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The Economic Contribution of Forestry and Forest Products - Lauderdale County

Publication Number: M1675
View as PDF: M1675.pdf

Lauderdale County

Forestry and forest products are a major component of Lauderdale County’s economy. Forest-related economic sectors generate value not only within the forest-related sectors but also in other sectors of the economy. The economic contributions of forest-related sectors and their contributions on other sectors can be estimated using input-output analysis. Using 2018 data, this study estimates the total economic contributions of forestry and the forest products industry to Lauderdale County, Mississippi.

Employment and Income Contributions

Forest-related economic activity in Lauderdale County during 2018 generated 707 jobs and over $31.4 million in income. That’s about 1.5% of jobs and 1.5% of income in the county. Employment is the number of full- and part-time jobs in all sectors of the economy. Income includes all forms of employment income, including employee compensation (wages and benefits) and proprietor income, also referred to as labor income.

Total Output and Value Added Contributions

Forestry and the forest products industry generated over $119.1 million, or about 1.9% of economic output in Lauderdale County. Forest-related value added amounted to over $46.4 million, or about 1.4% of all value added in the county. The value of all goods and services produced is defined as total output. Value added is a portion of total output and represents the creation of new wealth.

Tax Contributions

Forest-related economic activity contributed an estimated $8.93 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $5.65 million for federal and $3.28 million for state and local governments.

Contributions from forest-related sectors on employment and income in Lauderdale County, Mississippi, 2018.

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

7

0.01

359,750

0.02

Logging

112

0.24

4,739,175

0.23

Solid Wood Products

180

0.39

6,342,800

0.31

Wood Furniture

82

0.18

5,298,338

0.26

Pulp & Paper

54

0.12

2,694,812

0.13

Subtotal

436

0.94

19,434,874

0.94

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

62

0.13

3,219,964

0.16

Misc. Services

48

0.10

1,377,628

0.07

Misc. Manufacturing

48

0.10

1,947,835

0.09

Resource Services

34

0.07

1,206,214

0.06

Health Services

25

0.05

1,729,562

0.08

Financial & Real Estate

20

0.04

692,091

0.03

Transport. & Comm. Services

16

0.03

782,879

0.04

Domestic Services

5

0.01

258,123

0.01

Education

4

0.01

179,441

0.01

Recreation & Amusement

3

0.01

50,757

0.00

Utility Services

3

0.01

262,161

0.01

Government

2

0.01

174,865

0.01

Construction

2

0.00

71,014

0.00

Agricultural Products

1

0.00

9,740

0.00

Glass, Stone, & Clay

0

0.00

26,356

0.00

Metal Industries

0

0.00

15,232

0.00

Mining

0

0.00

436

0.00

Petroleum & Chemicals

0

0.00

3,198

0.00

Food Processing

0

0.00

1,017

0.00

Transportation Equipment

0

0.00

646

0.00

Machinery & Equipment

0

0.00

64

0.00

Agricultural Processing

0

0.00

27

0.00

Technology Industries

0

0.00

21

0.00

Farm Inputs & Machinery

0

0.00

12

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Subtotal

272

0.59

12,009,283

0.58

TOTAL CONTRIBUTIONS

707

1.53

31,444,157

1.53

Rest of County

45,401

98.47

2,027,939,564

98.47

Total in County

46,108

100.00

2,059,383,721

100.00

Contributions from forest-related sectors on total output and value added in Lauderdale County, Mississippi, 2018.

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

492,087

0.01

362,346

0.01

Logging

8,379,085

0.13

4,691,435

0.14

Solid Wood Products

37,807,978

0.59

11,303,764

0.33

Wood Furniture

12,796,666

0.20

6,053,329

0.18

Pulp & Paper

21,065,552

0.33

4,013,177

0.12

Subtotal

80,541,369

1.26

26,424,050

0.78

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

11,056,435

0.17

5,803,158

0.17

Misc. Services

3,663,621

0.06

1,985,914

0.06

Misc. Manufacturing

4,280,040

0.07

2,298,494

0.07

Resource Services

1,268,010

0.02

1,010,696

0.03

Health Services

3,614,602

0.06

1,997,665

0.06

Financial & Real Estate

6,318,286

0.10

3,427,932

0.10

Transport. & Comm. Services

2,797,514

0.04

1,183,962

0.03

Domestic Services

1,605,852

0.03

655,364

0.02

Education

284,983

0.00

198,594

0.01

Recreation & Amusement

188,449

0.00

92,009

0.00

Utility Services

2,440,216

0.04

917,324

0.03

Government

479,901

0.01

242,920

0.01

Construction

307,848

0.00

97,286

0.00

Agricultural Products

18,946

0.00

5,082

0.00

Glass, Stone, & Clay

155,845

0.00

72,662

0.00

Metal Industries

69,184

0.00

20,449

0.00

Mining

10,992

0.00

861

0.00

Petroleum & Chemicals

26,575

0.00

8,319

0.00

Food Processing

3,893

0.00

1,384

0.00

Transportation Equipment

3,670

0.00

915

0.00

Machinery & Equipment

282

0.00

88

0.00

Agricultural Processing

280

0.00

32

0.00

Technology Industries

105

0.00

36

0.00

Farm Inputs & Machinery

317

0.00

24

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Subtotal

38,595,845

0.61

20,021,167

0.59

TOTAL CONTRIBUTIONS

119,137,214

1.87

46,445,217

1.37

Rest of County

6,254,645,067

98.13

3,336,804,183

98.63

Total in County

6,373,782,281

100.00

3,383,249,400

100.00

Economic contributions developed using 2018 IMPLAN® software and data (reported in 2020 dollars).

Lauderdale County forestland acreage, ownership, value, and taxes collected.

Total forestland acres, 2018

336,020

Private ownership acres

313,427

Public ownership acres

22,592

Forestland assessed value, 2018

$9,759,226

Ad valorem tax collections from forestland, 2018

$1,093,814

Value of standing timber, 2018

$511,687,265

Value of timber harvested, 2019

$31,104,322

Timber severance tax collections (100%), 2019

$97,299

Tax to Forest Resource Development Program (80%)

$77,839

Tax returned to county government (20%)

$19,460

Sources: Forestland ownership, acreage, and timber volumes were estimated using the USDA Forest Service, Forest Inventory and Analysis Program, Forest Inventory EVALIDator web application Version 1.8.0.01. Tax collections according to Mississippi Tax Commission and Mississippi Department of Revenue. Timber harvest values according to the Mississippi Harvest of Forest Products Report.


M1675 (100-11-20)

By Shaun M. Tanger, PhD, Assistant Extension Professor, Forestry; Marcus K. Measells, MS, Senior Extension Associate, Forestry; James E. Henderson, PhD, Extension Professor and Head, Coastal Research and Extension Center; and Ian A. Munn, PhD, Associate Dean and Professor, Forestry.

Copyright 2020 by Mississippi State University. All rights reserved. This publication may be copied and distributed without alteration for nonprofit educational purposes provided that credit is given to the Mississippi State University Extension Service.

Produced by Agricultural Communications.

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Extension Service of Mississippi State University, cooperating with U.S. Department of Agriculture. Published in furtherance of Acts of Congress, May 8 and June 30, 1914. GARY B. JACKSON, Director

Department: MSU Extension- Lauderdale County

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Authors

Portrait of Dr. Shaun Tanger
Assistant Professor
Timber Taxation, Forestry Economics, Forest Management, Forest Finance
Portrait of Mr. Marc Measells
Senior Extension Associate
Portrait of Dr. James Emery Henderson
Professor and Head
Forest Economics and Management