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Thread: $360 Million in timber damage

  1. #1
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    Default $360 Million in timber damage

    The thick ice from last month’s winter storm snapped enough trees and limbs to do an estimated $360 million in immediate timber damage in South Carolina, or the financial equivalent of a full year of timber harvest in the state.

    State Forester Gene Kodama issued a Forest Disaster Declaration on Wednesday, saying only Hurricane Hugo in 1989 did more damage to timber in the state.

    The disaster declaration makes some of the resources of the State Forestry Commission available to private timberland owners who suffered damage. The main impact of the declaration, however, is raising awareness among the public about the impact of the storm and encouraging landowners to salvage and replant trees.

    “The raw material supply chain for our state’s largest manufacturing sector has suffered from this natural disaster,” Kodama said. “The storm has impacted hundreds of thousands of individual forest landowners and multiple corporations.”

    The worst of the damage is spread across 24 counties in a 70-mile-wide swath from Edgefield and Hampton counties on the Georgia border to Dillon and Horry counties on the North Carolina border. Damage covers 1.5 million acres of timberland, according to the Forestry Commission.

    For some perspective, the timber damage in the state from Hurricane Hugo in 1989 was $1 billion, and the damage from a similar ice storm in 2004 was $95 million. Adjusting for inflation, the 2014 storm caused about three times as much damage as the 2004 storm, and about one-sixth as much timber damage as Hugo.

    “This is not to be taken lightly,” said Sen. Yancey McGill, D-Williamsburg, whose district was hit particularly hard. “This devastation will affect your pocketbook all over the state of South Carolina.”

    Kodama noted that many families in the state sell timber on their land to support their retirement or to pay college tuition. “To an individual landowner, this could be life-changing,” he said.

    More than 13 million acres in the state are managed for timber production, and 88 percent of that is privately owned. The harvest from those forests supports a timber products industry with a $17 billion annual impact in the state, according to state forestry officials.

    The many mills and manufacturing companies that rely on forest products will have to adapt to an oversupply of timber from storm salvage efforts this year, and some shortages in the future because damaged plots will require 15 to 20 years to grow a new crop.

    “Unlike most manufacturing that can order its raw materials from all over the world, forestry cannot do that,” Kodama said. “Forest product manufacturing is almost entirely reliant on the wood supply that exists within about 50 to 100 miles of each and every mill.”

    But because many parts of the state were spared the worst damage and because older, healthy trees came through the storm in better shape, the future of the industry is sound, Kodama said.

    The key to ensuring long-term industry health is clearing out storm-damaged trees that could encourage disease and pine beetle infestations, and then replanting to start the multi-decade growing cycle over again. The $360 million damage figure could increase if diseases or pine beetles take hold in unhealthy trees.

    Landowners who suffered damage might be eligible for federal help. The U.S. Farm Service Agency announced Wednesday that it has put South Carolina under the Emergency Forest Restoration Program. Starting Monday, timberland owners have 60 days to have their timber tracts inspected by a registered forester to verify severe damage.

    Once they have that certification, they can clear cut the land and get federal funds to help pay for replanting, said Harry Ott, a former state representative who now heads the Farm Service Agency in South Carolina.

    Read more here: http://www.myrtlebeachonline.com/201...#storylink=cpy

  2. #2
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    It's bad.....really bad!
    \"I never saw a wild thing feel sorry for itself. A small bird will drop dead frozen from a bough without ever having felt sorry for itself.\" <br />D.H. LAWRENCE

  3. #3
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    It's definitely worse the 04, and with the rains salvage harvesting will be tough for a lot of landowners. We were very lucky and dodged a bullet in my neck of the woods.

  4. #4
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    Quote Originally Posted by slowiedawg View Post
    We were very lucky and dodged a bullet in my neck of the woods.
    Well come help me do damage assessments on the 25k acres I've got in Burke and Richmond counties. We got hammered!

  5. #5
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    I would but I'm sitting on top of this sand hill, watching it rain and waiting on the phone to ring.

  6. #6
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    I'm not a fan of subsidies but if they offer money, I hope it can be used to pay for fire lines to be reopened. If it ever dries out, the woods are going to be in real danger of some bad fires with all the fuel and blocked fire lines and access.

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    Quote Originally Posted by slowiedawg View Post
    I would but I'm sitting on top of this sand hill, watching it rain and waiting on the phone to ring.
    I haven't even started....been chasing around loggers and planters. Waiting on my contractors to finish clearing roads so I can get back to everything.

  8. #8
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    Just finished up tree planters and had to stop loggers today on salvage due to todays monsoon.
    What a mess.....quotas are all shit up down here and I don't see this disaster relief helping to many people as clear cutting and contracts are under way....No time for certification!
    \"I never saw a wild thing feel sorry for itself. A small bird will drop dead frozen from a bough without ever having felt sorry for itself.\" <br />D.H. LAWRENCE

  9. #9
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    So how far are timber prices going to fall this year with the surplus of trees going to the mills due to the storm?
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    Quote Originally Posted by Chuck the Duck Slayer View Post
    So how far are timber prices going to fall this year with the surplus of trees going to the mills due to the storm?
    In my area pine pulpwood prices dropped $5-7/ton overnight for storm damaged wood.

