Montana Legislature unveils $6M sawmill revitalization initiative to boost timber industry

A new legislative proposal, the Montana Sawmill Revitalization Act, aims to breathe life back into the state's struggling timber industry by allocating $6 million for low-interest loans to reopen sawmills that have closed in the past three years. This initiative comes as Montana has seen a dramatic decline in its sawmill operations, dropping from over 50 in the 1970s to just four today. The bill, introduced by Representative Fitzpatrick and supported by the Missoula Economic Development Authority, seeks to address not only economic concerns but also forest health issues exacerbated by the lack of processing facilities for diseased trees.

The proposed funding will be managed by the Board of Investments, ensuring that only qualified applicants can access the loans. The program is designed to last for two years, with developers required to submit their loan applications by December 2027. If they fail to do so, the funds will revert to their original source.

Supporters of the bill, including local business leaders and representatives from the Montana Logging Association, argue that reopening sawmills is crucial for job creation and the overall economic health of rural communities. They emphasize that the closures of mills have not only resulted in job losses but have also hindered effective forest management, increasing the risk of catastrophic wildfires.

Grant Kier, president of the Missoula Economic Partnership, highlighted the importance of competitive financing to attract wood products manufacturers back to Montana, noting that other states are currently outpacing Montana in this regard. He stressed that the revitalization of the timber industry is essential for both economic stability and forest management.

While the bill has garnered significant support, some stakeholders have raised concerns about the tight timeline for loan applications and the adequacy of the proposed funding. Suggestions have been made to broaden the scope of the bill and increase the funding amount to better address the industry's needs.

As the Montana Legislature continues to discuss this bill, its potential impact on local economies and forest health remains a focal point for community members and lawmakers alike. The outcome of this legislation could play a pivotal role in shaping the future of Montana's timber industry and its surrounding communities.