News in timber

Weyerhaeuser Company announced on Thursday (7-8-21) that they have completed the sale, originally announced in April 2021, of 145,000 acres of timberlands in the North Cascades region of Washington state to Hampton Resources for $266 million.

A dry winter and early heat waves have the entire State of California is in the grip of drought, much of it classified as extreme or exceptional. So far this year, the number of wildfires and the amount of land burned in bone dry California has greatly exceed totals for the same period in the disastrous wildfire year of 2020. Between 1st January 1, 2021 and July 4, 2021, there have been 4,599 separate fires that have scorched 114.8 square miles.

The bark beetle infestation that destroyed large portions of forest in the southern Sierra Nevada’s has moved into the North State, killing millions of trees and adding fuel to an already dangerous wildfire season. And according to the U.S. Forest Service, the federal agency responsible for managing much of California’s forested lands, it is a problem that won’t be going away anytime soon.

CatchMark Timber Trust, Inc. announced on Thursday (6-24-21) that had entered into a definitive agreement to sell 18,063 acres of prime Oregon timberlands — known as the Bandon property — for $100 million in cash, or approximately $5,536 per acre, to Roseburg Resources Co. CatchMark purchased the property in August 2018 for $88.8 million, or $4,916 per acre, exclusive of transaction costs.

J.P. Morgan Asset Management announced on Monday (6-21-21) that they have acquired forest management and timberland investing company, Campbell Global, LLC. The terms of the transaction with Campbell Global’s parent company, BrightSphere Investment Group, were not disclosed.

According to data from the U.S. Bureau of Land Management (BLM), the number of new wildfires in the U.S. so far this year is at a 10-year high. Since January, more than a million acres have burned from more than 28,000 wildfires — the highest number of fires for this date since 2011. There are currently 33 active large fires across the West.

According to a press release provided by the South Central Oregon Fire Management Partnership (SCOFMP), as of Friday morning (6-11-21), the Fire Danger level in the area has been elevated to “High”. Early season summer-like hot, dry weather, depleted snowpack and rapid drying of forest fuels have resulted in fire danger levels reaching “High”.

With fire conditions and behaviors typically seen in mid-to-late July currently taking place, forest managers in northeast Oregon are declaring an early start to the 2021 fire season. The announcement was made on Tuesday (6-8-21), as Oregon Department of Forestry firefighters worked to contain two wildfires ignited by lighting in the region.

Elevated prices for finished lumber and panel products have led several Canadian provinces to raise the timber royalty rates they are charging to lumber manufacturing companies. New Brunswick is not, at least not as of yet. The province instead continues to standby a decision made to keep its royalty rates frozen at levels set 6-years ago by the former government.