The Georgia timber industry, once the backbone of the state economy and a national leader in wood exports, is now fighting to survive after a devastating chain of mill closures and plummeting wood demand that has left landowners and workers reeling and searching for new paths forward. Farmers, truck drivers, mill operators and lawmakers are now scrambling to find fresh ideas to revive a sector that underpins Southeast Georgia’s rural communities.
Georgia’s timber economy has been hit hard since two major timber and paper mills shut down in late 2025, triggering an unprecedented downturn. These closures have sharply reduced demand for raw wood, hurting jobs, land values, and the future of forest replanting in the region.
Major Mill Closures Causing Economic Shock
In late 2025, International Paper permanently shut both its Savannah and Riceboro mill operations in Coastal Georgia, eliminating hundreds of jobs and removing a major buyer from timber markets that once helped make the state the nation’s largest timber exporter.
The economic fallout has been severe:
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Timber demand in Southeast Georgia dropped by more than 60 percent after the closures.
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Pulpwood prices plunged from roughly fifteen dollars per ton to around five to six dollars per ton, squeezing landowners.
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Downstream jobs for truckers, loggers and mill workers have dried up, undercutting rural communities.
Industry data from a recent state forestry task force report shows the total economic impact of these closures could amount to billions of dollars in lost income and output for Georgia’s economy and nearly 7,000 total jobs directly or indirectly affected.
Truck drivers, landowners and contractors describe a bleak picture. One timber owner said that what was once a thriving saw‑haul business has now become barely viable, forcing him to cut his own salary in half just to keep operations going.
Timber Farmers Feeling the Pain
For many landowners, the math simply does not add up anymore. Landowners typically earn money by selling wood for pulp and sawtimber, but when prices fall too low, the cost of replanting forests outweighs any profits from selling trees decades into the future.
One Southeast Georgia timber farmer explained that with the current price per acre of pulp wood near historic lows, replanting an acre costs almost as much as any future income from selling it.
This dynamic has real consequences beyond individual books:
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Some landowners are delaying or cancelling reforestation altogether because they cannot justify the cost.
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A slump in timber prices has ripple effects throughout rural economies that depend on logging, trucking, equipment sales and mill maintenance.
Without steady demand for harvested wood, many workers and small businesses are struggling. One mill owner reports slim profit margins and challenges in sourcing raw timber for even smaller specialty operations like pole mills.
Lawmakers, Task Forces and Proposed Policy Changes
In response to mounting industry pressure, Georgia political leaders have begun exploring both short‑term and long‑term solutions. Governor Brian Kemp’s administration has allocated fourteen million dollars in a draft state budget to address timber sector challenges and support innovation.
However, most of that funding is earmarked for research and development projects at Georgia Tech, focusing on new wood products and technologies, rather than direct assistance to struggling landowners or workers.
A bipartisan bill in the state legislature, House Bill 1000, also aims to lift local taxes on timber sales. If it passes both chambers, the measure would become a constitutional amendment and eventually head to a statewide vote. Supporters say reducing tax burdens could help timber sellers break even.
Despite these steps, some farmers feel lawmakers are moving too slowly. Timber producers say the urgency of the economic contraction requires swift attention from policymakers.
Pivot Toward Innovation and New Markets
Industry leaders are pursuing creative ideas to breathe new life into a hollowed‑out market. At a private forestry summit in Southeast Georgia, stakeholders discussed several promising alternative uses for timber and wood fiber.
One of the top concepts gaining traction is mass timber products. Mass timber is a category of engineered wood used in construction that can replace steel or concrete in some building projects. It produces strong, sustainable building components that may command higher market value than pulpwood.
Architects and engineers at the summit highlighted how floor slabs and structural materials made from mass timber can reduce construction time and costs.
Another future market — sustainable aviation fuel — also emerged in discussions. This fuel, partly made from wood fiber, is being mandated in Europe to reduce carbon emissions in jet fuel. However, European tariff barriers and competition from other raw materials mean this opportunity may be years away from scaling in Georgia.
Struggle, Hope and Community Resolve
Despite ongoing hardship, many industry participants express cautious optimism about the future. Lawmakers and business owners emphasize the state’s deep timber heritage and the ingenuity of forest entrepreneurs.
One veteran mill operator said that while market conditions remain tough, he believes local leadership understands the timber economy because many of them come from farming backgrounds.
Beyond economic calculations, timber families from Georgia’s rural heartlands have watched this downturn affect their way of life. The closure of once‑booming mills is more than a financial blow; it alters the social fabric of towns reliant on forestry for generations.