    The mills will consume the damaged wood and prices will return to normal as their surplus decreases.

    I contracted the entire 2014 harvest budget for the GA part of my district the first of the year when prices were very good. They're obligated to pay us the agreed upon stumpage no matter what is going on.
    Last edited by dfasano; 03-06-2014 at 08:27 PM.

  11. #11
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    Quote Originally Posted by Chuck the Duck Slayer View Post
    So how far are timber prices going to fall this year with the surplus of trees going to the mills due to the storm?
    Pine pulp price dropped somewhat but it'll equal out just as soon as the salvage wood is consumed. Most mills are full up at the moment, especially those with wet decks.

    I hope the ones I deal with run slap out of wood, but there isn't much chance of that happening unless we experience a wetter than normal summer again.

  12. #12
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    what i am seeing is a lot of exaggeration on REAL DAMAGE across the state. of course folks want it to seem worse than it is. relief in the form of $ will work its way into the equation. word on the street will be a dramatic decrease in stumpage and fear to sell will sink in. first thinnings that are essential will be delayed. pin hookers giving bad advice on salvage tracts are already out there.

    find yourself a certified or registered forester to help you out. it doesn't matter if he or she is in procurement(timber buyer) or management(consultant)....find someone who has the credentials and a good reference or two and let them help.

    hell yea there are some beat up and ruined stands of timber across the state. its in pockets and NOT wide spread.

    there is a HUGE difference in a damaged stand of timber that will be OK and a total loss. sometimes, they are hard to tell apart.

    if you are dictating the timing of a first thinning based on $ alone, you are going to end up going backwards. i have seen it too may times.

    good luck to all you with damaged and destroyed stands of timber.
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  13. #13
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    I have 2 tracts that were over 75% destroyed. Both have been already salvaged/clear cut. I'm wondering what issues we'll have with qualifying for cost share because we were proactive, cut the wood immediately so it will have time to sprout and get back into production next year, and also try to get a decent price before the full markets gets flooded.
    Law don't go round here Lawdog

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    Quote Originally Posted by Layla's slave View Post
    I have 2 tracts that were over 75% destroyed. Both have been already salvaged/clear cut. I'm wondering what issues we'll have with qualifying for cost share because we were proactive, cut the wood immediately so it will have time to sprout and get back into production next year, and also try to get a decent price before the full markets gets flooded.
    Hope you took plenty of pictures of the damage and had a forester look at it. Also keep all receipts if you had to buy chainsaws and such for storm damage cleanup.

  15. #15
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    Quote Originally Posted by Layla's slave View Post
    I have 2 tracts that were over 75% destroyed. Both have been already salvaged/clear cut. I'm wondering what issues we'll have with qualifying for cost share because we were proactive, cut the wood immediately so it will have time to sprout and get back into production next year, and also try to get a decent price before the full markets gets flooded.
    I know a bunch of landowner's that did the same thing, the week after the ice storm there were at least four crews working within a half mile radius in northern Horry Co.

    I've got a feeling some will be hard pressed to get cost share assistance. There are still quite a few out there that are waiting on management advice because they were registered in CRP. Gonna be a mess with some tracts if we have a dry summer and there is still salvage wood out there.

  16. #16
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    I have a crew thinning a crp tract right now. had to wait on FSA for the go ahead to clean her up.
    A Nation of Sheep Breeds a Government of Wolves!

  17. #17
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    We got lucky. The loggers were on tract and 90% done when it hit.

    It makes me want to ask those of you who work in the timber industry....
    Given the risk of freeze, fire, wind or disease do you recommend cutting mature timber as soon as it is large enough.....even if the stumpage prices are in the dumps? This goes with the assumption that the farmer will replant.
    Last edited by DJP; 03-06-2014 at 10:58 PM.

  18. #18
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    Should have said had 2 clients tracts already cleaned up.

    As far as cutting timber as soon as it's mature, it all depends on a lot of assumptions. Assuming sawtimber markets won't improve and pulpwood markets will stay strong then it probably would be worth starting over. Financial maturity steps in the equation and you have to decide can you invest the income from the sale to grow at a higher rate than the trees themselves.
    Law don't go round here Lawdog

  19. #19
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    Good point about financial maturity...I suppose a 80 year old person might choose different than a forty year old.

  20. #20
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    All I know is that I would want to have a heavy balance of pulpwood 15 years from now. All indications show a heck of a demand both domestically and globally. There is no question that the supply will be down if we continue this trend we are on with age structure.
    A Nation of Sheep Breeds a Government of Wolves!

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