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The Economic Contribution of Forestry and Forest Products - Neshoba County

Publication Number: M1681
View as PDF: M1681.pdf

Neshoba County

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

Employment and Income Contributions

Forest-related economic activity in Neshoba County during 2018 generated 621 jobs and over $30.2 million in income. That’s about 3.8% of jobs and 4.6% 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 $95.6 million, or about 3.8% of economic output in Neshoba County. Forest-related value added amounted to over $44.2 million, or about 3.9% 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 $8.08 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $5.24 million for federal and $2.84 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

8

0.05

407,944

0.06

Logging

288

1.78

13,139,948

1.98

Solid Wood Products

142

0.88

8,317,194

1.26

Wood Furniture

25

0.15

1,032,371

0.16

Pulp & Paper

0

0.00

0

0.00

Subtotal

463

2.86

22,897,456

3.46

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

40

0.25

2,794,689

0.42

Misc. Services

39

0.24

983,407

0.15

Misc. Manufacturing

16

0.10

688,710

0.10

Transport. & Comm. Services

15

0.09

493,049

0.07

Resource Services

14

0.08

726,468

0.11

Government

12

0.08

711,928

0.11

Financial & Real Estate

8

0.05

274,424

0.04

Health Services

6

0.04

375,322

0.06

Domestic Services

2

0.01

126,485

0.02

Agricultural Products

2

0.01

77,288

0.01

Recreation & Amusement

1

0.01

12,848

0.00

Education

1

0.01

50,938

0.01

Construction

1

0.01

48,848

0.01

Mining

0

0.00

530

0.00

Utility Services

0

0.00

19,095

0.00

Farm Inputs & Machinery

0

0.00

6,331

0.00

Metal Industries

0

0.00

773

0.00

Petroleum & Chemicals

0

0.00

563

0.00

Food Processing

0

0.00

348

0.00

Machinery & Equipment

0

0.00

27

0.00

Transportation Equipment

0

0.00

2

0.00

Agricultural Processing

0

0.00

5

0.00

Glass, Stone, & Clay

0

0.00

1

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

158

0.98

7,392,077

1.12

TOTAL CONTRIBUTIONS

621

3.84

30,289,533

4.57

Rest of County

15,541

96.16

632,145,717

95.43

Total in County

16,162

100.00

662,435,250

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

571,478

0.02

412,430

0.04

Logging

22,506,045

0.90

13,072,893

1.16

Solid Wood Products

43,615,884

1.75

15,870,583

1.41

Wood Furniture

3,448,626

0.14

1,471,454

0.13

Pulp & Paper

0

0.00

0

0.00

Subtotal

70,142,034

2.81

30,827,359

2.74

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

7,844,155

0.31

4,934,326

0.44

Misc. Services

2,745,845

0.11

1,429,220

0.13

Misc. Manufacturing

1,394,390

0.06

795,555

0.07

Transport. & Comm. Services

2,046,539

0.08

674,802

0.06

Resource Services

790,864

0.03

689,540

0.06

Government

3,937,645

0.16

1,644,131

0.15

Financial & Real Estate

3,762,211

0.15

2,259,151

0.20

Health Services

621,756

0.02

384,542

0.03

Domestic Services

800,612

0.03

351,607

0.03

Agricultural Products

758,408

0.03

49,386

0.00

Recreation & Amusement

129,993

0.01

31,722

0.00

Education

73,963

0.00

45,240

0.00

Construction

193,128

0.01

73,648

0.01

Mining

63,296

0.00

2,980

0.00

Utility Services

195,403

0.01

74,494

0.01

Farm Inputs & Machinery

97,974

0.00

11,663

0.00

Metal Industries

2,947

0.00

929

0.00

Petroleum & Chemicals

4,118

0.00

1,088

0.00

Food Processing

1,857

0.00

505

0.00

Machinery & Equipment

152

0.00

44

0.00

Transportation Equipment

34

0.00

2

0.00

Agricultural Processing

63

0.00

6

0.00

Glass, Stone, & Clay

8

0.00

1

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

25,465,362

1.02

13,454,581

1.20

TOTAL CONTRIBUTIONS

95,607,396

3.83

44,281,940

3.93

Rest of County

2,398,910,497

96.17

1,081,540,958

96.07

Total in County

2,494,517,893

100.00

1,125,822,898

100.00

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

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

Total forestland acres, 2018

304,996

Private ownership acres

296,344

Public ownership acres

8,652

Forestland assessed value, 2018

$7,806,421

Ad valorem tax collections from forestland, 2018

$961,205

Value of standing timber, 2018

$457,899,348

Value of timber harvested, 2019

$29,155,310

Timber severance tax collections (100%), 2019

$78,902

Tax to Forest Resource Development Program (80%)

$63,121

Tax returned to county government (20%)

$15,780

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.


M1681 (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- Neshoba 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