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The Economic Contributions of Forestry and Forest Products - Tippah County

Publication Number: M1710
View as PDF: M1710.pdf

Tippah County

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

Employment and Income Contributions

Forest-related economic activity in Tippah County during 2018 generated 1,257 jobs and over $44.8 million in income. That’s about 12.7% of jobs and 13.4% 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 $217.2 million, or about 15.0% of economic output in Tippah County. Forest-related value added amounted to over $67.6 million, or about 11.3% 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 $14.43 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $9.67 million for federal and $4.76 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

13

0.14

502,852

0.15

Logging

46

0.46

2,189,914

0.66

Solid Wood Products

89

0.90

4,480,370

1.34

Wood Furniture

763

7.74

26,801,104

8.03

Pulp & Paper

0

0.00

0

0.00

Subtotal

911

9.24

33,974,240

10.18

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

90

0.91

3,635,601

1.09

Misc. Manufacturing

61

0.62

1,018,253

0.31

Misc. Services

53

0.53

1,247,408

0.37

Transport. & Comm. Services

50

0.51

2,426,204

0.73

Financial & Real Estate

39

0.40

777,251

0.23

Health Services

16

0.16

747,589

0.22

Recreation & Amusement

7

0.07

10,690

0.00

Education

5

0.05

126,782

0.04

Domestic Services

5

0.05

141,339

0.04

Utility Services

4

0.04

261,591

0.08

Construction

4

0.04

151,926

0.05

Government

4

0.04

241,201

0.07

Resource Services

3

0.03

46,561

0.01

Agricultural Products

3

0.03

3,119

0.00

Petroleum & Chemicals

1

0.01

39,575

0.01

Mining

0

0.00

883

0.00

Metal Industries

0

0.00

4,319

0.00

Glass, Stone, & Clay

0

0.00

3,241

0.00

Transportation Equipment

0

0.00

4,324

0.00

Machinery & Equipment

0

0.00

552

0.00

Food Processing

0

0.00

203

0.00

Farm Inputs & Machinery

0

0.00

8

0.00

Agricultural Processing

0

0.00

0

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

345

3.50

10,888,619

3.26

TOTAL CONTRIBUTIONS

1,257

12.74

44,862,860

13.44

Rest of County

8,608

87.26

288,900,714

86.56

Total in County

9,865

100.00

333,763,574

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

771,421

0.05

514,720

0.09

Logging

3,671,628

0.25

2,169,266

0.36

Solid Wood Products

26,038,218

1.79

8,589,891

1.43

Wood Furniture

140,171,731

9.65

35,301,916

5.90

Pulp & Paper

0

0.00

0

0.00

Subtotal

170,652,999

11.75

46,575,793

7.78

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

14,247,981

0.98

7,429,858

1.24

Misc. Manufacturing

3,278,575

0.23

1,131,048

0.19

Misc. Services

3,725,608

0.26

1,821,409

0.30

Transport. & Comm. Services

7,902,934

0.54

3,234,674

0.54

Financial & Real Estate

10,418,071

0.72

4,659,695

0.78

Health Services

1,274,322

0.09

745,808

0.12

Recreation & Amusement

97,436

0.01

36,215

0.01

Education

313,086

0.02

169,659

0.03

Domestic Services

1,052,767

0.07

308,074

0.05

Utility Services

2,451,499

0.17

837,987

0.14

Construction

681,101

0.05

191,652

0.03

Government

535,399

0.04

295,581

0.05

Resource Services

75,723

0.01

49,311

0.01

Agricultural Products

113,752

0.01

43,796

0.01

Petroleum & Chemicals

347,870

0.02

82,623

0.01

Mining

49,114

0.00

3,831

0.00

Metal Industries

13,295

0.00

4,815

0.00

Glass, Stone, & Clay

25,751

0.00

6,290

0.00

Transportation Equipment

18,923

0.00

5,592

0.00

Machinery & Equipment

3,496

0.00

1,070

0.00

Food Processing

1,120

0.00

319

0.00

Farm Inputs & Machinery

185

0.00

16

0.00

Agricultural Processing

0

0.00

0

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

46,628,008

3.21

21,059,324

3.52

TOTAL CONTRIBUTIONS

217,281,007

14.95

67,635,117

11.30

Rest of County

1,235,641,085

85.05

531,038,586

88.70

Total in County

1,452,922,092

100.00

598,673,703

100.00

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

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

Total forestland acres, 2018

235,195

Private ownership acres

225,292

Public ownership acres

9,903

Forestland assessed value, 2018

$5,897,961

Ad valorem tax collections from forestland, 2018

$808,139

Value of standing timber, 2018

$286,534,546

Value of timber harvested, 2019

$4,791,530

Timber severance tax collections (100%), 2019

$15,907

Tax to Forest Resource Development Program (80%)

$12,726

Tax returned to county government (20%)

$3,181

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.


M1710 (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- Tippah County
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