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The Economic Contributions of Forestry and Forest Products - Choctaw County

Publication Number: M1667
View as PDF: M1667.pdf

Chickasaw County

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

Employment and Income Contributions

Forest-related economic activity in Chickasaw County during 2018 generated 2,453 jobs and over $115.6 million in income. That’s about 30.6% of jobs and 34.8% 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 $502.9 million, or about 40.9% of economic output in Chickasaw County. Forest-related value added amounted to over $169.6 million, or about 35.2% 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 $35.02 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $23.64 million for federal and $11.38 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

1

0.01

41,590

0.01

Logging

40

0.50

1,580,768

0.48

Solid Wood Products

39

0.49

1,028,026

0.31

Wood Furniture

1,344

16.76

53,922,276

16.24

Pulp & Paper

255

3.18

35,662,254

10.74

Subtotal

1,679

20.94

92,234,914

27.77

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

230

2.87

8,297,789

2.50

Misc. Manufacturing

135

1.69

2,294,439

0.69

Misc. Services

123

1.54

2,448,464

0.74

Transport. & Comm. Services

105

1.30

4,399,767

1.32

Financial & Real Estate

84

1.05

1,506,161

0.45

Health Services

47

0.58

2,240,246

0.67

Government

11

0.13

689,641

0.21

Construction

8

0.10

350,904

0.11

Education

7

0.09

95,320

0.03

Domestic Services

7

0.09

237,828

0.07

Utility Services

7

0.09

474,010

0.14

Resource Services

3

0.04

146,773

0.04

Petroleum & Chemicals

3

0.04

115,883

0.03

Agricultural Products

2

0.03

106,916

0.03

Recreation & Amusement

2

0.02

43,952

0.01

Mining

0

0.00

2,904

0.00

Metal Industries

0

0.00

0

0.00

Food Processing

0

0.00

2,978

0.00

Farm Inputs & Machinery

0

0.00

1,879

0.00

Fabric Mills & Leather

0

0.00

450

0.00

Transportation Equipment

0

0.00

1,416

0.00

Technology Industries

0

0.00

0

0.00

Glass, Stone, & Clay

0

0.00

70

0.00

Machinery & Equipment

0

0.00

17

0.00

Agricultural Processing

0

0.00

0

0.00

Subtotal

774

9.65

23,457,807

7.06

TOTAL CONTRIBUTIONS

2,453

30.59

115,692,721

34.83

Rest of County

5,567

69.41

216,429,928

65.17

Total in County

8,020

100.00

332,122,649

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

64,545

0.01

42,379

0.01

Logging

2,904,358

0.24

1,590,120

0.33

Solid Wood Products

6,503,238

0.53

1,793,559

0.37

Wood Furniture

249,165,979

20.27

70,359,889

14.60

Pulp & Paper

146,028,174

11.88

52,531,660

10.90

Subtotal

404,666,294

32.92

126,317,606

26.22

Indirect and Induced Contributions on Sectors

Wholesale & Retail Trade

28,729,592

2.34

14,234,533

2.95

Misc. Manufacturing

6,864,136

0.56

2,622,602

0.54

Misc. Services

8,409,880

0.68

3,867,392

0.80

Transport. & Comm. Services

14,723,840

1.20

5,505,173

1.14

Financial & Real Estate

21,928,569

1.78

10,030,257

2.08

Health Services

5,721,207

0.47

2,617,239

0.54

Government

1,974,898

0.16

1,072,372

0.22

Construction

1,387,790

0.11

423,247

0.09

Education

267,177

0.02

91,848

0.02

Domestic Services

1,717,436

0.14

624,501

0.13

Utility Services

4,810,084

0.39

1,651,230

0.34

Resource Services

151,947

0.01

125,664

0.03

Petroleum & Chemicals

1,050,046

0.09

256,563

0.05

Agricultural Products

289,414

0.02

92,265

0.02

Recreation & Amusement

122,488

0.01

68,494

0.01

Mining

59,857

0.00

5,304

0.00

Metal Industries

39,575

0.00

0

0.00

Food Processing

21,611

0.00

4,381

0.00

Farm Inputs & Machinery

31,691

0.00

3,367

0.00

Fabric Mills & Leather

3,190

0.00

969

0.00

Transportation Equipment

2,269

0.00

1,425

0.00

Technology Industries

324

0.00

0

0.00

Glass, Stone, & Clay

184

0.00

72

0.00

Machinery & Equipment

101

0.00

22

0.00

Agricultural Processing

0

0.00

0

0.00

Subtotal

98,307,303

8.00

43,298,921

8.99

TOTAL CONTRIBUTIONS

502,973,597

40.92

169,616,528

35.20

Rest of County

726,254,722

59.08

312,203,769

64.80

Total in County

1,229,228,319

100.00

481,820,297

100.00

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

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

Total forestland acres, 2018

157,223

Private ownership acres

134,359

Public ownership acres

22,864

Forestland assessed value, 2018

$5,469,306

Ad valorem tax collections from forestland, 2018

$720,144

Value of standing timber, 2018

$168,829,026

Value of timber harvested, 2019

$9,644,581

Timber severance tax collections (100%), 2019

$31,467

Tax to Forest Resource Development Program (80%)

$25,173

Tax returned to county government (20%)

$6,293

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.


M1666 (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- Choctaw County
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Authors

Portrait of Dr. James Emery Henderson
Professor and Head
Forest Economics and Management