Timber prices fluctuate over time based on regional and global demand, mill capacity, and broader economic trends. Understanding these price movements can help landowners make more informed decisions about forest management and whether a carbon project makes sense for their management objectives. In this article, we’ll take a closer look at how timber markets in the U.S. Southeast have been trending over the last several years.
Southeast Timber Market Changes and Analysis
Paper Mill Closures
Over the past decade, timber markets across the U.S. Southeast have continued to weaken, driven mostly by mill closures and declining pulpwood demand.
Between 2023–2025, more than ten Southern pulp/paper mills closed. In Georgia, Georgia-Pacific closed its Cedar Springs containerboard mill in August 2025, and International Paper closed its Savannah and Riceboro plants, reducing annual milling capacity by around 1 million tons. The Georgia Forestry Commission estimated these closures imposed $1.7 billion direct loss to the state economy. Elsewhere, mills in Florida, Alabama, and Mississippi have also cut operations or closed entirely.
Pulpwood Prices and Stumpage
These mill closures have diminished or eliminated pulpwood demand in places, putting downward pressure on stumpage prices across the region with wide variance.
Pine pulpwood stumpage prices averaged ~$9/ton across the southeast in 2021, but by 2025 were down to just $3-$6 in Tennessee, Arkansas, Louisiana, South Carolina, Mississippi and were only slightly higher in Georgia and Alabama. In North Florida, eastern North Carolina, and Virginia, pine pulpwood markets have been a little stronger but are still only maintaining prices between $9–14/ton.
The Current Timber Market’s Effect on Landowners
Across the Southeast, pine and hardwood pulp prices were down to an average of $6.48 and $7.80 stumpage, respectively, and $30.01 and $32.53 delivered for 2025. For many landowners, these prices barely cover harvesting and transportation costs, leaving little or no profit from timber sales. Pulpwood prices are projected to remain weak through 2026 absent new mill investments. Sawtimber prices have been somewhat more resilient, supported by housing and export markets, but still face oversupply and stagnant prices.
The consequences of these timber market conditions for private forest owners are significant. Lower timber prices reduce the overall value of forestland and make it harder for landowners to justify investments in replanting, thinning, and other long-term management. In some cases, the revenue from harvesting pulpwood is now so low that landowners may choose to delay thinning operations or avoid replanting altogether after harvesting. This can lead to:
- Overcrowded forests
- Slower tree growth
- Increased vulnerability to pests, disease, and wildfire
Additional Drivers of Timber Market Changes
These shifts in timber market economics and forest management come at a time when private forestland in the U.S. is facing several other major challenges.
Climatic shifts and extreme weather events are accelerating forest damage. Urban development is encroaching upon forestland and creating pressure to deforest. All of this is also happening in the middle of a massive generational land transfer. When these challenges are paired with declining timber markets, the result can be a significant loss of forestland at a time when conserving these lands is critical to meeting climate goals, preserving critical ecosystem functioning, and family legacies.
Carbon Credits for Timber Land with LandYield
Fortunately for private forest owners, carbon markets provide an increasingly accessible opportunity to capitalize on the vital public goods provided by private forestland. LandYield enables private forest owners with as little as 40 acres of merchantable timber to receive regular payments for managing healthy forests for increased carbon sequestration.
LandYield’s innovative mapping platform makes the entire project development process free and straightforward. LandYield uses a combination of forest data from remote sensing and US Forest Service ground plots to assess forest conditions and carbon stocking across every forested acre of the 32 states where its program is available. That means no lengthy and expensive feasibility studies and months of waiting to hear what acres are eligible and how much revenue they can earn.
How Many Carbon Credits Per Acre of Trees?
On average, LandYield provides payments between $25-50*per acre per year to delay commercial harvesting and increase carbon sequestration in merchantable timber. The program allows management activities that increase forest health and are supervised by a forestry professional. The payments, which come in quarterly increments, can help cover carrying costs, maintenance and taxes.
The 40-year commitment required to enter the carbon program ensures the credits are considered high integrity and are sought after by corporate buyers. The long-term commitment also ensures that family forest lands can be passed on to heirs with a steady revenue stream and a solid partner to alleviate financial and decision pressures on families.
Find out more about LandYield’s forest carbon program.
*Payments subject to eligibility and vary with forest conditions.