Regional Price Variation of Southern Pine Sawtimber and Pulpwood

Knowledge of the causes of differences in regional prices of raw material is important for public policy formulation and mill location decisions. Regression models were used to relate regional resource characteristics to differences in stumpage and delivered wood prices in 28 regions of the southeastern United States. Delivered prices of pulpwood were positively correlated with pulping capacity and wood specific gravity. Pulpwood stumpage prices increased as the delivered price, tract size, and the potential number of bidders increased. High rural population densities and a high proportion of sawtimber in the growing stock were negatively correlated with stumpage prices. Sawtimber stumpage prices were positively correlated with sawmill and plywood capacity and size of sawlogs. Sawtimber stumpage prices increased as delivered prices and stocking per acre increased. A large proportion of the regional differences in prices could be explained by regional differences in wood quality, land use patterns, stocking, and industry location.

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