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Betsy Bates

Log Exports To China Could Boost Southern Timber Markets

July 25, 2018/0 Comments/in news-2018 /by Betsy Bates

While West Coast timber prices have recovered nicely, the South continues to wallow in an oversupply of sawtimber and low stumpage (standing timber) prices. But pine log exports to the Far East from Southern ports may offer new opportunities for forest landowners.

Marshall Thomas, F&W President, writes in his company’s summer newsletter that Southern exports to China nearly doubled in 2017 from the previous three years.

“We will have to wait to see if this trend continues, but it sure is heartening to see that we exported pine logs worth almost $350 million last year,” Thomas said. “That’s probably not enough to affect prices, but it is a step in the right direction.”

TO SEE THE FULL ARTICLE IN THE SUMMER 2018 F&W FORESTRY REPORT, SUBSCRIBE NOW

 

 

Betsy Bates

EPA Officially Recognizes Forest Biomass As Carbon Neutral

July 25, 2018/0 Comments/in news-2018 /by Betsy Bates

The Environmental Protection Agency (EPA) has issued a policy statement that formally recognizes forest biomass as carbon neutral, cementing a commitment made by former EPA Administrator Scott Pruitt earlier this year.

EPA said its actions are consistent with provisions included in Congress’ recently enacted omnibus spending bill, which directed the agency to work with the departments of Energy and Agriculture to establish policies that “reflect the carbon-neutrality of forest bioenergy and recognize biomass as a renewable energy source, provided the use of forest biomass for energy production does not cause conversion of forests to non-forest use.”

The new policy signals a definitive shift at the agency, which will now treat all burning of woody biomass as carbon neutral when used for energy production at stationary sources.  The new policy is effective immediately for all regulatory programs using biomass from managed forests.

The EPA announcement said that U.S. forests have consistently served as a net sink of carbon, reporting that in 2015, the forest sector offset approximately 11.2 percent of gross U.S. greenhouse gas emissions.

TO SEE THE FULL ARTICLE IN THE SUMMER 2018 F&W FORESTRY REPORT, SUBSCRIBE NOW

Betsy Bates

Investments In Sawmills Driven By Increased Demand In Lumber

July 25, 2018/0 Comments/in news-2018 /by Betsy Bates

The second quarter of 2018 saw another wave of announcements by lumber producers of plans to build new mills or expand current facilities to boost lumber production, particularly in the U.S. South.

The housing market is steadily growing stronger, lumber demand is robust, and manufacturers, for the most part, are thriving financially from the record high lumber prices driven up by demand.  With lumber consumption expected to continue on an upward trajectory, lumber producers are aggressively positioning themselves to take advantage of anticipated future demand.

This quarter’s announcements include plans for new mills in Alabama and Texas, facility expansions in South Carolina and Mississippi, and a Canadian lumber producer acquiring two mills in the deep South that will significantly expand its presence—and production capacity—in the U.S.

The summer issue of the F&W Forestry Report details these announcements.

TO SEE THE FULL ARTICLE IN THE SUMMER 2018 F&W FORESTRY REPORT, SUBSCRIBE NOW

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