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

15.9 Million Acres Virginia Forest Cover

Percentage of Forest

Virginia Forestland Acres

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

Projection of Forest Types

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

374,000 landowners Typical NIPF owner: years old, white, male, BS/BA, retired Acquired property by purchasing or inheriting from family Reasons for owning: beauty, protect environment, land investment, home site source: National Woodland Owners Survey Non-Industrial Private Forest Ownership

VDOF inspects over 5,000 harvests annually with an average size of 40 acres. Protecting Virginia’s Water Quality

Pulpwood Harvest

Sawtimber Harvest 30+% Harvest Decline

Volume (Billion 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)

Annual Net Growth and Removals

Source: USFS-FIA Net Growth and Removals By FIA Unit

Source: USFS-FIA Coastal Plain Net Growth and Removals

Southern Piedmont Net Growth and Removals

Virginia Forestland Provides Virginia’s 15.9 million acres of forestland provides: Income Jobs Shelter Food Household and other goods Other natural resources Recreation Wildlife habitat Clean water Cleaner air Improved quality of life

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?

Direct - Output from the industry or business itself Indirect - Output from businesses that directly serve a given industry/business Induced - Output from employee spending Total - Summation of Direct, Indirect and Induced Outputs Types of Economic Output

Stumpage Values

Industry Trend Number of wood-using mills by type, Virginia, Sawmills Veneer or plywood mlllsPulpmills Composite panel mills Other mills Source: Brandeis, et al. (2012)

Industry Trend

Agriculture & Forestry Total Employment Impact Changes, 2006 and 2011 Sector Change% Change Ag Total 357,105310,861-46,244-13% Forest Total 144,380103,848-40,532-28% Ag + Forest Total 501,485414,709-86,776-17%

Forest Industry Employment Impact

Imports

Housing Starts

Impacts of Forestry-Related Industries ImpactOutput (Million $)EmploymentValue-added (Million $) Direct8,85537,7043,154.0 Indirect2,23114,0101,407.0 Induced6,13152,1334,187.0 Total17,217103,8488,748.0 Multiplier

Exports Direct, Indirect, and induced Impacts of Impact of Virginia's Forestry- Related Industry Exports, 2011 Forestry TotalOutput (Million $)EmploymentValue Added (Million $) Direct Effect789.32, Indirect Effect319.32, Induced Effect473.83, Total Effect ,

Wildlife Recreational Impacts Wildlife Recreation Economic Impacts in Virginia, 2006 Activity Participants (thousands) Total Output ($ million)Employment Freshwater fishing ,213 Hunting ,376 Wildlife watching2, ,489 Total3, ,078 Source: American Sportfishing Association (2008), Association of Fish and Wildlife Agencies (2008), and U.S. Fish and Wildlife Service (2008)

Ecological Values of Virginia’s Forestland Number of Acres15,907,038 Value per acre of Water Environmental Services$ 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 ; U.S. Department of Agriculture, 2007 Census of Agriculture), Costanza et al (1997)

Annual Benefits from Virginia Forests

Expected New User of Forest Resource Enviva Pellet Mills (1 VA, 2 NC) Franklin Pulp & Paper Franklin Sawmill Klausner Number 2 Sawmill (NC) 4 Dominion Biomass Power Plants NOVEC Power Plant MeadWestvaco Biomass Power Project

Loblolly Pine Yield in VA

Source: VDOF-Research LobDSS Model Potential Yield of Loblolly Pine

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 and is poised for some growth, particularly with revival of housing and increased demand for wood products

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.

Additional Information Charles W. Becker III, CF Utilization & Marketing Manager Virginia Department of Forestry 900 Natural Resources Dr., Suite 800 Charlottesville, VA fax