Forest and Natural Forest and Natural Resource Based Economic Resource Based Economic Opportunities in the SouthOpportunities in the South

Bill HubbardBill Hubbard

Southern Regional Extension ForesterSouthern Regional Extension Forester

Natural ResourcesNatural Resources For this presentation For this presentation

includes:includes:• Forest resourcesForest resources• WildlifeWildlife• Alternative forest uses Alternative forest uses

and productsand products Does not includeDoes not include

• OilOil• GasGas• Other “natural Other “natural

resources”resources”

http://home.comcast.net/~j.tavares/gas-prices.jpg

Implications for Implications for Community, Rural and Community, Rural and Economic DevelopmentEconomic Development

Forests of the South and Forests of the South and nation are vast.nation are vast.

Value added options are Value added options are limitless.limitless.

Impact on local, regional Impact on local, regional and state economies is and state economies is large.large.

Offers an untapped Offers an untapped opportunity for opportunity for professionals working in professionals working in CRED.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)New Bureau of Census Data (2002)

# of # of establishmentsestablishments

Sales ($)Sales ($) Payroll ($)Payroll ($) # of # of employeesemployees

Wood Wood Product Product ManufacturinManufacturingg

16,84616,846 88.7 billion88.7 billion 15.8 billion15.8 billion 532,000532,000

Paper Paper manufacturimanufacturingng

5,4855,485 151.8 billion151.8 billion 20.8 billion20.8 billion 478,000478,000

Furniture Furniture and related and related product product manufacturimanufacturing*ng*

21,93021,930 73.9 billion73.9 billion 16.7 billion16.7 billion 577,000577,000

TotalTotal 44,26144,261 314.4 billion314.4 billion 53.3 billion53.3 billion 1.587 million1.587 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 OpportunitiesWildlife-Related Opportunities

In 1996 wildlife-related recreation expenditures in the U.S. totaled $101 billion.

40 million Americans went hunting or fishing.

63 million observed, fed or photographed wildlife.

Nature TourismNature Tourism

Nature ObservationNature Observation• Bird and butterfly Bird and butterfly

tourstours• Plant and wildlife Plant and wildlife

tourstours• Astronomy and star Astronomy and star

gazing toursgazing tours• Photography and Photography and

paintingpainting• Self-guided wildlife Self-guided wildlife

viewingviewinghttp://www.wonderwoodinc.com/art/butterflies.jpg

Nature TourismNature Tourism

Educational Tours Educational Tours and Talksand Talks• Forest/Wildlife Forest/Wildlife

histories and histories and cultural tourscultural tours

• Outdoor survival Outdoor survival skillsskills

• Horsemanship Horsemanship clinicsclinics

• Guided nature toursGuided nature tourshttp://www.greenline.org.lb/new/images/projects/ecotourism.jpg

Nature TourismNature Tourism Outdoor RecreationOutdoor Recreation

• Hiking and horseback Hiking and horseback ridingriding

• Fee fishing and huntingFee fishing and hunting• Camping and picnickingCamping and picnicking• Sport clay shootingSport clay shooting• Off-road vehiclesOff-road vehicles• Agriculture and Agriculture and

technical tourstechnical tours• Mountain bikingMountain 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

Timber Non-Commercial Recreation Minerals Clean Water Forage Wildlife Outfitting Fisheries Commercial Recreation Scenic Beauty

“Tourism” Air Quality Open Space

Our Natural Landscapes

Commercial Commodities Environmental Services

Employment & Income Improved in Quality of Life. Mills, Mines, Resorts

etc. Attract and Hold New Residents Traditional Economic Base and

Expands Businesses Multiplier Impacts Additional Additional Economic Activity Economic Activity

Impact on Local Economic Well Being

Nature-Based Recreation’s Nature-Based Recreation’s Dual “Punch”Dual “Punch”

Draws Temporary Visitors to Draws Temporary Visitors to an Areaan Area• Employment and Income Employment and Income

Impacts of ExpendituresImpacts of Expenditures Introduces the Area’s Special Introduces the Area’s Special

Qualities and Characteristics Qualities and Characteristics to Outsidersto Outsiders

Lays the Basis for Amenity-Lays the Basis for Amenity-Based In-MigrationBased In-Migration• New Permanent ResidentsNew Permanent Residents• Economic Vitality Economic Vitality

Associated with New Associated with New Residents and the Residents and the Economic Activity Tied to Economic Activity Tied to ThemThem 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 ProductsAlternative Forest Products

Pine strawPine straw Shiitake mushroom Shiitake mushroom

productionproduction MedicinalsMedicinals GreeneryGreenery

http://texaspinestraw.tamu.edu/media/image04.jpg

http://www.ginseng-seed.com/images/Geneti1.jpg

http://www.srs4702.forprod.vt.edu/pubsubj/pdf/02t4.pdf http://www.shiitakecenter.com/lentinus.jpg

The case for “agroforestry”The case for “agroforestry”

The collective word for all land-use The collective word for all land-use systems and practices in which trees systems and practices in which trees and shrubs are deliberately grown on and shrubs are deliberately grown on the same land management unit as the same land management unit as crops and/or animals.crops and/or animals.

Types of agroforestryTypes of agroforestry

Forest Farming Forest Farming Alley Cropping Alley Cropping Silvopasture and Silvopasture and Buffers (Buffers Buffers (Buffers

include Integrated include Integrated Riparian Management; Riparian Management; Windbreaks, Windbreaks, Shelterbelts and Shelterbelts and Boundary Plantings; Boundary Plantings; Community Community Greenways and Urban Greenways and Urban Buffers). Buffers).

Resources – Non timber Resources – Non timber forest productsforest products

http://www.sfp.forprod.vt.edu/http://www.sfp.forprod.vt.edu/

Resources – Non timber Resources – Non timber forest productsforest products

http://texaspinestraw.tamu.edu/http://texaspinestraw.tamu.edu/

Basic Information Needs – Basic Information Needs – Resource AssessmentResource Assessment

Is the availability of timber resources a barrier to the development of the value-added 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 –Basic Information Needs – Industry Structure Industry Structure

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 – Basic Information Needs – Products and MarketsProducts and Markets

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 – Basic Information Needs – Economic ImpactEconomic Impact

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 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

OpportunitiesOpportunities

Improve forest managementImprove forest management Attract new forest industryAttract new forest industry Expand/diversify current forest Expand/diversify current forest

industryindustry Improve performance, efficiency and Improve performance, efficiency and

utilization of current industryutilization of current industry

Other issues/opportunitiesOther issues/opportunities Carbon sequestration Carbon sequestration

creditscredits Watershed paymentsWatershed payments Conservation Conservation

easementseasements Small diameter Small diameter

situationsituation Biomass optionsBiomass options Niche marketsNiche markets

• Animal beddingAnimal bedding• Engineered wood Engineered wood

productsproducts