The Price of White Pine Stumpage and Lumber 



During The Movement of New Hampshire 



Sawmills Into and Out of Production 



By Michael R. C. Massie and Oliver P. Wallace* 



I. A PROBLEM 



The sawmill industry in New Hampshire has been declining in pro- 

 duction and number of mills over the past several years. Explanations 

 for these reductions cite loss of markets, decline in quality of the for- 

 ests and price changes. No specific studies have been made of the de- 

 cline but evidence of it is clear-cut in annual reports of the State For- 

 estry and Recreation Commission.! A decline or rise in the sawmill in- 

 dustry is of vital importance to the state of New Hampshire. The citizens 

 of the state whose economic welfare is dependent upon the industry, as 

 well as pulilic and private forestry agents who help plan for future sup- 

 plies of the industry's raw material, are interested in its well-being. It 

 seems apparent that quality of stumpage and lumber, along with the 

 reflected price of these factors, may be a deterrent or an incentive to 

 the operation of sawmills. An investigation of this situation should be 

 of economic interest and concern as it describes, in part, the weKare of 

 the state. 



Since prices for white pine lumber and stumpage over time are avail- 

 able! and since price is a measure of quality, the interrelationship be- 

 tween price, quality and decline in white pine lumber production in 

 New Hampshire seemed to be a logical first study. To do this, the 

 changes in the sawmill industry situation since 1946-47 and annual 

 fluctuations in lumlier output were determined. These are then related 

 to white pine stumpage and lumber prices over the same period. 



II. REVIEW OF LITERATURE 



Sawmill Changes 



Hopkins (1961) indicates that the significance of the small mill in 

 the southern lumber industry will tend to diminish. His view is that 

 larger, more efficient mills with lower processing costs will subject them 

 to severe competition. Lehman (1961) reports of the change in the saw- 

 mill industry in the Tennessee Valley. A study covering the period from 



* Mr. Massie was formerly a graduate student in the Department of Forestry, and 

 a research assistant with the Agricultural Experiment Station. Dr. Wallace is Asso- 

 ciate Forester, Agricultural Experiment Station. 



t Now the Division of Resources Development in the New Hampshire Department 

 of Resources and Economic Development. 



t New Hampshire Forest Market Reports, Extension Service. The Commercial 

 Bulletin, Boston, Massachusetts. 



