingly severe wildfires.
Roughly 10,800 Forest Service firefighters would be moved to Interior, which currently manages about 6,000 firefighters. The initiative aligns with the administration’s FY2026 budget proposal, which goes further by calling for the creation of a unified U.S. Wildland Fire Service within Interior, consolidating all federal wildfire operations under a single agency.
Some federal wildland firefighters are expressing concerns about the effectiveness of merging the two wildfire programs. They worry the consolidation could lead to logistical disruptions and added costs, especially with wildfire season
already underway.
CLIMATE-SMART CANCELLATIONS
The Trump administration has terminated or restructured billions in climate and clean energy funding, reversing major initiatives from the Biden era and signaling a sweeping shift in federal environmental and energy policy.
At the USDA, Secretary Rollins canceled the $3.1 billion Partnerships for Climate-Smart Commodities program, calling it a “slush fund” that diverted resources from farmers to nonprofits and corporate intermediaries. It will be replaced with a new “Advancing Markets for Producers” initiative, requiring at least 65 percent of funds go directly to producers.
Environmental groups and industry leaders warn the cuts could set back U.S. efforts to lead in clean energy innovation.
TRUMP BUDGET PROPOSAL
The Trump administration released a high-level budget proposal for fiscal year 2026 that calls for a $163 billion—or roughly 23 percent—reduction in nondefense discretionary spending. The proposed cuts would affect a broad range of programs, including those related to science, education, and agriculture. Defense and Homeland Security spending would remain untouched, as would entitlement programs such as Social Security, Medicare, and Medicaid, which together represent the largest share of federal expenditures.
Several provisions in the proposal would have far-reaching consequences for forestry and conservation efforts. The Forest Service’s total budget would fall from $16.8 billion to $4 billion, with some of those funds being redirected to create the new Wildland Fire (continued on page 11)
G-P Reshapes Footprint With Closures/Investments
Georgia-Pacific, one of the nation’s leading producers of paper and building products, is undergoing a significant transformation of its manufacturing footprint, marked by the closures of two major mills and substantial investments in others aimed at boosting long-term competitiveness and operational efficiency.
On May 2, the company announced the immediate closure of its Emporia Plywood mill in southeastern Virginia, impacting approximately 550 employees. Normal operations ceased the same day, and the site will be permanently shuttered by July 1. The company cited ongoing challenges in the housing market and a 30-year low in existing home sales, which have dampened demand for plywood used in home renovations.
Just two weeks later, G-P revealed it will also close its Cedar Springs containerboard mill in
southwest Georgia, affecting 535 employees. While production will continue for a short time to fulfill customer commitments, most jobs will be eliminated by Aug. 1. The company stated that the decision was based on the facility’s long-term competitiveness.
The closures represent significant losses for their respective communities and wood markets that support forest landowners in the region.
Even as it shutters mills, G-P is investing in other facilities:
• In Crossett, Ark., the company is investing $90 million to expand consumer tissue production, creating 50 new jobs and bolstering production of retail bath tissue products. The latest investment brings G-P’s total commitment to the Crossett mill to more than $250 million since 2019.
• In Prosperity, S.C., a $14 million
upgrade is underway at G-P’s plywood mill. The investment includes boiler enhancements aimed at increasing fuel efficiency and reducing environmental impact. The site has been a key producer of signature products like Plytanium® plywood for decades.
• And in Brewton, Ala., the company recently completed a multi-year modernization of its containerboard mill. Since acquiring the site in 2007, G-P says it has invested nearly $1 billion to transform the oncestruggling operation into an industry leader. The site now features state-of-the-art recovery systems and energy efficiency improvements.
G-P’s moves reflect a corporate strategy that seeks to align manufacturing capacity with market demand, drive modernization, and strengthen long-term competitiveness
Kimberly-Clark Partners With Brazil’s Suzano
Kimberly-Clark announced a strategic partnership with Brazilbased pulp giant Suzano, creating a global powerhouse in tissue and personal hygiene products as part of its broader business transformation strategy. The newly formed joint venture, valued at approximately $3.4 billion, marks a major shift for the maker of Kleenex and Scott paper products as it sharpens its focus on higher-growth, higher-margin categories.
