You are here

The Economic Contribution of Forestry and Forest Products - Smith County

Publication Number: M1711
View as PDF: M1711.pdf

Smith County

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

Employment and Income Contributions

Forest-related economic activity in Smith County during 2018 generated 1,057 jobs and over $63.6 million in income. That’s about 20.6% of jobs and 29.5% 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 $264.1 million, or about 23.3% of economic output in Smith County. Forest-related value added amounted to over $111.3 million, or about 28.3% 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 $18.68 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $13.30 million for federal and $5.38 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

3

0.06

106,359

0.05

Logging

133

2.58

14,588,946

6.77

Solid Wood Products

682

13.27

41,917,341

19.44

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

818

15.91

56,612,645

26.26

Indirect and Induced Contributions on Sectors

Agricultural Products

2

0.03

161,106

0.07

Resource Services

2

0.05

431,631

0.20

Mining

1

0.01

9,301

0.00

Utility Services

8

0.15

754,947

0.35

Construction

4

0.08

93,550

0.04

Agricultural Processing

0

0.00

386

0.00

Food Processing

0

0.00

66

0.00

Fabric Mills & Leather

0

0.00

20

0.00

Misc. Manufacturing

43

0.83

642,844

0.30

Petroleum & Chemicals

0

0.00

546

0.00

Glass, Stone, & Clay

0

0.00

1

0.00

Metal Industries

0

0.00

10

0.00

Farm Inputs & Machinery

0

0.00

14

0.00

Machinery & Equipment

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Transportation Equipment

0

0.00

1,342

0.00

Wholesale & Retail Trade

44

0.86

1,263,313

0.59

Transport. & Comm. Services

34

0.67

1,373,555

0.64

Recreation & Amusement

3

0.05

10,799

0.01

Domestic Services

1

0.03

24,894

0.01

Misc. Services

42

0.82

842,309

0.39

Financial & Real Estate

28

0.54

390,446

0.18

Education

1

0.02

16,741

0.01

Health Services

25

0.48

922,244

0.43

Government

2

0.04

128,983

0.06

Subtotal

239

4.66

7,069,047

3.28

TOTAL CONTRIBUTIONS

1,057

20.57

63,681,693

29.54

Rest of County

4,083

79.43

151,902,357

70.46

Total in County

5,140

100.00

215,584,050

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

170,179

0.01

108,744

0.03

Logging

18,743,806

1.65

14,523,342

3.69

Solid Wood Products

206,898,994

18.23

79,614,973

20.23

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

0

0.00

0

0.00

Subtotal

225,812,979

19.90

94,247,059

23.95

Indirect and Induced Contributions on Sectors

Agricultural Products

622,709

0.05

53,012

0.01

Resource Services

438,238

0.04

418,203

0.11

Mining

140,035

0.01

15,330

0.00

Utility Services

8,752,316

0.77

3,065,632

0.78

Construction

597,670

0.05

118,165

0.03

Agricultural Processing

5,107

0.00

448

0.00

Food Processing

525

0.00

115

0.00

Fabric Mills & Leather

134

0.00

42

0.00

Misc. Manufacturing

2,148,070

0.19

737,929

0.19

Petroleum & Chemicals

13,427

0.00

887

0.00

Glass, Stone, & Clay

28

0.00

2

0.00

Metal Industries

238

0.00

17

0.00

Farm Inputs & Machinery

254

0.00

24

0.00

Machinery & Equipment

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Transportation Equipment

13,317

0.00

1,706

0.00

Wholesale & Retail Trade

5,298,346

0.47

2,606,961

0.66

Transport. & Comm. Services

4,837,176

0.43

1,758,108

0.45

Recreation & Amusement

52,568

0.00

22,415

0.01

Domestic Services

379,047

0.03

76,437

0.02

Misc. Services

2,935,616

0.26

1,400,331

0.36

Financial & Real Estate

9,105,309

0.80

5,531,342

1.41

Education

38,257

0.00

17,899

0.00

Health Services

2,732,553

0.24

1,090,097

0.28

Government

267,690

0.02

168,965

0.04

Subtotal

38,378,631

3.38

17,084,068

4.34

TOTAL CONTRIBUTIONS

264,191,610

23.28

111,331,127

28.29

Rest of County

870,536,024

76.72

282,237,892

71.71

Total in County

1,134,727,634

100.00

393,569,019

100.00

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

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

Total forestland acres, 2018

299,505

Private ownership acres

235,488

Public ownership acres

64,016

Forestland assessed value, 2018

$8,831,027

Ad valorem tax collections from forestland, 2018

$881,072

Value of standing timber, 2018

$502,683,312

Value of timber harvested, 2019

$25,618,804

Timber severance tax collections (100%), 2019

$83,735

Tax to Forest Resource Development Program (80%)

$66,988

Tax returned to county government (20%)

$16,747

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.


M1711 (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.

Mississippi State University is an equal opportunity institution. Discrimination in university employment, programs, or activities based on race, color, ethnicity, sex, pregnancy, religion, national origin, disability, age, sexual orientation, genetic information, status as a U.S. veteran, or any other status protected by applicable law is prohibited. Questions about equal opportunity programs or compliance should be directed to the Office of Compliance and Integrity, 56 Morgan Avenue, P.O. 6044, Mississippi State, MS 39762, (662) 325-5839.

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- Smith County
Print Friendly, PDF & Email

The Mississippi State University Extension Service is working to ensure all web content is accessible to all users. If you need assistance accessing any of our content, please email the webteam or call 662-325-2262.

Select Your County Office

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

Related Publications

Publication Number: P2307
Publication Number: P3590
Publication Number: P2876
Publication Number: P3699

Pages