Loggers and Foresters Discuss Tariff Impacts on Vermont Timber Industry

The House Agriculture Committee meeting held on April 2, 2025, in Montpelier, Vermont, focused on the challenges facing the state's logging and timber industry, particularly in light of recent tariff discussions and the impact of the emerald ash borer.

During the meeting, a local timber marketer shared insights from his 50 years of experience in the industry, emphasizing the significant role that low-grade hardwood logs play in Vermont's economy. He noted that many of these logs are exported to Canada, where they are processed into products like pallets and flooring. Currently, there are no tariffs on these logs, but concerns were raised about potential future tariffs that could severely impact local businesses, as margins are often too thin to absorb a 25% tariff.

The speaker highlighted that the demand for low-grade logs has decreased, leading to a backlog in supply. He explained that even high-grade logs contain low-grade material, which constitutes about one-third of production at many mills. This surplus is problematic, especially as the industry has ramped up the harvest of ash logs to combat the spread of the emerald ash borer, which poses a significant threat to local forests.

The discussion also touched on the logistical challenges of transporting logs, particularly ash, to markets in New York City and Boston. Delays in trucking and shipping have compounded the issues faced by loggers and mills, with some unable to find timely freight. The speaker warned that the shelf life of these logs is limited, and if not processed quickly, they could degrade and become unsellable.

The meeting underscored the interconnectedness of local logging operations with broader market dynamics, including export pricing and international trade relations. As the industry grapples with these challenges, the future of Vermont's timber market remains uncertain, with stakeholders calling for solutions to support local loggers and mills in navigating these turbulent times.