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M1712

The Economic Contributions of Forestry and Forest Products in Simpson County

Logo. Mississippi Forestry Association.

Simpson County

The forestry and forest products industries are a major component of Simpson County’s economy. The forest-related economic sectors generate value not only within their own sectors but also in other sectors of the economy. The multiplier effect of economic activity in one sector and the impacts on other sectors can be estimated using input-output analysis. Using 2022 data, this study estimates the economic contribution of the forestry and forest products industries to Simpson County, Mississippi.

Employment and Income Contributions

Forest-related economic activity in Simpson County during 2022 generated 543 jobs and nearly $11.37 million in income. That’s about 5.11 percent of jobs and 2.9 percent 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

Over $43.44 million, or about 2.9 percent of economic output in Simpson County, is generated by the forestry and forest products industries. Forest-related value-added amounted to over $15.14 million, or about 2.4 percent 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.

Table 1. Contributions from forest-related sectors on employment and income in Simpson County, Mississippi, 2022.

Sectors

Number of Jobs

% of County

Income ($)

% of County

Direct Contribution from Forest Related Sectors

Forest Support Service

17

0.16

396,805

0.10

Logging

441

4.15

8,090,008

2.06

Solid Wood Product

3

0.03

0

0.00

Pulp and Paper

0

0.00

3,447

0.00

Wood Furniture

13

0.12

450,215

0.11

Subtotal

474

4.46

8,937,762

2.28

Indirect and Induced Contributions on Sectors

Retail and Wholesale Trade

19

0.18

531,225

0.14

Real Estate, Finance, and Insurance

6

0.06

198,149

0.05

Services

13

0.12

390,442

0.10

Construction and Manufacturing

3

0.03

157,867

0.04

Health Care

7

0.07

323,060

0.08

Transportation and Warehousing

5

0.05

206,703

0.05

Government

1

0.01

40,542

0.01

Agriculture Production and Services

10

0.09

450,536

0.11

Food and Fiber

5

0.05

101,081

0.03

Hotels and Entertainment

0

0.00

9,147

0.00

Education

1

0.01

21,986

0.01

Subtotal

70

0.66

2,430,738

0.62

Total Impact from Forest Related Sector

543

5.11

11,368,500

2.90

Rest of the County

10,083

94.88

380,513,971

97.10

Total in County

10,627

100.00

391,882,471

100.00

Table 2. Contributions from forest-related sectors on total output and value-added in Simpson County, Mississippi, 2022.

Sectors

Output ($)

% of County

Value-Added ($)

% of County

Direct Contribution from Forest Related Sectors

Forest Support Service

516,619

0.03

417,824

0.07

Logging

27,911,501

1.87

9,963,049

1.58

Solid Wood Product

1,081,358

0.07

3,495

0.00

Pulp and Paper

70,854

0.00

4,117

0.00

Wood Furniture

2,007,768

0.13

525,418

0.08

Subtotal

31,588,100

2.11

10,913,903

1.73

Indirect and Induced Contributions on Sectors

Retail and Wholesale Trade

2,258,948

0.15

1,224,432

0.19

Real Estate, Finance, and Insurance

1,914,010

0.13

1,060,320

0.17

Services

1,193,689

0.08

477,047

0.08

Construction and Manufacturing

807,629

0.05

222,221

0.04

Health Care

753,314

0.05

371,621

0.06

Transportation and Warehousing

639,134

0.04

248,038

0.04

Government

50,429

0.00

50,429

0.01

Agriculture Production and Services

3,656,453

0.24

365,568

0.06

Food and Fiber

518,739

0.03

167,806

0.03

Hotels and Entertainment

34,597

0.00

19,461

0.00

Education

22,998

0.00

16,037

0.00

Subtotal

11,849,940

0.79

4,222,980

0.67

Total Impact from Forest Related Sector

43,438,040

2.90

15,136,883

2.40

Rest of the County

1,452,149,743

97.10

614,985,323

97.60

Total in County

1,495,587,783

100.00

630,122,206

100.00

Estimates developed using IMPLAN software and data. Timber harvest value according to the Mississippi Harvest of Forest Products Report.


M1712 (POD-07-25)

Revised by Sabhyata Lamichhane, PhD, Assistant Professor, Niraj Gupta, Undergraduate Student, and Sushma Bhattarai, PhD, Extension Associate I, Forestry; James E. Henderson, PhD, Extension Professor and Head, Coastal Research and Extension Center; and Donald Grebner, PhD, Professor and Head, Forestry. By Shaun M. Tanger, PhD, former Assistant Extension Professor; Marcus K. Measells, former Extension Associate III, Forestry; and Ian A. Munn, PhD, former Associate Dean and Professor.

Mississippi State University Extension 130 Bost Drive Mississippi State MS 39762