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The Economic Contribution of Forestry and Forest Products - Montgomery County

Publication Number: M1737
View as PDF: M1737.pdf

Montgomery County

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

Employment and Income Contributions

Forest-related economic activity in Montgomery County during 2018 generated 155 jobs and over $5.6 million in income. That’s about 4.4% of jobs and 5.1% 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 $14.0 million, or about 3.9% of economic output in Montgomery County. Forest-related value added amounted to over $6.7 million, or about 3.7% 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 $1.71 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $1.2 million for federal and $504,657 for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

2

0.06

75,736

0.07

Logging

99

2.77

4,023,011

3.66

Solid Wood Products

12

0.34

548,181

0.50

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

113

3.17

4,646,927

4.22

Indirect and Induced Contributions on Sectors

Resource Services

21

0.58

367,506

0.33

Misc. Services

6

0.17

172,475

0.16

Wholesale & Retail Trade

4

0.12

134,504

0.12

Transport. & Comm. Services

3

0.08

79,121

0.07

Financial & Real Estate

3

0.08

58,767

0.05

Misc. Manufacturing

2

0.05

78,428

0.07

Health Services

2

0.04

46,479

0.04

Agricultural Products

1

0.02

-1,952

0.00

Domestic Services

0

0.01

11,658

0.01

Construction

0

0.01

10,041

0.01

Recreation & Amusement

0

0.01

2,851

0.00

Education

0

0.01

6,374

0.01

Utility Services

0

0.01

11,706

0.01

Government

0

0.00

10,526

0.01

Mining

0

0.00

92

0.00

Food Processing

0

0.00

54

0.00

Metal Industries

0

0.00

32

0.00

Transportation Equipment

0

0.00

2

0.00

Petroleum & Chemicals

0

0.00

0

0.00

Farm Inputs & Machinery

0

0.00

7

0.00

Machinery & Equipment

0

0.00

2

0.00

Agricultural Processing

0

0.00

0

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Glass, Stone, & Clay

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

43

1.20

988,672

0.90

TOTAL CONTRIBUTIONS

155

4.37

5,635,600

5.12

Rest of County

3,402

95.63

104,400,495

94.88

Total in County

3,557

100.00

110,036,095

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

118,668

0.03

77,253

0.04

Logging

7,180,760

1.97

3,938,237

2.14

Solid Wood Products

3,398,483

0.93

1,051,838

0.57

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

10,697,912

2.93

5,067,328

2.76

Indirect and Induced Contributions on Sectors

Resource Services

471,239

0.13

313,472

0.17

Misc. Services

454,496

0.12

241,060

0.13

Wholesale & Retail Trade

451,844

0.12

238,086

0.13

Transport. & Comm. Services

379,433

0.10

113,676

0.06

Financial & Real Estate

908,398

0.25

471,049

0.26

Misc. Manufacturing

159,562

0.04

86,654

0.05

Health Services

81,696

0.02

45,710

0.02

Agricultural Products

77,330

0.02

25,443

0.01

Domestic Services

85,168

0.02

29,124

0.02

Construction

45,579

0.01

13,113

0.01

Recreation & Amusement

11,239

0.00

5,131

0.00

Education

7,950

0.00

5,796

0.00

Utility Services

165,880

0.05

47,761

0.03

Government

25,307

0.01

14,371

0.01

Mining

4,574

0.00

267

0.00

Food Processing

235

0.00

73

0.00

Metal Industries

159

0.00

37

0.00

Transportation Equipment

104

0.00

3

0.00

Petroleum & Chemicals

145

0.00

1

0.00

Farm Inputs & Machinery

150

0.00

14

0.00

Machinery & Equipment

9

0.00

2

0.00

Agricultural Processing

0

0.00

0

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Glass, Stone, & Clay

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

3,330,497

0.91

1,650,842

0.90

TOTAL CONTRIBUTIONS

14,028,409

3.85

6,718,171

3.66

Rest of County

350,597,091

96.15

176,917,091

96.34

Total in County

364,625,500

100.00

183,635,262

100.00

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

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

Total forestland acres, 2018

222,589

Private ownership acres

222,589

Public ownership acres

0

Forestland assessed value, 2018

$6,414,616

Ad valorem tax collections from forestland, 2018

$845,446

Value of standing timber, 2018

$297,444,977

Value of timber harvested, 2019

$14,462,777

Timber severance tax collections (100%), 2019

$43,844

Tax to Forest Resource Development Program (80%)

$35,075

Tax returned to county government (20%)

$8,769

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.


M1737 (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- Montgomery 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