F&W Forestry Report - Winter 2024-2025

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

WINTER 2024-25 | NO. 163

It’s The Economy, Stupid

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

The recent election highlights the enduring relevance of the political slogan from Bill Clinton’s successful 1992 presidential campaign, and it also aptly captures where we are in terms of forestry as a business: It’s the economy!

The products that are made from the trees we grow are integral to all aspects of the economy: packaging, lumber, panels, paper, sanitary products, and countless other essentials used to ship products and build America. Only sanitary products are relatively unaffected by the economy—somehow toilet paper sales weather economic slumps. Interestingly, I have heard that beer packaging tends to flourish in downturns as well. But toilet paper and beer sales aren’t enough to drive enough demand for our trees to support high prices.

We need an economic turn for the country—and the world—in order to recover from the price and demand doldrums we are currently experiencing.

Unfortunately, several indicators reflect the challenging landscape: housing starts are down, mortgage rates are up, lumber prices have fallen. As a result, prices for most types of sawtimber trees are down (see graphs on pages 8 to 11). Compounding the situation are pulp mill closures, such as the recent shutdown of the International Paper mill at Georgetown, S.C., leaving coastal South Carolina without a pulp market. Across the Southern U.S., there have been four or five other pulp mill closures, significantly reducing or eliminating demand for

pulpwood-sized trees in certain regions.

The only thing good about all of this is that it is getting so bad it just seems like it has to turn around soon. And maybe it is starting.

Weyerhaeuser announced it will spend $500 million to build a TimberStrand® plant in Arkansas for manufactured wood products. Also in Arkansas, Georgia-Pacific announced it will invest $90 million in its Crossett mill to increase—you guessed it—premium toilet paper production. Yes, even toilet paper has a luxury market!

(See page 6.)

And in a kind of strange form of good news, Enviva is emerging from bankruptcy in a strong financial state under a new majority owner. It will now complete its Epps, Ala., pellet plant, which will produce 1 million metric tons of pellets annually, the equivalent to about 2.5 million tons of pulpwood-sized trees. This is great news for the landowners in that region (see page 6).

Economic forecasts suggest a recovering economy in 2025, which is exactly what we need. If it happens, I am hopeful that towards the end of the year we will see some increased demand and rising prices for our trees.

It’s the economy, folks. That’s what is important to us right now.

On the political front, our wrap-up on page 4 outlines potential Trump administration moves that could affect our markets. Some might not call this political, but I do: the European Union has delayed implementation of its (continued on page 9)

INSIDE THIS ISSUE PAGE 2

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Sustainable Forestry Management Grants

Issues to Watch in the New Administration

EUDR Update

Forestry Industry Expanding in Arkansas

Disaster Aid Funding

USDA Awards $335 Million To Support Sustainable Forest Management The U.S. Department of Agriculture (USDA) announced in December a new round of funding to strengthen financial incentives for private forest landowners to manage their forests sustainably and to permanently conserve private forests in partnership with states. The nearly $335 million investment focused on combating climate change is part of the Biden administration’s Inflation Reduction Act.

SUSTAINABLE FORESTRY Of the total funding, $210 million has been allocated through competitive grants to state agencies, non-profits, and private entities.

These grants are designed to encourage sustainable forest management practices and connect landowners with opportunities in emerging climate markets.

Key initiatives funded through these grants include:

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.

• Incentives for Climate-Friendly Practices: Programs to engage underserved and small-acreage landowners in practices that increase carbon sequestration and storage.

• Cost-Share Payment Programs: State-endorsed programs to help private landowners afford forest management practices such as thinning trees and removing invasive species. These practices reduce risks of forest pests, diseases, and catastrophic wildfires.

• Market Access: Support for smaller and underserved landowners to access voluntary carbon markets, enhancing the economic viability of sustainable forestry.

CONSERVING FORESTS Nearly $125 million will be dedicated to conserving 105,000 acres of forestlands across 10 states through the Forest Legacy Program. This program, conducted in partnership with states, tribes, and local communities, identifies critical private forestlands for conservation.

Conservation efforts include permanent protection, with some forestlands remaining under private ownership but permanently conserved, and public land acquisition where states purchase and manage the property as public land.

This funding builds on $420 million allocated in 2024 to conserve more than half a million acres through the Forest Legacy Program.

HIGHLIGHTED PROJECTS Among the organizations and agencies selected for funding in the latest round are: • State Forestry Agencies: More than 35 state forestry agencies,

universities, and non-profit organizations nationwide were awarded $140 million to provide cost-share assistance to private forest landowners for climate mitigation and forest resilience practices.

