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Forest Market Report 1959

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Forest Market Report 1959 7-; NEW HAMPSHIRE FOREST MARKET REPORT 1959 The stationary sawmill efficiently operated provides a good and continuing market for logs from hundreds of small New Hampshire woodland holdings. COOPERATIVE EXTENSION SERVICE UNIVERSITY OF NEW HAMPSHIRE DURHAM, N. H. in cooperation with the STATE FORESTRY AND RECREAliON COMMISSION Published and distributed by the University of New Hampshire, Durham, N. H.. S. W. Holtt. Director of the Cooperative btellsion Service. In furtherance of the purposes provided for In the Ach of Congress of May 8 and June 30, 191", the United States Department of Agriculture cooperating_ County Extension Office Rochester - Tel. 375 County Extension Office Conway - Tel. HIckory 7-5922 County Extension Office Keene - Tel. Elmwood 2-4550 County Extension Office Claremont - Tel. Claremont 21 County Extension Office lancaster - Tel. 8-4961 County Extension Office Hoodsville - Tel. 7 -2061 County Extension Office Milford - Tel. 45 County Extension Office Concord - Tel. CApitol 5-5505 County Extension Office Exeter - Tel. PResident 2-2741 County Extension Office Exeter, Tel. PResident 2-2741 The economic welfare of the forest industry is closely tied to the economic health of the general community. Recent recovery in business suggests a favorable outlook for industrial roundwood products during 1959. The volume of industrial roundwood (all round timber products except fuelwood) prodUced in the United States in 1958 is estimated at 8.6 billion cubic feet. This is about 2 percent less than the estimated production in 1951 and 10 percent below production in 1956. Stumpage prices showed a steady decline in 1951 and the first two quarters of 1958. The drop in the production of industrial roundwood and stumpage prices has been related to a general decline in economic activity. During the latter part of 1958 and starting with 1959, industrial production, employment, and income in- creased. Housing starts, the most important source of demand for lumber, reached the highest rate since the summer of 1956. This brightening economic outlook has already reflected a rising demand for industrial roundwood products such as sawlogs, veneer logs, and pulpwood. SAWLOGS AND LUMBER - - The volume of saw logs and lumber produced nationally in 1958 is estimated at 33.0 billion board feet. This is about 2 percent less than pro- duction in 1951 and 12 percent less than production in 1956. The Hest is expected to a~~ount for about 54 percent of total production, the South 33 percent, and the North 13 percent. In contrast to the sharp decline in production, sawlog price quotations have shown little change in recent years. The drop in saw log and lumber production reflects a decrease in economic activity and continuing substitution of other materials for lumber--including both wood items such as plywood and paper board and non-wood materials. The long-term outlook; nevertheless, indicates expanding markets for sawlogs and lumber along With rising levels of construction and business activity. The demand for sawlogs by New Hampshire operators improved at the start of 1959. Since 1956 the price of lumber has declined about 11 percent while the price of most of the materials that compete with lumber have been increasing. This divergence in prices has presumably improved the competitive position of lumber and if continued should tend to slow the rate of substitution of other materials for lumber. *"The Demand and Price Situation for Forest Products", U. S. Forest Service and Commodity Stabilization Service, U. S. Department of Agriculture, November, 1958. FULPWOOD - - Fulpwood production in 1958 is estimated at 33.5 million cords including about 4 million cords of residues. This is about 3 percent below production in 1957 and 5 percent below the peak year 1956. Softwoods such as southern pine, western hemlock, douglas-fir, spruce, and true firs are expected to make up about 82 percent of the pulpwood produced in 1958. About 57 percent of the pulpwood cut in 1958 will come from the South, 22 percent from the West, and the remaining 21 percent from the forests in the North. The decrease in pulpwood production since 1956 marks what is believed to be a temporary reversal in a trend that has been sharply upward for many years. There are a variety of forecasts made by different agencies which indicate that the demand for pulpwood in the United States is likely to increase rapidly. The U. S. Forest Service has estimated that the demand for pulpwood in 1975 may be between 45 and 65 percent higher than 1956. The demand for pulpwood by the New Hampshire pulp industry started to improve early in 1959. VENEER LOGS - POLES-FlhING - - The volume of veneer logs produced in 1958 is esti- mated a1; 3.5 billion board feet. Although total veneer log