Ag Outlook 2010 FORESTRY IN LOUISIANA C.A. “Buck” Vandersteen Louisiana Forestry Association www.laforestry.com.

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Presentation transcript:

Ag Outlook 2010 FORESTRY IN LOUISIANA C.A. “Buck” Vandersteen Louisiana Forestry Association

Forestland Ownership 14 million acres Family Landowners 60% Forest Industry 8% REITS/TIMOs 23% Total Private 91%

Economic Impact Timber production down 25% Landowner Income Down $87 million Economic Impact to State down over $1Billion ($ billion)

Forest Land Value and Availability People always looking to buy forestland Prices holding up Anthony Forest Products recently sold 91,000 acres to Molpus Woodlands for $173 million. $1900 per acre

Timber Values Mixed but mostly Down Pine - $314.08/mbf $ Hdwd - $294.63/mbf $ Chip-n-saw - $80.15/cord $74.22 Pine pulpwood - $26.15/cord $25.59 Hdwd pulpwood - $17.02/cord $23.76

Master Loggers down 25% ( Trained Loggers in Sustainable forestry) 75% still in business are in financial difficulty

Forest Industry Employment Employees in forest industry 15,924 Down 10,000 jobs from the 90’s

Current Conditions Housing Starts remain low. Recovery not till Diesel, insurance costs rising for loggers, a lot of idle equipment. Because of wet weather, spike in timber prices. Will be short-lived. Every business watching their costs very closely.

Market Diversification. Louisiana Forestry Association supports using woody biomass as a renewable fuel source. Millions of tons of woody biomass can be produced from logging operations. Federal incentives like Biomass Crop Assistance Program (BCAP) will help biomass recovery.

2010 will be a Challenging Year!!!! Thank you.