The Hardwood Federation Newsletter

From the Executive Director - Hardwood Economic Update: The Hardwood Federation has received good questions over the last few weeks about the state of our economic relief effort; what the current status is, what the path forward looks like, and how funds will be distributed. As with many issues buried in the murkiness of Congressional action, there are some misunderstandings about our goals and where we are. We hope the below will provide clarity and resolve any confusion.

• The Hardwood Federation has secured $200 million in hardwood producer relief in the pending agriculture supplemental package now awaiting action in Congress. It marks the first time the federal government would extend to hardwood producers the kind of relief that supports crop and livestock producers.
• Getting here took years of groundwork. With support from House Agriculture Committee Chairman GT Thompson, Senate Agriculture Committee Chairman John Boozman and their colleagues, the industry has made its case in Washington.
• Our immediate priority is getting this funding across the finish line. Once it is approved, the next step is working with USDA to determine eligibility criteria and how funds will be allocated. Despite some reports, no formula has been finalized, and input from all 31 of our member associations will be crucial to getting it right.
• Our goal is to launch a program that reaches domestic hardwood producers, not one limited to just companies that export.
• Just as important, this effort would set a precedent and a process within USDA for supporting the hardwood industry in the future as markets and global demand evolve.

• ·         This would be a watershed moment for hardwoods and for the rural communities and forests that depend on them. We are on the cusp, and we are working with our allies to finish the job by the end of 2026.

• With Congress recessed until after the election, action on the supplemental bill will be delayed until after the election.

We will keep you posted through our Cheat Sheet, Newsletters and communications through our member associations.

Hardwood Products to Be Included in US-China Board of Trade Discussions: Following Chinese President’s Xi’s visit to Washington D.C. during the last week of September, the Trump Administration  announced the next steps in establishing a US-China Board of Trade to manage trade of non-sensitive products between the two countries. Included in the announcement are lists of US and Chinese products that will be considered and may qualify for better trade treatment in the future.  The Hardwood Federation has been working diligently over the past year to encourage the Administration to include hardwood on the list of products to be discussed by the Board of Trade and we are pleased to see that the list includes a wide range of wood products, including hardwood logs, lumber, and products.

While it is a positive development that hardwood in various forms is included in this preliminary list, it is not an announcement or guarantee that current tariff rates on US wood exports to China will be reduced or that purchase agreements of US hardwood logs or lumber will be established.  Rather, it is the next step in the process to developing a proposed list of products for better trade treatment that will be considered by both China and the US in future talks.

Over the past several years, covering both Trump Administrations as well as the Biden years, the Hardwood Federation Board and staff have communicated with the Administration on a regular basis about the importance of maintaining and expanding global markets to support the domestic hardwood industry. This includes Hardwood Federation Board of Directors meetings with officials from the US Department of Agriculture and the US Trade Representative during the June Fly-In and Executive Director Dana Lee Cole’s participation in a US Small Business Roundtable held in July. In both cases Federation representatives highlighted the need to include hardwood lumber in upcoming discussions.  The SBA specifically noted the inclusion of hardwood lumber on the list in their press release covering the announcement.

We are pleased that the Administration has heard our message and included hardwood products in the next step of their current process. This is a significant win but must not be considered a final victory. We will continue to work with all our member associations to help the Administration understand the challenges and opportunities faced by the US hardwood industry and to ensure that our products make the final cut of products to receive favorable trade terms with China.