Forestry Report

La Niña weather conditions are forecast to continue into 2023, according to the National Oceanic & Atmospheric Administration (NOAA), bringing wetter conditions to the Northwestern U.S., where they are sorely needed, but unfortunately, this means drier conditions across the Southern U.S.

Weather or markets—that is the question. We are seeing somewhat of a cooling of timber prices across our operating region. At the same time, housing starts are down somewhat and lumber prices are, too (see page 7). So that’s probably why prices are down, right? I’m not so sure.

Southern timber prices waffled over the winter, but almost all are up significantly from one year ago. Northern prices are following a similar trend on average but are more volatile in local areas and for some species.

Timber stumpage prices are up significantly over the last 12 months. I believe this is the first time since 2012 that I’ve been able to say that! Our average stumpage prices last year were the lowest inflation-adjusted prices in 70 years, so the increase is long overdue.