Page 16 - Georgia Forestry - Fall 2017

“At the end of the day, as a forest owner, you want to make sure you have someone to sell your trees to.”
Wood chips are going to Turkey. Wood pellets are going to Europe. There are multiple markets; that’s a good thing.”
Europe has turned its back on coal and is using wood pellets, as well as other renewable energy sources, for power. U.S. exports of wood pellets were negligible 15 years ago, but our country exported 4.7 million metric tons of wood pellets in 2016, much of it shipped right out of the Port of Savannah.
Now, there is a wild card in play in the Georgia timber industry. The natural disasters with Hurricane Harvey in Houston and Hurricane Irma in Florida are going to create demand for wood to rebuild some devastated areas. There is going to be at least a spot market for Georgia timber.
“I’m expecting the phone to start ringing,” Rhodes said in mid-September.
Economic forecasters are looking at severe weather events like Harvey and Irma as a trend and building materials are going to be in further demand.
No one has to tell timber owners in this state that wood is a long-game, and requires more patience than the stock market. There has been a 10-year ebb as the housing market adjusts, so patience is thin. But Mendell sees a recovery in his forecasts with the aid of the newcomers.
“The big thing for smaller landowners in Georgia is all the investment reinforces for them that we are going to have markets for wood and trees for decades,” Mendell said. “The month-to-month, quarter-to-quarter can cause us to forget the broader context, which is that we have a lot of trees and they go in the ground for a long time.
“At the end of the day, as a forest owner, you want to make sure you have someone
to sell your trees to. You look at the big trends and who is investing and how much they are investing in the state and you are going to have healthy markets for wood for the rest of our lifetimes.”
Somewhere on Lee Rhodes’ desk of papers is an ad valorem tax bill. He thinks about paying that every morning when his day starts. The investment from the north country should help with that chore, sooner or later.
RAY GLIER IS A JOURNALIST WITH 42 YEARS OF EXPERIENCE TELLING STORIES IN SPORTS AND BUSINESS. HE HAS SPENT MOST OF HIS CAREER IN THE ATLANTA AREA WORKING FOR USA TODAY, THE NEW YORK TIMES, THE BOSTON GLOBE, THE WASHINGTON POST, THE ATLANTA JOURNAL-CONSTITUTION, YOUTH TODAY AND MANY OTHERS.
Jesse Johnson
Land Broker / GA Registered Forester #2725
706.614.4855 – Cell / 706.549.5050 – Off www.SouthernLandExchange.com
www.STForestryConsultants.com
14 | GEORGIA FORESTRY