78 



This supply shortage has caused lumber prices to rise dramatically. Since Octo- 

 ber, the price trend of structural framing lumber has risen over 100 percent. Reflect- 

 ing long term uncertainty, lumber futures have increased at maximum levels on 

 many recent trading days. These unusual circumstances have caused manufacturers 

 to ship hardwoodlumber to the West coast as a substitute for softwood framing 

 lumber. Similarly, prices for fine hardwood sawlog veneer logs are escalating to 



record levels. . j xl l * 



Do not be misled by opponents to tmiber management and others who want you 

 to believe this drastic increase in lumber prices is the result of increased demand 

 and predictable seasonal fluctuations in lumber prices. This view is incomplete and 

 misleading. I would like to enter for the record a copy of our comments on the recent 

 CRS report on limiber prices. ... ^ ,_• . • i 



Demand is stronger than the 1991 recession low, but is average from a historical 

 perspective. This year we predict consumers will demand 48 biluon board feet, still 

 below the peak of 50.6 billion board feet. Even with average demand, prices are still 

 shooting through the roof „ , j i r 



In 1992, housing starts increased onlv 18 percent from the near record lows ot 

 1991. This is weak in comparison with the 61 percent increase in 1983 as the coun- 

 try came out of recession. Housing has traditionally led this country out of economic 

 recession. A lack of timber needed to produce lumber and other building materials 

 threatens to stall a strong economic recovery. 



SUMMARY 



The U.S. is second to no other covmtry in its commitment to sound forest manage- 



Forest management and the condition of U.S. forests have improved dramatically 

 since the turn of the century— and continues to improve. Growth now exceeds har- 

 vest by more than 30 percent. ^ „, , . ^ ij 



More than 30 percent of the national forests in Oregon and Washington are old 

 growth— some 6.29 million acres. More than half of this old growth (3.3 niillion 

 acres) is in wilderness and other land classifications where timber harvesting is not 



permitted. j. e ^i. r * 



All forest conditions, not just old growth, are important components ot the torest 

 ecosystem and part of the biological diversity. . 



Some have claimed not to have seen the forest for the trees— with satellite im- 

 agery you may not see the forest or the trees. 



There is reason to be optimistic regarding timber supply. The President has an- 

 nounced his commitment to breaking the timber supply gridlock in the Pacific 

 Northwest through a forest summit this Friday. As always, we stand comnutted to 

 finding practical solutions. As solutions are found, it is our hope that we can get 

 back to doing what we do best— supplying our nation with wood and paper products 

 in an environmentally sound manner and nurturing our renewable forest resources. 



That you for the opportunity to testify. I would be happy to answer any questions. 



Mr. Vento. Thank you for abbreviating your remarks. It is espe- 

 cially difficult because I have so many questions I would like to 

 ask, but I have got two minutes to get over to vote. I didn't want 

 to hold you up. Then I think other business will intervene. So we 

 will all send some written questions along, and you can try to re- 

 spond to them. Obviously, it has been a very provocative panel, and 

 it would have been helpful to ask questions, but there just isn't the 

 opportunity today. t. i . 



Thank you very much for your patience and your help m making 

 this a good hearing. We stand adjourned. 



[Whereupon, at 1:21 p.m., the subcommittee was adjourned.] 



