Pike County’s Forest Economy

F-83
Agriculture and Natural Resources
Date: 
01/03/2013
Eric McConnell, Ph.D., Forest Operations and Products Specialist, Ohio State University Extension
Jeff Fisher, Agriculture and Natural Resources, Ohio State University Extension, Pike County

Pike County contains 440 square miles (281,780 acres) of land and is home to 28,600 citizens[1]. There are 126 industries in the county[2], with the median household earning an income of $35,912[1]. Major employers include businesses in the sectors of inorganic chemical manufacturing, food services, state and local governments, and nursing and residential care facilities[2].

Figure 1. Forest industries contribute 2.35% to Pike County's economy[2,3].

The land resources of Pike County provide many economic benefits. The county's 530 agricultural farms produce agronomic crops, cattle and calves, and dairy and milk products, among others[3]. An abundance of wooded acres are also present, providing community support to the county's forest industries. These businesses generate $56.4 million in industrial output and $3.21 million in taxes[2].

Some of the many contributions Pike County's forests and forest industries provide to the local economy are illustrated in this fact sheet using key figures and statistics. Figures 2–4, describing Pike County's forest resources, were constructed using data from the 2011 forest survey database provided by the United States Forest Service's Forest Inventory and Analysis. Figures 5–8 explain the county's forest industries and were developed from data analyzed using IMPLAN®. Table 1 summarizes the IMPLAN® model for Pike County's economy. (For more information regarding IMPLAN® and the economic impact analyses for Pike County, please contact the first author in the School of Environment and Natural Resources.)

Benefits of Woodland Management

  • Properly managing your woodland improves forest health, aesthetics, and wildlife habitat. It also provides soil stabilization, clean water, self-satisfaction, and a potential source of income.
  • Managing timber requires less long-term inputs compared to many other land uses.
  • You are often able to obtain cost share funds to establish your woodland, property tax credits while managing your forest property, and preferable tax treatment at harvest.
  • Standing timber is a stable form of wealth, often comparable in performance to mutual fund investments.

How Can I Learn to Better Manage My Woodland?

  • Become actively involved in the stewardship of your property.
  • Join your local forestry association.
  • Search Ohio State University Extension's Ohioline for further study of Forestry related topics, ohioline.osu.edu.
  • Contact your local service forester at the Ohio Division of Forestry to help you develop a management plan for your property.
  • Obtain soils information from your local Soil and Water Conservation District.
  • Enlist the assistance of a professional forester when planning a timber sale.
  • Consider hiring an Ohio Master Logging Company to conduct your harvesting operation.

Figure 2. Pike County contains 165,000 forested acres, which is 58.5% of the total land cover[1,5]. Figure 3. Pike County's forestland is 86.6% privately owned, over 140,000 acres[5].

Figure 4. Pike County contains 1.04 billion board feet of sawtimber[5]. The top five species make up 70.9% of the total volume. Figure 5. Pike County's farmland and forestland production, 2010[2]. This figure does not include harvests from government lands.

Figure 6. Direct economic impact of Pike County's forest industries, 2010[2]. Labor income, value-added, and industrial output are represented on the left Y-axis, and employment is represented on the right Y-axis. Figure 7. Pike County's forest industry employers by sector, 2010[2]. A (----) indicates less than five employees to prevent potential disclosure of individual company information.

Figure 8. Direct tax impact of Pike County's forest industries, 2010[2].

For More Information, Please Consult the Following Sources

School of Environment and Natural Resources
The Ohio State University
2021 Coffey Rd.
Columbus, OH 43210
Phone: (614) 688-3421
 
Ohio State University Extension, Pike County
313 Mill St.
Piketon, OH 45661
Phone: (740) 289-4837
Fax: (740) 289-4496
 
Ohio Division of Forestry
345 Allen Ave.
Chillicothe, OH 45601
Phone: (740) 774-1596
Fax: (740) 773-0273
 
Pike County Soil and Water Conservation District
11752 SR 104
Waverly, OH 45690
Phone: (740) 947-5353
Fax: (740) 947-1889
 
Ohio Society of American Foresters
 
Ohio Forestry Association
Master Logging Company Program
Office: 746 Morrison Rd., Columbus, OH 43230
Mail: 1100-H Brandywine Blvd.,
Zanesville, OH 43701
Phone: (614) 497-9580
Fax: (614) 497-9581
 
Call Before You Cut
Phone: (877) 424-8288
 

Terminology[5,6]

Acre: A unit of land measure equal to 43,560 square feet (208.7 feet x 208.7 feet). One square mile equals 640 acres.

