The WOOD Economy and its PUV Implications Mark Megalos NCSU Extension Forestry

Topics Covered Plan Fees And the NC Forest Service PLAN COMPONENTS Housing Starts and the Sluggish Economy Some New Plant announcements What Can We Expect in the Future

NC FOREST SERVICE PLAN FEES Plan type Base fee + Fee per acre Forest Management Plan Forest Stewardship Plan $45.00$3.00 Practice Plan*$45.00$2.00 Rehabilitation Plan Urban Plan Replant Plan** Conservation Reserve Program (CRP) Plan No charge * Practice plans address single forestry practices such as tree planting, pre-harvest planning, thinning or harvesting. ** No fee if NCFS prepared the original regeneration plan.

Let’s look at 3 Forests ( 40, 100, 250 acres) $45 + ( $3 x 40 acres)= $160 plan $45 + ( $3 x 100 acres) = $345 plan $45 + ( $3 x 250 acres) = $795 plan

IS ANYTHING FREE? NC Forest Service provides many free services of charge : forest insect and pest examinations, water quality inspections following forest operations, and general forestry advice regarding forest management and services within your county.

10/1/20156 Sound Management-Forestry Plan 1. Landowner objectives 2. Maps, plats, aerial photos 3. Forest/stand inventory/description 4. Forest management prescriptions 5. Harvest dates, methods and regeneration strategies

How Far Have we come? #1 thru 4 Required Items are typically covered in every management plan # 5 often “squishy” on Dates or timing and regeneration is left out or inadequately addressed IS THAT WHAT YOU ARE FINDING ???

Is it all Gloom and Doom? NO, WE have Export markets and Growing Global economies that need our wood!

Competition is HERE!

New Pine Sawmill ENFIELD Halifax County Klausner Mills, an international lumber company, is expanding its operations off Highway new jobs with it. “further strengthen our local economy.”

New Facilities: Enviva Invests $214 Million in Two NC Pellet Plants

What about the Pellet Exports? Global wood pellet demand is expanding Globally, wood pellet demand is projected to DOUBLE this decade 23 million tonnes in 2014 to 50 million tonnes in 2024

Take home messages Hardwoods the new feedstock –NC – most inventory in the West – –Most logging residue in the Piedmont –Growth rates are less than softwoods

Take home messages NC has PLENTY of Supply –Markets will increase efficiency / growth rates Softwood inventory in the central and eastern economic regions

What The Future Looks Like Efficiencies Higher Demand for Loggers Sporadic Fits and Starts ( Non linear) Family Formation Tough for Current Generation Delayed Home Purchases

THANKS!!!! QUESTIONS??? Megalos