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Stay informed on the latest forest industry news and market insights.F&W is committed to helping landowners get the most out of their timberland – one of the best tools is current and relevant information. Through the F&W Forestry Report, our clients and subscribers gain an insider’s view on the latest market conditions, timber prices and legislation affecting forestry. Each quarterly report is packed with insights gathered from our participation in professional associations, academic research cooperatives and everyday work in the forest to give you an edge in the marketplace.

Year Of Unexpected Events Brought Some Pleasant Surprises

Year Of Unexpected Events Brought Some Pleasant SurprisesNo one was expecting such a year when it began on Jan. 1, 2020, and much happened that caught everyone off guard, but there were a few positive surprises amid the wild ride, which F&W President Marshall Thomas discusses in the new edition of his company’s newsletter.“Housing starts hit 1.547 million units (annualized) in November, 12.8 percent above the same month in 2019,” Thomas writes in the first F&W Forestry Report of the new year. While that is great news, he notes that “the better news is that 1.186 million (annualized) of those starts were single-family units. That is the highest level of single-family starts since April 2007.”Thomas notes that pellet production was not impacted by the pandemic, and exports of the product continue to increase.Thomas also outlines a few items of interest to look for in 2021, including the new Biden administration’s actions on environmental policies, tax policies, and positions on China trade.TO SEE THE FULL ARTICLE IN THE WINTER 2021 F&W FORESTRY REPORTSUBSCRIBE NOW»

Forests Included As Natural Solution To One Of New Administration’s Top Priorities

Forests Included As Natural Solution To One Of New Administration’s Top PrioritiesWhen Joe Biden takes office in January, one of his top priorities will be climate change, which is likely to have a huge impact on forest policies.On day one, Mr. Biden said he would take steps to have the U.S. rejoin the Paris Climate Accord. He also plans to invest in green infrastructure, buildings, transportation, and renewable energy in order to put the U.S. on track to have net-zero emissions by 2050. Forests are likely to play a critical role in climate mitigation strategies because of the ability of trees to capture and store carbon.The Biden Administration is also expected to revisit rules and regulations implemented under Trump, including Waters of the U.S. (WOTUS), the Endangered Species Act, and the Affordable Clean Energy Rule, all of which could impact forest landowners.TO SEE THE FULL ARTICLE IN THE WINTER 2021 F&W FORESTRY REPORTSUBSCRIBE NOW»

Report Shows Trade Of Wood Pellets With EU Is Positive For U.S. Forests

Report Shows Trade Of Wood Pellets With EU Is Positive For U.S. ForestsA new international study examining 12 years of data on Southeastern timberlands found that the wood pellet industry has had a net positive effect on American forests.Since the EU’s Renewable Energy Directive went into effect 11 years ago, demand for wood pellets from the U.S. has skyrocketed, with more than a third of the 18 million tons of wood pellets traded in the EU coming from the U.S.The rapid rise in wood pellet manufacturing drew concern that it would have a negative impact on forests, but the study finds the opposite to be true. Among other trends, the study found there was a net expansion in the amount of carbon stored in trees in the Southeastern United States.TO SEE THE FULL ARTICLE IN THE WINTER 2021 F&W FORESTRY REPORTSUBSCRIBE NOW»

Making Sense of Lumber Prices

Making Sense of Lumber PricesIt seems the spike in lumber prices over the summer and early fall would have had a positive impact on timber stumpage prices paid to landowners for large pine sawtimber, but the correlation is not there, explains Marshall Thomas, president of F&W Forestry Services, in his company’s fall newsletter.While sawmills cut back production at the start of the coronavirus pandemic in anticipation of greatly reduced demand, they did not foresee the huge demand for lumber from people sheltering at home and embarking on home improvement projects.  Furthermore, after a significant drop in new home construction at the beginning of the pandemic, the industry rebounded quickly, and this one-two punch had the effect of creating a huge lumber supply/demand imbalance.“Unfortunately, the supply/demand imbalance that exists with lumber doesn’t exist for the raw material:  trees,” Thomas writes.  “In the South, we are still suffering a supply hangover from the Conservation Reserve Program (CRP) trees planted in the late 1980s and early 1990s.”Thomas also cautions policy makers to be careful about implementing new incentive programs that pay people to plant trees, such as the Trillion Trees Act.  Without qualifications and limitations, such programs could result in another oversupply of trees and harm private forest landowners already doing what they want to encourage them to do.TO SEE THE FULL ARTICLE IN THE WINTER 2021 F&W FORESTRY REPORTSUBSCRIBE NOW»

Recent Natural Disasters Bring Important Tax Issue For Landowners To The Forefront

Recent Natural Disasters Bring Important Tax Issue For Landowners To The ForefrontThe severe natural disasters devastating timberlands over the past few years have drawn attention to a huge flaw in our nation’s tax laws and the Forest Recovery Act aims to fix it.Currently, landowners whose timber stands are destroyed by a natural disaster are dealt an unintended blow because they can only deduct the lesser amount of the fair market value (FMV), or adjusted cost basis, which is often $0 after the 84-month amortization period or only a fraction of the fair market value of the destroyed timber. This means most private forest landowners impacted by catastrophic events are left to absorb the cost of the timber losses.A recent briefing paper by the U.S. Forest Service found that American family forest owners suffered an estimated average of “$266.3 million each year in fair market timber value losses due to tree mortality caused by events that could be considered casualty losses for tax purposes.”The Forest Recovery Act has been introduced in Congress to resolve this issue, and landowners are encouraged to contact their representatives in Congress to express their support for the measure.TO SEE THE FULL ARTICLE IN THE WINTER 2021 F&W FORESTRY REPORTSUBSCRIBE NOW»

Guest Workers Can Assist With This Year’s Tree Planting

Guest Workers Can Assist With This Year’s Tree PlantingThis year’s tree planting season was almost upended, but swift and coordinated advocacy efforts by forestry associations made certain that it will continue unabated after the Trump administration issued exemptions following their appeals.President Trump signed a series of proclamations this spring, suspending entry of most temporary seasonal workers into this country for the remainder of 2020. The suspension included H-2B guest workers, who are critical to the forest sector, planting the bulk of U.S. trees each year, along with other forestry operations that are necessary to maintain healthy and productive forests.Research by Forest Landowners Association (FLA), Forest Resources Association (FRA), and National Alliance of Forest Owners (NAFO), among others, demonstrated to the administration the importance of allowing this program to continue. Most significantly, these organizations showed that a ban on these workers would impact the forestry sector and rural communities by $725 million.TO SEE THE FULL ARTICLE IN THE WINTER 2021 F&W FORESTRY REPORTSUBSCRIBE NOW»

The F&W Forestry Report is published quarterly for our clients reporting on the latest market conditions, timber prices and legislation affecting forestry.

Winter 2020
Fall 2019
Winter 2019
Summer 2019
Spring 2019

Please note that archived newsletters lag one year behind current publications.

Current Industry News

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Fountains Forestry Changes
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For media inquiries, contact Bates Associates: 770-451-0370, [email protected]