RHATIONAL PAPER C0. 
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The forest industries have been increasing 
their ownership of timberland for decades. 
They now own or have under long-term 
lease 42 million acres, nearly a quarter of 
all the timberland in the South. 
The area under long-term lease was close to 4 million acres 
in 1985. Most of the leased land is in pine (58 percent), 
with smaller amounts in oak—pine (11 percent) and hard- 
woods (31 percent). 
In the past, many forest products companies have found it 
advantageous to own large amounts of timberland. Some 
of the recognized advantages include an assured wood 
supply for mills that represent very large investments, 
augmentation of supplies of low-cost timber, an inflation- 
ary hedge, and certain tax advantages (O’ Laughlin and 
Ellefson 1982, Clephane 1978). In addition, banks some- 
times require that such companies own certain levels of 
timberland to qualify for loans. 
Although the latest survey data do not show a significant 
slackening in the acquisition of timberland by industry, 
several factors now seem to be operating that reduce the 
attractiveness of industrial ownership of timberland. These 
include cash-flow considerations, other investment opportuni- 
ties in a company’s portfolio, opportunities for land leas- 
ing and long-term harvesting rights, and the increased 
substitution of more-intensive forestry practices in place of 
land acquisition. 
Given this current setting, it has been assumed that the area 
in forest industry ownership will increase at a slower rate 
than in the past. Forest industries are projected to add around 
1 million acres over the next 45 years, including both fee 
simple purchases and lands under long-term lease. This 
represents a 3-percent increase. Most of the acquired land 
is expected to be in the South Central region. 
Public ownership of timberland in the South represents only 
about 10 percent of the total timberland base. Public own- 
ership of timberland is projected to increase slightly, by 0.6 
million acres or 3 percent, by 2030. Most of the increase 
is on other public ownerships (e.g., State lands), rather than 
national forests. d 
Projected Changes by Forest Management Type— 
Changes in the area of the major forest management types 
have large impacts on softwood and hardwood net annual 
growth and inventories. They also reflect the effects of man- 
agement practices and differences in practices among States 
and ownerships. 
The largest change in the area of forest management types 
since 1952 has been the 31-million-acre decline in the area 
of natural pine (table 3.10, fig. 3.12). Much of the pine in 
the South in 1952 seeded naturally on the fields and pas- 
tures that were idled as a result of the agricultural depres- 
sions of the 1920’s and 1930’s and the economic and 
social forces associated with World War II. In the absence 
of management activities, the natural forest succession in 
these stands is to mixed pine—hardwoods or hardwoods. Most 
of the other private timberland owners have been accept- 
ing whatever nature provides in the way of replacement 
species after harvest. Large areas of what had been pine 
stands on these ownerships have come back following cut- 
ting to mixed pine—hardwoods or hardwood stands. Large 
areas of natural pine have also been converted to cropland, 
home sites, roads, and other uses. 
As indicated in the tabulation below, part of the natural pine 
area is planted to pine after harvest. This, along with the 
conversion of mixed pine—hardwood and upland hardwood 
stands to planted pine, is reflected in the rapid increases 
in the area of pine plantations, from 1.8 million acres in 
1952 to 20.9 million in 1985. Forest industry accounted for 
most of this planting, including the introduction over time 
of increasing amounts of genetically improved stock. 
