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The Economic Contribution of Forestry and Forest Products - Newton County

Publication Number: M1736
View as PDF: M1736.pdf

Newton County

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

Employment and Income Contributions

Forest-related economic activity in Newton County during 2018 generated 1,005 jobs and over $45.5 million in income. That’s about 11.4% of jobs and 14.2% 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 $174.0 million, or about 16.9% of economic output in Newton County. Forest-related value added amounted to over $62.3 million, or about 13.8% 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 $12.36 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $8.69 million for federal and $3.67 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

4

0.04

152,759

0.05

Logging

77

0.87

5,316,655

1.66

Solid Wood Products

30

0.34

1,964,407

0.61

Wood Furniture

635

7.19

30,011,794

9.35

Pulp & Paper

0

0.00

0

0.00

Subtotal

747

8.45

37,445,614

11.67

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

57

0.65

1,804,318

0.56

Misc. Services

51

0.57

1,111,603

0.35

Transport. & Comm. Services

40

0.45

1,883,164

0.59

Misc. Manufacturing

31

0.35

598,311

0.19

Resource Services

26

0.29

839,319

0.26

Financial & Real Estate

23

0.27

474,693

0.15

Health Services

18

0.21

830,359

0.26

Government

2

0.02

132,749

0.04

Domestic Services

2

0.02

77,192

0.02

Utility Services

2

0.02

145,538

0.05

Construction

2

0.02

65,979

0.02

Recreation & Amusement

2

0.02

14,227

0.00

Education

2

0.02

34,723

0.01

Agricultural Products

1

0.01

45,464

0.01

Mining

0

0.00

189

0.00

Transportation Equipment

0

0.00

2,092

0.00

Metal Industries

0

0.00

406

0.00

Food Processing

0

0.00

152

0.00

Petroleum & Chemicals

0

0.00

-74

0.00

Agricultural Processing

0

0.00

19

0.00

Glass, Stone, & Clay

0

0.00

2

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

Subtotal

259

2.93

8,060,424

2.51

TOTAL CONTRIBUTIONS

1,005

11.38

45,506,038

14.18

Rest of County

7,830

88.62

275,395,839

85.82

Total in County

8,836

100.00

320,901,877

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

229,060

0.02

155,077

0.03

Logging

7,829,614

0.76

5,323,685

1.17

Solid Wood Products

7,188,266

0.70

3,345,520

0.74

Wood Furniture

126,201,864

12.26

38,747,643

8.54

Pulp & Paper

0

0.00

0

0.00

Subtotal

141,448,804

13.75

47,571,926

10.48

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

6,924,888

0.67

3,286,575

0.72

Misc. Services

3,622,189

0.35

1,695,839

0.37

Transport. & Comm. Services

6,226,123

0.61

2,487,414

0.55

Misc. Manufacturing

2,075,731

0.20

742,083

0.16

Resource Services

917,477

0.09

720,942

0.16

Financial & Real Estate

7,426,740

0.72

3,809,822

0.84

Health Services

1,864,744

0.18

905,624

0.20

Government

217,733

0.02

149,468

0.03

Domestic Services

625,810

0.06

218,245

0.05

Utility Services

2,057,910

0.20

633,116

0.14

Construction

325,322

0.03

92,988

0.02

Recreation & Amusement

60,773

0.01

30,183

0.01

Education

48,880

0.00

31,887

0.01

Agricultural Products

118,259

0.01

11,473

0.00

Mining

85,737

0.01

3,531

0.00

Transportation Equipment

12,312

0.00

2,676

0.00

Metal Industries

2,031

0.00

699

0.00

Food Processing

860

0.00

244

0.00

Petroleum & Chemicals

2,178

0.00

0

0.00

Agricultural Processing

223

0.00

22

0.00

Glass, Stone, & Clay

38

0.00

3

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

Subtotal

32,615,958

3.17

14,822,716

3.27

TOTAL CONTRIBUTIONS

174,064,762

16.92

62,394,641

13.75

Rest of County

854,959,498

83.08

391,408,018

86.25

Total in County

1,029,024,260

100.00

453,802,659

100.00

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

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

Total forestland acres, 2018

300,750

Private ownership acres

298,770

Public ownership acres

1,981

Forestland assessed value, 2018

$7,758,810

Ad valorem tax collections from forestland, 2018

$997,162

Value of standing timber, 2018

$310,141,712

Value of timber harvested, 2019

$29,759,921

Timber severance tax collections (100%), 2019

$94,074

Tax to Forest Resource Development Program (80%)

$75,259

Tax returned to county government (20%)

$18,815

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.


M1736 (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- Newton County

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