Editor’s note: This article appears courtesy of Traci Rushing with the University of Arkansas 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 U.S.

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.

Recent research 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.

Experts 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.

“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, & 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, 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.

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,” he added.