The price outlook for the bulk of the 
hardwood timber—the smaller sized 
timber of common species—is for 
lower prices than for softwood timber. 
However, after 2000, as hardwood 
inventories begin to show substantial 
declines in response to increased 
removals, stumpage prices are expected 
to rise. 
During recent decades, there have been 
demand pressures on high-quality 
preferred hardwood species such as 
select white and red oak, walnut, hard 
maple, and black cherry. The resulting 
stumpage price increases led to the 
development of substitutes such as 
plastic overlays for furniture. Although 
analyses of the past decade have been 
mixed as to continuation of price rises, 
Index (1967 = 100) 
120 
100 
80 
60 
40 
20 
0 
1805 1855 
it is assumed that prices for preferred 
species will rise in the future because 
of strong demands for these species. 
Rising stumpage prices will be 
reflected in prices of timber products. 
For example, softwood lumber prices 
measured in real terms increase at 
annual rates of about 0.5 percent over 
the projection period. 
1905 
Figure 15—Relative producer price index for lumber, 1805-1985. 
Water Demand-Supply— 
The Outlook 
Outlook Overview 
e Water demands will increase 
significantly in the years ahead. 
e Limits on water supplies will force 
reallocation of available supplies 
among users, especially in some parts 
of the West. 
e Reallocation of supplies will 
generally be from uses such as 
irrigation (where quality is not an 
overriding concern) to municipal use 
(where quality can be all important). 
e Markets may facilitate reallocation 
of water use, but management of some 
watersheds, especially on public lands, 
may become more important from the 
1955 1985 
