The Pine Bluff Commercial reports that Arkansas’s forestry sector remains resilient in 2025 despite lower timber prices, continuing to play a major role in the state and regional economy. Forestry contributes billions to the southeastern US, led by the pulp and paper industry, while pine mills dominate due to abundant local resources.
Fewer operating mills and declining paper demand have led to overcrowded forests, increasing risks from pests, disease, and wildfires. In response, researchers and industry leaders are exploring new markets for small-diameter pine, including biochar, wood shavings, and mass timber for construction and infrastructure.
With continued innovation, sustainable forest management, and collaboration among landowners, industry, and universities, Arkansas’s forestry sector is expected to remain strong heading into 2026. Traci Rushing writes:
While timber prices have shown signs of decline in 2025, Arkansas’ forestry sector continues to demonstrate resilience, innovation and economic significance across the state and the broader southeastern United States.
A recent analysis by the Arkansas Center for Forest Business determined that the southeastern U.S. directly contributes $74 billion and $173 billion indirectly to the national economy from forestry and forest-product sectors. This accounts for 40.5% of the nation’s total forestry economic impact. The pulp and paper industry continues as the region’s largest forestry segment, adding $33.6 billion directly to regional gross domestic product, underscoring forestry’s broad economic significance. […]
Study shows that where wood-processing mills operate largely comes down to straightforward issues like having nearby timber, reliable transportation, and local infrastructure. Pine mills continue to lead the region because pine remains the most widely available resource in Arkansas and the surrounding states. […]
Despite pricing pressures, Arkansas’ forestry sector remains strong, anchored by solid economic contributions, cutting-edge research and progressive value-chain development. Continued collaboration among industry, academic institutions and landowners will be critical to sustaining economic and ecological health of Arkansas’ forests.
“Keeping forests vibrantly growing through active management is always the best response to market challenges,” Blazier said. “Our faculty are keenly aware of this and stay hard at work to develop innovations in management strategies and markets to help everyone who relies on our state’s abundant forests for their livelihoods and quality of life.”
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