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Spring of Destruction: Natural Disasters Destroy Southern Timber

It’s going down in the record books as one of the most destructive springs in the South in more than a half-century. Record tornadoes, heavy rains, floods, hail and forest fires seem to converge throughout April and May to cause a huge amount of damage to people, property and the timber industry. According to Time magazine (June 6), this year’s tornado season is—so far—the deadliest and most widespread since 1953. And it’s not over yet.

The timber industry in the South has been particularly hard hit. According to the Georgia Forestry Commission, depending on the strength of the tornado, individual landowners can expect to derive about 20 cents on every dollar they have invested in their timber, taking away the bulk of their projected earnings.

Even when trees damaged by tornadoes are salvageable, they are often hard to log. Tornadoes strike along fairly narrow swaths of land, making it difficult and cost-prohibitive for loggers to remove the remaining stems. The result is often a total loss for landowners.

And when salvaged timber can be moved to market, it is not uncommon for local markets to suffer from an oversupply of wood. In this economy, with the construction industry still struggling and lumber prices already low, low-cost damaged timber could drive prices down even further.

Among the losses experienced during this spring of destruction:

  • Alabama estimates it suffered nearly $259 million in downed timber from the spring weather disturbances.
  • In Mississippi, more than 71,000 acres of trees were damaged by tornadoes, accounting for over $21 million in losses.
  • North Carolina reports close to 4,700 acres of timber lost or damaged valued at $4 million.
  • Georgia is reporteing that April 27-28 tornadoes destroyed 161,208 acres valued at more than $68 million.

Throughout the South, recovery and cleanup is now in full swing. While organizations and governments throughout the ravaged areas are trying to provide assistance to timberland owners, state and federal budget woes will limit the amount of help they are capable of providing.

Because the damage in Alabama is so severe, the government there has taken a number of steps to help timberland owners. Governor Robert Bentley issued a proclamation dealing with the disasters. In it, he encouraged efforts to salvage as much of the estimated $259 million in timber as much as possible. Working with the Alabama Department of Transportation, he relaxed weight limits for hauling storm wood. Loads up to 95,000 pounds are now allowable.

In another development, Governor Bentley also announced the creation of the Alabama Forest Recovery Task Force (AFRTF). Through his executive order, the AFRTF will facilitate timber salvage efforts, maximize the recovery of the timber damaged by the spring storms and limit the loss of timber volume and value.

As far as programs offering financial assistance to help reforest timberland that has been destroyed, the news is not so good. The federal Emergency Forest Restoration Program (EFRP), for instance, was designed to provide assistance to eligible owners of nonindustrial private forest (NIPF) land to help restore land damaged by natural disaster. However, though the Georgia Forest Commission requested funding to administer that program, they have not received funds to do so. Still, landowners who lost timber to one of this Spring’s disasters should check with their state or local Farm Service Agency offices to confirm that funding is not available.

Another thing timberland owners can do is to take advantage of the tax relief that governments often offer post-disaster. For areas that have been declared disaster areas by the President, a casualty loss can be taken by filing an amended tax form for the previous year. Otherwise, the loss should be claimed when the current year’s tax forms are filed.