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The Economic Contribution of Forestry and Forest Products - Jefferson County

Publication Number: M1726
View as PDF: M1726.pdf

Jefferson County

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

Employment and Income Contributions

Forest-related economic activity in Jefferson County during 2018 generated 49 jobs and over $2.2 million in income. That’s about 2.4% of jobs and 4.0% 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 $5.4 million, or about 1.9% of economic output in Jefferson County. Forest-related value added amounted to over $2.6 million, or about 2.3% 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 $538,588 in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $366,167 for federal and $172,421 for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

1

0.04

28,063

0.05

Logging

31

1.48

1,712,477

3.14

Solid Wood Products

11

0.54

358,277

0.66

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

43

2.06

2,098,817

3.85

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

2

0.08

9,021

0.02

Misc. Services

1

0.06

18,250

0.03

Misc. Manufacturing

1

0.02

4,429

0.01

Health Services

0

0.02

28,421

0.05

Agricultural Products

0

0.02

0

0.00

Domestic Services

0

0.02

8,602

0.02

Resource Services

0

0.01

9,205

0.02

Transport. & Comm. Services

0

0.01

10,565

0.02

Recreation & Amusement

0

0.01

295

0.00

Education

0

0.01

726

0.00

Utility Services

0

0.01

7,057

0.01

Construction

0

0.01

698

0.00

Financial & Real Estate

0

0.00

3,007

0.01

Government

0

0.00

2,525

0.00

Metal Industries

0

0.00

0

0.00

Petroleum & Chemicals

0

0.00

0

0.00

Food Processing

0

0.00

5

0.00

Glass, Stone, & Clay

0

0.00

0

0.00

Mining

0

0.00

0

0.00

Agricultural Processing

0

0.00

0

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

Technology Industries

0

0.00

0

0.00

Transportation Equipment

0

0.00

0

0.00

Subtotal

6

0.29

102,805

0.19

TOTAL CONTRIBUTIONS

49

2.35

2,201,622

4.04

Rest of County

2,032

97.65

52,358,295

95.96

Total in County

2,081

100.00

54,559,917

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

45,946

0.02

28,768

0.02

Logging

2,734,211

0.96

1,727,538

1.48

Solid Wood Products

1,850,562

0.65

616,543

0.53

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

4,630,719

1.62

2,372,848

2.03

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

133,644

0.05

28,084

0.02

Misc. Services

63,194

0.02

28,320

0.02

Misc. Manufacturing

36,326

0.01

5,993

0.01

Health Services

45,450

0.02

29,142

0.02

Agricultural Products

71,918

0.03

9,461

0.01

Domestic Services

89,836

0.03

11,547

0.01

Resource Services

11,413

0.00

9,404

0.01

Transport. & Comm. Services

46,343

0.02

18,423

0.02

Recreation & Amusement

3,867

0.00

1,196

0.00

Education

4,823

0.00

947

0.00

Utility Services

68,895

0.02

23,113

0.02

Construction

15,701

0.01

1,228

0.00

Financial & Real Estate

177,480

0.06

129,928

0.11

Government

2,887

0.00

2,528

0.00

Metal Industries

690

0.00

0

0.00

Petroleum & Chemicals

309

0.00

0

0.00

Food Processing

25

0.00

8

0.00

Glass, Stone, & Clay

2

0.00

0

0.00

Mining

0

0.00

0

0.00

Agricultural Processing

0

0.00

0

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

Technology Industries

0

0.00

0

0.00

Transportation Equipment

0

0.00

0

0.00

Subtotal

772,802

0.27

299,323

0.26

TOTAL CONTRIBUTIONS

5,403,521

1.89

2,672,171

2.29

Rest of County

280,751,147

98.11

114,138,587

97.71

Total in County

286,154,668

100.00

116,810,758

100.00

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

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

Total forestland acres, 2018

273,690

Private ownership acres

265,516

Public ownership acres

8,174

Forestland assessed value, 2018

$10,686,228

Ad valorem tax collections from forestland, 2018

$1,455,464

Value of standing timber, 2018

$514,279,512

Value of timber harvested, 2019

$26,345,306

Timber severance tax collections (100%), 2019

$76,416

Tax to Forest Resource Development Program (80%)

$61,133

Tax returned to county government (20%)

$15,283

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.


M1726 (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- Jefferson 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

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