• New England Forestry Foundation: Awarded $4.3 million to work with forest landowners to protect Maine’s oldest forests and implement practices on nearby lands that will help store carbon and protect ecosystem health and biodiversity. The project also includes partnering with landowners to defer timber harvesting in forests that are at least 150 years old, known as late successional old growth (LSOG) stands.

• American Forest Foundation (AFF): Granted $5 million to expand the Family Forest Carbon Program (FFCP) in the Southeast, benefiting rural family landowners in Alabama, North Carolina, South Carolina, and Tennessee. AFF will coordinate with USDA, state forestry agencies, and local partners to reach historically underserved and underrepresented landowners, providing them with financial and technical support to access markets and sustainably manage their working forests. This funding is in addition to the $20 million AFF received from the USDA in March 2024 for FFCP. • Texas A&M Forest Service: Received $5 million to increase access for small-acreage and disadvantaged landowners in the Pineywoods region of East Texas.

The project is expected to result in improved long-term carbon stewardship on approximately 12,000 acres managed by 220 landowners. (continued on page 3)

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Family Forest Carbon Program Enrolls 100,000 Acres The Family Forest Carbon Program (FFCP), which connects family forest owners to voluntary carbon markets, has achieved a milestone of enrolling 100,000 acres. Launched in 2019 as a partnership between the American Forest Foundation (AFF) and The Nature Conservancy, the program aims to combat climate change by supporting smaller family forest owners who have been historically excluded from carbon markets due to complex requirements and high upfront costs.

plan developed by a professional forester. The management plan is tailored to the land and aims to help landowners implement practices that improve forest health and are verified to capture more carbon.

Landowners retain access to their forester for ongoing guidance and support throughout the agreement.

While the management plans may involve varying land-use practices, there are no restrictions on recreational activities such as hunting, fishing, or non-timber commercial activities.

The 100,000 acres enrolled in FFCP span 19 states and comprise 750 family forest owners, most of whom have never established a forest management plan. To qualify, landowners must own a minimum of 30 acres and commit to a 20-year agreement. In return, the program pays them to maintain and grow their forests, thereby easing financial burdens such as property taxes.

The program is funded by sales of verified carbon credits, private and public charitable donations, and grants, including support from the Inflation Reduction Act (IRA). These funds help cover the salaries of foresters, who assess the property, map the forest, document plant and wildlife species, habitats and soil type, and evaluate the health and maturity of the trees. The forester can also connect landowners to state and federal programs for additional financial support for forest

Landowners receive annual payments based on acres enrolled and a free, customized management

improvements.

To enhance monitoring and assess forest health and carbon improvements, the program will leverage the Lens Platform by Upstream Tech. This advanced technology will allow for remote observation of enrolled properties to ensure compliance with program requirements. It will also help scale sustainable forestry practices to small and historically disadvantaged landowners.

In February, AFF will hold its first auction for FFCP carbon credits.

This auction will provide buyers with a transparent and streamlined way to purchase credits while supporting rural communities and small landowners. According to AFF, the auction will allow companies to “access all due diligence resources in one central place over several weeks and then bid on credits during a one-week time period.” The hybrid terms will require buyers to provide a partial upfront payment to initiate projects, with the balance to be paid upon delivery of the credits.

USDA (continued from page 2) • Maine Department of Agriculture, Conservation, and Forestry: Awarded $5 million to incentivize forest stewardship practices with clear carbon storage and sequestration benefits that are cost prohibitive for many landowners under current economic and market conditions.

Approximately 400 landowners will participate in the program, with a minimum of 160 who are underserved.

• Upstream Carbon: Granted $1.9 million to pilot a forest

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protection program aimed at preventing forest conversion due to urbanization and suburban growth. The program will focus on small-acreage and underserved landowners in the Northeast, Southeast, and Great Lakes regions.

• Thompson Timber Company: Awarded $2 million to explore carbon finance to benefit the domestic wood products industry.

The company will develop a system to track and trace forest products across the supply chain

to connect supply chain partners and landowners in northern Alabama and southern Tennessee with carbon markets.

The intent of these investments is to address climate change by supporting private forest landowners to improve forest health. By incentivizing sustainable practices and protecting vulnerable forestlands, the funding aims to strengthen the role of private forests in carbon sequestration and biodiversity conservation while benefiting rural communities.

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Trump’s Return Signals Major Policy Shifts After another highly divisive election, Donald Trump is set to return to the White House with a policy agenda that sharply contrasts with the Biden administration’s priorities, particularly on taxes, trade, and environmental policy.

Republicans have a solid majority in the Senate and a slim majority in the House, so the conditions are favorable for the president-elect to advance his ambitious legislative goals outlined during his campaign.

