the state of forestry in the commonwealth charlie becker utilization and marketing manager

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The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

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Page 1: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

The State of Forestryin the Commonwealth

Charlie BeckerUtilization and Marketing Manager

Page 2: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager
Page 3: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

15.9 Million Acres

Virginia Forest Cover

Page 4: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Percentage of Forest

Page 5: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Virginia Forestland Acres

1907 1940 1957 1966 1977 1986 1992 2001 2007 20100

2

4

6

8

10

12

14

16

18

Year

Mil

lio

n a

cre

s

Page 6: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

19771980

19831986

19891992

19951998

20012004

20072010

20132016

20192022

20252028

20312034

20372040

20432046

20492052

20552058

12500000

13000000

13500000

14000000

14500000

15000000

15500000

16000000

16500000

Trend & Projection of Timberland area for Virginia (Southern Forest Futures Project & FIA)

High Projection

Trend & Average Projection

Low ProjectionAcre

s

SFFP Projection for average annual loss of timberland in VA is 20,800 acres with a high projection of 30,600 acres and a low projection of 11,300 acres.

Source: USFS – FIA & SFFP

Page 7: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager
Page 8: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Upland Hardwoods

61%

Birch-Beech-Maple

2%

Lowland Hardwood

5%

Oak-Pine11%

Natural Pine7%

Pine Plantation13% Non-Stocked

1%

Forest Type Groups, Virginia 2012

(2001 % in red)

Source: USFS-FIA

(64%)

(1%)(10%)

(9%)

(10%)

(5%)

(2%)

Page 9: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Projection of Forest Types

Page 10: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

199216.0 million acres

201215.9 million acres

Reduction in total acres since 1992.Most significant reduction of ownership has been with forest industry.

Individual /Fam-ily

62%Corporate

18%

Forest Industry1%

Public19%

Individual /Family67%

Corporate10%

Forest Industry

10%

Public13%

Forest Ownership

Page 11: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

374,000 landownersTypical NIPF owner:55-64 years old, white, male, BS/BA, retiredAcquired property by

purchasing or inheriting from familyReasons for owning: beauty, protect environment, land investment, home site

1-9

10-4

9

50-9

9

100-

499

500-

999

1000

+0

500

1000

1500

2000

2500

3000

3500

Ownership Size (acres)

Acr

es (

1000

)

source: National Woodland Owners Survey http://www.fia.fs.fed.us/nwos

Non-Industrial Private Forest Ownership

Page 12: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager
Page 13: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

VDOF inspects over 5,000 harvests annually with an average size of 40 acres.

Protecting Virginia’s Water Quality

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 20120

1,000

2,000

3,000

4,000

5,000

6,000

7,000

0

50,000

100,000

150,000

200,000

250,000

300,000

Timber Harvests in Virginia (1997-2012)

Number of Harvests Acres Harvested

Fiscal Year

Nu

mb

er

of

Ha

rve

sts

Nu

mb

er

of

Ac

res

Ha

rve

ste

d

Page 14: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

19601963

19661969

19721975

19781981

19841987

19901993

19961999

20022005

20080

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Pine CordsHardwood Cords

Year

Cord

s

20% Harvest Decline

Pulpwood Harvest

Page 15: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

19601962

19641966

19681970

19721974

19761978

19801982

19841986

19881990

19921994

19961998

20002002

20042006

20082010

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

MBF Pine SawtimberMBF Hardwood Saw-timber

Year

1000

Boa

rd F

eet

Sawtimber Harvest

30+% Harvest Decline

Page 16: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

1940 1957 1966 1977 1986 1992 2001 20100.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0Hardwoods

Softwoods

Vo

lum

e (

Bi ll

i on

cu

. ft.

)

Since 1940, total volume has more than doubled from 15.5 to 33.6 billion cubic feet.

YEAR

Forest Growth(Volume of Live Trees on All Timberland)

Page 17: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

2001 2007 2011 20120.00

5.00

10.00

15.00

20.00

25.00

30.00

Statewide Annual Net Growth & Removals for Softwood & Hard-

wood (MM Tons)

Softwood GrowthSoftwood RemovalsHardwood GrowthHardwood Removals

Source: USFS-FIA

Annual Net Growth and Removals

Page 18: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Coastal Plain Southern Piedmont

Northern Piedmont

Northern Mountains

Southern Mountains

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

8.00

Net Growth & Removals by FIA Unit for Softwood & Hardwood, 2012 (MM Tons)

Softwood GrowthSoftwood RemovalsHardwood GrowthHardwood Removals

Source: USFS-FIA

Net Growth and Removals By FIA Unit

Page 19: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

2001 2007 2011 20120.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Coastal Plain Annual Net Growth & Removals for Softwood and Hardwood

(MM Tons)

Softwood GrowthSoftwood RemovalsHardwood GrowthHardwood Removals

Source: USFS-FIA

Coastal Plain Net Growth and Removals

Page 20: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

2001 2007 2011 20120.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

Southern Piedmont Annual Net Growth and Removals for Softwood and Hard-

wood (MM Tons)

Softwood GrowthSoftwood RemovalsHardwood GrowthHardwood Removals

Source: USFS-FIA

Southern Piedmont Net Growth and Removals

Page 21: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Virginia Forestland Provides

Virginia’s 15.9 million acres of forestland provides:

IncomeJobsShelterFoodHousehold and other goods

Other natural resourcesRecreationWildlife habitatClean waterCleaner airImproved quality of life

Page 22: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Decline in logging and forest-related manufacturing due to collapse of housing market, deep recession, and continued global competition facing portions of industry.Forest industry sector has bottomed out and some improvement is starting to show.

