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The Economic Contribution of Forestry and Forest Products - Kemper County

Publication Number: M1674
View as PDF: M1674.pdf

Kemper County

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

Employment and Income Contributions

Forest-related economic activity in Kemper County during 2018 generated 254 jobs and over $9.4 million in income. That’s about 7.6% of jobs and 6.4% 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 $59.5 million, or about 10.2% of economic output in Kemper County. Forest-related value added amounted to over $22.2 million, or about 8.1% 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 $2.88 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $1.83 million for federal and $1.05 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

4

0.12

140,817

0.09

Logging

102

3.08

4,450,046

2.98

Solid Wood Products

76

2.28

2,877,522

1.93

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

182

5.48

7,468,385

5.01

Indirect and Induced Contributions on Sectors

Resource Services

36

1.07

1,149,431

0.77

Misc. Services

8

0.24

152,952

0.10

Misc. Manufacturing

7

0.22

84,818

0.06

Wholesale & Retail Trade

5

0.16

117,802

0.08

Transport. & Comm. Services

5

0.15

40,661

0.03

Health Services

3

0.10

148,847

0.10

Financial & Real Estate

2

0.07

62,387

0.04

Utility Services

1

0.03

102,504

0.07

Agricultural Products

1

0.03

38,780

0.03

Recreation & Amusement

1

0.02

2,220

0.00

Construction

1

0.02

49,819

0.03

Government

1

0.02

32,867

0.02

Domestic Services

0

0.01

1,634

0.00

Education

0

0.01

11,284

0.01

Mining

0

0.00

146

0.00

Food Processing

0

0.00

129

0.00

Petroleum & Chemicals

0

0.00

301

0.00

Metal Industries

0

0.00

71

0.00

Agricultural Processing

0

0.00

9

0.00

Glass, Stone, & Clay

0

0.00

0

0.00

Technology Industries

0

0.00

1

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Farm Inputs & Machinery

0

0.00

0

0.00

Machinery & Equipment

0

0.00

0

0.00

Transportation Equipment

0

0.00

0

0.00

Subtotal

72

2.16

1,996,663

1.34

TOTAL CONTRIBUTIONS

254

7.64

9,465,048

6.35

Rest of County

3,072

92.36

139,686,288

93.65

Total in County

3,326

100.00

149,151,336

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

219,240

0.04

143,537

0.05

Logging

7,799,232

1.33

4,437,825

1.63

Solid Wood Products

45,678,660

7.80

14,594,476

5.35

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

53,697,131

9.17

19,175,838

7.03

Indirect and Induced Contributions on Sectors

Resource Services

1,261,661

0.22

992,985

0.36

Misc. Services

484,703

0.08

238,915

0.09

Misc. Manufacturing

301,493

0.05

97,284

0.04

Wholesale & Retail Trade

540,796

0.09

244,120

0.09

Transport. & Comm. Services

528,445

0.09

61,063

0.02

Health Services

419,879

0.07

176,172

0.06

Financial & Real Estate

1,191,765

0.20

733,739

0.27

Utility Services

699,090

0.12

317,492

0.12

Agricultural Products

39,174

0.01

12,255

0.00

Recreation & Amusement

12,100

0.00

5,065

0.00

Construction

146,383

0.03

72,389

0.03

Government

128,824

0.02

56,351

0.02

Domestic Services

100,548

0.02

19,185

0.01

Education

14,606

0.00

10,307

0.00

Mining

20,632

0.00

987

0.00

Food Processing

1,640

0.00

179

0.00

Petroleum & Chemicals

3,630

0.00

705

0.00

Metal Industries

509

0.00

92

0.00

Agricultural Processing

375

0.00

15

0.00

Glass, Stone, & Clay

5

0.00

1

0.00

Technology Industries

5

0.00

1

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Farm Inputs & Machinery

0

0.00

0

0.00

Machinery & Equipment

0

0.00

0

0.00

Transportation Equipment

0

0.00

0

0.00

Subtotal

5,896,264

1.01

3,039,303

1.11

TOTAL CONTRIBUTIONS

59,593,395

10.18

22,215,141

8.14

Rest of County

525,746,413

89.82

250,628,168

91.86

Total in County

585,339,808

100.00

272,843,309

100.00

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

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

Total forestland acres, 2018

415,755

Private ownership acres

415,755

Public ownership acres

0

Forestland assessed value, 2018

$13,077,236

Ad valorem tax collections from forestland, 2018

$1,381,087

Value of standing timber, 2018

$346,396,974

Value of timber harvested, 2019

$45,196,713

Timber severance tax collections (100%), 2019

$143,057

Tax to Forest Resource Development Program (80%)

$114,446

Tax returned to county government (20%)

$28,611

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.


M1674 (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- Kemper 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