Forestry and natural resources are unlikely to receive immediate national focus, but ripple effects are expected to be felt from broader priority issues, particularly as they relate to tariffs and immigration.

As the new administration takes shape, here are some of the areas expected to impact the forestry sector.

TRADE & TARIFFS President-elect Trump is well-known for his aggressive use of tariffs as a tool in economic and trade policies.

During his previous administration, Trump imposed tariffs on a wide range of goods, particularly targeting China as part of a trade war aimed at reducing the U.S. trade deficit and protecting domestic industries. These measures sparked retaliatory actions from trading partners.

Trump has signaled that tariffs will once again play a prominent role in his economic agenda. He has floated the idea of a “universal baseline tariff” on imports, which would impose a blanket tax on all goods entering the U.S. In late November, he suggested enacting an even steeper tariff —25 percent—on all products from Mexico and Canada.

Proponents argue that tariffs could incentivize domestic production and reduce reliance on foreign manufacturing, while critics warn it could increase costs for American consumers and businesses, stoke F&W FORESTRY SERVICES, INC.

inflation, and harm international trade relationships.

As Trump’s policies materialize, the potential for new tariffs and trade restrictions will be a critical issue to monitor, with significant implications for global trade, domestic manufacturing, and key industries reliant on both imports and exports.

TAXES Trump’s signature tax legislation from his first administration, the Tax Cuts and Jobs Act of 2017 (TCJA), was the largest overhaul of the U.S. tax code in more than 30 years, providing $1.5 trillion in tax cuts over the next decade by lowering business and personal tax rates. By all accounts, the heart of the plan was a permanent cut in the corporate tax rate from 35 percent to 21 percent. The legislation also dropped top tax rates for individuals, but these are slated to sunset at the end of 2025. Other provisions set to expire include increased exemption amounts for the individual alternative minimum tax and the estate and gift tax, the doubled child tax credit, the increased standard deduction, and the 20 percent deduction for permanent pass-through business income.

President-elect Trump did not release a detailed tax policy during the campaign, although he has called for making the TCJA permanent. In remarks in September, he proposed cutting the corporate tax rate even further, to 15 percent, although it would apply to companies that only make their products in America. On the campaign trail, Trump also called for the end of taxes on tip income, overtime pay, deductions for auto loan interest payments, increasing the small business expense limitation, and uncapping the current state and local tax (SALT) deduction.

(The 2017 tax law imposed a $10,000 cap on SALT deductions, and it is also set to expire this year.)

But the cost of making the temporary provisions permanent and adding new ones will be significant.

As we wait to see what direction the president-elect will take on tax policy, it is important to note that tax legislation originates in Congress, specifically the House, so any new tax measures enacted will also reflect the interests and priorities of the legislative branch.

ENVIRONMENT Expect a sharp pivot in federal environmental policies, with the new administration reversing many of the initiatives prioritized by the Biden administration.

Trump’s environmental agenda is expected to align with his broader pro-business approach, emphasizing deregulation to stimulate economic growth and energy independence.

The new administration will likely focus on reducing regulatory barriers, prioritizing economic growth over environmental protections, and expanding the production and use of traditional energy sources like oil, gas, and coal. While this could benefit certain industries, it is likely to draw criticism, especially from environmental advocates and global allies concerned about climate change and sustainability.

In fact, the incoming president vowed on social media in December to roll back environmental regulations for individuals or companies willing to spend billions in the U.S., signaling an upcoming effort to overhaul the federal permitting process known as the National Environmental Policy Act (NEPA). Passed by Congress in 1969, NEPA requires federal agencies to consider the environmental impact of their decisions, including adverse effects that cannot be avoided.

As the administration takes shape, some of the areas to watch in the environmental arena include a (continued on page 5) WINTER 2024-25 • WWW.FWFORESTRY.COM

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EU Postpones Deforestation Law The European Union has reached an agreement to delay the implementation of its landmark law to tackle deforestation, granting global supply chains an additional year to prepare for compliance.

The European Union Deforestation Regulation (EUDR) seeks to curb global deforestation and forest degradation by requiring companies to prove that certain commodities and their byproducts entering the EU market—including wood, cocoa, coffee, palm oil, rubber, soy, and cattle—are not sourced from deforested areas.

Under the new timeline, large businesses must comply with the regulation by Dec. 31, 2025, while smaller businesses (with fewer than 250 employees) have until June 30, 2026, to meet the requirements. This

adjustment was agreed upon by the European Commission, Parliament, and Council in December.

The regulation, seen as a cornerstone of the EU’s environmental policy, has sparked debates related to its ambitious goals and practical implementation challenges. Major stakeholders in the global forest products sector raised concerns over the unclear guidance, the complexity of the geolocation requirement, and the potential economic impact on supply chains.

