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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.

Timber Prices Continue To Rise

Timber Prices Continue To Rise

Standing trees (stumpage) prices are up across almost all wood categories in 2021.

That’s the assessment of F&W President Marshall Thomas, who has been following timber market trends from the grower’s perspective for years.

“They’re up. Across almost all categories, some more, some less, some earlier in the year, some later,” Thomas writes in the fall issue of his company’s quarterly newsletter, the F&W Forestry Report. “But overall, they are up. It has been at least since 2012, and maybe as far back as the early 2000s, that I have been able to say that.”

Thomas said timber prices are mimicking the positive trends from the 1990s, but since it has only been a few quarters, forest landowners will have to wait and see if the price increases hold.

TO SEE THE FULL ARTICLE IN THE FALL 2021 F&W FORESTRY REPORT, SUBSCRIBE NOW»

Ag Land Values Increase Across The Nation

Ag Land Values Increase Across The Nation

Agricultural land values in the United States overall escalated 7 percent in 2021 from the previous year, with more modest gains being reported for most Southern and Atlantic states, the U.S. Department of Agriculture (USDA) reports.

Farm real estate values, a measurement of all land and buildings on farms, averaged $3,380 per acre in 2021, up $220 from 2020, the biggest jump in seven years according to the USDA annual survey.

While all regions of the country experienced gains in farm land value, some were more modest, particularly in Southern states comprising the Southeast, Delta, and Appalachian regions, which together saw an overall average increase in value of approximately 2.2 percent. The one exception was the Southern Plains states of Texas and Oklahoma, which saw farm values increase an average of 9 percent.

In the Northeast, agricultural land values were up an average of 5 percent. Most states in the region experienced increases less than the overall average, with a couple of states seeing double digit increases, driving up the overall average value of farm land.

TO SEE THE FULL ARTICLE IN THE FALL 2021 F&W FORESTRY REPORT, SUBSCRIBE NOW»

Funding For Forestry Could Be Overshadowed By Changes In Tax Laws

Funding For Forestry Could Be Overshadowed By Changes In Tax Laws

Democrats in Congress are working to pass President Biden’s “Build Back Better” plan, legislation related to soft infrastructure that also contains several initiatives to address climate change, including funding for conservation programs to assist private forest landowners in implementing climate mitigation and forest resilience practices. But these same landowners are likely to end up paying more taxes under changes being proposed to federal tax laws in order to pay for the plan.

The Democratic tax plan proposes to increase the top capital gains rate from the current rate of 20 percent to 25 percent, which would have a direct impact on the taxes landowners pay on timber sales. The plan also calls for an increase in the top income tax rate to 39.6 percent from 37 percent, adds 3 percent surcharge on Americans with an adjusted income of more than $5 million per year, and implements a 3.8 percent net investment income tax on income from pass-through entities such as S corporations, partnerships, trusts, and estates.

As far as inheritance taxes are concerned, the tax plan does not eliminate the step-up basis at the death of taxpayer or the imposition of a capital gains tax on the appreciated assets, two measures floated by the Biden administration. But it does propose to end the temporary increase in the estate and gift tax exemption amount, currently set at $11.7 million, at the end of 2021, four years before it was due to expire. If this provision becomes law, the estate tax exemption reverts back to $5 million, indexed for inflation.

TO SEE THE FULL ARTICLE IN THE FALL 2021 F&W FORESTRY REPORT, SUBSCRIBE NOW»

Legislation Aims To Help Forest Landowners Recover After Natural Disasters

Legislation Aims To Help Forest Landowners Recover After Natural Disasters

Bi-partisan legislation was introduced in the U.S. Congress to allow private forest landowners to recover from the loss of timber destroyed by natural disasters and reforest their land.

The Disaster Reforestation Act proposes to fix a shortcoming in the federal tax code to allow landowners to deduct the full value of their timber destroyed during natural disaster events. The legislation is sponsored in the House by Reps. Terri Sewell (D-Ala.) and Buddy Carter (R-Ga.) and in the Senate by Senators Raphael Warnock (D-Ga.) and Bill Cassidy (R-La.).

Unlike producers of other agriculture products, forest landowners don’t receive regular income from their forests and they must wait decades for their timber to mature to market. Fixing the casualty loss issue would support continued investment in private forests and its ripple effects on rural economies and the environment.

TO SEE THE FULL ARTICLE IN THE FALL 2021 F&W FORESTRY REPORT, SUBSCRIBE 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

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

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