By TRACI RUSHING | U of A System Division of Agriculture
While timber prices have shown signs of decline in 2025, Arkansas’ forestry sector continues to demonstrate resilience, innovation and economic significance across the state and the broader southeastern United States.
“Arkansas’ forests are overweight and becoming more obese every year.”
— Matthew Pelkki, UAM forest economics professor
A recent analysis by the Arkansas Center for Forest Business determined that the southeastern U.S. directly contributes $74 billion and $173 billion indirectly to the national economy from forestry and forest-product sectors. This accounts for 40.5% of the nation’s total forestry economic impact. The pulp and paper industry continues as the region’s largest forestry segment, adding $33.6 billion directly to regional gross domestic product, underscoring forestry’s broad economic significance.
Research Highlights: Supply, Mills and Resilience
Recent research on Regional Drivers of Primary Wood Processing Mills in the Western Southeast United States from the University of Arkansas at Monticello helps explain what the timber industry experienced in 2025. The study shows that where wood-processing mills operate largely comes down to straightforward issues like having nearby timber, reliable transportation, and local infrastructure. Pine mills continue to lead the region because pine remains the most widely available resource in Arkansas and the surrounding states.
This research also reflects a reality seen over the past decade, including 2025. There are fewer operating mills than in years past as the industry adjusts to changing markets and costs. Areas with a consistent timber supply and available workforce remain best positioned to support mills, while shifts in the economy, transportation expenses and policy decisions continue to shape how and where the industry grows.
Concerns for forest health
Since the early 20th century, forests have been partially harvested as they grow, with smaller and weaker trees removed for papermaking. This harvesting pattern leaves more light, water and nutrients for remaining trees and fosters more lush underbrush to support wildlife. With paper markets in decline, forests are getting more densely stocked with trees. This trend is a growing concern among forestry experts, as overcrowded forests are more vulnerable to health problems.
“Arkansas’ forests are overweight and becoming more obese every year,” said Matthew Pelkki, UAM forest economics professor and director of the Arkansas Center for Forest Business. “Our forests are becoming unhealthy. Forests don’t have heart attacks, but when overcrowded, they become more susceptible to insect infestations, diseases outbreaks and wildfires that can threaten the landscape and people’s lives.”
This trend reinforces the importance of active, sustainable forest management that supports both healthy forests and a strong forestry industry.
Innovation and new market pathways
Experts at UAM and with the Arkansas Forest Business Center are actively exploring new market opportunities to utilize the state’s abundant small-diameter pine. Potential markets include wood shavings and biochar for use in the poultry industry, as well as mass timber products for construction and infrastructure projects.
These initiatives focus on creating a supply chain for materials that have historically had limited markets. They also offer new economic opportunities for rural communities while supporting overall forest health.
“We’re looking at forest management approaches that foster development of trees marketable for higher-value products such as sawtimber without the need to partially harvest the forest to optimize health,” said Michael Blazier, dean of the UAM College of Forestry, Agriculture, and Natural Resources. “These management systems include planting strategies with fewer trees, pruning to foster log quality in wider spacings and grazing cattle under low-density tree overstory. Our faculty are also exploring management approaches that can reduce overstocked forests in areas without paper markets at optimal cost.”
Mass timber and infrastructure innovation
With the establishment of the Anthony Timberlands Center for Community Forestry and Economic Development at the University of Arkansas, research into mass timber applications is gaining momentum. One collaborative project, supported by faculty from the Arkansas Center for Forest Business, is investigating the use of mass timber products to construct county road bridges.
The use of mass timber offers several advantages beyond supporting forest management needs. Since it comes from a renewable resource, mass timber products have a relatively low carbon emission. Mass timber can also allow for faster construction timelines, while creating opportunities for economic development in rural communities through new value-added manufacturing.
Outlook for 2026
Despite pricing pressures, Arkansas’ forestry sector remains strong, anchored by solid economic contributions, cutting-edge research and progressive value-chain development. Continued collaboration among industry, academic institutions and landowners will be critical to sustaining both economic and ecological health of Arkansas’ forests.
“Keeping forests vibrantly growing through active management is always the best response to market challenges,” said Blazier. “Our faculty are keenly aware of this and stay hard at work to develop innovations in management strategies and markets to help everyone who relies on our state’s abundant forests for their livelihoods and quality of life.”
About the College of Forestry, Agriculture and Natural Resources and the Arkansas Forest Resources Center
The College of Forestry, Agriculture and Natural Resources, and the Arkansas Forest Resources Center, a University of Arkansas System Center of Excellence, brings together interdisciplinary expertise through a partnership between the University of Arkansas at Monticello and the University of Arkansas System Division of Agriculture. The College and Center are headquartered at the University of Arkansas at Monticello campus, but their programs range statewide with the mission of developing and delivering teaching, research, and extension programs that enhance and ensure the sustainability and productivity of forest-based natural resources and agricultural systems. Academic programs are delivered by the College of Forestry, Agriculture, and Natural Resources through the University of Arkansas at Monticello. Through the University of Arkansas System Division of Agriculture, research is administered by the Arkansas Agricultural Experiment Station, and extension and outreach activities are coordinated by the Arkansas Cooperative Extension Service.
Pursuant to 7 CFR § 15.3, the University of Arkansas System Division of Agriculture offers all its Extension and Research programs and services (including employment) without regard to race, color, sex, national origin, religion, age, disability, marital or veteran status, genetic information, sexual preference, pregnancy or any other legally protected status, and is an equal opportunity institution.
About the Arkansas Center for Forest Business
Established in 2021, the Arkansas Center for Forest Business is part of the University of Arkansas, College of Forestry, Agriculture and Natural Resources. The Center provides technical assistance for market-based solutions to forest resource challenges, programs for degree and post-baccalaureate education, and information on timber supply, forest products markets and operational efficiency. The Center for Forest Business will provide market-based economic solutions to forest resource issues, improving business practices for forest enterprises, and enhancing economic competitiveness.
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