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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 Markets Improve—Finally!

Timber Markets Improve—Finally!

For the first time in nearly a decade, timber stumpage (standing trees) prices are up significantly over the past year, with pine and hardwood sawtimber improving markedly, reports the head of one of the nation’s largest forest management firms.

Marshall Thomas, president of F&W Forestry Services, writes in his company’s quarterly newsletter that the timber price increases are long overdue.

“Pine sawtimber in the Southeast is the star, up about 20 percent year-over-year, but hardwood sawtimber in the Northeast is also up dramatically, depending on species and region,” Thomas said.

Thomas notes that lumber prices—which reached record highs over the last year and have been up as much as four times pre-pandemic levels—appear to have peaked. While landowners haven’t benefited much from the run-up in lumber prices, he said eventually some should trickle down. He added that sawmills are increasing capacity to meet new demand, which is good for landowners long term, especially those near mills located in weak market areas.

“The news on prices and increasing consumption is good for landowners…it feels good to see the foundation developing for improved stumpage prices,” Thomas said.

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

Record Lumber Demand Leading To Sawmill Expansions

Record Lumber Demand Leading To Sawmill Expansions

With the unexpected and sharp increase in demand for wood construction materials this past year, lumber producers are hustling to expand capacity, and the U.S. South is receiving the bulk of the growth.

Large and small lumber producers across North America have recently announced plans for increasing capacity at current facilities and building new ones. Over the last 12 months, softwood sawmill capacity has grown by 1.4 billion board feet (BBF), according to Shawn Baker of Forisk Consulting. He expects another 1.6 BBF to come online in the second half of 2021.

Lumber demand continues to outstrip supply and home construction is expected to continue strong for the foreseeable future.

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

New Program Helps To Expand Carbon Markets

New Program Helps To Expand Carbon Markets

A new program by NCX (formerly SilviaTerra) offers forest landowners of all sizes access to carbon offset markets at no cost to the landowner and no long-term commitment.

NCX pairs forest owners—big and small—with companies wanting to purchase carbon credits, an emerging market that is gaining traction as the world focuses on climate mitigation strategies.

Eligible landowners enrolled in the program are paid to delay harvest for one year. The program is limited to landowners with merchantable timber, there is no cost to participate and contracts are for one year at a time.

F&W is partnering with NCX to provide information about the program to forest landowners and assist them in enrolling.

“We were able to assist several clients in successfully selling carbon credits in the initial market offering and look forward to the expansion of the exchange to other areas of the U.S. It’s great to see the innovative use of technology and information by NCX benefit both landowners and the environment,” said Stephen Logan, F&W’s chief information officer.

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

Biden Tax Plan Would Deter Sustainable Forest Management

Biden Tax Plan Would Deter Sustainable Forest Management

The Biden Administration recently unveiled proposed changes they would like to make to U.S. tax laws, including several which would greatly affect forest landowners.

The policy changes having the greatest impact on forest landowners include taxing long-term capital gains as ordinary income for individuals with more than $1 million in taxable income, affecting those taxpayers who have a sharp increase in income in one year due to the sale of timber, along with the increase in the top capital gains rate from 23.8 to 43.4 percent; and the elimination of the step-up basis, imposing a capital gains tax on the appreciated assets as if they had been sold.

These proposed tax policy changes are expected to have an especially dramatic effect on family forest landowners and their ability to care for their forests in a sustainable manner and pass them on to future generations.

It is unclear how much support the president can win over for his plans, but landowners should be aware of these proposals and engage with their elected officials to educate them about the unique business of family forests.

TO SEE THE FULL ARTICLE IN THE SUMMER 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
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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]