production has shown little change since 1956, there has been some increase in softwood veneer log production and a small decline in hardwood Ye~eer log production. The outlook for veneer logs is highly favorable. Demands for softwood veneer logs because of continued substitution of softwood plywood for lumber, particularly in residential construction, are likely to increase more rapidly than demands for hardwood veneer logs. The demands for poles and piling have followed the same trend as the demand for other forest products. By the end of 1958 the market for poles and piling was active. CHRISTMAS TREES - - The use of Christmas trees in the United States has been rising slowly and the consumption is now in excess of 40 million trees annually, including about 28 million produced in domestic forests and 12 million imported from Canada. Stumpage prices paid the Christmas tree producers vary Widely ranging from as low as 10 cents per tree for wild trees to $4 or more for plan- tation grown trees. The relatively high prices paid for plantation grown trees have resulted in large increases in Christmas tree plantings. This has advanced to the point that recent surveys in Michigan, OhiO, and Pennsylva~ia show that total Christmas tree plantings in these three states alone amount to 20 million trees a year. This high volume of planting suggests the possibility of sharply increased competition for available markets. The market for Christmas trees during the 1958 season was much improved as compared with the 1957 season. Producers were more careful in putting trees on the market and adverse weather conditions kept the supply of trees more in balance with the demand. THE NEW F~MFSHIRE SITUATIO~ - - The national demand for forest products reflects fairly well the market for New Hampshire roundwood. During the first J:art of 1958 there was limited activity. During the fall and early winter of 1958 and starting with 1959 the ~arket was mixed. There was an active demand for pine stumpage for lumber. Early in 1958 hardly any hemlock was moving and then suddenly the demand for hemlock stumpage became active. The de~and for poles and piling ha.d improved by the end of 1958. It was difficult to move hardwood stumJ:age unless it was of veneer quality in sufficient quantity to justify a commercial operation. The market for pulpwood by the close of 1958 was very slow. Early in 1959 the demand for pulpwood became more active. The prices offered for stumpage during 1958 have shown considerable variation. Looking ahead stumpage owners need to recognize the importance of selling stumpage when the market is sufficiently active so as to bring reasonable offers for their trees on the stump. If the predictions of business activity in 1959 as compared with 1958 are correct there is every indication that the increased demand for round- wood during the early months of 1959 will continue through the year. The annual income from forest products in a state with approximately 85 percent of its land.area in trees is important to the general welfare of the people. The following table shows the estimated market value of forest products and farm crops harvested by states in the northeast for the year 1954.* ''EST]}A~TEDMARKET VALUE OF FOREST FRODUC'IS AND FARM CROFS HARVESTED BY STATES. II (Thousand of Dollars ) _ Market Value (2) Market Value of forest products of farm crops Harvested Harvested lv'1l ine 56,900 90,854 New Hampshire 18,600 18,197 Vermont 19,600 48,969 Massachusetts 4,400 55,138 Rhode Island 200 5,466 Connecticut 1,400 58,935 New York 33,200 363,136 New Jersey 3,500 110,641 Pennsylvania 39,300 353,820 177,700 (1) Value of logs and bolts, Christmas trees, and maple sap at local points of delivery. (2) Includes the value of 79 crops harvested. See 1956 Agricultural Statistics, Page 461, for list of crops included. * liThedemand and Price Situation for Forest Products" U.3. Forest Service and Commodity Stabilization Service, U. S. Department of Agriculture, November, 1958. New Hampshire woodland owners who plan to sell stumpage, logs, pUlpwood, and other forest products are urged to consider the following recommendations before selling: 1. Find out from buyers of stumpage, logs, pulpwood, and other forest products the prices they offer in order that you may take advantage of the best market. Compare the local prices with those quoted from other sections of the state. 2. Before selling, consult your neighbors who have recently sold timber and use their experience as a guide. Ask your County Forester. In many instances, failure to do this has resulted in the woodland owner not getting full value of the product. 3. Thoroughly investigate all local timber requirements and prices since in many cases local markets pay better prices than outside markets because of the saving of transportation chargep. 4. Advertise and secure competition among outside purchasers.
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