Following is the June update on markets, news and other developments that impact forest landowners in F&W’s operating regions. The information in this report is based on a June 25 survey of managers. We hope you continue to find these updates useful and we welcome your feedback and suggestions.
Southeastern managers report overall timber markets to be normal, with managers in South Carolina and Tennessee reporting them to be above normal, with activity picking up and prices increasing. Managers in Southeast Georgia and South Carolina report strong demand for wood but that trucking and loggers have become an issue. “Mills are hand to mouth with inventory and demand is strong, but they are picking and choosing tracts based on logistics and because of the trucking shortage, they’re looking close in harder than ever,” the Statesboro manager reports. The Fountain Inn, S.C., manager echoes this, saying the logging shortage, trucking shortage, and related labor shortages are impacting the amount of wood that can be harvested. “Wood dealers continue to be reluctant to strongly pursue timber sales in many situations because of these factors,” he said.
The manager in Alabama said June has been “extraordinarily wet” and notes that some mills have had issues keeping their onsite inventories full and have offered good prices for timber that is immediately accessible, especially in Southeast Alabama. “Otherwise, sales have been mostly ‘normal’ to slightly above normal,” he said. In the Central Hardwood region of Tennessee, the manager said markets are strong for hardwood sawtimber and property.
West Gulf managers report timber markets are normal for this time of year. The manager in Mississippi notes that markets are picking up and are good at the moment because of wet weather. He adds that “mills are behind or not gaining any ground.” In Texas, the manager also cites wet weather as a factor for improving timber prices, saying it has led to an increase in stumpage prices for trees on dry ground.
Managers in the Northeast region report that timber prices and markets are normal for this time of year, although the manager in Vermont notes that timber sales are picking up. He said that pulpwood is restricted but firewood markets are picking up the slack. He adds, “Spruce/fir demand and prices are increasing, and hardwood log markets are doing well, especially sugar maple demand and price.” The manager in Upstate New York reports that hardwood logs are still moving well but sawlog prices appear to be stabilizing, and “many mills appear to be getting enough logs to reach their desired summer yard inventories. Softwood logs are moving at fair prices and hardwood pulpwood is moving well but at slightly reduced volumes. Many loggers remain on delivery quotas.” The manager in the Midstate New York office said labor shortages at mills are causing a reduction in production capacity, saying, “Sawmills are reporting that they are not sawing what they could due to a lack of personnel.”
Rural Real Estate
Over the past year, rural real estate markets have been very active and land prices increased and remain up, although the agent based in Vermont notes that prices appear to be stabilizing in his area after last year’s pandemic buying. F&W agents attribute the increased interest to low interest rates, people wanting space outside of urban areas for recreational land, and an increased interest in investing long term in timberland property. Showings have remained strong throughout much of the F&W regions, and agents anticipate demand to remain robust, although slowing somewhat during the summer months before picking back up again in the fall. If you have land to sell, now is a good time to put it on the market. Contact Fountains Land for help marketing and selling your property.
F&W Forestry Services, Inc.
P.O. Box 3610, Albany, Georgia 31706
Visit us at: www.FWForestry.net