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The Economic Contribution of Forestry and Forest Products - Leake County

Publication Number: M1732
View as PDF: M1732.pdf

Leake County

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

Employment and Income Contributions

Forest-related economic activity in Leake County during 2018 generated 231 jobs and over $16.2 million in income. That’s about 2.9% of jobs and 6.0% 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 $28.0 million, or about 2.1% of economic output in Leake County. Forest-related value added amounted to over $18.2 million, or about 4.1% 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 $3.91 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $2.83 million for federal and $1.08 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

3

0.04

105,585

0.04

Logging

131

1.66

12,291,942

4.52

Solid Wood Products

13

0.16

799,735

0.29

Wood Furniture

2

0.02

110,090

0.04

Pulp & Paper

0

0.00

0

0.00

Subtotal

148

1.88

13,307,352

4.89

Indirect and Induced Contributions on Sectors

Resource Services

26

0.33

1,293,339

0.48

Misc. Services

17

0.21

387,182

0.14

Health Services

12

0.15

514,740

0.19

Wholesale & Retail Trade

12

0.15

313,509

0.12

Misc. Manufacturing

5

0.06

119,806

0.04

Financial & Real Estate

5

0.06

116,151

0.04

Transport. & Comm. Services

2

0.02

53,428

0.02

Education

2

0.02

40,671

0.01

Agricultural Products

1

0.01

56,825

0.02

Domestic Services

0

0.01

19,219

0.01

Construction

0

0.00

6,029

0.00

Utility Services

0

0.00

19,817

0.01

Government

0

0.00

15,942

0.01

Recreation & Amusement

0

0.00

2,276

0.00

Agricultural Processing

0

0.00

2,967

0.00

Mining

0

0.00

56

0.00

Food Processing

0

0.00

188

0.00

Petroleum & Chemicals

0

0.00

150

0.00

Metal Industries

0

0.00

0

0.00

Glass, Stone, & Clay

0

0.00

16

0.00

Machinery & Equipment

0

0.00

0

0.00

Transportation Equipment

0

0.00

4

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

82

1.05

2,962,316

1.09

TOTAL CONTRIBUTIONS

231

2.93

16,269,668

5.98

Rest of County

7,652

97.07

255,727,556

94.02

Total in County

7,883

100.00

271,997,224

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

163,864

0.01

107,587

0.02

Logging

16,224,814

1.19

12,024,898

2.69

Solid Wood Products

2,700,453

0.20

1,307,053

0.29

Wood Furniture

364,072

0.03

111,906

0.03

Pulp & Paper

0

0.00

0

0.00

Subtotal

19,453,202

1.42

13,551,444

3.04

Indirect and Induced Contributions on Sectors

Resource Services

1,286,025

0.09

1,089,758

0.24

Misc. Services

1,082,127

0.08

549,956

0.12

Health Services

1,293,162

0.09

585,979

0.13

Wholesale & Retail Trade

1,158,171

0.08

677,168

0.15

Misc. Manufacturing

315,946

0.02

141,137

0.03

Financial & Real Estate

2,273,074

0.17

1,360,247

0.30

Transport. & Comm. Services

232,760

0.02

67,282

0.02

Education

58,066

0.00

37,136

0.01

Agricultural Products

436,611

0.03

31,040

0.01

Domestic Services

120,225

0.01

49,849

0.01

Construction

55,208

0.00

8,842

0.00

Utility Services

225,665

0.02

76,677

0.02

Government

26,955

0.00

18,784

0.00

Recreation & Amusement

7,487

0.00

4,040

0.00

Agricultural Processing

20,287

0.00

4,114

0.00

Mining

3,184

0.00

178

0.00

Food Processing

2,031

0.00

342

0.00

Petroleum & Chemicals

1,268

0.00

225

0.00

Metal Industries

481

0.00

0

0.00

Glass, Stone, & Clay

51

0.00

20

0.00

Machinery & Equipment

23

0.00

1

0.00

Transportation Equipment

45

0.00

4

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

8,598,851

0.63

4,702,778

1.05

TOTAL CONTRIBUTIONS

28,052,053

2.05

18,254,221

4.09

Rest of County

1,337,422,298

97.95

428,071,957

95.91

Total in County

1,365,474,351

100.00

446,326,178

100.00

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

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

Total forestland acres, 2018

293,305

Private ownership acres

293,305

Public ownership acres

0

Forestland assessed value, 2018

$9,183,267

Ad valorem tax collections from forestland, 2018

$1,027,608

Value of standing timber, 2018

$383,266,019

Value of timber harvested, 2019

$28,879,288

Timber severance tax collections (100%), 2019

$93,895

Tax to Forest Resource Development Program (80%)

$75,116

Tax returned to county government (20%)

$18,779

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.


M1732 (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- Leake 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