Under the agreement, KimberlyClark will contribute substantially all of its International Family Care and Professional business—serving more than 70 countries—into the new entity. Suzano will acquire a 51
percent controlling stake for $1.73 billion in cash, while Kimberly-Clark will retain 49 percent ownership. The deal includes 22 manufacturing facilities and approximately 9,000 employees globally.
The transaction is the latest move in Kimberly-Clark’s multi-year strategy to streamline its operations and reorient toward categories with stronger long-term returns. Following a 2024 internal reorganization, the International Family Care and Profession segment was identified as the smallest and lowest-margin of the company’s three global divisions. In contrast, its personal care and North America-focused units generated a combined $16.7 billion in sales last
year and are expected to deliver faster growth.
For Suzano, the world’s largest pulp producer, the venture accelerates its international expansion and strengthens its tissue market position. The company previously acquired Kimberly-Clark’s Brazil-based tissue assets in 2023 and has since announced further investments, including a $115 million tissue mill in Espírito Santo, Brazil. Last year, Suzano made an offer to buy International Paper but was unable to reach a deal.
The transaction is expected to close by mid-2026 pending regulatory approvals and final corporate restructuring.
West Coast Lumber Company Expanding To South Carolina
A fourth-generation, family-owned lumber company based in Oregon has announced plans to invest $225 million to construct a new, state-ofthe-art sawmill in Allendale County, S.C.—its first facility on the East Coast.
Portland-based Hampton Lumber will construct a 375,000 square foot sawmill in Fairfax, located in the southwestern region of the state, that will specialize in producing Southern Yellow Pine framing lumber. Construction is set to begin later this year, with operations slated to start in early 2027.
CEO Randy Schillinger said the strong support from state and local officials helped finalize the company’s
decision to expand to South Carolina. “We’re happy to join the healthy wood products industry already present in the region, and we look forward to building partnerships in the area and supporting the communities in and around Allendale County,” he said.
Hampton currently operates nine sawmills in Oregon, Washington, and British Columbia and is known for its commitment to sustainable forestry. The company markets its wood products globally and also operates wholesale and advanced manufacturing affiliates, including Idaho Timber and RedBuilt.
The Fairfax project is expected to be among the most efficient dimension lumber mills in the region. Officials
INLAND NORTHWEST TIMBER PRICES
say the facility will help meet growing demand for housing materials across the U.S. while contributing to longterm economic growth in South Carolina’s rural communities.
In recent years, South Carolina’s forestry sector has faced challenges, including mill closures and reduced timber consumption. The shutdowns of International Paper’s Georgetown mill and WestRock’s Charleston facility have particularly disrupted pulpwood markets, destabilizing supply chains and leaving landowners searching for new outlets for pulpwood.
In the face of industry headwinds, Hampton’s new mill brings a fresh wave of opportunity for South Carolina’s forestry community
Note: These figures reflect gatewood prices paid by competitive domestic facilities in the Inland Northwest. Landowners can often achieve better prices by working with a consulting forester. Prices are based on average-sized logs and standard log lengths—typically 16’6” and 33’. Higher prices may apply only in select
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.
