By JAMES RONALD SKAINS

The annual joint meeting between the Louisiana Forestry Commission and the Louisiana Tax Commission was held on December 11, 2000 in Baton Rouge. The purpose of the annual joint meeting, required by state law, was to determine the current average stumpage market value of trees and timber, and pulpwood for the purpose of predicting severance tax for the year beginning January 1, 2001 and end December 31, 2001.

Pine saw log timber stumpage was set at $369.12 per thousand and $46.14 per ton. Hardwood saw timber stumpage severance tax value was set at $228.39 MBF and $24.04 per ton. These stumpage values were down slightly from last year, by $5.00 per thousand on pine and $15.00 per thousand on hardwood.

On the other hand, Chip-N-Saw logs stumpage values were up about 5 per cent from the year 2000 severance tax rates. Chip-N-Saw stumpage was set at $100.42 per cord or $37.19 per ton.

However, both pine and hardwood pulpwood rates were set at rates 10 per cent lower than last year. Pine pulpwood severance tax rates were set at $25.16 per cord or $9.32 per ton for year 2001. Hardwood rates were set at $12.73 per cord or $4.47 per ton.

The conversion factors for log scale and cords to weight by the ton are as follows:

1. One thousand board feet (MBF) Pine Sawtimber Doyle Scale equals 16,000 pounds or 8 tons.
2. One thousand board feet (MBF) Hardwood Sawtimber equals 19,000 pounds or 9.5 tons
3. One cord of pine pulpwood equals 5,400 pounds or 2.70 tons.
4. One cord or hardwood pulpwood equals 5,700 pounds or 2.85 tons
5. One cord of Chip-N-Saw logs equals 5,400 pounds or 2.70 tons.

The severance tax stumpage prices are an average of actual production and stumpage prices paid in the last 4 quarters of activity in the timber industry in Louisiana. Totals for the last two quarters of activity in 1999 and the first two quarters of activity in 2000 are as follows:

1. Pine Sawtimber - 2,037,597.42 tons in volume for a value of $94,010,048.94.
2. Hardwood Sawtimber - 679,309.10 tons in volume for a value of $16,331,052.25.
3. Pine Pulpwood - 2,591,137.85 tons in volume for a value of $24,146,615.68.
4. Hardwood Pulpwood - 1,034,470.20 tons in volume for a value of $6,266,158.25.

Third Quarter 2000 results of timber harvesting are not yet available; however, second quarter 2000 timber harvesting numbers show a marked decline in stumpage price from $47.06 per ton to $45.41 per ton. Pine pulpwood also followed that trend from $9.61 in the first quarter of 2000 to $8.65 in the second quarter of 2000.

December 10, 2001 will be the next date as required by Louisiana statue for the joint meeting of the Tax Commission and Forestry Commission to meet and set the severance tax rates for year 2002.