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The Economic Contributions of Forestry and Forest Products - Mississippi

Publication Number: P3562
View as PDF: P3562.pdf

Mississippi

Forestry and forest products are major components of Mississippi’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 Mississippi.

Employment and Income Contributions

Forest-related economic activity in Mississippi during 2018 generated 61,619 jobs and over $2.96 billion in income. That’s over 3.8% of jobs and 4.3% of income in the state. 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 $13.12 billion, or about 5.0% of economic output in the state. Forest-related value added amounted to over $4.99 billion, or about 4.2% of all value added in the state. 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 $925.73 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $587.96 million for federal and $337.77 million for state and local governments.

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

 

Number of Jobs

% of State

Income ($)

% of State

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

619

0.04

28,589,904

0.04

Logging

5,606

0.35

248,816,408

0.36

Solid Wood Products

9,651

0.60

538,857,612

0.78

Wood Furniture

15,733

0.98

700,558,065

1.01

Pulp & Paper

4,137

0.26

338,306,932

0.49

Subtotal

35,746

2.23

1,855,128,921

2.68

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

5,765

0.36

278,182,493

0.40

Misc. Services

5,111

0.32

152,564,684

0.22

Misc. Manufacturing

4,827

0.30

180,308,426

0.26

Financial & Real Estate

2,272

0.14

73,129,562

0.11

Transport. & Comm. Services

2,261

0.14

116,709,868

0.17

Health Services

1,927

0.12

135,143,289

0.20

Resource Services

1,152

0.07

45,871,961

0.07

Utility Services

377

0.02

34,617,155

0.05

Recreation & Amusement

365

0.02

5,264,972

0.01

Domestic Services

347

0.02

18,873,177

0.03

Government

319

0.02

23,213,828

0.03

Education

299

0.02

8,823,080

0.01

Construction

242

0.02

10,885,422

0.02

Petroleum & Chemicals

241

0.02

13,736,255

0.02

Agricultural Products

135

0.01

2,861,364

0.00

Mining

68

0.00

2,374,703

0.00

Metal Industries

63

0.00

4,199,747

0.01

Agricultural Processing

29

0.00

1,257,101

0.00

Transportation Equipment

27

0.00

1,799,084

0.00

Food Processing

21

0.00

911,274

0.00

Glass, Stone, & Clay

13

0.00

797,645

0.00

Machinery & Equipment

6

0.00

358,861

0.00

Fabric Mills & Leather

3

0.00

189,714

0.00

Farm Inputs & Machinery

3

0.00

187,669

0.00

Technology Industries

1

0.00

34,112

0.00

Subtotal

25,873

1.62

1,112,295,448

1.61

TOTAL CONTRIBUTIONS

61,619

3.85

2,967,424,369

4.29

Rest of State

1,540,194

96.15

66,173,696,443

95.71

Total in State

1,601,813

100.00

69,141,120,812

100.00

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

 

Output ($)

% of State

Value Added ($)

% of State

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

40,995,197

0.02

29,151,032

0.02

Logging

432,996,129

0.17

249,041,233

0.21

Solid Wood Products

2,965,086,441

1.14

1,140,348,480

0.97

Wood Furniture

3,014,069,905

1.16

913,168,263

0.78

Pulp & Paper

2,642,578,619

1.01

683,225,902

0.58

Subtotal

9,095,726,291

3.49

3,014,934,910

2.56

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

899,996,115

0.35

487,752,908

0.41

Misc. Services

414,952,925

0.16

226,943,625

0.19

Misc. Manufacturing

399,307,170

0.15

211,905,131

0.18

Financial & Real Estate

715,697,419

0.27

390,881,259

0.33

Transport. & Comm. Services

385,771,302

0.15

165,038,118

0.14

Health Services

263,008,633

0.10

153,954,863

0.13

Resource Services

48,625,611

0.02

39,887,454

0.03

Utility Services

311,452,729

0.12

117,726,034

0.10

Recreation & Amusement

21,502,597

0.01

9,942,615

0.01

Domestic Services

131,198,430

0.05

56,349,914

0.05

Government

77,558,193

0.03

35,764,326

0.03

Education

15,800,007

0.01

9,434,561

0.01

Construction

43,961,416

0.02

14,600,868

0.01

Petroleum & Chemicals

201,511,408

0.08

41,195,594

0.03

Agricultural Products

18,437,392

0.01

4,063,126

0.00

Mining

17,886,686

0.01

3,760,582

0.00

Metal Industries

17,246,955

0.01

5,697,695

0.00

Agricultural Processing

11,801,145

0.00

1,859,019

0.00

Transportation Equipment

16,648,939

0.01

2,812,826

0.00

Food Processing

6,755,037

0.00

1,515,088

0.00

Glass, Stone, & Clay

4,540,599

0.00

1,659,168

0.00

Machinery & Equipment

2,087,007

0.00

603,861

0.00

Fabric Mills & Leather

1,115,193

0.00

495,874

0.00

Farm Inputs & Machinery

3,006,289

0.00

403,582

0.00

Technology Industries

203,729

0.00

49,683

0.00

Subtotal

4,030,072,924

1.55

1,984,297,774

1.69

TOTAL CONTRIBUTIONS

13,125,799,216

5.04

4,999,232,683

4.25

Rest of State

247,498,310,357

94.96

112,748,108,454

95.75

Total in State

260,624,109,573

100.00

117,747,341,137

100.00

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

Mississippi forestland acreage, ownership, value, and taxes collected.

Total forestland acres, 2018

19,244,571

Private ownership acres

17,080,876

Public ownership acres

2,163,692

Forestland assessed value, 2018

640,055,438

Ad valorem tax collections from forestland, 2018

74,979,541

Value of standing timber, 2018

29,140,290,737

Value of timber harvested, 2019

1,195,100,754

Timber severance tax collections (100%), 2019

3,773,656

Tax to Forest Resource Development Program (80%)

3,018,925

Tax returned to county government (20%)

754,731

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.

P3562 (100-12-20)

By Shaun M. Tanger, PhD, Assistant Extension Professor, Forestry; and Marcus K. Measells, MS, Senior Extension Associate, 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

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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