Forestry Business and Economics

Forest resources are an important component of Pennsylvania’s economy. Stay up to date on the latest forestry and timber market research, as well as agroforestry best practices, policies, and regulations with Penn State Extension resources.

Forestry Economics in Pennsylvania

With annual economic contributions of over $5 billion, the timber and forest products industry is among Pennsylvania’s largest manufacturing sectors. The Hardwoods Development Council is responsible for sustaining PA as the leading state in hardwood production and promoting access to timber resources.

Carefully executed timber harvesting is an important economic driver and a crucial factor for conserving the aesthetic values of the state’s forestlands. In Pennsylvania, local governments are beginning to regulate timber harvesting by adopting ordinances such as provisions requiring harvest plans, permits, and silvicultural regulations. In the Local Timber Harvesting Ordinances publication, read in detail about working with municipalities and developing timber harvesting ordinances.

Before getting started with timber harvesting, however, it’s important to understand the timber's value. Consulting foresters can provide assistance with estimating the volume and value of timber. Join Penn State Extension’s Forest Finance and Timber Tax course for more information on forest economy, finances, timber sales, and taxation.

Commercial Forestry and Timber Market Data

Forests play a significant economic and environmental role in Pennsylvania. Currently, about 70,000 people have found employment in the state’s $5.5 billion forest product industry. What is more, the Commonwealth has a significant volume of select hardwood species, including red and white oak, black cherry, and sugar maple.

Keeping up with current trends on the timber market is important for woodland owners who want or need to harvest trees Penn State Extension provides a quarterly timber market report for the benefit of private forest owners.

The report describes general trends and offers insights on timber stumpage and mill prices. The report is based on information provided by foresters, loggers, sawmills, pulp and paper companies, and public agencies.

Penn State Extension also compiles and publishes forestry economics and business data for each of the state’s 67 counties.

Agroforestry

Agroforestry is a land management approach that combines agriculture and forestry by interplanting trees and crops. Agroforestry involves a wide range of trees and can thereby provide various benefits such as producing trees for timber. Assistance and information on best management practices can be obtained through Penn State Extension and the PA Partners for Sustainable Forests.

Learning how to sustainably manage trees and woodlands is essential for providing wood products, clean water, and nutritious foods. In addition, applying sustainable forest harvesting principles can provide landowners with sufficient income to maintain a productive forest. However, it is essential to consider both the short- and long-term economic returns from timber harvesting.

Further information on sustainable forest economy and finances is available in Penn State Extension’s Agroforestry section. Information and advice are also available on leasing land for hunting, keeping forest management records, and understanding forest property taxes.