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The Economic Contribution of Forestry and Forest Products - Union County

Publication Number: M1688
View as PDF: M1688.pdf

Union County

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

Employment and Income Contributions

Forest-related economic activity in Union County during 2018 generated 877 jobs and over $35.3 million in income. That’s about 4.6% of jobs and 3.6% 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 $153.1 million, or about 1.8% of economic output in Union County. Forest-related value added amounted to over $50.3 million, or about 2.5% 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 $7.22 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $4.78 million for federal and $2.44 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

1

0.01

68,999

0.01

Logging

24

0.13

705,936

0.07

Solid Wood Products

24

0.12

1,512,385

0.15

Wood Furniture

622

3.28

26,305,182

2.68

Pulp & Paper

0

0.00

0

0.00

Subtotal

672

3.54

28,592,501

2.91

Indirect and Induced Contributions on Sectors

Misc. Manufacturing

47

0.25

833,119

0.08

Wholesale & Retail Trade

41

0.22

1,479,116

0.15

Misc. Services

35

0.19

839,823

0.09

Transport. & Comm. Services

28

0.15

1,705,995

0.17

Financial & Real Estate

22

0.12

444,595

0.05

Health Services

18

0.10

970,236

0.10

Resource Services

3

0.02

89,905

0.01

Government

2

0.01

163,246

0.02

Construction

2

0.01

92,005

0.01

Domestic Services

2

0.01

52,226

0.01

Education

1

0.01

23,412

0.00

Recreation & Amusement

1

0.01

9,463

0.00

Utility Services

1

0.00

16,778

0.00

Agricultural Products

1

0.00

21,814

0.00

Petroleum & Chemicals

0

0.00

42,390

0.00

Transportation Equipment

0

0.00

11,679

0.00

Mining

0

0.00

245

0.00

Metal Industries

0

0.00

118

0.00

Machinery & Equipment

0

0.00

1,377

0.00

Food Processing

0

0.00

567

0.00

Glass, Stone, & Clay

0

0.00

28

0.00

Farm Inputs & Machinery

0

0.00

6

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Agricultural Processing

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

205

1.08

6,798,143

0.69

TOTAL CONTRIBUTIONS

877

4.62

35,390,645

3.60

Rest of County

18,123

95.38

947,600,144

96.40

Total in County

19,000

100.00

982,990,789

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

92,132

0.00

69,229

0.00

Logging

1,511,654

0.02

703,516

0.03

Solid Wood Products

6,507,685

0.08

3,378,621

0.16

Wood Furniture

118,586,144

1.41

34,269,518

1.67

Pulp & Paper

0

0.00

0

0.00

Subtotal

126,697,615

1.50

38,420,884

1.87

Indirect and Induced Contributions on Sectors

Misc. Manufacturing

2,499,743

0.03

959,584

0.05

Wholesale & Retail Trade

5,672,566

0.07

2,844,260

0.14

Misc. Services

2,501,271

0.03

1,227,691

0.06

Transport. & Comm. Services

4,814,955

0.06

2,236,513

0.11

Financial & Real Estate

5,548,309

0.07

2,543,885

0.12

Health Services

2,175,057

0.03

1,129,428

0.06

Resource Services

98,645

0.00

75,196

0.00

Government

599,060

0.01

297,499

0.01

Construction

381,971

0.00

112,948

0.01

Domestic Services

621,096

0.01

221,060

0.01

Education

57,452

0.00

21,825

0.00

Recreation & Amusement

101,641

0.00

23,719

0.00

Utility Services

196,795

0.00

47,715

0.00

Agricultural Products

21,031

0.00

8,030

0.00

Petroleum & Chemicals

938,486

0.01

192,973

0.01

Transportation Equipment

137,819

0.00

25,538

0.00

Mining

30,913

0.00

1,442

0.00

Metal Industries

8,826

0.00

464

0.00

Machinery & Equipment

9,388

0.00

2,747

0.00

Food Processing

2,002

0.00

828

0.00

Glass, Stone, & Clay

111

0.00

42

0.00

Farm Inputs & Machinery

129

0.00

13

0.00

Fabric Mills & Leather

1

0.00

0

0.00

Agricultural Processing

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Subtotal

26,417,264

0.31

11,973,400

0.58

TOTAL CONTRIBUTIONS

153,114,879

1.81

50,394,284

2.46

Rest of County

8,283,454,263

98.19

2,001,206,031

97.54

Total in County

8,436,569,142

100.00

2,051,600,315

100.00

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

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

Total forestland acres, 2018

118,622

Private ownership acres

110,771

Public ownership acres

7,850

Forestland assessed value, 2018

$5,634,959

Ad valorem tax collections from forestland, 2018

$654,839

Value of standing timber, 2018

$196,789,838

Value of timber harvested, 2019

$8,122,655

Timber severance tax collections (100%), 2019

$22,598

Tax to Forest Resource Development Program (80%)

$18,078

Tax returned to county government (20%)

$4,520

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.


M1688 (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- Union 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