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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.

Making Sense Of Lumber Prices

Making Sense Of Lumber Prices

It 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 FALL 2020 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 Forefront

The 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 FALL 2020 F&W FORESTRY REPORTSUBSCRIBE NOW»

Guest Workers Can Assist With This Year’s Tree Planting

Guest Workers Can Assist With This Year’s Tree Planting

This 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 FALL 2020 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 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]