Markets Keep Working Forests Working
Global Markets, Local Impacts
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In America’s privately owned working forests, every harvested tree supports a network of jobs, mills, manufacturers, and rural communities.
But today, the markets that keep these forests productive are under strain — threatening not just forest health, but the livelihoods and industries tied to them. Today, private working forests support:
3.9M
Jobs
$284B
in annual payroll
$252B
in U.S. GDP
$54B
in federal, state, and local taxes
Market Challenges
Modern forestry is a stable, long-term, and low-margin business. To remain viable, forest owners depend on a supply chain that uses nearly 100% of every harvested tree — from premium lumber to lower-value byproducts like chips, sawdust, and shavings.
Historically, pulp and paper mills used that lower-value wood. But changing consumer demand and global shifts in production capacity are resulting in depressed pulpwood markets. Since 2014, more than 35 American pulp and paper mills have closed, erasing demand for 50 million tons of wood annually. The result: falling stumpage prices (the price a landowner is paid for logs), stranded supply, and billions lost in value. Without healthy markets, forest owners are left growing trees they can’t sell, while mills face rising disposal costs and rural communities lose jobs.
How the Supply Chain Works
The contributions of private working forests are immense: 3.9 million jobs, $284 billion in payroll, and $252 billion in GDP. Weak markets put all of that at risk – along with the environmental benefits that come from keeping forests as forests.
Working forests fuel a sustainable supply chain that runs from landowners and loggers to mills, manufacturers, and consumers. Strong markets allow this chain to work as designed: landowners reinvest in their forests, loggers have steady contracts, mills remain competitive, and consumers benefit from affordable, reliable forest products.
Private working forest owners manage their land to maximize economic returns and environmental benefits. There is no other sector of the economy that functions like modern forestry.
But when markets disappear – or move overseas – ripple effects spread quickly. Landowners hesitate to reinvest, logging and hauling work dries up, sawmills struggle with excess residuals, and local communities lose a stable source of employment and tax revenue.
When forest owners are confident that they will have a market for their wood when it matures, they are more likely to invest in forest health treatments that prevent disease and infestation, in regular maintenance that reduces the risk of natural disturbance like wildfire, and in replanting to grow more trees. Research shows that demand for wood products keeps markets strong, which protects working forests from conversion to other land uses, like development. Keeping forests intact means keeping forests’ economic and environmental benefits intact too.
See The Numbers
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See the Numbers in Your State and District
Want to explore the economic and environmental impact of private working forests where you live? Use NAFO’s Forest and Mill Data Dashboard to see jobs supported, mill facilities, conservation projects, and more.
American Grown Forests
The products that come from our forests are renewable, sustainable, and American-grown.
From lumber and furniture to mass timber, these products lock away carbon while displacing more carbon-intensive materials like steel and concrete. Strong markets for wood aren’t just good for the environment – they’re good for America’s economy and global competitiveness.
Innovations and Opportunities
America’s forest sector is uniquely positioned for innovation. With abundant low-value wood available and global demand for sustainable materials rising, we have an opportunity to protect existing markets, expand access to new ones, and drive innovation:
- Renewable biofuels
- Affordable housing materials
- Bioplastics and advanced packaging solutions
- Mass timber and next-generation wood construction
- Ecosystem Services
Investing in these markets supports good jobs, keeps rural economics strong, secures a competitive American manufacturing base.
Bottom Line
If we want American working forests to stay forests, we must keep forest markets strong.
Rebuilding and expanding markets — especially for lower-value and residual wood — is key to protecting jobs, supporting rural economies, and ensuring the long-term health of America’s private working forests.
Markets Frequently Asked Questions
Traditional products include wood, paper and packaging, post poles, and pilings. They are green, sustainable, renewable, biodegradable, recyclable, and essential for everyday life. In the U.S., about 90% of these products come from private working forests, with the remaining from publicly owned working forests.
In addition to these traditional forest products, new innovative products with economic and environmental benefits are being introduced. Examples include:
- Mass timber: This term covers several types of products for floor and wall framing, such as cross-laminated timber, nail-laminated timber, glued-laminated timber, and structural composite lumber. These abundant and renewable products allow us to build stronger, safer, and taller wood buildings. They also help architects, builders, and communities reduce their environmental footprints and support job growth, rural economies, and the sustainability of our nation’s forests.
- Sustainable aviation fuel (SAF): Made from non-petroleum and renewable feedstocks like forest wastes and wood, SAF is an alternative fuel that reduces emissions from air transportation. The first commercial flight powered entirely by SAF crossed the Atlantic Ocean in November 2023.
- Biobased plastics: These plastic materials are produced from renewable biomass sources that include wood chips and sawdust. Advances in wood-based plastics are on the horizon, with some commercially viable products potentially available in the near future.
When mills close, landowners lose access to markets for their harvests. Declining demand for pulpwood depresses stumpage prices—the amount landowners are paid. Regional mill closures depress prices broadly, shrinking market access even where some mills remain operational.
This is an unsustainable economic environment for forest owners, yet the high supply and low prices provide an opportunity for new forest products markets like renewable biofuels, bioplastics and other innovative forest products and nature-based services.
People invest in what they value. When demand for forest products is strong, this increases the value of private working forests. People are then incentivized to invest in those forests and not convert them into a high-value land use like real estate development or agriculture.
This is especially important for small forest landowners deciding how to get the best return on investment possible from their land to support their families. If we can support these landowners with healthy markets for forest products, they will have an economic incentive to keep their land as forests.
A 2017 study by Forest2Market on the relationship between demand and forest productivity in the U.S. South concluded that “Increased demand for wood did not deplete forests in the U.S. South; instead, it encouraged landowners to invest in productivity improvements that dramatically increased the amount of wood fiber, and therefore the amount of carbon, contained in the South’s forests.”
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Our Policy Priorities
Increasing Woody Biomass Electricity Generation at Sawmills
Retrofitting and expanding existing sawmill biomass systems to generate additional electricity, including sales back to the grid.
Establishing Stand-Alone Woody Biomass Power for Strategic Sites
Construct new biomass power plants near NAFO lands and/or on shuttered mills to provide dedicated electricity for AI facilities.
Expanding Fuels Markets for Aviation and Maritime Fuels
Advancing the production and use of woody biomass–based sustainable aviation fuel (SAF) and low-carbon maritime fuels to reduce greenhouse gas emissions and position the U.S. as a global leader in advanced biofuels.