Unprecedented Times for the Louisiana Timber Industry
9/25/2020 — The Louisiana Timber Industry is made up of three separate entities, timberland owners, loggers, and forest product manufacturing facilities, which rely on each other to maintain healthy forest management along with a sustainable market. 2020 has brought many obstacles for the industry, as it has for everyone.
Deemed essential workers, the mills and loggers continued harvesting and processing but at a much slower rate. The reaction from the initial shutdown of COVID-19 left mills operating at approximately 35-45% bringing on tight quotas and other restrictions to the loggers.
The demand for lumber, housing and wood projects started rising amidst the shutdown but with mills still operating with skeleton crews and the inability to move the product, lumber prices began to rise.
During mid-summer, mills began accepting a larger quantity of raw materials while still working through quarantining and COVID-19 restrictions. Harvesting operations returned to a new normal at slightly less production rates. August brought an extreme reduction in logger production, as the mills (still not working at 100 %) couldn’t process the raw materials as quickly as it was being hauled. The reduced production rates of the manufacturing facilities lead to an overcapacity of raw materials. This in turn has driven the raw material values down. While finished goods prices are high, returns have been moderated by decreased production and additional COVID-19 related expenses.
Photos by the U.S. Forest Service
August 27, hurricane Laura brought violent winds that caused nearly 758,000 acres in damaged and destroyed timber; more damage than Hurricane Katrina and Rita, combined. It is estimated that the total economic loss to the Louisiana timber industry as a result of Hurricane Laura is $1.1 Billion. Timber owners, small and large, have lost lifelong investments, with no relief.
Many Louisiana Loggers have been moved to the downed timber to try to harvest as much as possible. 10% harvested is what Louisiana Timber Owners were hoping would be recovered, but due to our Louisiana climate, which causes rapid quality loss, and full mills there is no where to bring this product. 3-5% recovered being a more realistic number.
Photo by Thomas Johnson Media
SO WHAT’S NEXT?
Although Louisiana Loggers are among the most resilient people, Louisiana Loggers Association has joined efforts with the American Logging Council in pushing for Loggers and Log Haulers to be added to the next “Relief Bill”. S4233 and HR7690 “The Logger Relief Act” will provide much needed financial aid to our struggling Logging industry. Please visit saveourloggers.com to find out more.
Timber Owners have lost a lifetime of investments. The only type of financial relief that timber owners can recoup is a “casualty loss” on their taxes that is dependent upon the base investment of the timber. Unfortunately, this will provide little to nothing for the majority of the timber owners. The Forest Land Owners Association along with many more are encouraging Congress to support S1687 “The Forest Recovery Act”. This bill will correct the existing tax rules and allow for the timber loss to be filed at current market value.
The Mills will continue the production of lumber products to keep up with demand while still navigating COVID-19 regulations. We do feel that the prices of lumber and the housing markets will correct and level out, in time.
Louisiana’s Timber Industry is no stranger to hardships. Perseverance and resourcefulness with determination and hard work has maintained our significance in the state of Louisiana. 2020, although very dissimilar than what we have ever been confronted, will hopefully, allow for a more efficient and effective industry not only in the state but also the country.