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The Economic Contribution of Forestry and Forest Products - Simpson County

Publication Number: M1712
View as PDF: M1712.pdf

Simpson County

Forestry and forest products are a major component of Simpson 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 Simpson County, Mississippi.

Employment and Income Contributions

Forest-related economic activity in Simpson County during 2018 generated 43 jobs and over $1.5 million in income. That’s about 0.4% of jobs and 0.4% 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 $3.6 million, or about 0.3% of economic output in Simpson County. Forest-related value added amounted to over $1.8 million, or about 0.3% 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 $405,488 in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $269,956 for federal and $135,532 for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

13

0.12

468,177

0.12

Logging

16

0.15

705,799

0.18

Solid Wood Products

0

0.00

0

0.00

Wood Furniture

6

0.05

170,436

0.04

Pulp & Paper

0

0.00

0

0.00

Subtotal

35

0.32

1,344,412

0.35

Indirect and Induced Contributions on Sectors

Misc. Services

2

0.02

40,157

0.01

Wholesale & Retail Trade

1

0.01

37,676

0.01

Resource Services

1

0.01

9,135

0.00

Health Services

1

0.01

62,859

0.02

Financial & Real Estate

1

0.01

18,222

0.00

Misc. Manufacturing

1

0.01

13,183

0.00

Transport. & Comm. Services

0

0.00

10,727

0.00

Agricultural Products

0

0.00

36,377

0.01

Recreation & Amusement

0

0.00

400

0.00

Education

0

0.00

2,034

0.00

Utility Services

0

0.00

2,853

0.00

Domestic Services

0

0.00

2,721

0.00

Construction

0

0.00

2,732

0.00

Government

0

0.00

2,134

0.00

Mining

0

0.00

2

0.00

Food Processing

0

0.00

40

0.00

Glass, Stone, & Clay

0

0.00

20

0.00

Agricultural Processing

0

0.00

11

0.00

Petroleum & Chemicals

0

0.00

0

0.00

Metal Industries

0

0.00

1

0.00

Machinery & Equipment

0

0.00

1

0.00

Transportation Equipment

0

0.00

1

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Farm Inputs & Machinery

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

9

0.08

241,286

0.06

TOTAL CONTRIBUTIONS

43

0.40

1,585,699

0.41

Rest of County

10,672

99.60

382,658,135

99.59

Total in County

10,715

100.00

384,243,834

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

729,772

0.06

477,283

0.09

Logging

1,235,862

0.11

718,189

0.14

Solid Wood Products

271

0.00

3

0.00

Wood Furniture

682,596

0.06

200,199

0.04

Pulp & Paper

0

0.00

0

0.00

Subtotal

2,648,501

0.23

1,395,673

0.26

Indirect and Induced Contributions on Sectors

Misc. Services

130,188

0.01

62,722

0.01

Wholesale & Retail Trade

133,618

0.01

69,455

0.01

Resource Services

19,094

0.00

8,642

0.00

Health Services

151,721

0.01

70,494

0.01

Financial & Real Estate

255,363

0.02

144,964

0.03

Misc. Manufacturing

37,231

0.00

13,345

0.00

Transport. & Comm. Services

53,820

0.00

13,881

0.00

Agricultural Products

126,513

0.01

9,227

0.00

Recreation & Amusement

2,767

0.00

1,172

0.00

Education

2,710

0.00

1,858

0.00

Utility Services

24,154

0.00

7,928

0.00

Domestic Services

24,549

0.00

8,289

0.00

Construction

11,156

0.00

3,356

0.00

Government

2,444

0.00

2,136

0.00

Mining

397

0.00

17

0.00

Food Processing

617

0.00

88

0.00

Glass, Stone, & Clay

86

0.00

27

0.00

Agricultural Processing

196

0.00

14

0.00

Petroleum & Chemicals

15

0.00

0

0.00

Metal Industries

3

0.00

1

0.00

Machinery & Equipment

2

0.00

1

0.00

Transportation Equipment

5

0.00

1

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Farm Inputs & Machinery

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

976,650

0.08

417,619

0.08

TOTAL CONTRIBUTIONS

3,625,151

0.31

1,813,292

0.34

Rest of County

1,169,517,358

99.69

527,003,020

99.66

Total in County

1,173,142,509

100.00

528,816,312

100.00

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

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

Total forestland acres, 2018

265,861

Private ownership acres

265,861

Public ownership acres

0

Forestland assessed value, 2018

$10,120,052

Ad valorem tax collections from forestland, 2018

$1,046,515

Value of standing timber, 2018

$413,812,026

Value of timber harvested, 2019

$25,202,589

Timber severance tax collections (100%), 2019

$83,558

Tax to Forest Resource Development Program (80%)

$66,846

Tax returned to county government (20%)

$16,712

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.


M1712 (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- Simpson 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