Assessing the wood-basket and characterizing Michigan's logging businesses by their reliance on nonindustrial private forests for stumpage

Abstract

This study delineates the procurement areas for individual logging businesses to create a combined wood-basket for 115 logging businesses in Michigan using a road transportation network dataset and information collected from a mail survey of logging businesses. Forest ownership and forest condition datasets are used to understand the status of timber resources and the reliance of logging businesses on different forest-ownership types for stumpage. Information about competition hotspots and status of timber resources can be useful for logging businesses when navigating market dynamics and is important for sustainable management of forest resources, too. Based upon their level of reliance on nonindustrial private forests (NIPFs) for stumpage, the logging businesses are classified as NIPF-dependent and nondependent businesses, and similarities and differences between the two groups are explored. This is important as NIPF ownership is the major forest-ownership type in Michigan.Relatively less competition for timber resources was noted in 15% of total forest acres present in the wood-basket (five or fewer businesses competing in the same area) while high competition was noted in 1 % of it (>20 businesses competing in the same area). The net annual growth-to-removals ratio in the wood-basket ranged from 5.0 to 1.2 depending upon forest-ownership types, suggesting that increased harvests from all ownership types in the future may not be equally sustainable. NIPF-dependent and nondependent businesses varied in terms of volume-harvested, equipment-used, and methods employed for acquiring stumpage, but had similar self-indicated profit levels.