Licking County’s Forest Economy

F-94
Agriculture and Natural Resources
Date: 
07/30/2013
Eric McConnell, PhD, Forest Operations and Products Specialist, Ohio State University Extension
Ted Wiseman, Agriculture and Natural Resources, Ohio State University Extension, Licking County

Licking County contains 682 square miles (436,800 acres) of land and is home to 167,500 citizens[1]. There are 214 industries in the county[2], with the median household earning an income of $54,700[1]. Major employers include businesses in the sectors of food services, state and local governments, real estate, nursing and residential care, and wholesale trade[2].

Figure 1. Forest industries contribute 1.87% to Licking County's economy[2,3].

The land resources of Licking County provide many economic benefits. The county's 1,400 agricultural farms produce agronomic crops and poultry, among others[3]. An abundance of wooded acres are also present, providing community support to the county's forest industries. These businesses generate $154 million in industrial output and $10.2 million in taxes[2].

Some of the many contributions Licking County's forests and forest industries provide to the local economy are illustrated in this fact sheet using key figures and statistics. The figures describing Licking 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. Those explaining the county's forest industries were developed from data analyzed using IMPLAN®. Table 1 summarizes the IMPLAN® model for Licking County's economy. (For more information regarding IMPLAN® and the economic impact analyses for Licking 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 website Ohioline (ohioline.osu.edu) for further study of forestry related topics.
  • 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. Licking County contains approximately 93,700 forested acres, which is 21.5% of the total land cover[1,3,5]. Figure 3. Licking County's farmland and forestland production, 2010[2]. This figure does not include harvests from government lands.

Figure 4. Licking County's forestland is 93.7% privately owned, nearly 88,000 acres[5]. Figure 5. Licking County contains 703 million board feet of sawtimber[5]. The top five species make up 53.1% of the total volume.

Figure 6. Direct economic impact of Licking 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. Licking County's forest industry employers by sector, 2010[2]. A (----) indicates less than five employees or a value less than $500,000 to prevent potential disclosure of individual company information.

Figure 8. Direct tax impact of Licking 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, Licking County
771 East Main St., Suite 103
Newark, OH 43055-6974
Phone: (740) 670-5315
Fax: (740) 670-5317
 
Ohio Division of Forestry
10517 Canal Rd.
Hebron, OH 43025
Phone: (740) 928-7034, ext. 241
Fax: (740) 928-6039
 
Licking County Soil and Water Conservation District
771 East Main St., Suite 100
Newark, OH 43055
Phone: (740) 670-5330
Fax: (740) 670-5338
 
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
 

Table 1. Direct industrial contributions within Licking 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.

NAICS Industry Description Employment Labor Income Value-Added Industrial Output
11 Agriculture, Forestry, Fishing, and Hunting 1,719 $34,266,722 $50,594,305 $137,423,760
     113 Forestry and Logging (----) (----) (----) (----)
21 Mining 859 $22,016,011 $54,696,318 $88,079,494
22 Utilities 199 $19,032,727 $79,534,152 $118,932,808
23 Construction 4,968 $162,086,882 $209,148,395 $548,435,054
31–33 Manufacturing 6,022 $374,104,468 $615,410,447 $1,931,491,781
     321 Wood Products Manufacturing 533 $19,969,268 $23,529,326 $79,288,270
     322 Paper Manufacturing 204 $13,509,033 $17,274,223 $74,591,309
     337 Wood Furniture Manufacturing 7 (----) (----) $719,920
42 Wholesale Trade 1,862 $105,517,429 $204,732,330 $269,303,192
44–45 Retail Trade 9,114 $220,390,456 $328,920,372 $514,917,672
48–49 Transportation and Warehousing 2,201 $124,362,051 $151,094,831 $261,673,315
51–56 Professional Services 15,420 $508,239,116 $1,596,306,064 $2,496,767,090
61–72 Educational, Health, and Recreation Services 16,342 $470,422,813 $554,767,426 $990,513,856
81 Other Services 3,765 $108,368,173 $115,071,018 $259,864,524
92 Government and non-NAICS Industries 9,089 $491,782,587 $551,143,313 $650,927,528
Forest Industries 744 $33,797,688 $41,113,904 $154,786,158
Total 71,558 $2,640,589,434 $4,511,418,972 $8,268,330,075

Terminology[4,6]

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.

References

[1] United States Census. 2010. United States Census quick facts. quickfacts.census.gov/qfd/states/39/39089.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. 2012. 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. 2012. Licking County 2011 forest survey database. apps.fs.fed.us/fido/standardrpt.html.

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

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Ohioline http://ohioline.osu.edu