The Logging Sector in Minnesota and Wisconsin: Status Issues, and Challenges in 2021

JAF

03/10/2025

Forests cover 33% of Minnesota and 46% of Wisconsin, for a total of 34 million acres (USDA Forest Service 2021a, b). These forests constitute a vital element of the regional economy in the Lake States. The forest products industry employs84,000 people and generates an economic output exceeding $34.8 billion across the two states (IMPLAN, 2021 data). Logging is a key component of this intricately linked supply chain. It plays a pivotal role in providing jobs with direct and indirect positive impacts on local economies, connecting forest resources with mills, implementing sustainable forest management practices during timber harvesting, and contributing to the delivery of ecosystem services. Despite these critical contributions, loggers and the logging sector encounter formidable challenges. The substantial costs associated with modern logging equipment, often exceeding $500,000 per piece of equipment, pose a financial barrier to entry and expansion of operations (Conrad et al. 2017). The evolving market dynamics marked by mill closures, restricted access to capital, changing land ownership, price uncertainties, and lack of long-term supply agreements add further uncertainties. The aging demographic of logging business owners raises concerns about business continuity and recruitment of new proprietors (Rickenbach et al. 2015).Key factors that impacted the logging sector in the past and will likely impact it in the future are industry and owner demographics, production and equipment, stumpage sources and delivery, and evolving markets (Rickenbach et al. 2015).

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Bowe, S.A., Ballweg, J.M., Blinn, C.R. et al. The Logging Sector in Minnesota and Wisconsin: Status, Issues, and Challenges in 2021. J. For.123, 41–62 (2025). https://doi.org/10.1007/s44392-024-00006-9

 

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