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The Economic Contributions of Forestry and Forest Products - Lawrence County

Publication Number: M1676
View as PDF: M1676.pdf

Lawrence County

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

Employment and Income Contributions

Forest-related economic activity in Lawrence County during 2018 generated 860 jobs and over $57.2 million in income. That’s about 20.5% of jobs and 30.7% 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 $418.7 million, or about 47.3% of economic output in Lawrence County. Forest-related value added amounted to over $131.3 million, or about 42.4% 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 $21.14 million in tax revenue for federal, state, and local governments. This represents an estimated tax revenue of $13.53 million for federal and $7.61 million for state and local governments.

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

 

Number of Jobs

% of County

Income ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

4

0.09

120,084

0.06

Logging

76

1.81

1,852,620

0.99

Solid Wood Products

112

2.66

7,583,523

4.06

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

417

9.92

39,713,174

21.28

Subtotal

609

14.47

49,269,401

26.40

Indirect and Induced Contributions on Sectors

Misc. Services

72

1.72

1,458,060

0.78

Wholesale & Retail Trade

53

1.26

1,248,471

0.67

Misc. Manufacturing

29

0.68

1,217,827

0.65

Financial & Real Estate

18

0.43

484,036

0.26

Utility Services

17

0.41

1,066,614

0.57

Health Services

16

0.37

844,173

0.45

Transport. & Comm. Services

15

0.36

809,048

0.43

Construction

9

0.21

171,792

0.09

Resource Services

7

0.17

306,716

0.16

Recreation & Amusement

7

0.16

4,288

0.00

Domestic Services

4

0.09

44,671

0.02

Agricultural Products

1

0.03

127,459

0.07

Metal Industries

1

0.03

83,012

0.04

Government

1

0.03

79,598

0.04

Education

1

0.02

13,938

0.01

Mining

1

0.02

7,605

0.00

Food Processing

0

0.00

1,158

0.00

Glass, Stone, & Clay

0

0.00

18

0.00

Petroleum & Chemicals

0

0.00

0

0.00

Machinery & Equipment

0

0.00

69

0.00

Agricultural Processing

0

0.00

0

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Farm Inputs & Machinery

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Transportation Equipment

0

0.00

0

0.00

Subtotal

252

5.98

7,968,554

4.27

TOTAL CONTRIBUTIONS

860

20.45

57,237,954

30.67

Rest of County

3,346

79.55

129,390,372

69.33

Total in County

4,206

100.00

186,628,326

100.00

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

 

Output ($)

% of County

Value Added ($)

% of County

Direct Contributions from Forest-Related Sectors

Misc. Forest Products

195,078

0.02

122,988

0.04

Logging

4,379,144

0.49

1,855,435

0.60

Solid Wood Products

36,169,777

4.08

14,415,717

4.65

Wood Furniture

0

0.00

0

0.00

Pulp & Paper

334,240,564

37.73

96,606,924

31.19

Subtotal

374,984,563

42.33

113,001,065

36.48

Indirect and Induced Contributions on Sectors

Misc. Services

4,963,155

0.56

2,175,572

0.70

Wholesale & Retail Trade

5,471,237

0.62

2,621,770

0.85

Misc. Manufacturing

2,962,569

0.33

1,408,614

0.45

Financial & Real Estate

8,274,243

0.93

4,872,657

1.57

Utility Services

14,593,020

1.65

4,269,538

1.38

Health Services

1,426,569

0.16

853,947

0.28

Transport. & Comm. Services

2,680,748

0.30

1,163,524

0.38

Construction

1,342,130

0.15

254,913

0.08

Resource Services

317,798

0.04

265,244

0.09

Recreation & Amusement

102,351

0.01

30,621

0.01

Domestic Services

799,101

0.09

152,004

0.05

Agricultural Products

308,964

0.03

36,385

0.01

Metal Industries

187,638

0.02

91,015

0.03

Government

92,075

0.01

79,672

0.03

Education

34,777

0.00

15,061

0.00

Mining

178,040

0.02

10,898

0.00

Food Processing

9,451

0.00

2,126

0.00

Glass, Stone, & Clay

399

0.00

24

0.00

Petroleum & Chemicals

1,232

0.00

0

0.00

Machinery & Equipment

511

0.00

145

0.00

Agricultural Processing

0

0.00

0

0.00

Fabric Mills & Leather

0

0.00

0

0.00

Farm Inputs & Machinery

0

0.00

0

0.00

Technology Industries

0

0.00

0

0.00

Transportation Equipment

0

0.00

0

0.00

Subtotal

43,746,008

4.94

18,303,729

5.91

TOTAL CONTRIBUTIONS

418,730,571

47.26

131,304,794

42.39

Rest of County

467,198,508

52.74

178,433,076

57.61

Total in County

885,929,079

100.00

309,737,870

100.00

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

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

Total forestland acres, 2018

197,772

Private ownership acres

197,772

Public ownership acres

0

Forestland assessed value, 2018

$7,949,692

Ad valorem tax collections from forestland, 2018

$930,511

Value of standing timber, 2018

$319,214,162

Value of timber harvested, 2019

$24,661,539

Timber severance tax collections (100%), 2019

$85,850

Tax to Forest Resource Development Program (80%)

$68,680

Tax returned to county government (20%)

$17,170

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.


M1676 (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.

Department: MSU Extension- Lawrence County
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