The Economic Contributions of Forestry and Forest Products in Grenada County

Filed Under:

Publication Number: M1672

Grenada County

The forestry and forest products industries are a major component of Grenada County’s economy. The forest-related economic sectors generate value not only within their own sectors but also in other sectors of the economy. The multiplier effect of economic activity in one sector and the impacts on other sectors can be estimated using input-output analysis. Using 2022 data, this study estimates the economic contribution of the forestry and forest products industries to Grenada County, Mississippi.

Employment and Income Contributions

Forest-related economic activity in Grenada County during 2022 generated 1,417 jobs and nearly $85.33 million in income. That’s about 10.87 percent of jobs and 13.77 percent of income in the county. Employment is the number of full- and part-time jobs in all sectors of the economy. Income includes all forms of employment income, including employee compensation (wages and benefits) and proprietor income, also referred to as labor income.

Total Output and Value-Added Contributions

Over $548.33 million, or about 21.69 percent of economic output in Grenada County, is generated by the forestry and forest products industries. Forest-related value-added amounted to over $182.4 million, or about 16.95 percent of all value-added in the county. The value of all goods and services produced is defined as total output. Value-added is a portion of total output and represents the creation of new wealth.

**Table 1. Contributions from forest-related sectors on employment and income in Grenada County, Mississippi, 2022.**
Sectors	Number of Jobs	% of County	Income ($)	% of County
Direct Contribution from Forest Related Sectors
Forest Support Service	24	0.18	663,375	0.11
Logging	68	0.52	5,944,390	0.96
Solid Wood Product	221	1.69	17,040,045	2.75
Pulp and Paper	371	2.85	30,223,565	4.88
Wood Furniture	1	0.01	1,209	0.00
Subtotal	685	5.25	53,872,584	8.70
Indirect and Induced Contributions on Sectors
Retail and Wholesale Trade	228	1.75	9,758,659	1.58
Real Estate, Finance, and Insurance	45	0.35	1,860,922	0.30
Services	197	1.51	7,580,213	1.22
Construction and Manufacturing	57	0.44	3,256,395	0.53
Health Care	33	0.25	1,689,285	0.27
Transportation and Warehousing	64	0.49	3,870,684	0.62
Government	13	0.10	785,785	0.13
Agriculture Production and Services	4	0.03	82,968	0.01
Food and Fiber	83	0.64	2,405,969	0.39
Hotels and Entertainment	5	0.04	118,030	0.02
Education	2	0.02	43,895	0.01
Subtotal	731	5.61	31,452,805	5.08
Total Impact from Forest Related Sector	1,417	10.87	85,325,389	13.77
Rest of the County	11,624	89.14	534,112,063	86.23
Total in County	13,040	100.0	619,437,452	100.0

**Table 2. Contributions from forest-related sectors on total output and value-added in Grenada County, Mississippi, 2022.**
Sectors	Output ($)	% of County	Value-Added ($)	% of County
Direct Contribution from Forest Related Sectors
Forest Support Service	817,876	0.03	681,455	0.06
Logging	9,475,286	0.37	6,700,191	0.62
Solid Wood Product	140,418,326	5.55	48,817,839	4.54
Pulp and Paper	280,902,386	11.11	69,414,919	6.45
Wood Furniture	211,006	0.01	2,751	0.00
Subtotal	431,824,880	17.08	125,617,155	11.67
Indirect and Induced Contributions on Sectors
Retail and Wholesale Trade	34,217,623	1.35	18,939,299	1.76
Real Estate, Finance, and Insurance	15,194,124	0.60	8,995,237	0.84
Services	19,872,342	0.79	9,832,292	0.91
Construction and Manufacturing	20,226,748	0.80	5,650,967	0.53
Health Care	2,774,050	0.11	1,822,882	0.17
Transportation and Warehousing	14,267,938	0.56	6,583,419	0.61
Government	996,052	0.04	995,731	0.09
Agriculture Production and Services	204,565	0.01	91,058	0.01
Food and Fiber	8,228,722	0.33	3,573,217	0.33
Hotels and Entertainment	452,638	0.02	254,731	0.02
Education	72,980	0.00	39,336	0.00
Subtotal	116,507,782	4.61	56,778,169	5.28
Total Impact from Forest Related Sector	548,332,662	21.69	182,395,324	16.95
Rest of the County	1,979,975,814	78.31	893,749,887	83.05
Total in County	2,528,308,476	100.0	1,076,145,211	100.0

Estimates developed using IMPLAN software and data. Timber harvest value according to the Mississippi Harvest of Forest Products Report.

M1672 (POD-05-25)

Revised by Sabhyata Lamichhane, PhD, Assistant Professor, Niraj Gupta, Undergraduate Student, and Sushma Bhattarai, Extension Associate I, Forestry; James E. Henderson, PhD, Extension Professor and Head, Coastal Research and Extension Center; and Donald Grebner, PhD, Professor and Head, Forestry. By Shaun M. Tanger, PhD, former Assistant Extension Professor; Marcus K. Measells, Extension Associate III, Forestry; and Ian A. Munn, PhD, former Associate Dean and Professor.

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