Currently, the EUDR only applies to the seven commodities identified as the main drivers of agricultural expansion that lead to deforestation and forest degradation, but the list is expected to expand in the future. It also covers products derived from these commodities, i.e., lumber,

plywood, furniture, books and more.

The regulation bans the importing of these commodities if they originate from lands deforested after 2020 or forests degraded by conversion to plantations.

To meet the EU’s mandatory due diligence requirements, importers must provide geolocation data for each sourcing parcel to regulatory authorities, who will verify compliance using satellite imagery. However, the requirement to collect detailed parcel-level GPS data and supporting documentation, such as harvest and management records, is viewed as a significant and potentially costly burden for forest landowners, loggers, mills, and manufacturers in the forest products industry.

Trump’s Return (continued from page 4) rollback of climate change regulations, including federal efforts to achieve net-zero emissions, expansion of fossil fuel production, the easing of water and air pollution regulations, and prioritizing logging, mining, and other extractive industries on federal land. Protections for endangered species and habitats could also face rollbacks to promote development.

IMMIGRATION Based on his previous term in office, we can expect Presidentelect Trump’s immigration policies to continue to focus on border security, stricter enforcement of immigration laws, and reducing both legal and illegal immigration. In fact, during the campaign, the president-elect promised to carry out the largest mass deportation in U.S. history.

These immigration changes could have a huge impact on the forestry F&W FORESTRY SERVICES, INC.

and home building industries.

Community Survey.

The forestry sector relies heavily on foreign-born workers through the federal H-2B program to fill seasonal labor needs, particularly for such things as tree planting.

The Forest Resource Association reports that H-2B forestry workers plant more than 85 percent of the trees on public and private forestland annually, amounting to 1.5 billion trees on nearly 2.2 million acres. It is already a struggle for the industry to access enough H-2B workers to meet the labor needs, which has led to delays in reforestation. New limits on this worker visa program will only exacerbate the situation.

This reliance is particularly critical for new construction projects and home builders are raising concerns that some proposed policies, including mass deportations of undocumented immigrants, which could negatively impact the construction industry, could potentially lead to significant labor shortages.

Immigrants also make up a significant portion of the construction workforce, with 3 million foreignborn workers out of 11.9 million total in 2023, according to the American

OUTLOOK As Trump’s administration develops, his policies on taxes, trade, immigration, and the environment are expected to bring sweeping changes.

While some industries may benefit from deregulation and tax cuts, others could face challenges from stricter immigration enforcement and trade restrictions. These shifts are expected to spark significant debate over their long-term economic and environmental implications.

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Major Investments In Arkansas’ Forestry Sector Weyerhaeuser and GeorgiaPacific recently announced significant investments in Arkansas, underscoring the state’s critical role in the forest products and manufacturing industries. Together, these projects will inject nearly $600 million into the local economy, create hundreds of jobs, and expand production capabilities to meet growing market demands.

acres of timberlands in Arkansas.

Weyerhaeuser is set to invest $500 million to build a new TimberStrand® engineered wood products (EWP) facility in southern Arkansas, near Monticello and Warren. This stateof-the-art plant will double the company’s TimberStrand® production capacity and complement its existing facility in Kenora, Ontario.

The facility will feature a biomassfueled cogeneration system to meet its energy needs and to align with Weyerhaeuser’s sustainability and greenhouse gas reduction goals.

Once fully operational, the facility is projected to deliver more than $100 million in annual Adjusted EBITDA.

Construction is set to begin this year, with production expected to commence by 2027. Once operational, the facility will produce 10 million cubic feet of TimberStrand® annually, using southern yellow pine sourced largely from Weyerhaeuser’s 1.2 million

The new facility is expected to generate nearly 200 new jobs, boosting the company’s workforce in Arkansas, where it already employs more than 700 people. It also will bring the company’s total manufacturing sites in the state to three, including a lumber mill in Dierks and a plywood and veneer plant in Emerson.

Atlanta-based Georgia-Pacific (G-P) said it is investing $90 million to expand its Crossett, Ark., mill, a move aimed at expanding its retail consumer tissue business and increasing production capacity for premium bath tissue.

The investment is expected to add 50 new jobs to the Crossett facility,

which already employs more than 400 workers. Initial production from the expansion is expected to begin in 2026.

The Crossett mill plays a significant role in G-P’s consumer tissue business, producing high-quality bath tissue for retail markets. The project will bring G-P’s total investment in the Crossett mill to more than $250 million since 2019.

