I got 30 wooded in acres in Arkansas that’s got 70 year old growth, how much am I rolling in it if I sell the trees fellas
Supply chain and builders are building homes as fast as they can because of the stupid housing market. Nothing like trillions of dollars in extra demand without an increase in supply.
"Lumber Firms Applaud, Home Builders Angry As U.S. Moves To Double Canadian Lumber Tariffs": https://www.zerohedge.com/markets/l...angry-us-moves-double-canadian-lumber-tariffs excerpt: The U.S. Department of Commerce says it will seek to double tariff rates on most Canadian softwood lumber, angering home builders. New rates vary by company. West Fraser goes from 9 percent to 11.4 percent, Canfor from 4.6 to 21 percent, Resolute Forest from 20.3 to 30.2 percent, and J.D. Irving from 4.2 to 15.8 percent. The overall increase is from 9 percent to 18.32 percent. Home builders, who had been urging for a removal of tariffs, expressed their disappointment. “At a time when soaring lumber prices have added nearly $36,000 to the price of a new home and priced millions of middle class households out of the housing market, the Biden administration’s preliminary finding to double the tariffs on Canadian lumber shipments shows the White House does not care about the plight of American home buyers and renters who have been forced to pay much higher costs for housing," said National Association of Home Builders chairman Chuck Fowke. “The administration should be ashamed for casting its lot with special interest groups and abandoning the interests of the American people. It knows that the lumber tariffs are nothing less than a tax on American home buyers, renters and businesses that rely on lumber products and they could not have come at a worse time. Lumber prices are already up more than 300 percent from a year ago. If the administration’s decision to double tariffs is allowed to go into effect, it will further exacerbate the nation’s housing affordability crisis, put even more upward pressure on the price of lumber and force millions of U.S. home buyers and lumber consumers to foot the bill for this ill-conceived protectionist action. more at the link
This has only been an ongoing trade fight for 40 years https://en.wikipedia.org/wiki/Canada–United_States_softwood_lumber_dispute We talked about this somewhere in the D&D 4 years ago when Trump jacked the tariffs from 3% to 24%.
Was the question what is gonna help or why is it so high in the 1st place? It was the 2nd in case you had trouble figuring it out.
Of course not. It's a complicated ongoing thing that has a several other components other than "tariffs bad"; that said I'm not sure now is a good time to be reviewing Canada's dumping and subsidy policies.
Sounds kinda like the oil industry through the 90's and also seems like an infrastructure issue. It also seems like blip that will work itself out relatively quickly. Instead, the culprit is the decade of instability and low prices that followed the Great Recession, when America stopped building homes, leaving the lumber trade out to dry. The stunted recovery stripped the industry’s crucial middlemen—the mills themselves—to the bone. Building a new deck is expensive now because mills can’t ramp up to meet the demand surge—or won’t, nervous they’ll get caught with millions in underused machinery when prices crash back to earth. Nowhere more so than Maine, the nation’s most forested state, where wood and paper make up about 10 percent of the economy. The long-term decline of New England paper mills has taken the bottom out of the timber market here. Lumberjacks like Andrews have nowhere to go with anything that’s not a grade-A saw log; sawmills have nowhere to send the scraps that remain when a cylindrical log is cut into rectangular boards. Last spring, for example, a digester that processes wood pulp at a paper mill in Jay, Maine, exploded—robbing both Samuel Andrews and Robbins Lumber of a buyer for chips, branches, knotty wood, and the narrow, tapering tops of the tree trunks. The mill’s Pennsylvania-based owners have decided not to replace it, and laid off more than 150 workers. The story is a typical one in Northern states, where slow-growing trees produce higher-quality fiber that goes into dying products like printer paper, newspapers, and phone books. (In the South, where trees grow twice as fast, scraps are better-suited for booming, lower-quality uses like cardboard and toilet paper.) This symbiosis is important to the sawmills. Eric Kingsley, an industry analyst in Portland, Maine, recently helped a large company study the possibility of putting a sawmill in Maine. “The big constraint wasn’t workforce, it certainly wasn’t log supply, it was ‘What do we do with all these chips?’ Because if another paper mill closes, are we going to be able to move these in 20 years?”
It's just demand and lumber sellers wanting to cash in on it. The pandemic made people divert their usual spending from trips, and doing things like movies, theme parks, etc. to renovating their homes. There also is a housing boom that we all are well aware of here in Texas. People renovating homes also puts homes in general on the mind which creates awareness of the potential to sell & move. At first there was a shortage due to supply chain issues, but my understanding is that now they are pretty much at normal supply capacity. I assume that at some point there will be enough of a slow down in purchasing to where there will be an oversupply and the need to liquidate at a lower cost.... HOPEFULLY cause my fence is looking roughhhhhh lately, and I've been holding out for far too long to replace it.
Interestingly its the finished wood products that have been so high. Raw lumber is still hard to "give away" to the mills. Mills are already operating at capacity and we've had a glut of raw timber for about a decade. It's the demand side AFTER the mill that has the shortage.
