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So many (mine included) family farms that once were open pastures and row crops are now planted in trees. At what point does the supply outpace the demand and adversely affect timber prices?
One of the bigger issues in the forest really didn't happen in the forest: the huge melt-down in housing and construction has decimated demand for many products. The glut of foreclosed houses on the market isn't helping with demand either...
Yes, currently, the biggest issues in Forestry are not ecological or biological, they are financial.
Here in CA a big concern is the Forest Service not selling much. The mills need a steady supply and the forest are only letting go 5-10% of what the forests grow. This is going to make it pretty tough for the mills to have the supply needed. We have a mill scheduled to reopen very soon and everyone is worried they'll only last another year or two before they have to shut down due to a lack of supply. private lands can't supply the total need here in my area for very long.
Quote from: Magicman on March 30, 2011, 03:11:56 pmSo many (mine included) family farms that once were open pastures and row crops are now planted in trees. At what point does the supply outpace the demand and adversely affect timber prices?Interesting point. Are any of these farmland conversions old enough that they are actually supplying trees at this point?Poor stumpage prices is a big factor in our area as well. I've heard a few stories from foresters and loggers about retirees who have been doing "all the right things" in their woodlots for many years, thinking they were building a financial cushion for emergencies. When they saw their 401-Ks and other savings wiped out by the financial melt down a few years ago, they called in their forester. The forester took a look and checked mill prices and had to get back to them with some bad news. by the time they paid him, the logger and the trucker, they would not get enough from the sale to cover their costs, let alone come out ahead. So their "backup retirement plan" was wiped out as well.One of the bigger issues in the forest really didn't happen in the forest: the huge melt-down in housing and construction has decimated demand for many products. The glut of foreclosed houses on the market isn't helping with demand either...John Mc
I do think the shrinking/aging logger population is a big deal. There is a similar crisis for farmers. To start up fresh is so difficult.
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