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The Economic Contributions of Forestry and Forest Products - Madison County

Publication Number: M1738
View as PDF: M1738.pdf

Madison County

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

Employment and Income Contributions

Forest-related economic activity in Madison County during 2018 generated 241 jobs and over $11.8 million in income. That’s about 0.3% of jobs and 0.3% 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 $45.9 million, or about 0.3% of economic output in Madison County. Forest-related value added amounted to over $17.6 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 $3.47 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $2.24 million for federal and $1.23 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

21

0.03

816,115

0.02

Logging

49

0.06

2,318,449

0.06

Solid Wood Products

24

0.03

1,115,710

0.03

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

52

0.06

3,348,500

0.09

Subtotal

146

0.17

7,598,775

0.20

Indirect and Induced Contributions on Sectors

Resource Services

18

0.02

731,409

0.02

Wholesale & Retail Trade

18

0.02

866,708

0.02

Misc. Services

17

0.02

598,454

0.02

Misc. Manufacturing

16

0.02

909,291

0.02

Financial & Real Estate

12

0.01

341,030

0.01

Transport. & Comm. Services

4

0.00

203,328

0.01

Health Services

4

0.00

318,754

0.01

Education

2

0.00

55,093

0.00

Recreation & Amusement

1

0.00

16,370

0.00

Domestic Services

1

0.00

56,951

0.00

Agricultural Products

1

0.00

147

0.00

Government

1

0.00

62,794

0.00

Construction

1

0.00

40,256

0.00

Utility Services

1

0.00

10,544

0.00

Mining

0

0.00

3,570

0.00

Transportation Equipment

0

0.00

3,767

0.00

Petroleum & Chemicals

0

0.00

1,358

0.00

Metal Industries

0

0.00

1,705

0.00

Agricultural Processing

0

0.00

745

0.00

Food Processing

0

0.00

668

0.00

Glass, Stone, & Clay

0

0.00

611

0.00

Machinery & Equipment

0

0.00

19

0.00

Farm Inputs & Machinery

0

0.00

13

0.00

Technology Industries

0

0.00

0

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Subtotal

96

0.11

4,223,587

0.11

TOTAL CONTRIBUTIONS

241

0.29

11,822,361

0.31

Rest of County

83,430

99.71

3,823,072,849

99.69

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 Madison County, Mississippi, 2018.

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

1,247,411

0.01

840,297

0.01

Logging

3,958,340

0.02

2,358,474

0.04

Solid Wood Products

4,403,947

0.03

1,650,558

0.02

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

23,526,907

0.15

5,878,232

0.09

Subtotal

33,136,605

0.21

10,727,561

0.16

Indirect and Induced Contributions on Sectors

Resource Services

788,463

0.00

650,183

0.01

Wholesale & Retail Trade

2,931,426

0.02

1,577,609

0.02

Misc. Services

1,537,613

0.01

899,109

0.01

Misc. Manufacturing

1,717,140

0.01

1,058,463

0.02

Financial & Real Estate

3,163,749

0.02

1,573,543

0.02

Transport. & Comm. Services

623,183

0.00

266,953

0.00

Health Services

542,216

0.00

350,521

0.01

Education

107,137

0.00

63,574

0.00

Recreation & Amusement

86,738

0.00

33,262

0.00

Domestic Services

486,677

0.00

222,131

0.00

Agricultural Products

37,355

0.00

11,957

0.00

Government

256,389

0.00

120,289

0.00

Construction

137,994

0.00

53,006

0.00

Utility Services

226,000

0.00

39,196

0.00

Mining

43,663

0.00

4,886

0.00

Transportation Equipment

44,672

0.00

6,081

0.00

Petroleum & Chemicals

17,632

0.00

3,146

0.00

Metal Industries

5,989

0.00

2,375

0.00

Agricultural Processing

6,128

0.00

1,038

0.00

Food Processing

4,046

0.00

985

0.00

Glass, Stone, & Clay

2,692

0.00

984

0.00

Machinery & Equipment

64

0.00

24

0.00

Farm Inputs & Machinery

254

0.00

25

0.00

Technology Industries

1

0.00

0

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Subtotal

12,767,221

0.08

6,939,341

0.10

TOTAL CONTRIBUTIONS

45,903,826

0.29

17,666,902

0.26

Rest of County

16,009,793,101

99.71

6,699,793,600

99.74

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).

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

Total forestland acres, 2018

257,918

Private ownership acres

237,398

Public ownership acres

20,521

Forestland assessed value, 2018

$11,183,667

Ad valorem tax collections from forestland, 2018

$1,175,627

Value of standing timber, 2018

$501,892,945

Value of timber harvested, 2019

$11,185,371

Timber severance tax collections (100%), 2019

$36,523

Tax to Forest Resource Development Program (80%)

$29,218

Tax returned to county government (20%)

$7,305

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.


M1738 (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.

Department: MSU Extension- Madison County
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