Forests cover more than 750 million acres in the United States with nearly two thirds of it utilized as commercial timber land. The South contains 40 percent of this timber land and is often referred to as the “woodbasket” of the U.S. because of its extensive timber supply. If you are looking for a timber loan, let AgAmerica build a customized loan package to meet your needs.
Timber Industry Overview
The United States contains roughly 750 million acres of forested land, and almost 430 million acres, or 60%, of that land is privately owned.
Those privately owned forests supply over 90 percent of the wood harvested in the United States for the construction of homes and the manufacturing of furniture, paper and other wood products.
According to the 2007 Census of Agriculture (2009), over $595 million of forest products were sold from 47,603 farms.
According to the Forest Service’s Forest Products Laboratory, lumber production began a downward trend in the mid-2000s. They speculate that this downward trend in lumber production reflects the recent economic downturn, and once economic conditions have improved, lumber production will again increase.
South Carolina Borrower Invests in Timberland Operation
The solution: This borrower’s dream was to build a garage and shop on his 50 acre rural property in South Carolina. He planned to house his tractor and other tools and machinery necessary to running a timberland operation. Despite numerous attempts with other lending institutions, the borrower turned to AgAmerica for a low-interest-rate loan and a quick turnaround.