Unless the U.S. housing market improves, Louisiana’s forestry industry is expected to stagnate through 2018, LSU AgCenter Economist Shaun Tanger forecasts.
Tanger says the number of housing starts drives much of the lumber market, and only slight improvements are projected for 2017. Demand for Southeast pine saw timber is expected to increase somewhat, but prices in Louisiana will be down, Tanger told those who gathered at forestry forums held earlier this month in Alexandria and Hammond.
Though U.S. builders broke ground on new homes at a faster pace in February, despite higher mortgage rates, The Associated Press reports growth in home building appears to be tempered. Building permits, an indicator of future home construction, slipped 6.2% in February to an annual rate of 1.2 million.
Louisiana Forestry Association director Buck Vandersteen says the industry has more trees nationwide, but fewer markets than in the past. That’s concerning, he says, because producers need incentives to continue growing trees and investing in environmental improvements.
One promising development is a new wood product called cross-laminated timber, which can be used to build multi-story buildings, he notes. Wooden buildings are generally limited to two to three stories.
International investment also may provide a boost to the U.S. forestry sector. Canadian corporations are buying American lumber mills, many of which have closed in recent years.
Forestry is facing a number of challenges, including rising equipment costs and the departure of aging workers from key areas of the industry, such as logging. Feral hogs also continue to be a major problem for landowners. Scientists at the LSU AgCenter and Louisiana Department of Agriculture and Forestry have been studying how best to control hog populations using both baits and traps.
In Louisiana, woods arson cases have decreased and timber thefts have increased, according to state forester Wade Dubea, who notes two enforcement positions to investigate timber-related crimes will be filled soon in northwest and southwest Louisiana.
