Virginia Forestry Industry Faces Mounting Pressures as Mills Close, Threatening Sustainability

Virginia's forestry sector, worth $23 billion annually, is confronting serious challenges including mill closures and labor shortages. The Virginia Wood Council has formed to address these issues that could impact forest management across the region.

CHARLOTTESVILLE, Va. — Virginia’s forestry leaders are working to address mounting pressures that could undermine the long-term viability of forest management throughout the state.

The newly formed Virginia Wood Council convened its inaugural meeting in September, bringing together representatives from various industry groups and government agencies. Participants included the Virginia Farm Bureau, Virginia Forestry Association, Virginia Loggers Association, Virginia Forest Products Association, Virginia Department of Agriculture and Consumer Services, the Virginia Economic Development Partnership, along with loggers, mill operators and manufacturers.

“The plan is to understand all the emerging forest product industry issues, and figure out what’s causing them,” said Sabina Dhungana, utilization and marketing program manager for the Virginia Department of Forestry.

Virginia’s forestry sector ranks as the state’s third-largest industry, generating over $23 billion in annual economic impact while providing jobs for more than 108,000 workers and contributing to reforestation efforts across millions of acres statewide.

The industry operates through collaboration between forest property owners, forestry professionals, loggers, timber purchasers and other specialists who work to maintain a consistent supply of renewable timber resources used for lumber production, paper manufacturing, energy generation and other purposes.

“Sustainability is a big thing we can be proud about,” Dhungana observed. “We grow way more than we harvest on an annual basis, we have all these best management practices in place, and we are one of the unique states that has a water quality program.”

Patrick Murphy, who serves on the Virginia Farm Bureau Federation board, draws on his extensive experience as a county forester to help fellow forest landowners maximize their property’s potential while maintaining conservation practices.

“Reforestation is a great investment,” Murphy stated. “It helps keep your land productive and working, and depending on what methods are used to prepare the land prior to tree planting or improve the land after planting, we have cost-share programs available through the Virginia Department of Forestry to help offset some of those costs.”

The state’s Reforestation of Timberlands Program, administered by the VDOF, offers financial assistance to property owners for pine reforestation projects. Funding comes from the Virginia Forest Products Tax combined with matching state General Fund dollars.

Between 1970 and 2020, Virginia’s forestry sector contributed more than $54.5 million toward tree cultivation on private properties. Combined with legislative matching funds, these investments have supported reforestation of over 51,000 harvested sites encompassing nearly 2 million acres across Virginia.

Harvested timber serves construction, furniture manufacturing and building material production for both domestic and international customers. However, trade conflicts, housing market instability, and the globalization of manufacturing and workforce are creating uncertainty across the sector.

“We’ve had about 10-15 primary hardwood mill closures in the last three to four years,” Dhungana reported. Additionally, continuing forest fragmentation and logger workforce shortages are raising concerns for Murphy and other professionals in Southside Virginia.

Dhungana noted that numerous Virginia mills operate as family businesses, with owners often hesitant to burden their children with debt and business risks, creating succession challenges.

“It’s a very hard and risky business,” she explained. “If we keep losing mills, forest management sustainability in Virginia will be super hard—if not impossible.”

She urges consumers to purchase locally-sourced wood products and contact the VDOF for information about finding these materials.