Who survives and Why: Lessons from History
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1 Who survives and Why: Lessons from History Bob Radspinner, CF Appalachian Society of American Foresters 91st Annual Winter Meeting January 26th, 2012 Wytheville, Virginia
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5 Year Recession/ Economic downturn Forestry Issues Hardwood Market Changes 1969 Monongahela Controversy continues Decreased demand & inventory adjustment caused price declines across all species s Federal Water Pollution Control Act of 1972 The Clean Water Act 1973 Endangered Species Act (ESA) The Federal District Court of the Northern District of West Virginia curtailed the authority of the U. S. Forest Service (USFS) to sell timber on the Monongahela National Forest (MNF) OPEC Oil embargo & high government spending- Demand for YP drops as public prefers open-grained wood in furniture 1975 Restrictions on timber harvesting were applied to the National Forests in the area served by the Fourth Circuit-- West Virginia, Virginia, North Carolina and South Carolina 1976 National Forest Management Act (NFMA Timber sales resume on MNF Lumber market reaches historic high followed by declines with 1980 having the largest single-year decline 1979
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10 Year Recession/ Economic downturn Forestry Issues Market Changes 1980 Largest single-year decline 1981 Increases in oil prices causes recession high unemployment & low demand-lumber prices already too low to be impacted s 1984 Domestic & international demand high 1985 Northern Flying Squirrel listed in WV & VA Overproduction & inventory adjustment create declines in prices particularly Oaks & Ash Clean Water Act amended in 1987 to established the Nonpoint Source Pollution Management Program under Section 319 WV Timber severance tax replaces B&O tax 1988 Small reduction in furniture production & inventory adjustment starts intial decline-increased demand for Maples 1989 Fish and Wildlife Service Proposal to List the Spotted Owl as Threatened
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15 Year Recession/ Economic downturn Forestry Issues 1990s Market Changes 1990 FWS Officially Lists Spotted Owl as Threatened Short recession impacts RO.YP.BC.& Ash-Maple demand increases 1991 Market improvement starts in the summer West Virginia s Logging Sediment Control Act Forest Stewardship Council organized 1993 Virginia Silvicultural Water Quality Law Fall of this year hardwood lumber prices were at the highest level since reduced demand and species substitution impacts pricing 1994 Sustainable Forestry Initiative launched by AF &PA 1995 Virginia Forest Watch formed Forest Land Group formed Industry Highwater mark in WV Georgia-Pacific spins off lands into The Timber Company Va Chipmill Controversy
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18 Year Recession/ Economic downturn Forestry Issues 2000s Market Changes 2000 Timber harvest reaches record levels Eastern Hwd production is 12.6 billion BdFt Domestic furniture industry starts to move offshore yet demand for lumber for cabinet,millwork,flooring & export industries increasing prices start to decline 2001 June flooding in WV The Timber Company merges with Plum Creek 2002 Virginia - Notification of the Commercial Harvesting of Timber Expansion of kitchen cabinet industries favor Maples- Oak falls in the domestic market West Virginia has 80 sawmills WV 2.7/8% timber severance tax (86 percent increase) Flood litigation Supreme Court split the suits into six watersheds for six trials Decline in hardwood lumber prices during this 5 year period was nearly 50% greater than declines in the seventies Flood litigation Guyandotte watershed -jurors found the timbering practices of Western Pocahontas Properties and Western Pocahontas Corp. did increase water runoff and that the company's use of land was unreasonable. All other defendants settled before trial ended Northern Flying Squirrel delisted 2009 Recession slashes building demand for wood products Virginia -Logging Operation Notification Eastern hwd production falls to 5.7 billion BdFt lowest level since 1960
19 2010s Year Recession/ Economic downturn Forestry Issues 2010 Northern Flying Squirrel relisted Sawmill industry consolidations and closings West Virginia has 57 sawmills 2011 Coastal Lumber Co, Weyerhauser, and other hardwood sawmills sold to investment groups 2012 Market Changes Demand for products continues to decline Exports in 2011 equal in volume to 2001 markets moved from North America & Europe to Vietnam & China.
20 SOURCES The Red Jacketeer Memorial Issue, August- September 1952,Vol.6 No. 3 Historical Sketch of the WM Ritter Company ( ) compiled entirely from materials in the archive, Portland Oregon, November 1978 Personal papers of Richard P. Grist An Analysis of Declines in Hardwood Lumber Price of the Past 40 years William G. Luppold & Matthew S. Bumgardner April 2010 Protectors of the Forest Resources, A history of the West Virginia Division of Forestry July 1998 Tom Inman AHMI Mark Barford - NHLA Personal papers of Robert E. Radspinner
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