Record High Prices for Construction Grade Panels, Provides Alberta with a New Source of Revenue

As oil and gas prices plunged, the province of Alberta was suffering from a huge decline in revenue funds for their coffers. However, record high prices for construction paneling has created a resource, which for now, is helping to makeup some of those losses. Coniferous stumpage fees — paid by forest companies for evergreen wood such as pine or spruce harvested from Crown land — have nearly doubled to $67.31 in September, from $36.56 per cubic meter in August. That is more than eight times the $8.27 per cubic meter assessed in September 2019 and far exceeds the recent high of $40.25 reached in June 2018 during the last big North American lumber price spike. Brock Mulligan, spokesman for the Alberta Forest Products Association said, “Right now, industry is definitely thriving and it’s good news for the 40,000 people whose jobs depend on forestry.”