In addition to the Crossett facility, G-P’s operations in Arkansas also include a paper plate manufacturing plant in Fort Smith and lumber and plywood mills in Fordyce and Gurdon. The company reports that it employs approximately 1,700 people in Arkansas, provides $129 million annually in direct wages and benefits, and has invested $836 million in its Arkansas facilities since 2014.

The investments signal strong confidence in Arkansas’ workforce and natural resources. Together, the projects will drive job creation, enhance production capabilities, and strengthen Arkansas’ position as a hub for the forest products industry.

Pellet Giant Enviva Emerges From Bankruptcy Enviva, LLC, the largest producer and exporter of wood pellets in the U.S., has successfully emerged from Chapter 11 bankruptcy, eliminating $1 billion in debt and strengthening its financial position for long-term growth.

With the restructuring plan approved by the U.S. Bankruptcy Court for the Eastern District of Virginia, Enviva secured $250 million in new financing and an exit loan facility. The improved financial profile will allow for the completion of the company’s 11th production plant in Epes, Ala., set to begin operations in May, producing one million metric tons of pellets annually.

The company filed for Chapter

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11 bankruptcy in March 2024 to restructure its debt by $1 billion following a failed gamble on future pellet prices.

Private equity firm American Industrial Partners (AIP) is now Enviva’s largest shareholder as the company transitions to private ownership under a new board of managers.

Based in Bethesda, Md., Enviva operates ten production plants across the Southern Pine Belt, spanning from Mississippi to Virginia, with a combined annual capacity of approximately 5 million metric tons. The company began construction on its largest wood

pellet facility at Epes in 2023. There was no word on the company’s plans for a second large-scale facility at Bond, Miss., which was announced prior to the company’s financial troubles.

Wood pellets have gained global traction as a cleaner alternative to coal, driving exponential demand worldwide. According to data from the U.S. Department of Agriculture, the U.S. exported 8.25 million metric tons of wood pellets in the first 10 months of 2024 with a value of $1.53 billion, compared to 7.91 million metric tons with a value of $1.46 million exported during the same period in 2023.

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Funding Bill Includes Disaster Aid And Farm Bill Extension Before adjourning for the year, Congress passed a continuing resolution just days before Christmas to keep the government funded until March 14. The package also includes more than $100 billion in disaster and farm aid and a one-year extension of the Farm Bill.

funding, $29 billion is for FEMA’s disaster relief fund, $21 billion for USDA to aid farmers hit by flooding and other losses, and $12 billion in block grants for states and local communities.

Hurricane Helene made landfall in Florida’s Big Bend region on Sept.

26 as a powerful Category 4 storm.

It then tore across Georgia as a Category 2 hurricane before moving through parts of the Carolinas, Tennessee, and Virginia as a tropical storm. The storm caused widespread destruction in its wake, with total timber losses estimated to be more than $1.865 billion.

The funding measure came after weeks of intense negotiations among Congressional leaders. Ultimately, leaders arrived at a generally bipartisan agreement, which included the first comprehensive disaster relief package in two years. President Biden signed the measure into law on Dec. 21.

Georgia bore the brunt of the damage, with 1.47 million acres of timberland damaged, valued at $1.28 billion. Other states also reported significant timber losses, including Florida ($114 million), North Carolina ($214 million), South Carolina ($83 million), and Virginia ($174 million).

The vast majority of the affected timberlands are privately owned, leaving landowners struggling with limited resources to recover from the devastation.

DISASTER RELIEF The spending measure allocates $100.4 billion in supplemental disaster relief funding to help with the cleanup and recovery efforts related to Hurricanes Helene and Milton and other catastrophic events. The funding is allocated among a myriad of federal agencies, including the Federal Emergency Management Agency (FEMA) and the Department of Agriculture (USDA). Of that

FARM BILL EXENSION The spending package also includes a one-year extension of the Farm Bill, which expired in September after a previous one-year extension. The Farm Bill sets the framework for U.S. agricultural policy and has farreaching impacts on the economy, the environment, and food security.

Despite its historical bipartisan support, negotiations over a new Farm Bill have been complicated by growing political divides. Traditional issues, such as crop insurance, commodity subsidies, and conservation programs, remain central, but newer concerns— such as climate change mitigation and equity in food access—are taking on greater significance in discussions.

The passage of this stopgap measure provides temporary relief for disaster-stricken communities and ensures continued funding for critical government functions. However, with significant challenges remaining on long-term agricultural policy and disaster recovery, lawmakers will need to resume work on these pressing issues in the new year.