What has changed since previous studies?

Page 23: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Direct - Output from the industry or business itselfIndirect - Output from businesses that directly serve a given industry/businessInduced - Output from employee spendingTotal - Summation of Direct, Indirect and Induced Outputs

Types of Economic Output

Page 24: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Stumpage Values19

90

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

$0

$50

$100

$150

$200

$250

$300

$350

HardwoodSoftwood

Mill

ions

40% Harvest Value De-cline

Page 25: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Stumpage Values

Page 26: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Industry Trend

Number of wood-using mills by type, Virginia, 1992-2009

  Sawmills

Veneer or plywood

mllls Pulpmills

Composite panel mills

Other mills

1992 276 9 9 3 141995 254 8 9 3 151999 254 7 9 4 162001 217 5 9 3 142003 204 5 9 3 132005 168 4 8 3 13

2007 155 4 8 3 9

2009 129 3 8 3 8

Source: Brandeis, et al. (2012)

Page 27: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Industry Trend

Page 28: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Agriculture & Forestry Total Employment Impact Changes, 2006 and 2011

Sector 2006 2011 Change % Change

Ag Total 357,105 310,861 -46,244 -13%Forest Total 144,380 103,848 -40,532 -28%Ag + Forest Total 501,485 414,709 -86,776 -17%

Page 29: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Forest Industry Employment Impact

Page 30: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Imports

Page 31: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Housing Starts

Page 32: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Impacts of Forestry-Related Industries

Impact Output (Million $) Employment Value-added (Million $)

Direct 8,855 37,704 3,154.0

Indirect 2,231 14,010 1,407.0

Induced 6,131 52,133 4,187.0

Total 17,217 103,848 8,748.0

Multiplier 1.94 2.75 2.77

Page 33: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Exports

Direct, Indirect, and induced Impacts of Impact of Virginia's Forestry-Related Industry Exports, 2011

Forestry Total Output (Million $) Employment Value Added (Million $)

Direct Effect 789.3 2,723 275.0

Indirect Effect 319.3 2,114 175.1

Induced Effect 473.8 3,987 331.7

Total Effect 1582.4 8,824 781.9

Page 34: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Wildlife Recreational Impacts

Wildlife Recreation Economic Impacts in Virginia, 2006

ActivityParticipants (thousands)

Total Output ($ million) Employment

Freshwater fishing 622 809.2 9,213Hunting 413 880.2 9,376Wildlife watching 2,312 1582.4 17,489Total 3,347 3271.8 36,078

Source: American Sportfishing Association (2008), Association of Fish and Wildlife Agencies (2008), and U.S. Fish and Wildlife Service (2008)

Page 35: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Ecological Values of Virginia’s Forestland

Number of Acres 15,907,038

Value per acre of Water Environmental Services $320.56

Value per acre of Air Environmental Services $80.86

Total Value of Water Environmental Services $5,099,160,101

Total Value of Air Environmental Services $1,286,243,093

Total Environmental Value $6,385,403,194

Source: Land acreage (U.S. Forestry Service, Forest Inventory and Analysis inventory data for 2008-2011; U.S. Department of Agriculture, 2007 Census of Agriculture), Costanza et al (1997)

Page 36: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Forest Industry Direct Impacts $8.885 Billion Indirect Impacts $2.231 Billion Induced Impacts $6.131 Billion Forest/ Wildlife-Related $3.0 Billion Recreation Ecological Values $6.385 Billion TOTAL $26.632 Billion

Annual Benefits from Virginia Forests

Page 37: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Expected New User of Forest Resource

Enviva Pellet Mills (1 VA, 2 NC)Franklin Pulp & PaperFranklin SawmillKlausner Number 2 Sawmill (NC)4 Dominion Biomass Power PlantsNOVEC Power PlantMeadWestvaco Biomass Power Project

Page 38: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

1985 1992 2001 2007 201158

60

62

64

66

68

70

72

74

76

78

Tons/Acre Yield of 21-25 Age Class Loblolly Pine in VA

Tons/Acre

Source: USFS - FIA

Loblolly Pine Yield in VA

Page 39: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Tons/Ac0

20

40

60

80

100

120

140

160

180

200

Potential Yield of 25 Year Old Loblolly PlantationVA 2013 - No Thin

30 years agocurrentcurrent + site prepcurrent, s.p., fertilize oncecurrent, s.p., fertilize twicecurrent, s.p., fertilize twice, tree improvement

Source: VDOF-Research LobDSS Model

Potential Yield of Loblolly Pine

Page 40: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Forest-Related Takeaways

Forestry and forest industries still account for a sizeable portion of economic output and employment, particularly in some regions.International exports are growing and are significant markets for many companies.Forest industry employment has stabilized in 2011-2012 and is poised for some growth, particularly with revival of housing and increased demand for wood products

Page 41: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Forest-Related Takeaways

Continued loss and fragmentation of forest land, along with other competing forest uses will affect future availability of wood resources.As the economy and industry recovers, forests in some regions of the state may start to see removals exceed growth.Improved seedlings and growing techniques can offset some of these concerns by growing more wood on fewer acres.

Page 42: The State of Forestry in the Commonwealth Charlie Becker Utilization and Marketing Manager

Additional Information

Charles W. Becker III, CFUtilization & Marketing ManagerVirginia Department of Forestry

900 Natural Resources Dr., Suite 800Charlottesville, VA 22903

434-220-9115434-296-2369 fax

[email protected]