1. How "Wood is Good" for NH: A look at the economic impact of timber harvesting in the Granite State Presented by Jasen Stock NH Timberland Owners Association

2. Just who is ? Founded in 1911 Approximately 1400 members – landowners, sawmills, loggers, foresters – "everyone in the wood products food chain“ Education, outreach, and advocacy all in support of New Hampshire's working forests Collectively, our members manage over 1 million acres of New Hampshire forests

3. Forest area and species – New Hampshire’s forests cover 4,833,332 acres of land or 84% of the State and have largely been at this level since the 1980s. Northern hardwood (beech, birch, maple) forests make up over 53% of the forest cover. Forest ownership – New Hampshire’s forests continue to be largely privately owned by individuals/families and business who together own over 76% of the forest. The state owns 5% of the forests and the federal government, primarily through the White Mountain National Forest, own 14%. Forest inventory, growth vs. harvest – The forests of New Hampshire continue to add to the inventory of tree volume as net growth exceeds harvest annually. Currently, New Hampshire’s forests grow 200.4 million cubic feet per year while approximately 138.8 million cubic feet of timber is harvested annually. New Hampshire’s standing forest contains 6.3 billion cubic feet (196 million tons or 78.4 million cords) of timber 5 inches in diameter or larger. – Source: The Economic Importance of New Hampshire’s Forest-Based Economy 2013, Northeast State Forester's Association To set the stage, a view of New Hampshire’s forests from say 30 miles up:

4. But as a Association, we wanted to drill down into the economic impact numbers some more... So we got a grant to do some additional research… Value of forest industry economic sectors – The annual value of sales or output of New Hampshire’s forest products industry totals nearly $ 1.4 billion while the forest-based recreation economy is also worth approximately $1.4 billion. Approximately 7,756* workers are employed in the forest products, maple and Christmas tree sectors while another 10,800 jobs are found in the sectors that include and support the forest recreation economy. There are approximately 1200 loggers, 500 foresters and technicians, 800 truckers and 161 sawmills operating in the Granite State. Thirty-five of these sawmills produce the majority of sawed volume. Landowners received approximately $30 million in stumpage payments for timber harvested in 2012. Of that, approximately $3 million was paid in timber tax to NH communities. – Source: The Economic Importance of New Hampshire’s Forest-Based Economy 2013, Northeast State Forester's Association

5. What we were looking for is a way to estimate for every ton, or every truck load, of wood harvested in New Hampshire, how much economic output is generated? We applied for and received 3 grants to survey loggers about their expenditures, in an effort to "see where the money goes". We then partnered with The Center for Rural Partnerships At Plymouth State University to design and mail the survey

6. Grant support came from: - The Plum Creek Foundation - The French Foundation -The Neil and Louise Tillotson Fund of the New Hampshire Charitable Foundation Without their support, we would not have been able to pull together this valuable information.

7. Results from the survey: Focus was on just timber harvesting businesses. (Does not include value added activities like sawmills, firewood producers, or wood-to-energy producers) Average size of timber harvesting operation that responded was four employees. (Range was from single owner/operator up to over 20 employees) The respondents represented approximately 20% of the total annual harvest volume for all of New Hampshire. Trucking, real estate, and site work activities were considered auxiliary activities.

8. Economic impact categories: Direct impact – this is the wages that loggers earn annually in New Hampshire. This is estimated at almost $70 million. When you combine this with value added activities and the cost of production, the total direct output is $87 million annually. When you look at a per ton basis, that works out to $ 27 of direct economic impact per ton of wood harvested in New Hampshire. Or on a “truckload” basis, direct economic Output for an average 32 ton load of logs, chips, or pulp is $864.

9. Economic impact categories:Continued Indirect impact: The 309 estimated jobs closely connected with timber harvesting, such as foresters and truckers, results in $13 million of wages and $21.5 million of economic output to support trucking and other closely related activities. When you look at a per ton basis, that works out to $6.50 of indirect economic output per ton of wood harvested in New Hampshire. Or on a “truckload” basis, indirect economic output for an average 32 ton load of logs, chips, or pulp is $208.

10. Economic impact categories:Continued Induced impact: The 488 estimated jobs “loosely” connected with timber harvesting, such as restaurant workers and health care providers, results in $22 million of wages and $70 million of total economic output to feed, clothe, and take care of the men and women who directly and indirectly work harvesting timber in New Hampshire. When you look at a per ton basis, that works out to $18 of induced economic output per ton of wood harvested in New Hampshire. Or on a “truckload” basis, induced economic output for an average 32 ton load of logs, chips, or pulp is $576

11. Truck load economics: Using the per-ton economic data, the “average” 32 ton load of forest products represents the following: Direct economic output:$ 864 per load Indirect economic output: Induced economic output: ---------------------- Total economic output:

12. Truck load economics: Using the per-ton economic data, the “average” 32 ton load of forest products represents the following: Direct economic output:$ 864 per load Indirect economic output:$ 208 per load Induced economic output: ---------------------- Total economic output:

13. Truck load economics: Using the per-ton economic data, the “average” 32 ton load of forest products represents the following: Direct economic output:$ 864 per load Indirect economic output:$ 208 per load Induced economic output:$ 576 per load ---------------------- Total economic output:

14. Truck load economics: Using the per-ton economic data, the “average” 32 ton load of forest products represents the following: Direct economic output:$ 864 per load Indirect economic output:$ 208 per load Induced economic output:$ 576 per load ---------------------- Total economic output: $ 1648 per load

15. 3 New Hampshire towns for example: Milford – 2013 volume: 12,020 tons = $984,000 in economic output Tamworth – 2013 volume: 5,041 tons = $412,700 in economic output Colebrook – 2013 volume: 6,927 tons = $567,000 in economic output

16. " And now for the rest of the story..." Keep in mind that these numbers are just for timber harvesting and related services – does not take into account what happens to the forest products once they get dropped off at that mill - Value added categories include: Sawmills pulp mills firewood producers wood pellet plants wood-to-energy plants These are all worthy of their own economic study... stay tuned...

17. Questions? Thank You for your time and interest. Jasen Stock Executive Director New Hampshire Timberland Owners Association jstock@nhtoa.org www.nhtoa.org 603-224-9699