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

2024 Fourth Quarter Price Range (TONS) PULPWOOD TONWOOD

$20

$40 $45 $45

$0

$10

$20

$30

$40

$50

$60

$80

2024 Fourth Quarter Price Range (MBF) $385

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

$415 $415 $480 $490 $480 $490 $490 $530 $300

$350

$400

$1,250

WESTERN RED CEDAR CEDAR POLES*

$450

$500

$550

$600

$650

$1,275 $2,100

$900

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$405

$1100

$1300 $1500

$1700

$1900 $2100 $2300

In general, the log market remains stagnant, with little price movement for most mills. Current weather patterns are creating challenging logging conditions, limiting log flows; however, mill inventories remain relatively ample. Many log buyers are anticipating modest price increases as we move through the first quarter of the year, but no significant changes are expected.

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 averagesized 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.

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

CENTRAL REGION

2024 Fourth Quarter Price Range

WEST GULF

MID ATLANTIC

$20

$15

$10

$5

$0

2020

2021

2022

2023

2024 Q1 Q2 Q3 Q4

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

CENTRAL REGION

WEST GULF

MID ATLANTIC

$25 $20 $15 $10 $5

2020

2021

2022

2023

2024 Q1 Q2 Q3 Q4

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

$35

WEST GULF

MID ATLANTIC

$25

$20

2020

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2021

2022

2023

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

$15 $25 LAFAYETTE, AL $18 $30 ORANGE PARK, FL $22 $28 MARIANNA, FL $22 $28 ALBANY, GA $17 $23 MACON, GA $5 $20 STATESBORO, GA $14 $19 FOUNTAIN INN, SC MidAtlantic CLINTON, TN West $4 Gulf $6 PARIS, TN Central Hardwood $8 $12 EL DORADO, AR Southeast $12 $17 CORINTH, MS $8 $12 HUNTSVILLE, TX $14 $18 TEXARKANA, TX $15 $18 CHARLOTTESVILLE, VA $0

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

2024 Fourth Quarter Price Range

$30

$15

$0

$23

2024 Fourth Quarter Price Range

$30

$0

$4 $12 LAFAYETTE, AL $1 ORANGE PARK, FL $5 $9 MARIANNA, FL $7 ALBANY, GA $11 $4 $10 MACON, GA $1 $15 STATESBORO, GA $6 $9 FOUNTAIN INN, SC MidAtlantic $1 $5 CLINTON, TN West $2 Gulf $6 PARIS, TN Central Hardwood $0 $2 EL DORADO, AR Southeast $1 $3 CORINTH, MS $1 $6 HUNTSVILLE, TX $6 $10 TEXARKANA, TX $4 $10 CHARLOTTESVILLE, VA

2024 Q1 Q2 Q3 Q4

$21 $35 LAFAYETTE, AL $18 $30 ORANGE PARK, FL $26 $30 MARIANNA, FL $28 $38 ALBANY, GA $22 $29 MACON, GA $4 $20 STATESBORO, GA $19 $28 FOUNTAIN INN, SC MidAtlantic CLINTON, TN West Gulf PARIS, TN Central Hardwood $17 $30 EL DORADO, AR Southeast $14 $20 CORINTH, MS $20 $30 HUNTSVILLE, TX $30 $35 TEXARKANA, TX $17 $24 CHARLOTTESVILLE, VA $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

2024 Fourth Quarter Price Range

WEST GULF

MID ATLANTIC

$12 $9 $6

$3

$0

2020

2021

2022

2023

2024 Q1 Q2 Q3 Q4

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

CENTRAL REGION

WEST GULF

MID ATLANTIC

$70 $60 $50 $40 $30

2020

2021

2022

2023

$0

$2

$4

$6

$14

$8 $10 $12 $14 $16

2024 Fourth Quarter Price Range

$80

$20

$4 LAFAYETTE, AL $1 $10 ORANGE PARK, FL $4 $7 MARIANNA, FL ALBANY, GA $3 $6 $3 $8 MACON, GA $6 $11 STATESBORO, GA $7 $9 FOUNTAIN INN, SC MidAtlantic $1 $2 CLINTON, TN West Gulf $4 $6 PARIS, TN Central Hardwood $0 $3 EL DORADO, AR Southeast $5 $8 CORINTH, MS $4 $5 HUNTSVILLE, TX $6 $8 TEXARKANA, TX $2 $5 CHARLOTTESVILLE, VA

2024 Q1 Q2 Q3 Q4

$25 $40 LAFAYETTE, AL $10 $32 ORANGE PARK, FL $25 $32 MARIANNA, FL $22 $36 ALBANY, GA $18 $34 MACON, GA $15 $42 STATESBORO, GA $36 FOUNTAIN INN, SCMidAtlantic $18 West Gulf $35 CLINTON, TN Central Hardwood $35 PARIS, TN $45 EL DORADO, AR Southeast $20 $30 $45 CORINTH, MS $28 $30 HUNTSVILLE, TX $20 $25 TEXARKANA, TX $35 $12 CHARLOTTESVILLE, VA $0

$65 $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.).

