The Wood and Fiber Supply Chain Experts
First-Ever Study Quantifies the Economic Impact of Private, Working Forests in the U.S.
Demonstrates that these forests are key to our national infrastructure
From the December 2009 Forest2Mill newsletter.
A new study, commissioned by the National Alliance of Forest Owners
(NAFO) and conducted by Forest2Market, quantifies the economic impact of private, working forests
on the U.S. economy. The study found a significant gap between the contributions made by
privately-owned forests over other ownership types. On average, they generate $277,000 in state GDP
per 1,000 acres, while public forests generate just $41,000 per 1,000 acres.
The study also concludes that every 1,000 acres of private, working forest creates 8
jobs, $270,000 in payroll, $9,850 in state taxes (income and severance taxes only) and $733,000 in
annual sales.
The study completes the picture of the contributions that working forests make, says David
P. Tenny, President and CEO of NAFO. “We all know that private, working forests provide clean water
and air, open space, wildlife habitat, recreation, and other environmental benefits. This study
demonstrates the significant economic benefits these forests provide: family waged jobs, a strong
tax base, and the economic foundation of the forest products industry. They are fundamental to both
the economic and environmental infrastructure of our nation.”
The study, which looks at economic contribution by state and region as well as nationally,
is the first of its kind. “To our knowledge, no one else has taken a comprehensive look at the
total contribution that forests make to the economy,” says Pete Stewart, CEO and President of
Forest2Market.
“This study demonstrates that private working forests support local and state economies,”
says Stewart. “While the industry is struggling from the depressed housing market and the wider
recession, it’s important to know exactly how much working forests contribute in jobs, taxes and
GDP. With a clear view of the total contribution, we can better understand the consequences of
public policies and market factors that limit how much work these forests can do.”
Results of the study are available using the
interactive map on
NAFO’s website. The full study is available
here.