Forest and Natural
Resource Based Economic
Opportunities in the South
Bill Hubbard
Southern Regional Extension Forester
Natural Resources


For this presentation
includes:
• Forest resources
• Wildlife
• Alternative forest uses
and products
Does not include
• Oil
• Gas
• Other “natural
resources”
http://home.comcast.net/~j.tavares/gas-prices.jpg
Implications for
Community, Rural and
Economic Development

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Forests of the South and
nation are vast.
Value added options are
limitless.
Impact on local, regional
and state economies is
large.
Offers an untapped
opportunity for
professionals working in
CRED.
http://www.timberline.ca/newsletter/september2002/loggers.jpg
A Vast Resource…..
Diverse ownerships…..
Private owners dominate in the South….
Economic Impact is Impressive….
Economic Impact is Impressive….
New Bureau of Census Data
(2002)
# of
establishments
Sales ($)
Payroll ($)
# of
employees
Wood
Product
Manufacturin
g
16,846
88.7 billion
15.8 billion
532,000
Paper
manufacturi
ng
5,485
151.8 billion
20.8 billion
478,000
Furniture
and related
product
manufacturi
ng*
21,930
73.9 billion
16.7 billion
577,000
Total
44,261
314.4 billion
53.3 billion
1.587 million
*furniture manufacturing includes non-wood products as well.
The importance of
forest management and
timber harvests in local
economies:
A Mississippi example
(data from Dr. Bob Daniels, Miss. St.)
Wildlife-Related Opportunities

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In 1996 wildliferelated recreation
expenditures in the
U.S. totaled $101
billion.
40 million Americans
went hunting or
fishing.
63 million observed,
fed or photographed
wildlife.
Nature Tourism

Nature Observation
• Bird and butterfly
tours
• Plant and wildlife
tours
• Astronomy and star
gazing tours
• Photography and
painting
• Self-guided wildlife
viewing
http://www.wonderwoodinc.com/art/butterflies.jpg
Nature Tourism

Educational Tours
and Talks
• Forest/Wildlife
histories and
cultural tours
• Outdoor survival
skills
• Horsemanship
clinics
• Guided nature tours
http://www.greenline.org.lb/new/images/projects/ecotourism.jpg
Nature Tourism

Outdoor Recreation
• Hiking and horseback
riding
• Fee fishing and hunting
• Camping and picnicking
• Sport clay shooting
• Off-road vehicles
• Agriculture and
technical tours
• Mountain biking
http://ag.arizona.edu/azaqua/aquaculture_images/az/nelson2.jpg
http://www.campallstar.com/images/photoalbum/mountain-biking.jpg
The Changing Economic Role of
Natural Landscapes
Our Natural Landscapes
Commercial Commodities Environmental Services
Timber
Minerals
Forage
Outfitting
Commercial Recreation
“Tourism”
Employment & Income
in
Non-Commercial Recreation
Clean Water
Wildlife
Fisheries
Scenic Beauty
Air Quality
Open Space
Improved
Quality of Life.
Mills, Mines, Resorts
etc.
Traditional Economic Base
Expands
Multiplier Impacts
Additional
Economic Activity
Attract and Hold
New Residents
and
Businesses
Additional
Economic Activity
Impact on Local Economic Well Being
Nature-Based Recreation’s
Dual “Punch”

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Draws Temporary Visitors to
an Area
• Employment and Income
Impacts of Expenditures
Introduces the Area’s Special
Qualities and Characteristics
to Outsiders
Lays the Basis for AmenityBased In-Migration
• New Permanent Residents
• Economic Vitality
Associated with New
Residents and the
Economic Activity Tied to
Them
http://www.naturegate.com/images/pics_about_us.jpg
B-6147
Nature Tourism: A
Guidebook for Evaluating
Enterprise Opportunities
By: Andrew N. Skadberg, Jeremy James,
Miles Phillips, James R. Kimmel, Carson
E. Watt. Texas Cooperative Extension
Alternative Forest Products

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Pine straw
Shiitake mushroom
production
Medicinals
Greenery
http://texaspinestraw.tamu.edu/media/image04.jpg
http://www.srs4702.forprod.vt.edu/pubsubj/pdf/02t4.pdf
http://www.ginseng-seed.com/images/Geneti1.jpg
http://www.shiitakecenter.com/lentinus.jpg
The case for “agroforestry”

The collective word for all land-use
systems and practices in which trees
and shrubs are deliberately grown on
the same land management unit as
crops and/or animals.
Types of agroforestry
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Forest Farming
Alley Cropping
Silvopasture and
Buffers (Buffers
include Integrated
Riparian Management;
Windbreaks,
Shelterbelts and
Boundary Plantings;
Community
Greenways and Urban
Buffers).
Resources – Non timber
forest products

http://www.sfp.forprod.vt.edu/
Resources – Non timber
forest products

http://texaspinestraw.tamu.edu/
Basic Information Needs –
Resource Assessment
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Is the availability of timber
resources a barrier to the
development of the valueadded secondary forest
products industry?
Is the focal region located
within reasonable
transporting distance of
significant standing timber
inventory?
What are the trends:
ownership, forestland
acreage, growing stock,
growth/removals,
sawtimber, diameter
classes, species, etc.
Basic Information Needs –
Industry Structure

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What is the structure of the established primary
and secondary forest products industry base?.
What types of manufacturing processes and
equipment do current companies use?
Is there the presence of sawmills, dry kilns,
millwork plants, OSB production which could
support significant development?
Are companies able to compete in the markets
they serve?
How have these companies which have grown
and prospered done so? (Exploiting specialty
niches, cutting costs, etc.)
Basic Information Needs –
Products and Markets

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What is the product mix of
the companies?
What are the current
markets and customer
bases? (Both domestic and
export)?
What is the quality and
level of acceptance in
current markets?
What is the distribution
reach?
Basic Information Needs –
Economic Impact
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What economic impacts result from forest-based
industry development?
What are the ramifications at the community,
regional, and state levels?
Forces driving Southern forest
changes: Insights for rural
developers
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Increasing demand, positive markets and
changing utilization.
Attractive investment returns in Southern
forests.
Changing private non-industrial owners
Forest industry changes.
Financial institutions ownership trend.
Environmental concern
Opportunities
Improve forest management
 Attract new forest industry
 Expand/diversify current forest
industry
 Improve performance, efficiency and
utilization of current industry
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Other issues/opportunities
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Carbon sequestration
credits
Watershed payments
Conservation
easements
Small diameter
situation
Biomass options
Niche markets
• Animal bedding
• Engineered wood
products