It’s too soon to know what kind of impact the COVID-19 pandemic will have on U.S. timber markets, but the forestry sector has been designated as an essential industry and is therefore allowed to operate during the crisis, the head of one of the nation’s largest forest management firms writes in his company’s quarterly newsletter.
The latest survey of F&W managers on reforestation activity in their areas during the recent 2019/20 tree planting season was mixed but almost all managers said tree planting was above or the same as five years ago.
The trade agreement signed by President Trump and Chinese Vice Premier Liu He in January included a commitment by China to purchase a substantial amount of goods from the U.S. over the next two years.
While the U.S. economy is doing well overall, the trade war with China is causing distortions in the normal supply and demand curve for the forestry sector.
In 2008, the F&W Forestry Report wrote about the newly developing forest-generated carbon offset market.
Foreign demand for U.S. wood pellets continues to climb, with exports more than doubling between 2013 and 2018, growing from 2.99 million metric tons to 6.02 million, according to USDA Foreign Agricultural Service data.
In November, the USDA announced $800 million in block grants to Florida, Georgia, and Alabama to provide assistance to landowners in disaster-designated areas affected by hurricanes Michael and Florence.
The trade war with China continues to have a negative impact on timber markets, with hardwood and softwood stumpage (standing timber) prices down almost everywhere in the third quarter.
The Trump administration continues to advance its domestic agenda and private landowners stand to benefit from two new rules finalized over the summer.
Amid trade tensions, decreased prices, and weather woes, the latest survey by the U.S. Department of Agriculture shows a rise in farm real estate values in 2019.