Forest and Natural Resource Based Economic Opportunities in the South

1. Forest and Natural Resource Based Economic Opportunities in the South Bill Hubbard Southern Regional Extension Forester

2. Natural Resources • For this presentation includes: • Forest resources • Wildlife • Alternative forest uses and products • Does not include • Oil • Gas • Other “natural resources” http://home.comcast.net/~j.tavares/gas-prices.jpg

3. Implications for Community, Rural and Economic Development • Forests of the South and nation are vast. • Value added options are limitless. • Impact on local, regional and state economies is large. • Offers an untapped opportunity for professionals working in CRED. http://www.timberline.ca/newsletter/september2002/loggers.jpg

4. A Vast Resource…..

5. Diverse ownerships…..

6. Private owners dominate in the South….

7. Economic Impact is Impressive….

8. Economic Impact is Impressive….

9. New Bureau of Census Data (2002) *furniture manufacturing includes non-wood products as well.

10. The importance of forest management and timber harvests in local economies:A Mississippi example(data from Dr. Bob Daniels, Miss. St.)

11. Wildlife-Related Opportunities • In1996 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.

12. Nature Tourism • Nature Observation • Bird and butterfly tours • Plant and wildlife tours • Astronomy and star gazing tours • Photography and painting • Self-guided wildlife viewing http://www.wonderwoodinc.com/art/butterflies.jpg

13. Nature Tourism • Educational Tours and Talks • Forest/Wildlife histories and cultural tours • Outdoor survival skills • Horsemanship clinics • Guided nature tours http://www.greenline.org.lb/new/images/projects/ecotourism.jpg

14. Nature Tourism • Outdoor Recreation • Hiking and horseback riding • Fee fishing and hunting • Camping and picnicking • Sport clay shooting • Off-road vehicles • Agriculture and technical tours • Mountain biking http://ag.arizona.edu/azaqua/aquaculture_images/az/nelson2.jpg http://www.campallstar.com/images/photoalbum/mountain-biking.jpg

16. Nature-Based Recreation’s Dual “Punch” • Draws Temporary Visitors to an Area • Employment and Income Impacts of Expenditures • Introduces the Area’s Special Qualities and Characteristics to Outsiders • Lays the Basis for Amenity-Based In-Migration • New Permanent Residents • Economic Vitality Associated with New Residents and the Economic Activity Tied to Them http://www.naturegate.com/images/pics_about_us.jpg

17. By: Andrew N. Skadberg, Jeremy James, Miles Phillips, James R. Kimmel, Carson E. Watt. Texas Cooperative Extension

18. Alternative Forest Products • Pine straw • Shiitake mushroom production • Medicinals • Greenery http://texaspinestraw.tamu.edu/media/image04.jpg http://www.srs4702.forprod.vt.edu/pubsubj/pdf/02t4.pdf http://www.shiitakecenter.com/lentinus.jpg http://www.ginseng-seed.com/images/Geneti1.jpg

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

20. Types of agroforestry • Forest Farming • Alley Cropping • Silvopasture and • Buffers (Buffers include Integrated Riparian Management; Windbreaks, Shelterbelts and Boundary Plantings; Community Greenways and Urban Buffers).

21. Resources – Non timber forest products • http://www.sfp.forprod.vt.edu/

22. Resources – Non timber forest products • http://texaspinestraw.tamu.edu/

23. Basic Information Needs – Resource 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.

24. Basic Information Needs – 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.)

25. Basic Information Needs – Products 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?

26. Basic Information Needs – Economic Impact • What economic impacts result from forest-based industry development? • What are the ramifications at the community, regional, and state levels?

27. 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

28. Opportunities • Improve forest management • Attract new forest industry • Expand/diversify current forest industry • Improve performance, efficiency and utilization of current industry

29. Other issues/opportunities • Carbon sequestration credits • Watershed payments • Conservation easements • Small diameter situation • Biomass options • Niche markets • Animal bedding • Engineered wood products