In recent years, landowners across the Southeast have watched the timber market deteriorate—mills closing, prices falling, and long-term forest management plans thrown into uncertainty. For many, especially those with small to midsize acreage, it’s hard not to feel powerless in the face of global shifts in the timber industry.
But not all hope is lost. On a recent episode of the American Landowner Podcast, Pete Madden, CEO of the U.S. Endowment for Forestry and Communities, offered insight, optimism, and real strategies for navigating this turbulent time. With a background spanning boots-on-the-ground forestry work and executive leadership at companies like Georgia-Pacific and Plum Creek, Madden has a deep understanding of what’s happening—and where the opportunities lie.
“We’ve got the resource, we’ve got the climate, and we’ve got the know-how,” says Madden. “I wouldn’t want to be anywhere else than the United States. And I wouldn’t want to have any landowners other than the ones we have.”
Understanding What’s Happening with Pulpwood
The situation, as Madden laid it out, is stark. Many Southern timber markets are in decline, driven by a combination of mill closures, reduced demand for traditional paper products, and increased efficiency in sawmills and manufacturing.
“There’s an oversupply of pulpwood in a lot of places,” Madden explains. “We’ve got this wall of wood—landowners didn’t sell during the downturn, and now that inventory is still coming.”
At the same time, some of the traditional uses for pulpwood—like newsprint and office paper—have dried up, replaced by digital media. While corrugated packaging has picked up some of the slack, it hasn’t been enough to replace the overall demand loss.
“You might see more Amazon boxes,” he says, “but we’re still seeing mills close their doors. And that has a ripple effect—not just for landowners, but for whole communities.”
How Landowners Can Adapt
For landowners, the big question is: what now?
According to Madden, diversification is key—not just in tree species or silviculture techniques, but in market strategies. He encourages landowners to think beyond pulpwood and sawtimber.
“The land used to just support the mill,” he says. “Now it has to do more. We need to unlock hidden value—whether that’s through carbon, conservation, mineral rights, or alternative energy like biomass or solar.”
Southern timber markets are facing a downturn due to a mix of mill closures, declining demand for traditional paper products, and greater efficiency in sawmills and manufacturing.
He also stresses the importance of working with a knowledgeable forestry consultant, especially one who understands the local timber market.
“A good consultant doesn’t just know how to grow trees—they know the players, the mills, the opportunities,” Madden says. “A bad one can ruin your whole program.”
Finding New Markets and Opportunities
Madden shared several real-world examples of how alternative markets can revitalize regions affected by mill closures.
After International Paper shut down a key mill in Bastrop, Louisiana—one that was Plum Creek’s largest pulpwood customer at the time—Madden and his team didn’t just sit back.
“We had three options: long-haul the wood at a loss, sell the land, or attract new capital,” he recalls. They chose the third.
Plum Creek partnered with UK-based Drax, a renewable energy company transitioning its coal-fired plants to biomass. They helped bring a wood pellet mill to the region, offering long-term fiber contracts and landowner support in exchange for the investment. The strategy paid off.
“It wasn’t just about replacing the tons—it was about signaling to the community that this region was still viable,” Madden says. “The diner, the fuel co-op, the logging crews—they all depend on that.”
Biochar and the Next Frontier
Another emerging timber market opportunity Madden highlighted is biochar, a charcoal-like substance created from biomass in low-oxygen environments. It has significant potential in soil health, water retention, and even carbon sequestration.
“We accidentally made a batch of it when a project pivoted,” Madden laughs. “Then we brought in scientists who confirmed—it was biochar. And we realized we could make it in a 24/7 continuous operation, not just batch mode.”
Now, the Endowment is making that technology and knowledge freely available to encourage investment in the space.
“If someone out there wants to try this—call me,” he says. “We want to help create new markets for landowners, and this one could be a real winner.”
Long-Term Vision in a Cyclical Market
For those disheartened by today’s low timber market prices, Madden offers a historical perspective. The forestry industry has always been cyclical, but landowners who adapt and stay informed can still succeed.
“We’re basically making bets today that there will be a market 30 years from now for the trees we’re planting,” he says. “That’s the reality of forestry. But those who manage well—and thin when they need to, even when it hurts—set themselves up for long-term value.”
Diversification is essential — not only in tree species and silviculture techniques but also in market strategies.
He acknowledges the frustration many landowners feel, especially smaller ones.
“I hear from folks all the time who say, ‘If I don’t own 10,000 acres, how can I have a voice?'” he says. “The answer is: you can. But you’ve got to be proactive. Join your forestry association. Get to know your mills. Hire the right consultant. And stay informed.”
What the Endowment Is Doing
Beyond individual landowners, the U.S. Endowment is also working behind the scenes to support structural change. They’ve funded biochar pilots, collaborated on blockchain-based timber traceability, supported mass timber adoption, and even helped the Department of Defense shift to domestically sourced hardwoods for military trailers.
One of their key resources is a guide called “Preparing for Plan B,” which helps communities assess the health of local mills and prepare for possible closures before they happen.
“It’s not enough to react when a mill shuts down,” Madden says. “You’ve got to get ahead of it—know your markets, understand their capital investment cycles, and be part of the solution.”
A Realistic but Hopeful Outlook
While Madden doesn’t sugarcoat the challenges ahead, he remains optimistic.
“We’re in a global market now. That means we have to compete—not just on stumpage, but on infrastructure, logistics, and innovation,” he explains. “But the South still has advantages. We grow trees fast. We’ve got the land base. We’ve got the talent.”
The key, he says, is using those advantages strategically. That means investing in alternative markets, supporting rural infrastructure, and ensuring that landowners—especially smaller ones—aren’t left behind.
Final Takeaway for Landowners
For landowners wondering what to do next, Madden has clear advice.
“Start local,” he says. “Understand your wood basket. Know who’s buying, what they’re buying, and why. And don’t be afraid to think outside the box—because that’s where the future’s going to be.”
As landowners, consultants, and policymakers alike navigate this period of transition in the Southern timber market, voices like Madden’s provide not only insight, but reassurance: the timber industry is changing, but those who adapt will find opportunity in the evolution.
“I’m more optimistic now than I’ve ever been,” Madden says. “It’s going to take time—but we’re going to get there.”