WASHINGTON –  Two reports detail the dramatic changes in the ownership of Southern U.S. forest land and the declining markets for forest products.
One report, the "U.S. South's Timber Sector in 2005: a Prospective Analysis of Recent Change," captured significant forces of change driving markets for timber production across the South. The report shows a steep decline over the past 10 years in international demand for U.S timber products. Industry consolidations, landownership changes and depreciation and closure of older processing facilities are all contributors,the report said.
Another report, "Strategic Factors Driving Timberland Ownership Changes in the U.S. South," documents the extent, reasons, location and nature of forest industry land transactions to non-industrial ownership
More than half of the 37 million acres of timberland owned by the forest industry was sold to institutional investors, such as Timber Investment Management Organizations. Primary reasons for divestiture include poor stock performance, the need to increase shareholder returns, debt reduction and tax efficiencies.