YEAREND: 2024 concludes with a promising future for Arkansas forestry
“The establishment of the Arkansas Forest Health Research Center sends a strong signal from this state, nationally and internationally, that we place high importance on our forests and the sustainable economic benefits they provide.” — Michael Blazier
By Traci Rushing
U of A System Division of Agriculture – UAM College of Forestry, Agriculture and Natural Resources
Fast Facts:
- Despite facing natural disasters and plant closures, Arkansas experienced significant growth and expansion in its forestry industry.
- Announcements of growth from forestry industry leaders sparks optimism for the future of Arkansas forest.
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With file art of Forest Health Center groundbreaking
MONTICELLO, Ark. — The Arkansas timber industry faced significant challenges at the start of 2024, including plant closures and natural disasters. However, the year concludes with optimism driven by groundbreaking initiatives and significant investments that signal a promising future for the state’s forestry sector.
According to the Arkansas Center for Forest Business at the University of Arkansas at Monticello, Arkansas forests contribute approximately $7 billion to the state’s economy this year through wood production facilities, tourism, hunting and other activities. While timber prices remained soft throughout the year, announcements of forest product mill expansion and development and development of the Arkansas Forest Heath Research Center provide encouragement for the health of the state’s forests and markets they sustain.
“The reduced value of small-diameter trees from market declines and the large areas of overstocked forests in poorer health that results from that were of high concern coming into 2024, but we’re concluding the year with increased investment in new and existing forest markets in southern Arkansas,” said Michael Blazier, dean of the UAM College of Forestry, Agriculture and Natural Resources and director of the Arkansas Forest Resource Center. “Those investments, as well as the creation of the Arkansas Forest Health Research Center to help safeguard our forests, have been fostered every inch of the way by dedicated folks in our industry, economic development commissions and state government. Our faculty and staff in the College of Forestry, Agriculture and Natural Resources, particularly in the Arkansas Center for Forest Business, continue to work hard to provide support to all parties in these efforts.”
Early challenges for the industry
From March and May, Arkansas’ forests were heavily impacted by natural disasters, including tornadoes and flooding. On May 26, north Arkansas experienced 17 tornados, resulting in $89 million in economic losses due to forest damage alone. Relief came as Gov. Sarah Sanders declared a state of emergency, enabling funds to assist affected landowners and communities.
Adding to the industry’s challenges, Arkansas experienced another loss with AHF’s announcement of closure for their facility in Warren, Arkansas, in late July. The closure led to an estimated $16 million loss in labor income and a $36 million reduction in Arkansas’ gross domestic product.
A healthy future
In September, a pivotal step toward the future of Arkansas forestry was marked by the establishment of the Arkansas Forest Health Research Center at the University of Arkansas at Monticello. Under the leadership of Laura Sims, the center will focus on forest pest and disease management through expanded research and education efforts. The groundbreaking for the $16.8 million facility took place Oct. 17, setting the stage for innovative solutions to safeguard Arkansas’s forests.
“The establishment of the Arkansas Forest Health Research Center sends a strong signal from this state, nationally and internationally, that we place high importance on our forests and the sustainable economic benefits they provide,” said Blazier.
Growth in forestry
The industry’s growth momentum persisted with major announcements from leading players such as BlueSky Carbon, Weyerhaeuser and Georgia-Pacific.
In late October, BlueSky Carbon announced the start of biochar production at its AR1 facility in Warren, Arkansas, marking the launch of operations under their 10-year supply agreement.
“The Warren AR1 operation showcases our ability to rapidly deploy large-scale CDR facilities,” said Will Hessert, CEO of BlueSky Carbon when interviewed by KATV’s 7 On Your Side. “Additionally, we intend to grow the project by showcasing the potential opportunities which we believe will attract local, regional and even global interest. Beyond the immediate goals, we intend to use AR1 as a research facility to test novel technologies we hope to unveil in the months ahead. It’s extremely gratifying to build a project that moves our business forward while helping address a global issue. We are proud of what we are doing here today and look forward to building a successful venture on the back of this launch today.”
Weyerhaeuser revealed plans to invest $500 million in a laminated strand lumber plant, a project expected to create 200 new jobs in and around Monticello while supporting forest health initiatives.
“A healthy forest economy goes hand in hand with healthy communities and healthy forests,” said Matthew Pelkki, director of the Arkansas Center for Forest Business and professor of forest economics for the University of Arkansas at Monticello and University of Arkansas System Division of Agriculture. “This facility exemplifies that synergy, offering a sustainable solution that strengthens our forests and supports economic vitality. The addition of approximately 200 jobs in our region holds significant potential for boosting the local economy. Related industries and community jobs will add another 300 employed people in the region. These high-wage jobs should add about $25 million annually to the region's payroll.”
Additionally, Georgia-Pacific announced the expansion of its bath tissue mill at Crossett, which is projected to add 50 new jobs to the facility.
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About the College of Forestry, Agriculture and Natural Resources and the Arkansas Forest Resources Center
The College of Forestry, Agriculture and Natural Resources, and the Arkansas Forest Resources Center, a University of Arkansas System Center of Excellence, brings together interdisciplinary expertise through a partnership between the University of Arkansas at Monticello and the University of Arkansas System Division of Agriculture. The College and Center are headquartered at the University of Arkansas at Monticello campus, but their programs range statewide with the mission of developing and delivering teaching, research, and extension programs that enhance and ensure the sustainability and productivity of forest-based natural resources and agricultural systems. Academic programs are delivered by the College of Forestry, Agriculture, and Natural Resources through the University of Arkansas at Monticello. Through the University of Arkansas System Division of Agriculture, research is administered by the Arkansas Agricultural Experiment Station, and extension and outreach activities are coordinated by the Arkansas Cooperative Extension Service.
The University of Arkansas at Monticello and the University of Arkansas System Division of Agriculture offer all of their programs to all eligible persons without regard to race, color, sex, gender identity, sexual orientation, national origin, religion, age, disability, marital or veteran status, genetic information, or any other legally protected status, and are Affirmative Action/Equal Opportunity Employers.
About the Division of Agriculture
The University of Arkansas System Division of Agriculture's mission is to strengthen agriculture, communities, and families by connecting trusted research to the adoption of best practices. Through the Agricultural Experiment Station and the Cooperative Extension Service, the Division of Agriculture conducts research and extension work within the nation's historic land grant education system.
The Division of Agriculture is one of twenty entities within the University of Arkansas System. It has offices in all seventy-five counties in Arkansas and faculty on five system campuses.
The University of Arkansas System Division of Agriculture offers all its Extension
and Research programs and services without regard to race, color, sex, gender identity,
sexual orientation, national origin, religion, age, disability, marital or veteran
status, genetic information, or any other legally protected status, and is an Affirmative
Action/Equal Opportunity Employer.
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Media Contact: Traci Rushing, trushing@uada.edu, 870-460-1852