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United States Department of Agriculture
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Export chip prices as a proxy for nonsawtimber prices in the Pacific Northwest.
Author(s): Gwenlyn M. Busby
Date: 2006
Source: Res. Note PNW-RN-554. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 14 p
Publication Series: Research Note (RN)
Station: Pacific Northwest Research Station
PDF: Download Publication (671 KB)Description
Forest-land managers use price data and market analysis to form expectations and make informed management decisions. There is an abundance of price data for sawtimber, but for nonsawtimber, the availability of price data is limited. This constrains the ability of forest-land managers to form reasonable price expectations for stands that contain both sawtimber and nonsawtimber. In this paper, I show that export chip prices are a reasonable proxy for nonsawtimber prices in the Pacific Northwest. This conclusion is supported by evidence of arbitrage between the chip export market and three domestic markets in the Pacific Northwest. As to the chip export market in general, I observed increasing chip prices from 1968 through 1995, a structural break in 1995 after which point we observe declining prices. I also found evidence of an inverse relationship between chip price and lumber production.Publication Notes
- Visit PNW's Publication Request Page to request a hard copy of this publication.
- We recommend that you also print this page and attach it to the printout of the article, to retain the full citation information.
- This article was written and prepared by U.S. Government employees on official time, and is therefore in the public domain.
Citation
Busby, Gwenlyn M. 2006. Export chip prices as a proxy for nonsawtimber prices in the Pacific Northwest. Res. Note PNW-RN-554. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station. 14 pCited
Keywords
Wood chips, nonsawtimber, chip prices, residue pricesRelated Search
- Chip prices as a proxy for nonsawtimber prices in the Pacific Northwest.
- Stumpage prices, volume sold, and volumes harvested from the National Forests of the Pacific Northwest Region, 1984 to 1996.
- The rise and fall of the Pacific Northwest log export market.
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https://www.fs.usda.gov/treesearch/pubs/25263