The WOOD Economy and its PUV The WOOD Economy and its PUV ImplicationsImplications

Mark MegalosMark Megalos

NCSU Extension ForestryNCSU Extension Forestrymamegalo@ncsu.edu

919.513.1202919.513.1202

Topics Covered

• Plan Fees And the NC Forest Service

• PLAN COMPONENTS

• Housing Starts and the Sluggish Economy

• Some New Plant announcements

• What Can We Expect in the Future

NC FOREST SERVICE PLAN FEESPlan type Base fee + Fee per acre

•Forest Management Plan•Forest Stewardship Plan

$45.00 $3.00

•Practice Plan* $45.00 $2.00

•Rehabilitation Plan•Urban Plan•Replant Plan**•Conservation Reserve Program (CRP) Plan

No charge No charge

* Practice plans address single forestry practices such as tree planting, pre-harvest planning, thinning or harvesting.** No fee if NCFS prepared the original regeneration plan.

Let’s look at 3 Forests ( 40, 100, 250 acres)

• $45 + ( $3 x 40 acres)= $160 plan

• $45 + ( $3 x 100 acres) = $345 plan

• $45 + ( $3 x 250 acres) = $795 plan

IS ANYTHING FREE?

• NC Forest Service provides many free services of charge :

• forest insect and pest examinations,

• water quality inspections following forest operations, and

• general forestry advice regarding forest management and services within your county. 

04/19/23 6

Sound Management-Forestry Plan1. Landowner objectives

2. Maps, plats, aerial photos

3. Forest/stand inventory/description

4. Forest management prescriptions

5. Harvest dates, methods and regeneration strategies

How Far Have we come?• #1 thru 4 Required Items are typically

covered in every management plan

• # 5 often “squishy” on Dates or timing and regeneration is left out or inadequately addressed

IS THAT WHAT YOU ARE FINDING ???

Is it all Gloom and Doom?

• NO, WE have Export markets and Growing Global economies that need our wood!

Competition is HERE!

New Pine Sawmill• ENFIELD Halifax County

• Klausner Mills, an international lumber company, is expanding its operations off Highway 301

• 350 new jobs with it.

• “further strengthen our local economy.”

New Facilities: Enviva Invests $214 Million in Two NC Pellet Plants

What about the Pellet Exports?

• Global wood pellet demand is expanding

• Globally, wood pellet demand is projected to DOUBLE this decade

• 23 million tonnes in 2014 to

• 50 million tonnes in 2024

Take home messages• Hardwoods the new feedstock

– NC – most inventory in the West –

– Most logging residue in the Piedmont

– Growth rates are less than softwoods

Take home messages• NC has PLENTY of Supply

–Markets will increase efficiency / growth rates

• Softwood inventory in the central and eastern economic regions

What The Future Looks Like

• Efficiencies

• Higher Demand for Loggers

• Sporadic Fits and Starts ( Non linear)

• Family Formation Tough for Current Generation

• Delayed Home Purchases

THANKS!!!!

• QUESTIONS???

• Megalos

• 919.513.1202