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The Economic Contribution of Forestry and Forest Products - Desoto County

Publication Number: M1720
View as PDF: M1720.pdf

DeSoto County

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

Employment and Income Contributions

Forest-related economic activity in DeSoto County during 2018 generated 1,101 jobs and over $54.0 million in income. That’s about 1.2% of jobs and 1.6% 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 $256.9 million, or about 2.1% of economic output in DeSoto County. Forest-related value added amounted to over $85.3 million, or about 1.5% 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 $17.12 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $10.52 million for federal and $6.60 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

5

0.01

234,695

0.01

Logging

39

0.04

172,728

0.00

Solid Wood Products

247

0.27

12,690,698

0.36

Wood Furniture

69

0.07

4,043,947

0.12

Pulp & Paper

276

0.30

18,347,507

0.53

Subtotal

636

0.69

35,489,576

1.02

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

124

0.13

5,934,733

0.17

Misc. Services

96

0.10

2,682,418

0.08

Misc. Manufacturing

90

0.10

2,285,348

0.07

Transport. & Comm. Services

49

0.05

2,809,840

0.08

Financial & Real Estate

34

0.04

986,970

0.03

Health Services

33

0.04

2,117,738

0.06

Recreation & Amusement

7

0.01

70,300

0.00

Resource Services

7

0.01

167,053

0.00

Domestic Services

6

0.01

370,291

0.01

Construction

6

0.01

333,175

0.01

Utility Services

5

0.00

350,577

0.01

Education

4

0.00

80,604

0.00

Government

3

0.00

314,834

0.01

Metal Industries

1

0.00

43,493

0.00

Mining

1

0.00

460

0.00

Agricultural Products

0

0.00

2,449

0.00

Petroleum & Chemicals

0

0.00

17,852

0.00

Glass, Stone, & Clay

0

0.00

12,532

0.00

Food Processing

0

0.00

1,250

0.00

Machinery & Equipment

0

0.00

362

0.00

Technology Industries

0

0.00

83

0.00

Transportation Equipment

0

0.00

173

0.00

Agricultural Processing

0

0.00

68

0.00

Farm Inputs & Machinery

0

0.00

13

0.00

Fabric Mills & Leather

0

0.00

1

0.00

Subtotal

466

0.51

18,582,616

0.53

TOTAL CONTRIBUTIONS

1,101

1.20

54,072,191

1.55

Rest of County

90,859

98.80

3,431,579,291

98.45

Total in County

91,960

100.00

3,485,651,482

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

331,342

0.00

236,773

0.00

Logging

1,534,940

0.01

236,925

0.00

Solid Wood Products

46,483,317

0.38

18,247,267

0.31

Wood Furniture

10,486,973

0.09

5,057,907

0.09

Pulp & Paper

130,504,294

1.08

27,637,137

0.47

Subtotal

189,340,867

1.57

51,416,008

0.88

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

20,905,986

0.17

11,077,893

0.19

Misc. Services

7,589,405

0.06

3,890,346

0.07

Misc. Manufacturing

5,738,278

0.05

2,766,745

0.05

Transport. & Comm. Services

8,801,723

0.07

4,005,601

0.07

Financial & Real Estate

11,106,998

0.09

6,141,339

0.11

Health Services

4,445,192

0.04

2,473,965

0.04

Recreation & Amusement

446,326

0.00

147,199

0.00

Resource Services

194,707

0.00

144,675

0.00

Domestic Services

2,532,966

0.02

1,103,560

0.02

Construction

1,116,864

0.01

406,006

0.01

Utility Services

2,774,945

0.02

1,071,431

0.02

Education

162,689

0.00

74,235

0.00

Government

1,204,482

0.01

514,274

0.01

Metal Industries

111,950

0.00

50,811

0.00

Mining

124,647

0.00

6,215

0.00

Agricultural Products

25,502

0.00

8,188

0.00

Petroleum & Chemicals

191,315

0.00

38,015

0.00

Glass, Stone, & Clay

84,186

0.00

33,659

0.00

Food Processing

7,139

0.00

1,951

0.00

Machinery & Equipment

2,033

0.00

574

0.00

Technology Industries

553

0.00

154

0.00

Transportation Equipment

781

0.00

190

0.00

Agricultural Processing

552

0.00

81

0.00

Farm Inputs & Machinery

260

0.00

25

0.00

Fabric Mills & Leather

15

0.00

3

0.00

Subtotal

67,569,493

0.56

33,957,136

0.58

TOTAL CONTRIBUTIONS

256,910,360

2.12

85,373,144

1.46

Rest of County

11,838,739,371

97.88

5,751,441,126

98.54

Total in County

12,095,649,731

100.00

5,836,814,270

100.00

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

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

Total forestland acres, 2018

114,807

Private ownership acres

102,192

Public ownership acres

12,614

Forestland assessed value, 2018

$1,771,039

Ad valorem tax collections from forestland, 2018

$183,710

Value of standing timber, 2018

$208,523,706

Value of timber harvested, 2019

$208,112

Timber severance tax collections (100%), 2019

$441

Tax to Forest Resource Development Program (80%)

$353

Tax returned to county government (20%)

$88

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.


M1720 (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- DeSoto 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