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Good news for loggers and timber haulers whose business was hurt by the economic downfall of the coronavirus pandemic, $200 million is now available through funding secured through the (S.4233) Loggers Relief Act.
The funding was okayed in a December 2020 COVID-19 relief package, but distribution was delayed.
The bill directs the Department of Agriculture (USDA) to make payments to a timber harvesting business or timber hauling business that, because of the COVID-19 pandemic, experienced a loss of not less than 10 percent in gross revenue during the period beginning on January 1, 2020, and ending on July 31, 2020, as compared to its gross revenue during the same period in 2019.
The USDA will make payments only to a business that certifies that the payment will be used only for operating expenses, which includes payroll.
During the pandemic the American Loggers Council estimates that paper mills slashed or shut down their operations altogether which caused a reduction of $1.83 billion (or 13 percent) of the value of logger-delivered wood.
In 2019, the Minnesota Department of Employment and Economic Development (DEED) agency reported that half of the state’s Forest and Logging industry was in the seven county Arrowhead Region. The seven counties are Aitkin, Carlton, Cook, Itasca, Koochiching, Lake and St. Louis County.
According to data from DEED’s Quarterly Census of Employment and Wages program, total payroll in the Forest Product Industry neared $213 million in the region in 2017, with an average annual wage of $69,120. That was over $25,000 higher than the average wage across all industries in the region but varied greatly by specialty. Paper Manufacturing had the highest annual wages, while Forest Nurseries and Gathering of Forest Products was among the lowest.
Minnesota Senator Tina Smith and Senator Susan Collin (R-Maine) introduced the legislation last year.
In a statement release on July 23, Senator Smith said, “The timber industry in Minnesota and across the country was hurting even before the pandemic, and the COVID crisis reduced timber demand even further, forcing many loggers to shut down or greatly reduce operations,” said Senator Smith. “Simply put, Minnesota loggers told me they needed help, and we worked together to develop the Loggers Relief Act. This will help sustain jobs in an important industry. I know better days are ahead for the timber industry in Minnesota and across the country.”
Timber harvesting and hauling businesses are eligible to apply for relief if they experienced at least a 10 percent loss in revenue from January 1, 2020, through December 2020, as compared to the same timeframe in 2019. These direct payments will be equal to 10 percent of their gross revenue from 2019, with the funds to be used for operating expenses, including payroll.
Minnesota Senator Amy Klobuchar also expressed strong support for the Loggers Relief Act, “The coronavirus pandemic brought unprecedented challenges for rural economies across Minnesota,” said Senator Klobuchar. “This relief funding will provide timber harvesters and haulers with the resources they need to get back on their feet. I strongly encourage all those eligible to apply.”
The senators led efforts to push USDA to expedite the process.
Applications for loggers or timber haulers are now being accepted on the U.S. Department of Agriculture’s (USDA) website (under the Pandemic Assistance In 2019 for Producer’s initiative) from July 22 through October 15, 2021.
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