Marshall Thomas (continued from page 1) deforestation regulation to allow other countries time to implement the costly procedures required for exporting wood and wood products to Europe. I say political because their actions not only affect our exports but require that we conform to their environmental policy in order to do business with them (see page 5).

On the government/carbon front, the USDA recently announced a large group of grants funded by the Inflation F&W FORESTRY SERVICES, INC.

Reduction Act. That’s right, grants to landowners, companies, state governments, and NGOs to help them sequester more carbon because that reduces inflation? Regardless, the grants highlight the U.S. government’s efforts to sequester more carbon in forests, or get credit for what we are already doing (see page 2). One notable recipient is the Family Forest Carbon Program, which is receiving another $5 million (see page 3).

As already mentioned, prices for most tree products are down, or stable at best. While there are a few upticks in local markets, these are not enough to characterize as a good trend. The forestry sector remains tied to the broader economic outlook.

A sustained recovery will be essential to strong demand and rising prices for our trees.

WINTER 2024-25 • WWW.FWFORESTRY.COM

9

NORTHERN TIMBER PRICES RED OAK (MBF) Timber Stumpage Price Averages By Region RUMFORD, ME HERKIMER, NY

$800

2024 Fourth Quarter Price Range

MONTPELIER, VT GLENS FALLS, NY CLARION, PA BLUEFIELD, WV

RUMFORD, ME I

$700

$425

$300

$425

I VT $300 GLENS FALLS, NY Montpelier,

$425

MONTPELIER, VT I

Rumford, ME

$600

BLACK CHERRY

$500

HERKIMER, NY I

$400

Glens Falls, NY

$300 Herkimer, NY

$425

TUPPER LAKE, NY I Tupper Lake, NY

$300

Clarion, PA

Lorem ipsum CLARION, PA D

$200 $100

$300

BLUEFIELD, WV D 2020

2021

2022

2023

GLENS FALLS, NY HERKIMER, NY CLARION, PA BLUEFIELD, WV

$150 $0

2024 Q1 Q2 Q3 Q4

BLACK CHERRY (MBF) Timber Stumpage Price Averages By Region

$396

Bluefield, WV

$676

$210 $300 $450

$150

$600

$750 $900

$600

$750 $900

2024 Fourth Quarter Price Range

TUPPER LAKE, NY

$1000

RUMFORD, ME I

$800

MONTPELIER, VT I

hard maple $600

I VT $300 GLENS FALLS, NY Montpelier,

Rumford, ME

HERKIMER, NY

$400

I

Glens Falls, NY

$300 Herkimer, NY

$425

NY TUPPER LAKE, NY I Tupper Lake, $300

$425

Clarion, PA

CLARION, PA D

$200

$100 Bluefield, WV $250

BLUEFIELD, WV D $100 $0

2020

2021

2022

2023

RUMFORD, ME HERKIMER, NY

00

500

$500

400

$400

$150

$300 $450

MONTPELIER, VT GLENS FALLS, NY TUPPER LAKE, NY CLARION, PA BLUEFIELD, WV

RUMFORD, ME I

$700 $600

$200

2024 Fourth Quarter Price Range

$800

600

$0

2024 Q1 Q2 Q3 Q4

HARD MAPLE (MBF) Timber Stumpage Price Averages By Region

$425

MONTPELIER, VT I

$300

$400

$300

$425

Rumford, ME

I $300 VT GLENS FALLS, NY Montpelier,

HERKIMER, NY I

$300 Herkimer, NY

$500

NY TUPPER LAKE, NY I Tupper Lake, $300

$500

300

$300

CLARION, PA

200

$200

BLUEFIELD, WV D

100

$100

2020

F&W FORESTRY SERVICES, INC.

2021

2022

2023

2024 Q1 Q2 Q3 Q4

$500

Glens Falls, NY

D

Clarion, PA

Bluefield, $281 WV

$0

$519

$200

$400

$150

$300 $450

$600

$750 $900

WINTER 2024-25 • WWW.FWFORESTRY.COM

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NORTHERN TIMBER PRICES (continued) SOFTWOOD SAWTIMBER (MBF) Timber Stumpage Price Averages By Region RUMFORD, ME HERKIMER, NY

