Changed forest and market factors share blame for sawmill troubles, forest supervisor says • South Dakota Searchlight

Changed Forest Conditions and Market Forces Lead to Layoffs at Spearfish Sawmill

The U.S. Forest Service’s top official in the Black Hills, Shawn Cochran, has stated that the recent layoffs at a Spearfish sawmill can be attributed to altered forest conditions and market forces. The owner of the sawmill had previously blamed logging reductions in the Black Hills National Forest for the job cuts.

Forest Service Concerned About Economic Health of Sawmills

Cochran expressed the Forest Service’s sadness over the layoffs and emphasized their concern for the economic well-being of sawmills. He acknowledged that mills across South Dakota and the Western region are facing challenging times, with closures occurring throughout the area.

Job Losses in Sawmills Nationwide

According to South Dakota Searchlight, approximately 1,700 jobs have been lost in sawmills across the country since September. Mill closures or layoffs have been reported in Florida, Montana, West Virginia, Oregon, and Arkansas. Companies have cited various reasons for these closures, including outdated facilities, labor and housing shortages, rising costs, and declining lumber prices.

Impact of Plummeting Lumber Prices

The producer price index for softwood lumber, which includes the Black Hills’ primary tree species, ponderosa pine, has fallen by 56% since its peak in 2021. This decline in lumber prices has contributed to the challenges faced by sawmills.

Neiman Enterprises Layoffs

Neiman Enterprises, based in Wyoming, recently announced 50 layoffs at Spearfish Forest Products, their mill in South Dakota’s northern Black Hills. The company attributed these job cuts to reductions in the Black Hills National Forest timber sale program. This is not the first time Neiman Enterprises has made such claims, as they also cited similar reasons for the closure of their other South Dakota mill in Hill City in 2021.

Research on Forest Conditions

In a previous study conducted by Forest Service researchers, it was found that severe wildfires and a pine beetle epidemic had significantly reduced the number of trees suitable for logging in the Black Hills. The researchers reported that the forest had only half the required amount of sawtimber-size trees, which are at least 9 inches in diameter at a point 4.5 feet above the ground, to sustain the level of timber sales allowed in the forest plan.

Dispute Over Research Findings

Some members of the timber industry have disputed the research findings, including Ben Wudtke, executive director of the Black Hills Forest Resource Association. Wudtke claimed that there is currently more timber available than in previous decades when the Black Hills National Forest sold twice the amount of timber. However, Cochran defended the Forest Service research, stating that while there may be a significant volume of smaller trees, the number of larger sawtimber-size trees has dramatically declined.

Forest Service Support for Timber Industry

Cochran revealed that the Forest Service has invested $70 million over the past decade to assist the Black Hills timber industry in adapting to changing forest conditions. This investment includes stewardship sales, where the Forest Service covers some of the high costs associated with logging in challenging areas such as steep slopes.

Challenges of Steep-Slope Logging

Although there are more steep-slope areas available for harvesting, Cochran highlighted the high costs associated with logging these areas. He estimated that the Forest Service’s expenses for a full program of steep-slope logging in the forest could reach up to $20 million. Cochran emphasized the need to balance the timber industry’s requirements with other priorities in the forest.

Efforts to Support the Timber Industry

In addition to financial support, the Forest Service has implemented a pilot project costing $3 million to transport timber by train from other parts of the country to Neiman’s mill in Hulett, Wyoming. Cochran emphasized the Forest Service’s commitment to preventing further mill closures and stated that changed forest conditions and high costs of steep-slope logging remain significant factors influencing timber sales.

Timber Sales in the Black Hills National Forest

The Forest Service plans to sell 63,000 CCF (100 cubic feet) of timber in the Black Hills National Forest during this fiscal year. This represents a reduction from previous years and is approximately one-third of the allowable sale quantity specified in the forest plan, which is 181,000 CCF.

Sawmill Layoffs and Closures

Recent sawmill layoffs and closures across the country:

• April 11, 2024: Neiman Enterprises announces 50 layoffs at Spearfish Forest Products.
• March 29, 2024: The West Fraser Sawmill in Perry, Florida, closes, affecting 126 workers.
• March 20, 2024: Roseburg closes its particleboard plant in Missoula, Montana, resulting in 150 layoffs.
• March 14, 2024: Pyramid Mountain Lumber in Seeley Lake, Montana, plans to wind down operations and close, affecting 100 employees.
• Feb. 25, 2024: Allegheny Wood Products shuts down in West Virginia, eliminating jobs for 850 employees and contractors.
• Feb. 16, 2024: Interfor shuts down its Philomath, Oregon, sawmill, leading to 100 job cuts.
• Feb. 9, 2024: Resboro Co. closes a mill in Springfield, Oregon, resulting in 25 layoffs.
• Jan. 10, 2024: Hampton Lumber indefinitely shuts down its sawmill in Banks, Oregon, leaving 58 employees without work.
• Jan. 9, 2024: West Fraser Timber Co. closes its sawmill in Maxville, Florida, affecting 80 employees, and indefinitely curtails operations at its sawmill in Huttig, Arkansas, affecting 140 employees.

SDGs, Targets, and Indicators

1. No Poverty

• Target 1.4: Ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services including microfinance.

8. Decent Work and Economic Growth

• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.

15. Life on Land

• Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and substantially increase afforestation and reforestation globally.
• Target 15.9: By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies, and accounts.

Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

The SDGs connected to the issues highlighted in the article are SDG 1 (No Poverty), SDG 8 (Decent Work and Economic Growth), and SDG 15 (Life on Land).

2. What specific targets under those SDGs can be identified based on the article’s content?

Based on the article’s content, the specific targets that can be identified are:

• Target 1.4: Ensure that all men and women, in particular, the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership, and control over land and other forms of property, inheritance, natural resources, appropriate new technology, and financial services including microfinance.
• Target 8.5: By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value.
• Target 15.2: By 2020, promote the implementation of sustainable management of all types of forests, halt deforestation, restore degraded forests, and substantially increase afforestation and reforestation globally.
• Target 15.9: By 2020, integrate ecosystem and biodiversity values into national and local planning, development processes, poverty reduction strategies, and accounts.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

The article mentions the following indicators that can be used to measure progress towards the identified targets:

• Number of job losses in the timber industry (Target 8.5)
• Timber volume measured in CCF (Target 15.2)
• Reductions in timber sales quantity in the forest plan (Target 15.2)

Table: SDGs, Targets, and Indicators

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Source: southdakotasearchlight.com

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