2017 – A Year Of Turbulence “But The Good Times Are Coming” – Week 15

Timber Land

When most people think of timber land they think of the timber only being used for construction purposes. There are a number of uses of products that come from timber, some of which even include processed foods. However, fiber for construction is a major part of the use of timber that is grown in the United States.

Environmental regulations under the Clinton administration took most of the northwestern United States timber out of use. That shifted the burden so that today the southeastern United States and Canada are the main sources of fiber used in construction.

We anticipate in 2017 the new home construction market will remain relatively stable compared to 2016. However, we see growth in new construction in 2018 and into 2019. At that time we expect to see the demand for lumber increase which will impact the value of timber and timber land.