State-Level Forestry Cost-Share Programs and Economic Impact of Increased Timber Outputs: A South Carolina Case Study

Brandon G. Stoots, Thomas J. Straka and Scott L. Phillips
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Brandon G. Stoots: Department of Forestry and Environmental Conservation, Clemson University, Clemson, SC 29634, USA
Thomas J. Straka: Department of Forestry and Environmental Conservation, Clemson University, Clemson, SC 29634, USA
Scott L. Phillips: South Carolina Forestry Commission, Columbia, SC 29212, USA

Resources, 2017, vol. 6, issue 1, 1-12

Abstract: Management of family forests in the United States has been long-influenced by public policies and programs that encourage active management on these private lands, especially afforestation of idle lands and reforestation of cut-over lands. Financial incentive programs to encourage family forest reforestation date back to the 1940s, and in the beginning were funded by the federal government. Beginning in the early 1970s, state governments, especially those with strong forestry-based economies, saw a need to offer their own incentives, primarily cost-share programs to increase forest productivity. These programs are considered to be successful, but little research addresses the value and increased timber supply that result from the state investment. Here, we use historical data from the South Carolina Forest Renewal Program (FRP), one of the oldest and well-established state forestry cost-share programs, to determine the incremental timber outputs generated. Marginal analysis was used to produce financial comparison between regeneration options that include cost-share and those that do not. Annual funding for the FRP is currently $1,000,000 and in the long-run five dollars of economic impact is created for each dollar invested, and over a half million tons of additional wood is added to the annual timber supply.

Keywords: forestry incentive programs; state forestry cost-share programs; family forest owners; nonindustrial private forest; reforestation; South Carolina (search for similar items in EconPapers)
JEL-codes: Q1 Q2 Q3 Q4 Q5 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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