USDA Releases $115 Million for Timber Production

The U.S. Department of Agriculture is guaranteeing $115.2 million across eight states through the Timber Production Expansion Guaranteed Loan Program (TPEP) to ensure sawmills and other wood processing facilities gain access to funding to establish, reopen, expand, or improve their operations. 

Today’s announcement includes recipients in the states of California, Idaho, Kansas, Louisiana, Maine, Oklahoma, Virginia, and Wisconsin.

“We cannot allow wildfires to devastate and destroy our rural communities,” said USDA Administrator for the Rural Business and Cooperative Service J.R. Claeys. “That’s why the USDA is taking bold action to stop the destruction of our forestlands by investing in sawmills and wood processing facilities that support sustainable timber harvesting. These actions strengthen local businesses, support rural prosperity, and create jobs for hardworking Americans.”

A selection of project highlights from states receiving funding include:

• $12.3 million loan to Beachcombers, LLC in Oklahoma to acquire two Teal-Jones yellow southern pine sawmills, located in Antlers, Oklahoma, and Liberty, Mississippi. The first phase of the project is to restore the Antlers mill facility back to full operation, projecting an annualized production of 80 million board feet (mmbf).  The second phase will bring the Liberty mill facility back online. The Antlers mill has a production capacity of 130 mmbf, while the Liberty mill has a capacity of 25 mmbf.
• $800,000 loan to Timber Professionals Cooperative Enterprises in Wisconsin to assist in re-opening a sawmill in Shawano County, Wisconsin. Timber Professionals Cooperative Enterprises will use guaranteed loan funds to purchase over 49 acres of real estate and equipment. The equipment will allow them to improve the efficiency of manufacturing wood chips. The project also includes plans to expand capabilities of the site to manufacture new, higher-value products from the same raw materials. The project will create six jobs, with additional staffing added as the sawmill expands.

U.S. Forest Service Chief Tom Schultz said: “The American forest products industry is critical to maintaining the health of the nation's forests. The Timber Production and Expansion Guaranteed Loan Program is one of many ways the Forest Service partners with the timber industry to maintain rural jobs, processing facilities, and an outlet for wood that needs to be removed from national forests.”

For more information on USDA Rural Development investments in rural America, visit the Rural Data Gateway.