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The Economic Contribution of Forestry and Forest Products - Lowndes County

Publication Number: M1731
View as PDF: M1731.pdf

Lowndes County

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

Employment and Income Contributions

Forest-related economic activity in Lowndes County during 2018 generated 931 jobs and over $46.5 million in income. That’s about 2.7% of jobs and 2.8% 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 $306.5 million, or about 4.9% of economic output in Lowndes County. Forest-related value added amounted to over $94.2 million, or about 3.2% 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 $16.86 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $9.62 million for federal and $7.24 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

14

0.04

323,318

0.02

Logging

27

0.08

407,236

0.02

Solid Wood Products

80

0.23

2,034,845

0.12

Wood Furniture

119

0.34

6,524,648

0.40

Pulp & Paper

267

0.76

18,273,449

1.11

Subtotal

508

1.45

27,563,497

1.67

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

88

0.25

4,719,709

0.29

Misc. Services

87

0.25

2,423,539

0.15

Misc. Manufacturing

86

0.24

2,464,263

0.15

Transport. & Comm. Services

39

0.11

2,399,278

0.15

Health Services

32

0.09

2,468,471

0.15

Financial & Real Estate

31

0.09

950,512

0.06

Utility Services

18

0.05

1,810,913

0.11

Resource Services

12

0.03

317,106

0.02

Domestic Services

7

0.02

462,133

0.03

Construction

7

0.02

307,501

0.02

Government

6

0.02

433,699

0.03

Recreation & Amusement

4

0.01

38,538

0.00

Education

3

0.01

85,027

0.01

Mining

1

0.00

1,147

0.00

Metal Industries

1

0.00

56,228

0.00

Agricultural Products

1

0.00

-452

0.00

Petroleum & Chemicals

0

0.00

33,150

0.00

Food Processing

0

0.00

5,702

0.00

Glass, Stone, & Clay

0

0.00

4,086

0.00

Transportation Equipment

0

0.00

3,498

0.00

Machinery & Equipment

0

0.00

712

0.00

Technology Industries

0

0.00

151

0.00

Farm Inputs & Machinery

0

0.00

125

0.00

Agricultural Processing

0

0.00

79

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Subtotal

423

1.21

18,985,114

1.15

TOTAL CONTRIBUTIONS

931

2.65

46,548,610

2.82

Rest of County

34,151

97.35

1,603,976,485

97.18

Total in County

35,082

100.00

1,650,525,095

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

598,683

0.01

336,539

0.01

Logging

1,345,519

0.02

435,700

0.01

Solid Wood Products

14,500,090

0.23

3,756,479

0.13

Wood Furniture

17,266,920

0.28

7,490,284

0.26

Pulp & Paper

197,281,415

3.15

44,997,098

1.54

Subtotal

230,992,628

3.69

57,016,100

1.95

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

15,922,465

0.25

9,250,151

0.32

Misc. Services

6,639,984

0.11

3,579,328

0.12

Misc. Manufacturing

5,855,636

0.09

2,954,296

0.10

Transport. & Comm. Services

8,201,145

0.13

3,966,204

0.14

Health Services

4,854,835

0.08

2,827,459

0.10

Financial & Real Estate

9,413,491

0.15

5,064,751

0.17

Utility Services

17,685,940

0.28

6,542,146

0.22

Resource Services

359,381

0.01

269,264

0.01

Domestic Services

2,735,868

0.04

1,284,124

0.04

Construction

1,220,909

0.02

431,409

0.01

Government

1,356,337

0.02

723,598

0.02

Recreation & Amusement

201,014

0.00

78,596

0.00

Education

156,542

0.00

89,467

0.00

Mining

245,990

0.00

10,872

0.00

Metal Industries

199,189

0.00

77,709

0.00

Agricultural Products

64,032

0.00

17,868

0.00

Petroleum & Chemicals

289,698

0.00

64,890

0.00

Food Processing

61,940

0.00

14,256

0.00

Glass, Stone, & Clay

17,287

0.00

6,846

0.00

Transportation Equipment

30,097

0.00

4,821

0.00

Machinery & Equipment

3,203

0.00

1,015

0.00

Technology Industries

538

0.00

211

0.00

Farm Inputs & Machinery

873

0.00

183

0.00

Agricultural Processing

621

0.00

90

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Subtotal

75,517,016

1.21

37,259,557

1.27

TOTAL CONTRIBUTIONS

306,509,645

4.90

94,275,657

3.22

Rest of County

5,949,720,167

95.10

2,832,223,218

96.78

Total in County

6,256,229,812

100.00

2,926,498,875

100.00

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

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

Total forestland acres, 2018

136,363

Private ownership acres

130,056

Public ownership acres

6,307

Forestland assessed value, 2018

$4,071,306

Ad valorem tax collections from forestland, 2018

$366,051

Value of standing timber, 2018

$194,939,879

Value of timber harvested, 2019

$3,396,298

Timber severance tax collections (100%), 2019

$10,006

Tax to Forest Resource Development Program (80%)

$8,004

Tax returned to county government (20%)

$2,001

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.


M1731 (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- Lowndes 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