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The Economic Contribution of Forestry and Forest Products - Clay County

Publication Number: M1680
View as PDF: M1680.pdf

Clay County

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

Employment and Income Contributions

Forest-related economic activity in Clay County during 2018 generated 40 jobs and over $1.9 million in income. That’s about 0.5% of jobs and 0.5% 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 $3.6 million, or about 0.4% of economic output in Clay County. Forest-related value added amounted to over $2.0 million, or about 0.4% 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 $462,458 in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $313,452 for federal and $149,006 for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

1

0.02

47,440

0.01

Logging

29

0.35

1,389,919

0.37

Solid Wood Products

0

0.00

0

0.00

Wood Furniture

0

0.00

11,842

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

30

0.37

1,449,201

0.38

Indirect and Induced Contributions on Sectors

Misc. Services

2

0.03

49,882

0.01

Wholesale & Retail Trade

2

0.02

70,074

0.02

Resource Services

2

0.02

80,351

0.02

Financial & Real Estate

1

0.01

14,543

0.00

Agricultural Products

1

0.01

187,343

0.05

Health Services

1

0.01

57,873

0.02

Misc. Manufacturing

0

0.01

19,565

0.01

Transport. & Comm. Services

0

0.01

22,115

0.01

Recreation & Amusement

0

0.00

2,606

0.00

Government

0

0.00

8,240

0.00

Domestic Services

0

0.00

3,872

0.00

Construction

0

0.00

2,558

0.00

Education

0

0.00

3,047

0.00

Utility Services

0

0.00

493

0.00

Mining

0

0.00

67

0.00

Petroleum & Chemicals

0

0.00

58

0.00

Food Processing

0

0.00

21

0.00

Metal Industries

0

0.00

26

0.00

Farm Inputs & Machinery

0

0.00

3

0.00

Glass, Stone, & Clay

0

0.00

0

0.00

Machinery & Equipment

0

0.00

0

0.00

Transportation Equipment

0

0.00

0

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

9

0.12

522,737

0.14

TOTAL CONTRIBUTIONS

40

0.49

1,971,937

0.52

Rest of County

8,105

99.51

375,687,205

99.48

Total in County

8,145

100.00

377,659,142

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

75,480

0.01

48,473

0.01

Logging

2,330,344

0.22

1,390,490

0.29

Solid Wood Products

130,218

0.01

1,130

0.00

Wood Furniture

41,837

0.00

16,803

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

2,577,879

0.24

1,456,896

0.30

Indirect and Induced Contributions on Sectors

Misc. Services

140,277

0.01

72,000

0.01

Wholesale & Retail Trade

208,470

0.02

116,386

0.02

Resource Services

78,955

0.01

67,684

0.01

Financial & Real Estate

287,853

0.03

157,810

0.03

Agricultural Products

33,774

0.00

12,966

0.00

Health Services

118,285

0.01

67,124

0.01

Misc. Manufacturing

42,775

0.00

23,917

0.00

Transport. & Comm. Services

63,868

0.01

28,911

0.01

Recreation & Amusement

7,599

0.00

4,469

0.00

Government

43,169

0.00

16,473

0.00

Domestic Services

31,538

0.00

11,987

0.00

Construction

11,831

0.00

3,612

0.00

Education

3,396

0.00

2,694

0.00

Utility Services

6,053

0.00

1,544

0.00

Mining

1,759

0.00

168

0.00

Petroleum & Chemicals

440

0.00

99

0.00

Food Processing

125

0.00

29

0.00

Metal Industries

79

0.00

30

0.00

Farm Inputs & Machinery

62

0.00

6

0.00

Glass, Stone, & Clay

1

0.00

0

0.00

Machinery & Equipment

1

0.00

0

0.00

Transportation Equipment

2

0.00

0

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

1,080,311

0.10

587,908

0.12

TOTAL CONTRIBUTIONS

3,658,190

0.35

2,044,804

0.42

Rest of County

1,054,963,965

99.65

484,965,613

99.58

Total in County

1,058,622,155

100.00

487,010,417

100.00

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

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

Total forestland acres, 2018

161,900

Private ownership acres

144,894

Public ownership acres

17,007

Forestland assessed value, 2018

$5,080,297

Ad valorem tax collections from forestland, 2018

$277,283

Value of standing timber, 2018

$307,046,490

Value of timber harvested, 2019

$10,134,612

Timber severance tax collections (100%), 2019

$24,060

Tax to Forest Resource Development Program (80%)

$19,248

Tax returned to county government (20%)

$4,812

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.


M1680 (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- Clay 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