The pulpwood market in the Southeast has taken a significant hit in recent years, with declining prices, mill closures, and global competition creating new pressures for landowners. Managing forests sustainably has always been a long-term endeavor, but for those holding timberland today, the immediate challenges are mounting.
Pete Madden, CEO of the U.S. Endowment for Forestry and Communities, knows this story well. With decades of experience ranging from boots-on-the-ground forestry work to overseeing large-scale land investment strategies, he’s seen firsthand how markets shift—and how landowners can position themselves to adapt. “We’ve got the resource. We know how to grow trees. But markets are changing, and landowners need to be more informed, more strategic, and more connected than ever before,” he says.
Understanding the Root Causes of the Downturn
For many landowners in the South, the most pressing concern is the collapsing pulpwood market. In some areas, the price for pulpwood has dropped so low that landowners are actually paying to thin their stands. “When someone tells you they paid $2.25 per ton to have their timber removed, you know something is out of balance,” Pete explains.
That imbalance, according to Madden, is driven by several overlapping factors. Mill closures have eliminated key markets across the region, including in places like Georgetown, Canton, and North Charleston. “Every time a mill shuts down, it affects more than just the landowner,” Pete says. “It’s the truck drivers, the equipment operators, the people at the diner, the local tax base—it’s the whole community.”
South American countries—especially Brazil—have flooded the market with pulp from fast-growing eucalyptus, which Madden notes grows even faster than loblolly pine.
At the same time, global competition has intensified. South American countries, especially Brazil, have flooded the market with pulp produced from fast-growing eucalyptus. Madden points out that this fiber grows at a rate that’s hard for even loblolly pine to match. Combine that with cheaper labor and government incentives abroad, and Southern producers are left fighting for market share.
Local Markets Require Local Strategy
Madden emphasizes that each pulpwood market is unique. “You really have to understand your local wood basket,” he says. “It’s not just supply and demand at the national level—it’s what mills are nearby, how far your haul is, what contractors are operating in your area, and how strong their relationships are with buyers.”
This hyperlocal nature of the pulpwood market means landowners need to stay informed about who their buyers are—and just as importantly, who their buyers’ customers are. A mill may be producing fluff pulp or corrugated packaging, and the health of those downstream markets can shape how that mill operates. “If you’re selling to a mill making product for Amazon boxes, that’s different than one supplying paper for magazines or office printers,” Pete notes.
Rethinking Silviculture and Revenue Models
Many landowners are beginning to rethink how they manage their timber in response to these shifts. One approach gaining traction is skipping traditional pulpwood thinning altogether. “Some families are moving to a two-cut rotation,” Madden says. “Instead of doing a first thinning for pulp, they’re managing toward larger chip-n-saw and sawtimber. It’s about adjusting to where the value is.”
Others are investing in genetically improved seedlings and site-specific planting to ensure higher future yields, even if it means fewer trees per acre upfront. The goal is to grow fewer but better trees that reach higher-value markets faster. “There’s more science behind this than ever,” Madden says. “We know which seedlings perform best on which sites, and we can grow high-quality timber in less time if the land is managed well.”
But timber isn’t the only way to make land pay. Many landowners are looking to non-traditional uses like hunting leases, solar installations, and even long-term development potential. “It’s not just about growing trees anymore,” Pete adds. “It’s about understanding everything your land can offer.”
Finding Opportunity in New and Emerging Markets
While traditional pulp and paper markets may be struggling, several emerging sectors show promise. One is biomass, particularly wood pellets used as renewable fuel in Europe and Asia. Madden recalls how Plum Creek, where he once worked, partnered with UK-based utility Drax to attract a pellet mill to Louisiana after a major pulp mill closed. “We told them, build here and we’ll back you. We had the land, the contractors, and the fiber to make it work—and they came.”
Another area Madden sees growing potential in is biochar, a charcoal-like product made from wood in a low-oxygen environment. “Biochar has been around for centuries, but now we’re proving it can be made at scale,” he explains. Used in agriculture and environmental remediation, biochar helps trap carbon in the soil and retain nutrients and moisture. The Endowment has supported pilot projects in Oregon and is working to share their technology with other interested partners. “We want landowners to have more markets, and if biochar is one of them, we’ll help pave the way,” he says.
Cross-laminated timber (CLT) is another bright spot. These engineered wood panels are used in commercial construction and can replace steel and concrete in many applications. “CLT is opening up a whole new market for small-diameter wood,” Pete says. “And it’s not just about being green—it’s faster, cheaper, and often safer to build with.”
Supporting the Supply Chain and Logging Workforce
Even as new markets emerge, one of the greatest concerns for Madden is the fragility of the timber supply chain—especially when it comes to loggers and haulers. “These guys are critical, but many are aging out, and it’s tough for younger people to break in,” he says. The equipment is expensive, insurance costs are rising, and margins are tight.
To address this, some landowners and companies are offering long-term supply contracts to help loggers secure financing. “If a logger knows they’ve got work lined up for three years, they can walk into a bank with confidence,” Pete says. “It’s about creating stability in an unstable environment.”
The South continues to offer some of the world’s best growing conditions, backed by solid infrastructure and a deep-rooted culture that values land stewardship.
The Endowment has also supported programs that reduce input costs for loggers and haulers through group purchasing and shared services. Still, Madden acknowledges the challenge ahead. “We don’t have all the answers, but we’re listening. If there’s a better model out there, we’re open to it.”
Preparing Communities Before It’s Too Late
One of the Endowment’s recent initiatives is a guidebook titled Preparing for Plan B, designed to help communities identify early warning signs of mill closures and begin planning before disaster strikes. “By the time a mill shuts down, it’s already too late,” Madden says. “You have to build relationships early. Understand what those mills need—whether it’s capital investment, regulatory support, or workforce development—and see if the community can help fill the gap.”
He encourages landowners to be proactive. “Sit down with your local mill manager and ask, ‘What keeps you up at night?’ You might find out there’s something you can do—individually or through your state forestry association—that makes a difference.”
Looking Ahead with Realistic Optimism
Despite today’s pulpwood market challenges, Madden remains hopeful about the future of forestry in the Southeast. The region still has some of the best growing conditions in the world, strong infrastructure, and a culture that understands the value of land stewardship. “I’m more optimistic now than I’ve been in a long time,” he says. “But that doesn’t mean we can be passive. We have to be strategic, we have to collaborate, and we have to keep learning.”
He encourages landowners to see this moment not just as a downturn, but as an evolution. “Markets change. The South has been through transitions before, and we’ll get through this one, too. But we have to be willing to adapt.”
For more information on the U.S. Endowment for Forestry and Communities, visit www.usendowment.org, or reach out to Pete Madden directly at madden@usendowment.org.
To hear the full conversation, listen to the American Landowner podcast, or contact host Robert Dudley at hello@bigoaklandrealty.com.