Forestry Economic Subject Matter Training

1. Forestry Economic Subject Matter Training Greg S. Halich Farm Mgt. Economist Dept. Agricultural Econ. University of Kentucky October 2006

2. Summary of Extension Programs Farm Management Economics • Grazing Systems. • Farm Management Training. • Tobacco (2007). • Potential Areas. • Grains. • Forestry? • Other: Your input requested!

3. Why I’m up Here? My Involvement in Forestry: • Applied Forest Management. • Forestland Investment. Possible Extension Program: • Forest management options – financial analysis.

4. Main Goals with Presentation: • Provide overview of KY forests. • Describe current markets. • Recommendations.

5. Kentucky Forests – Overview

6. Kentucky Forests – Overview

11. Timber Prices • Lumber, log, and stumpage prices. • Stumpage prices are the key indicator for forestland owners.

12. Stumpage Prices

13. Stumpage Prices (2006) Most Current Situation: • Red oak – still going down. • White oak – PA and OH down; KY stable. • Hard maple – PA and OH up; KY down. • Ash – PA and OH down; KY stable. • Yellow-poplar – stable. • Walnut – stable. • Hickory – stable. Based on conversation with Dr. Jeff Stringer UK Forestry and Stumpage Reports from other States.

14. Guidance and Recommendations Red Oak: • Medium and high quality stands – hold. • Low quality stands – harvest.

15. Guidance and Recommendations White Oak: • Medium and high quality stands – ???. • Low quality stands – harvest.

16. Guidance and Recommendations Hard Maple and Black Cherry: • Prices way up - great time to sell stumpage.

17. Guidance and Recommendations

18. Guidance and Recommendations

19. Guidance and Recommendations Yellow Poplar, Walnut, and Hickory: • Stable prices last few years. • No reason to expect major changes. Ash: • Low stumpage prices. • May go lower due to emerald ash borer.

20. Formal Presentation Finished Closing Comment: • Your ideas needed for possible extension programs. • Both traditional farm management and forestry related.