2024 Fourth Quarter Price Range

MONTPELIER, VT GLENS FALLS, NY TUPPER LAKE, NY

$200

RUMFORD, ME I

$115

MONTPELIER, VT I

$175

$215

$100

$210

Rumford, ME

I $110 VT GLENS FALLS, NY Montpelier,

hard PULP

HERKIMER, NY I

$150

$225

Glens Falls, NY

$110 NY Herkimer,

$225

Lake, NY TUPPER LAKE, NY I Tupper $110

Lorem ipsum CLARION, PA

$125

D

$225

Clarion, PA

Bluefield, WV

BLUEFIELD, WV $100

2020

2021

2022

2023

HARDWOOD PULPWOOD (TONS) Timber Stumpage Price Averages By Region RUMFORD, ME HERKIMER, NY

$150 $200

$100

RUMFORD, ME MONTPELIER, VT

$6

soft PULP

$4

$8

$3

$7

Rumford, ME

$5

GLENS FALLS, NYMontpelier, VT$4

$4

HERKIMER, NY

Herkimer, NY $4

$6

$3

NY TUPPER LAKE, NY Tupper Lake, $4

$6

$2

CLARION, PA

$1

BLUEFIELD, WV 2020

2021

2022

2023

$6

Glens Falls, NY

Clarion, PA

$1 Bluefield, WV $3 $1 $0

2024 Q1 Q2 Q3 Q4

SOFTWOOD PULPWOOD (TONS) Timber Stumpage Price Averages By Region RUMFORD, ME HERKIMER, NY

$3 $4

$2

$6

$8

$10

$12

$8

$10

$12

2024 Fourth Quarter Price Range

MONTPELIER, VT GLENS FALLS, NY TUPPER LAKE, NY CLARION, PA BLUEFIELD, WV

$8

RUMFORD, ME

$7

MONTPELIER, VT

$6

$4

$1 $1

Rumford, ME

$3

$5

$2 VT GLENS FALLS, NYMontpelier,

$4

HERKIMER, NY

$3

TUPPER LAKE, NY Tupper$2Lake, NY $4

$2

CLARION, PA

$1

BLUEFIELD, WV

$0

$300 $350

2024 Fourth Quarter Price Range

$7

$0

$250

MONTPELIER, VT GLENS FALLS, NY TUPPER LAKE, NY CLARION, PA BLUEFIELD, WV

$8

$0

$50

2024 Q1 Q2 Q3 Q4

2020

2021

2022

2023

2024 Q1 Q2 Q3 Q4

Glens Falls, NY

$2 NY Herkimer,

$4 $4

Clarion, PA

$2 WV Bluefield, $1 $0

$5

$2 $2

$4

$6

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.

WINTER 2024-25 • WWW.FWFORESTRY.COM

11

TIMBER MARKET INDICATORS HOUSING PERMITS HOUSING STARTS

F&W’S LUMBER-USE ADJUSTED HOUSING STARTS

2.0

1.5

1.32 1.74

1.75

1.5

1.25

1.47

1.67

1.60

1.15

1.47

1.55

1.42

1.38

1.46

0.9

1.35

0.6

1.0

0.3

2020

2022

2021

1.22

1.2

2023

2024 Q4

IN MILLIONS OF UNITS (2024 AVERAGE THROUGH NOVEMBER)

2020

2022

2021

1.14

1.14

2023

2024 Q4

IN MILLIONS OF UNITS; TOTAL HOUSING STARTS WITH MULTIFAMILY STARTS REDUCED TO 40 PERCENT TO BETTER REFLECT LUMBER USAGE (2024 AVERAGE THROUGH NOVEMBER)

Source: US Department of Commerce

Source: US Census and F&W Forestry Services

LUMBER PRICES

RESIDENTIAL CONSTRUCTION 922

800 600

$766

800

1000

914

866

799

700 600

$704

$532

500

635

$422

400

400

$382

$356

$338

$372

300 200

200

0.8 0.6 0.4 0.2 0.0

100 0

2020

2022

2021

2023

2024 Q4

2022

2023

SOUTHERN PINE–$/MBF Source: Random Lengths Southern Pine Composite Index

6.80%

6.75%

7.00% 6.63%

Q4

Q3

130

126 125

5.34%

6

2024 Q1 Q2

US DOLLAR

7

5

120

3.11% 2.96%

121 118

120

121

123 123

113

115

2

110

1 0

2021

Source: US Department of Commerce

8

3

2020

IN BILLIONS OF DOLLARS (2024 AVERAGE THROUGH NOVEMBER)

MORTGAGE RATES

4

0

2020

2021

2022

2023

2024 Q1 Q2

105 Q3 Q4

2020

2021

2022

2023

2024 Q1 Q2

Q3

30-YEAR FIXED RATE

US DOLLAR VALUE AGAINST 26 MAJOR TRADING PARTNERS

Source: Freddie Mac

Source: Federal Reserve

F&W FORESTRY SERVICES, INC.

Q4

WINTER 2024-25 • WWW.FWFORESTRY.COM

12

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