Direct Economic Impact: The effect generated by the industry of interest in an economic impact analysis. This is measured through employment, value-added, and industrial output produced to meet demand for the manufactured product(s).

Direct Federal Tax Impact: Taxes collected by the United States government. These taxes are generated from labor income, indirect business taxes, households, and corporations associated with the industry of interest.

Direct State and Local Tax Impact: Taxes paid to state, county, and municipal governments. These taxes are generated from labor income, indirect business taxes, households, and corporations associated with the industry of interest.

Employment: The total wage and salary and self-employed jobs in a geographical area.

Indirect Business Taxes: Sales and excise taxes paid by individuals to businesses through normal operations. They do not include taxes on corporate profits and dividends.

Industrial Output: The total value of production measured as the sum of value-added plus the cost of buying goods and services to produce the product(s).

Labor Income: Wages and benefits paid to employees plus proprietary income for self-employed work.

Sawtimber Volume: Net volume in board feet by the International 1/4-inch rule of sawlogs in sawtimber trees on timberland. Gross volume minus the deductions that affect use for lumber equals net volume. 

Value-Added: The sum of labor income, interest, profits, and indirect business taxes.


Table 1. Direct industrial contributions within Pike County’s economy, 2010[2]. The IMPLAN® model’s 440 sectors were aggregated into 12 industries by each sector’s 2-digit North American Industry Classification System (NAICS) code number. A (----) indicates less than five employees or a value less than $500,000 to prevent potential disclosure of individual company information.

Industry NAICS Description Employment Labor Income Value-Added Industrial Output
11 Agriculture, Forestry, Fishing, and Hunting 594 $4,780,200 $6,899,478 $22,648,375
     113 Forestry and Logging 56 $943,888 $903,368 $3,947,109
21 Mining 40 $1,795,184 $2,812,555 $4,376,616
22 Utilities 82 $7,927,976 $28,945,041 $33,973,495
23 Construction 884 $43,976,991 $52,349,477 $112,714,757
31–33 Manufacturing 2,594 $200,490,294 $340,067,740 $1,445,196,081
     321 Wood Products Manufacturing 228 $8,315,306 $9,825,255 $39,940,691
     322 Paper Manufacturing (----) (----) (----) (----)
     337 Wood Furniture Manufacturing 106 $4,477,580 $4,019,542 $12,531,199
42 Wholesale Trade 125 $6,361,323 $13,013,489 $17,342,838
44–45 Retail Trade 1,313 $28,706,559 $44,984,604 $70,098,231
48–49 Transportation and Warehousing 527 $13,996,793 $20,354,194 $46,102,226
51–56 Professional Services 1,953 $89,452,583 $208,948,682 $342,663,336
61–72 Educational, Health, and Recreation Services 2,494 $66,837,276 $82,203,334 $153,537,914
81 Other Services 523 $19,714,304 $20,600,135 $41,233,156
92 Government and non-NAICS Industries 1,671 $82,064,397 $92,521,643 $113,123,352
      Forest Industries 389 $13,736,774 $14,748,165 $56,418,999
Total 12,800 $566,103,877 $913,700,372 $2,403,010,377

References

[1] United States Census. 2010. United States census state and county quick facts. quickfacts.census.gov/qfd/states/39/39131.html.

[2] Minnesota IMPLAN Group. 2012. 2010 Ohio state and national package database. MIG, Inc., Hudson, WI.

[3] United States Department of Agriculture National Agricultural Statistics Service. 2010. Ohio county summaries. nass.usda.gov/Statistics_by_State/Ohio/Charts_and_Maps/index.asp.

[4] United States Forest Service Forest Inventory and Analysis. 2012. Northeast Forest Inventory and Analysis Methodology: Common definitions used by FIA. fs.fed.us/ne/fia/methodology/def_ah.htm.

[5] United States Forest Service Forest Inventory and Analysis Database. 2012. Pike County 2011 forest survey database. fs.fed.us/fido/standardrpt.html.

[6] Minnesota IMPLAN Group. 2004. IMPLAN Professional®: Users Guide, Analysis Guide, Data Guide. 3rd edition. MIG, Inc.


We thank David Apsley and Dr. Gary Graham, OSU Extension, and Bobby Ammerman and Billy Thomas, University of Kentucky, for their reviews of this fact sheet.

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Ohioline http://ohioline.osu.edu