NEBRASKA'S FOREST PRODUCTS BULLETIN

TIMBER TALK

There is an incentive for sawmill operators to produce all the grade lumber and industrial products they can. Demand for most all species, grades, and thicknesses is good and is absorbing developing supplies. But, sawmill output in this and the other Eastern US hardwood producing regions has not grown to pre-pandemic levels. In June, output finally crossed the 7 billion board foot (annualized) mark for the first time since the pandemic began. However, preliminary numbers for July show hardwood production will likely be below 7 billion board feet. The Fourth of July holiday and vacations are part of the reason. But, lack of labor, not enough logging contractors, as well as seasonal logging issues in the North Country have kept log supplies and green lumber production controlled. Despite shortages of key items, such as Hard Maple, Soft Maple, White Oak, and Walnut, supplies of some species are reaching levels necessary to satisfy concentration yards’ and secondary manufacturers’ requirements. Reported price gains for green lumber are not as broad now as a few months ago. Yet, most industrial product end-users indicate tie, cant, and board road output is falling short of market needs.

Preliminary data on Eastern US hardwood sawmill production show the daily rate edged up in July over June. The gains were primarily in the Appalachian and Northern regions. Wet weather conditions in much of the South have disrupted logging and kept sawmill production low. There also is substantial hardwood sawmill capacity committed to pine production. Yet, sawmill operators in all regions list labor issues as the principal constraint to productivity. Labor is not just a sawmill problem, either. Many comment that logging contractors are struggling to hire workers, which is also limiting logging productivity and log availability.

Throughout the first half of 2021, secondary wood products manufacturers in the US and Canada struggled to procure lumber needed to meet the growing demand for finished goods. For many flooring and pallet plants, circumstances did not improve much in July or this first week of August. However, contacts in other sectors report that lumber receipts have increased in the last 30 to 45 days. Relatively few are flush with raw materials, but some state that lumber inventories are approaching targeted levels. Companies at all points along the hardwood supply chain continue to wrestle with labor and transportation challenges. Several states recently stopped providing unemployed people with additional federal unemployment payments. There is little evidence this is bolstering labor availability, yet, although many employers hope that will change in the weeks and months ahead. As a result of the truck driver shortage, contacts frequently report they have two or three times as much lumber waiting on trucks as in the past

FOREST NEWS

USDA ANNOUNCES PANDEMIC ASSISTANCE FOR US TIMBER HARVESTERS AND HAULERS (DEADLINE IS OCTOBER 15th, 2021)

• Have been in operation as a timber harvesting business or timber hauling business for at least part of the periods from January 1, 2019, through December 1, 2019, and January 1, 2020, through December 1, 2020. USDA will adjust your gross revenue proportionally if you did not operate during the entire period for one or both years.
   
• Be a business that derived at least 50 percent of gross revenue from timber harvesting and/or timber hauling from January 1, 2019, through December 1, 2019, and from January 1, 2020, through December 1, 2020. Specifically, eligible activities to earn revenue during these periods include cutting timber, transporting timber, and/or the processing of wood on-site on the forest land, such as chipping, grinding, converting to biochar, cutting to smaller lengths, etc.
   
• Have experienced a loss of at least 10 percent in gross revenue during this period in 2020 as compared to 2019. You can calculate your loss in revenue using the following formula, where both years reflect gross revenue from January 1 through December 1:
  • Percent Revenue Loss = ((2019 Gross Revenue – 2020 Gross Revenue) / 2019 Gross Revenue) x 100
     
• If a logger, must have a 2017 North American Industry Classification System (NAICS) code of 113310 for tax purposes, or other supporting documentation. The NAICS code for your business will be located on your federal tax return documents for 2019 and 2020. Loggers who do not have an eligible NAICS code may submit alternate documentation. Contact the FSA office at your local USDA Service Center to learn more about options for your operation.
   
• If a trucker, must have a NAICS code of 484220 or 484230 and must have filed an IRS Form 2290, or must provide other supporting documentation. The NAICS code for your business will be located on your federal tax return documents for 2019 and 2020. Truckers who do not have an eligible NAICS code or IRS Form 2290 may submit alternate documentation. Contact the FSA office at your local USDA Service Center to learn more about options for your operation.
   
• Comply with provisions of the “Highly Erodible Land and Wetland Conservation” regulations, often called the conservation compliance provisions. These will be addressed via form AD-1026 during the application process.
   
• Not have a controlled substance violation.
   
• Be a citizen of the United States or a resident alien.
   
• Submit a complete PATHH application form (FSA-1118) and provide all required documentation. The below section details all documents required to apply for PATHH.
   
• Not be a minor. Minors under 18 years of age are not eligible for PATHH.

Additional Information:
To learn more about this program or to apply, please visit the links below.

Detailed Program Information
News Release 
Application Information

Upcoming National Sawmill and Lumber Workshops for Fall 2021

The US Forest Service is supporting North Carolina State University to host several workshops and conferences regarding forestry and wood products in USFS Region 8 and 9. You are welcome to attend these events that offer education, outreach and networking opportunities. Please pass along this information to your network that would find them of interest. Information on these events is found at https://outreach.cnr.ncsu.edu/ncwood. These events include:

• Small Sawmill Business Workshop, Solon, IA (near Cedar Rapids), Thursday, September 23, 2021, $45, can register at https://smallsawmillworkshop2021iowa.eventbrite.com.
• Southeast Hardwood Lumber Export Conference, Statesville, NC, Tuesday, October 19, 2021, $45, registration website in process.
• Small Dry Kiln Business Workshop, East Lansing, MI, at MSU, Tuesday, October 26, 2021, $45, can register here
• North Carolina Virginia Firewood Business Workshop, Jordan Lake Forest Education Center, Chapel Hill, NC, Thursday, November 4, 2021, $45, registration website in process.
• National Upholstery Frame Workshop, Conover, NC, Thursday, November 11, 2021, free, registration website in process.

Harry Watt, Wood Products Specialist, is the contact person, phone 704-880-3067, email at harry_watt@ncsu.edu.

Nebraska News

“Litchfield veteran cuts against the grain with sawmill venture” Kearney Hub (March 2021)

“Kurth, Barcel look to future with biochar” Columbus Telegram" (March 2021)