The wood resources that support Kentucky’s forest sector comeFigure 8 primarily from Kentucky’s forests. Each acre of harvested timber is estimated to contribute $23,288 to Kentucky’s economy. This contribution starts with the woodland owner who receives, on average, $1,033 per acre for timber sold based on the statewide average of 3,563 board feet of timber harvested per acre at $0.29 per board foot. Remaining economic contributions are calculated by dividing the direct cash output of each forest sub-sector by the estimated number of acres harvested in 2020.

The wood flow diagram shows how most of the harvested timber moves through the supply chain. Loggers harvest the timber and transport it to a mill for processing into primary products like lumber, crossties, or paper. Secondary industries then convert the primary products into a final product. Virtually no wood is wasted in the supply chain as products such as sawdust, chips, and bark are sold or used in other industries. Each step along the way, from the woodlands to the final wood-using industry, contributes to the economy. The most value is added by the secondary industry. This indicates the importance of ensuring a good business climate for secondary wood products industries in Kentucky. Woodland owners and logging are individually the smallest direct contributors; however, without woodlands and logging the Kentucky.