TIMBER PRICES

Timber prices increased significantly from historical levels in the early 1990’s due in part to the decreased harvest on federally controlled forests and a strong Asian economy. As a result of the price increases, forest product utilization has improved. Today, delivered sawlog prices for both Douglas-fir and Western Hemlock are close to 50 percent off from their peaks reached in 1993. We expect current prices to increase somewhat in the next one to two years to levels more consistent with historical trends.

[Prices are quoted in constant $ using the year 2006 as base]