Timber Stumpage Prices Remain Flat
Timber stumpage prices remained flat or declined further in North Mississippi in the Second Quarter as the Fed continues to raise interest rates to slow down inflation. Housing starts in the South were down 20.7% (Forest2Market) and many lumber prices are still declining. Some Pine Pulpwood sales were reported as low as 25 cents per ton which were some of the lowest prices in Mississippi (Mississippi State Timber Price Report) with the range being from 25 cents to $4/ton. Hardwood Pulpwood was much stronger with prices ranging from $3/ton to $10/ton. Pine Sawtimber ranged from $14 to $35 a ton, Oak Sawtimber from $38 to $48 and Mixed Hardwood Sawtimber from $22 to $35. While a recession may still be likely the job market remains so strong the possibility remains that it could be avoided. Some economists think the Fed may have a window of opportunity to soften further interest rate increases.
Robert W. Neill, Jr. is a sixth-generation farm and land owner and a licensed real estate broker who represents buyers of farm, land and real estate properties and is an investor in small businesses and startup companies. He can be contacted through his web site at landhungry.com