M1720

The Economic Contributions of Forestry and Forest Products in DeSoto County

DeSoto County

The forestry and forest products industries are a major component of DeSoto County’s economy. The forest-related economic sectors generate value not only within their own sectors but also in other sectors of the economy. The multiplier effect of economic activity in one sector and the impacts on other sectors can be estimated using input-output analysis. Using 2022 data, this study estimates the economic contribution of the forestry and forest products industries to DeSoto County, Mississippi.

Employment and Income Contributions

Forest-related economic activity in DeSoto County during 2022 generated 1,190 jobs and nearly $61.06 million in income. That’s about 1.13 percent of jobs and 1.28 percent 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

Over $290.43 million, or about 1.73 percent of economic output in DeSoto County, is generated by the forestry and forest products industries. Forest-related value-added amounted to over $99.82 million, or about 1.25 percent 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.

Table 1. Contributions from forest-related sectors on employment and income in DeSoto County, Mississippi, 2022.

Sectors	Number of Jobs	% of County	Income ($)	% of County
Direct Contribution from Forest Related Sectors
Forest Support Service	222	0.21	5,423,756	0.11
Logging	9	0.01	5,481	0.00
Solid Wood Product	164	0.16	10,712,706	0.22
Pulp and Paper	244	0.23	19,694,056	0.41
Wood Furniture	48	0.05	2,536,217	0.05
Subtotal	687	0.65	38,372,216	0.80
Indirect and Induced Contributions on Sectors
Retail and Wholesale Trade	139	0.13	6,578,927	0.14
Real Estate, Finance, and Insurance	34	0.03	1,176,695	0.02
Services	122	0.12	4,442,758	0.09
Construction and Manufacturing	36	0.03	2,201,675	0.05
Health Care	21	0.02	1,507,188	0.03
Transportation and Warehousing	107	0.10	5,292,586	0.11
Government	9	0.01	500,486	0.01
Agriculture Production and Services	0	0.00	7,428	0.00
Food and Fiber	29	0.03	826,735	0.02
Hotels and Entertainment	5	0.00	100,048	0.00
Education	2	0.00	49,177	0.00
Subtotal	504	0.48	22,683,703	0.47
Total Impact from Forest Related Sector	1,190	1.13	61,055,919	1.28
Rest of the County	103,854	98.87	4,719,826,283	98.72
Total in County	105,045	100.00	4,780,882,202	100.00

Table 2. Contributions from forest-related sectors on total output and value-added in DeSoto County, Mississippi, 2022.

Sectors	Output ($)	% of County	Value-Added ($)	% of County
Direct Contribution from Forest Related Sectors
Forest Support Service	6,811,722	0.04	5,596,588	0.07
Logging	415,290	0.00	36,549	0.00
Solid Wood Product	52,420,059	0.31	21,190,177	0.26
Pulp and Paper	139,498,073	0.83	30,156,995	0.38
Wood Furniture	8,462,365	0.05	2,831,536	0.04
Subtotal	207,607,509	1.23	59,811,845	0.75
Indirect and Induced Contributions on Sectors
Retail and Wholesale Trade	25,953,968	0.15	12,802,543	0.16
Real Estate, Finance, and Insurance	12,018,395	0.07	7,364,871	0.09
Services	13,182,927	0.08	6,148,942	0.08
Construction and Manufacturing	11,275,256	0.07	3,027,915	0.04
Health Care	2,934,127	0.02	1,724,095	0.02
Transportation and Warehousing	13,107,821	0.08	6,727,524	0.08
Government	654,505	0.00	626,219	0.01
Agriculture Production and Services	35,653	0.00	15,023	0.00
Food and Fiber	3,136,475	0.02	1,300,591	0.02
Hotels and Entertainment	400,229	0.00	216,476	0.00
Education	124,807	0.00	52,037	0.00
Subtotal	82,824,163	0.49	40,006,236	0.50
Total Impact from Forest Related Sector	290,431,672	1.73	99,818,081	1.25
Rest of the County	16,537,250,794	98.27	7,898,896,693	98.75
Total in County	16,827,682,466	100.00	7,998,714,774	100.00

Estimates developed using IMPLAN software and data. Timber harvest value according to the Mississippi Harvest of Forest Products Report.

M1720 (POD-07-25)

Revised by Sabhyata Lamichhane, PhD, Assistant Professor, Niraj Gupta, Undergraduate Student, and Sushma Bhattarai, PhD, Extension Associate I, Forestry; James E. Henderson, PhD, Extension Professor and Head, Coastal Research and Extension Center; and Donald Grebner, PhD, Professor and Head, Forestry. By Shaun M. Tanger, PhD, former Assistant Extension Professor; Marcus K. Measells, formerExtension Associate III, Forestry; and Ian A. Munn, PhD, former Associate Dean and Professor.

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M1720