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Timberland managers urged to adapt as stumpage prices face pressure

The article says stumpage-price pressure in the U.S. South is not expected to reverse quickly, and that rural land values are increasingly driven by land appreciation and recreational use.

Reported · Written up by our desk · Industry

LandThink argues that lower stumpage prices across the U.S. South are being held down by forces that are unlikely to be fixed by the next housing cycle or by additional tariffs on Canadian lumber.

In the piece, the outlet frames the key question for landowners and land managers as how to adapt to current market realities to maintain acceptable returns, warning that managing strictly around timber economics can miss the dominant return drivers for rural property.

LandThink says rural land values in Alabama increasingly reflect land appreciation and recreational value, rather than just timber cash flow, and it notes that buyers tend to fall into two broad categories with different needs.

The article concludes that understanding those buyer distinctions matters for what it calls smart timberland management in the current market.

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