Economic Impact of Mississippi’sForest Resources
Logging, Solid Wood Products,Pulp and Paper, and Wood Furniture Manufacturing
James E. HendersonAssistant Extension Professor
Department of Forestry
Mississippi’s Forest Resources
• 19.6 million acres• 65% of the state’s total
land area• Major component of
Mississippi’s economic base
Source: Forest Inventory & Analysis Factsheet Mississippi 2006, U.S. Forest Service
< 25%
25 – 49
50 – 74
>75%
Percentage of land in forest by county
Mississippi’s Forest Resources
• Over $1 billion worth of forest products harvested annually and delivered to mills and other manufacturing plants
• Timber harvesting and product manufacturing has impact on state economy
Source: Forest Inventory & Analysis Factsheet Mississippi 2006, U.S. Forest Service
< 25%
25 – 49
50 – 74
>75%
Percentage of land in forest by county
Photo by Laurie Grace
Economic Impact of Forest Products Industry
Henderson, J.E., I.A. Munn, G. Perez-Verdin, D.L. Grebner. 2008.
• The importance of forestry and forest products is well documented at the state level.
• But what impact does it have at the county level?
• Introducing a new publication series to address that question.
Economic Impact of Forest Products Industry
The Economic Contribution of Forestry and Forest Products to Mississippi Counties
Forest Products Industry Impacts Economy In Three Ways:
Direct Effect
Indirect Effect
Induced Effect
Total Effect
Forestry & Forest
Products
Purchases from
supporting sectors
Employee spending
Input – Output Analysis
• Economy divided into 440 sectors.
• Depicts inter-industry relations of an economy.
• Shows how output of one industry is an input to other industries or sectors of the economy. IMPLAN: input-output modeling software
Economic Impact on Mississippi’s Economy Measured by:
• Employment – the number of full- and part-time jobs in the sector
• Employee compensation – the wages paid by the sector
• Output – the sector’s total value of production
• Value-added – total sector output minus the costs of purchased
inputs
The Economic Contribution of Forestry and Forest Products to Mississippi Counties
Jobs
JobsDirect Effect• 695 jobs• 17.6% of county
JobsDirect Effect• 695 jobs• 17.6% of countyIndirect and Induced• 590 jobs• 14.9% of county
JobsDirect Effect• 695 jobs• 17.6% of countyIndirect and Induced• 590 jobs• 14.9% of countyTotal Impact• 1,285 jobs• 32.5% of county
Income
IncomeDirect Effect• $58 Million in income• 36.3% of county
IncomeDirect Effect• $58 Million in income• 36.3% of countyIndirect and Induced• $18 Million in income• 11.5% of county
IncomeDirect Effect• $58 Million in income• 36.3% of countyIndirect and Induced• $18 Million in income• 11.5% of countyTotal Impact• $76 Million in income • 47.8% of county
Output
OutputDirect Effect• $352.8 Million• 46% of county
OutputDirect Effect• $352.8 Million• 46% of countyIndirect and Induced• $57 Million• 7.5% of county
OutputDirect Effect• $352.8 Million• 46% of countyIndirect and Induced• $57 Million• 7.5% of countyTotal Impact• $410 Million• 53.5% of county
Value Added
Value AddedDirect Effect• $95.5 Million• 35% of county
Value AddedDirect Effect• $95.5 Million• 35% of countyIndirect and Induced• $33.9 Million• 12.5% of county
Value AddedDirect Effect• $95.5 Million• 35% of countyIndirect and Induced• $33.9 Million• 12.5% of countyTotal Impact• $129.4 Million• 47.6% of county
Timber Harvest Value (2007)
Forest Products Facilities
Source: U.S. F.S
Population
Economic Impact(in percentage terms):Greater in rural countiesSmaller in urban counties
Total Jobs ImpactAs Percent of County Total
Total Jobs ImpactDirect, Indirect, & Induced
Economic Impact:Greater in rural countiesSmaller in urban counties
Total Jobs ImpactAs Percent of County Total
Total Jobs ImpactDirect, Indirect, & Induced
Economic Impact:Smaller in urban counties
Total Jobs ImpactAs Percent of County Total
Total Jobs ImpactDirect, Indirect, & Induced
Economic Impact:Greater in rural counties
Standing Timber Value
Estimation process:
2007 Product Prices applies to standing timber volume estimates:
Hardwood and SoftwoodSawtimber and Pulpwood
Source:Mississippi Institute for Forest Inventory (MIFI)
Standing Timber Value
The Economic Contribution of Forestry and Forest Products to Mississippi Counties
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