Stands at and around thinning age were observed to have mortality in the 10 to 15% range. “Young stands suffered from 40 to 60% mortality. “Mortality rates exceeding two-thirds have been reported in some replanted stands,” McConnell said. Newly replanted stands and young stands have seen the highest death rates. Wood pellets is another industry that we are seeing locate in Mississippi or nearby where Mississippi-owned wood will figure prominently in mill supply.”ĭrought conditions across the state have slowed growth and caused some tree death. “SDI will produce feedstock for the new Steel Dynamics aluminum mill in the Golden Triangle, which is part of the largest total industrial investment in state history. “Huber’s announcement is welcome news for northeast Mississippi’s pulpwood market,” McConnell said. Enviva is also opening another wood pellet mill in Epes, Alabama. Enviva is back online in Amory after the March 24 tornado damaged the facility. Huber Engineered Woods has announced plans to build an oriented strand board mill in Shuqualak, and SDI Biocarbon Solutions intends to build a biochar facility in Columbus. Once these mills reach full production, Mississippi will see pine production increase from 1.5 billion board feet per year to 2.5 billion board feet per year. Federal Reserve plans three interest rate cuts in 2024 is good news for homebuilding,” he said.Īnother bright spot for Mississippi’s industry is the opening of new mills over the last few years, which has added 1.3 billion board feet of pine lumber capacity to the state’s sawmill industry. But the news on December 13 that the U.S. “Housing starts were predicted to hold steady at 1.4 million or even decline slightly in 2024. However, there is cautious optimism after a Federal Reserve Board announcement in mid-December. Many economic analysts were warning of an imminent recession with lumber prices trending downward since July and a slowing demand for paper packaging, which is used for shipping products. “If that trend continues, the effect would be felt next year in our markets with lower prices and reduced volumes harvested.” “Rising interest rates push housing starts down, which has a negative impact on lumber price and quantity demand,” said John Auel, certification programs coordinator with the Mississippi Forestry Association and retired MSU Extension Service assistant professor of forestry. Homebuilding drives the consumption and production of softwood lumber and is one of the main economic indicators of the forestry industry. Final figures will be available in early 2024. Timber’s value of production is estimated based on monthly severance taxes collected by the Mississippi Department of Revenue. Poultry and soybeans ranked first and second at an estimated production value of $3.1 billion and $1.6 billion, respectively. The increased harvest helped Mississippi’s forestry industry remain in third place among the state’s agricultural commodities, with an estimated production value of $1.5 billion. “We are on pace to exceed 36 million tons of timber harvested, which would be the highest level we have experienced this century, surpassing the previous high set in 2005 prior to the Great Recession,” said Eric McConnell, an associate professor of forest business at Mississippi State University. Mississippi’s 2023 timber harvest is expected to set a record for the 21st century.
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