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The Economic Contribution of Forestry and Forest Products - Lee County

Publication Number: M1677
View as PDF: M1677.pdf

Lee County

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

Employment and Income Contributions

Forest-related economic activity in Lee County during 2018 generated 5,260 jobs and over $256.7 million in income. That’s about 6.3% of jobs and 6.7% 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 $1.1 billion, or about 6.9% of economic output in Lee County. Forest-related value added amounted to over $396.5 million, or about 5.9% 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 $74.12 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $47.88 million for federal and $26.24 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

1

0.00

51,289

0.00

Logging

9

0.01

17,028

0.00

Solid Wood Products

103

0.12

7,420,096

0.19

Wood Furniture

2,802

3.35

125,333,595

3.27

Pulp & Paper

368

0.44

27,951,613

0.73

Subtotal

3,283

3.92

160,773,621

4.19

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

500

0.60

26,999,991

0.70

Misc. Manufacturing

382

0.46

16,783,448

0.44

Misc. Services

352

0.42

11,493,321

0.30

Transport. & Comm. Services

199

0.24

10,825,341

0.28

Financial & Real Estate

197

0.24

7,605,042

0.20

Health Services

167

0.20

14,107,580

0.37

Petroleum & Chemicals

39

0.05

1,642,819

0.04

Domestic Services

30

0.04

1,829,345

0.05

Recreation & Amusement

23

0.03

436,481

0.01

Education

23

0.03

265,487

0.01

Utility Services

20

0.02

1,402,602

0.04

Construction

20

0.02

786,967

0.02

Government

19

0.02

1,603,693

0.04

Agricultural Products

2

0.00

4,471

0.00

Metal Industries

2

0.00

78,334

0.00

Resource Services

1

0.00

15,985

0.00

Transportation Equipment

1

0.00

64,467

0.00

Glass, Stone, & Clay

0

0.00

32,835

0.00

Mining

0

0.00

18,276

0.00

Food Processing

0

0.00

8,736

0.00

Machinery & Equipment

0

0.00

4,434

0.00

Agricultural Processing

0

0.00

1,834

0.00

Farm Inputs & Machinery

0

0.00

735

0.00

Fabric Mills & Leather

0

0.00

456

0.00

Technology Industries

0

0.00

50

0.00

Subtotal

1,977

2.36

96,012,730

2.50

TOTAL CONTRIBUTIONS

5,260

6.29

256,786,351

6.70

Rest of County

78,411

93.71

3,578,108,859

93.30

Total in County

83,671

100.00

3,834,895,210

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

72,419

0.00

51,744

0.00

Logging

318,574

0.00

31,435

0.00

Solid Wood Products

63,313,020

0.39

26,913,691

0.40

Wood Furniture

544,056,111

3.39

163,439,790

2.43

Pulp & Paper

178,171,189

1.11

41,584,490

0.62

Subtotal

785,931,311

4.90

232,021,151

3.45

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

86,077,171

0.54

47,930,128

0.71

Misc. Manufacturing

35,533,148

0.22

20,104,217

0.30

Misc. Services

32,390,137

0.20

18,496,396

0.28

Transport. & Comm. Services

32,219,662

0.20

14,141,651

0.21

Financial & Real Estate

56,167,176

0.35

29,983,687

0.45

Health Services

26,713,113

0.17

16,110,647

0.24

Petroleum & Chemicals

14,621,189

0.09

3,620,310

0.05

Domestic Services

10,900,443

0.07

4,769,152

0.07

Recreation & Amusement

1,895,482

0.01

789,527

0.01

Education

727,197

0.00

258,911

0.00

Utility Services

11,170,482

0.07

4,218,317

0.06

Construction

3,466,923

0.02

1,099,273

0.02

Government

6,401,475

0.04

2,640,201

0.04

Agricultural Products

54,470

0.00

14,383

0.00

Metal Industries

431,846

0.00

114,581

0.00

Resource Services

23,666

0.00

15,347

0.00

Transportation Equipment

460,600

0.00

86,662

0.00

Glass, Stone, & Clay

150,493

0.00

52,958

0.00

Mining

133,668

0.00

22,753

0.00

Food Processing

27,484

0.00

10,955

0.00

Machinery & Equipment

25,688

0.00

7,618

0.00

Agricultural Processing

28,274

0.00

5,609

0.00

Farm Inputs & Machinery

9,400

0.00

1,388

0.00

Fabric Mills & Leather

2,736

0.00

971

0.00

Technology Industries

153

0.00

55

0.00

Subtotal

319,632,074

1.99

164,495,697

2.45

TOTAL CONTRIBUTIONS

1,105,563,385

6.89

396,516,847

5.90

Rest of County

14,950,133,542

93.11

6,320,943,655

94.10

Total in County

16,055,696,927

100.00

6,717,460,502

100.00

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

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

Total forestland acres, 2018

95,461

Private ownership acres

95,461

Public ownership acres

0

Forestland assessed value, 2018

$5,556,835

Ad valorem tax collections from forestland, 2018

$606,473

Value of standing timber, 2018

$188,345,496

Value of timber harvested, 2019

$1,449,846

Timber severance tax collections (100%), 2019

$4,580

Tax to Forest Resource Development Program (80%)

$3,664

Tax returned to county government (20%)

$916

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.


M1677 (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- Lee 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

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