LAFAYETTE, AL
ORANGE PARK, FL
MARIANNA, FL
ALBANY, GA
MACON, GA
STATESBORO, GA
FOUNTAIN INN, SC
CLINTON, TN
PARIS, TN
EL DORADO, AR
CORINTH, MS
ANTLERS, OK
HUNTSVILLE, TX
CHARLOTTESVILLE, VA
GA
STATESBORO, GA
FOUNTAIN INN, SC
CLINTON, TN
PARIS, TN
EL DORADO, AR
CORINTH, MS
ANTLERS, OK
HUNTSVILLE, TX CHARLOTTESVILLE, VA
GA
STATESBORO, GA
FOUNTAIN INN, SC
CLINTON, TN
PARIS, TN
EL DORADO, AR
CORINTH, MS
ANTLERS, OK
HUNTSVILLE, TX CHARLOTTESVILLE, VA
Timber Stumpage Price Averages
PINE LARGE SAWTIMBER
SOUTHERN TIMBER PRICES (continued)
ORANGE PARK, FL
MARIANNA, FL
ALBANY, GA
MACON, GA
STATESBORO, GA
FOUNTAIN INN, SC
CLINTON, TN
PARIS, TN
EL DORADO, AR
CORINTH, MS
ANTLERS, OK
HUNTSVILLE, TX
CHARLOTTESVILLE, VA
GA
TN
GA
INN, SC
TN
AR
MS
OK
TX
CHARLOTTESVILLE, VA
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.).
Trump’s Turbulent Reset
(continued from page 7)
Service within Interior. The proposal also calls for eliminating funding for Forest Service Research programs, with the exception of the Forest Inventory and Analysis (FIA) program. According to Politico’s Greenwire, the administration is preparing to shift the Forest Service’s scientific focus toward timber and wildfire, and away from topics such as pests, disease, forest ecology, and climate change.
The budget proposal would also reduce funding for USDA’s National Institute of Food and Agriculture, which supports a broad array of university-based research, education, and extension programs across forestry, agriculture, food systems, and nutrition.
Major cuts are also proposed for other key agriculture agencies. The Farm Service Agency would face a
$372 million reduction, and funding for the Natural Resources Conservation Service would plummet from $916 million to just $112 million.
Although the president’s budget is advisory and requires congressional approval, it offers a clear view of the administration’s policy direction—and sets up a potentially fierce budget battle on Capitol Hill.
NORTHERN TIMBER PRICES
Timber Stumpage Price Averages By Region RED OAK (MBF)
Timber
Price Averages By Region
ADIRONDACKS, NY HERKIMER, NY
PA BLUEFIELD, WV NEW ENGLAND ADIRONDACKS, NY HERKIMER, NY NEW OXFORD, PA BLUEFIELD, WV
RUMFORD, ME
MONTPELIER, VT
ADIRONDACKS, NY
HERKIMER NY
NEW OXFORD, PA
BLUEFIELD, WV
Herkimer, NY
New England Adirondacks, NY
New Oxford, PA Blue eld, WV
RUMFORD, ME
MONTPELIER, VT
ADIRONDACKS, NY
HERKIMER NY
NEW OXFORD, PA
BLUEFIELD, WV
RUMFORD, ME
MONTPELIER, VT
ADIRONDACKS, NY NEW OXFORD, PA
WV
Herkimer, NY
New England Adirondacks, NY New Oxford, PA Blue eld, WV
Stumpage
NORTHERN TIMBER PRICES
ENGLAND ADIRONDACKS, NY HERKIMER, NY NEW ENGLAND ADIRONDACKS, NY HERKIMER, NY NEW OXFORD, PA BLUEFIELD, WV
RUMFORD, ME
MONTPELIER, VT
ADIRONDACKS, NY
HERKIMER NY
PA
WV
NY
PA BLUEFIELD, WV
Source: US Department of Commerce IN MILLIONS OF UNITS; TOTAL HOUSING STARTS WITH MULTIFAMILY STARTS REDUCED TO 40 PERCENT TO BETTER REFLECT LUMBER USAGE (2025 AVERAGE THROUGH MAY )
IN MILLIONS OF DOLLARS (2025 AVERAGE THROUGH MAY)
Source: US Department of Commerce HOUSING PERMITS HOUSING STARTS
Source: Federal Reserve IN MILLIONS OF UNITS (2025 AVERAGE THROUGH MAY )
Source: US Census and F&W Forestry Services
Source: Freddie Mac SOUTHERN PINE–$/MBF
Source: Random Lengths Southern Pine Composite Index
DOLLAR VALUE AGAINST 26 MAJOR TRADING PARTNERS
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.
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