South Carolina forestry sector reels after 10 mill closures; task force pushes bioeconomy, recruiter and bulk‑terminal study

Cam Crawford, president of the Forestry Association of South Carolina, told the Agriculture, Natural Resources and Environmental Affairs Committee that the state’s forest industry has lost substantial market capacity since early 2023 and that a multi‑pronged recovery effort is under way.

"On March first of 20 23, the forest industry had a $23,000,000,000 annual economic impact in South Carolina," Crawford said. He told lawmakers the industry and the South Carolina Forestry Commission formed a forest recovery task force after a string of mill closures and cutbacks beginning in 2023.

The nut graf: Task‑force leaders and the state forester said about 10 mills have announced closures or cutbacks since March 2023, a loss they estimate at roughly 8,200,000 tons of wood market demand — about 25% of the state’s recent peak — and that the loss has broad economic and conservation implications for privately owned forestland.

Scott Phillips, state forester and director of the South Carolina Forestry Commission, told the committee the closures and curtailments have real effects on employment, timber prices and landowner behavior. "That represents all 10 together, 8,200,000 tons of wood," Phillips said, describing the reduction as "devastating." He said prices have dropped — noting a stabilization "between $7 and $8 a ton for pine pulpwood" and "between $23 and $24 a ton for pine sawtimber" — and warned that lost markets risk conversion of forestland to other uses.

Task force strategy and market options

Crawford and Phillips described a two‑pronged strategy: help existing manufacturers run at fuller capacity and recruit new manufacturers and markets tailored to South Carolina’s wood resource. They listed potential market opportunities the task force is examining: renewable diesel, sustainable aviation fuel (SAF), biochar, engineered wood products and other construction uses for wood.

Crawford cited interviews with industry executives and outside experts who flagged infrastructure and shipping as constraints. He quoted Tim O'Bets, CEO of Adler Renewables, saying Europe needs biomass and that South Carolina should "create incentives for green jobs" and strengthen rail, road and shipping infrastructure. The committee heard that a bulk shipping terminal at the Port of Charleston would make the state more competitive for pellet and biomass exports but that an initial veterans terminal site was too small.

State actions under consideration

Crawford said the task force is recommending a dedicated forestry industry recruiter at the South Carolina Forestry Commission, and he said the governor included funding for that position in his executive budget. The committee also heard that a proviso in the state budget authorized the Department of Commerce to pay up to $250,000 for a sustainable aviation fuel production study to evaluate the forest industry's role in SAF.

Panel members and legislators emphasized infrastructure as a near‑term constraint. Several representatives urged the committee to prioritize state bridge and rural road repairs because load‑restricted bridges force log trucks into longer detours, increasing costs. Crawford said the industry had hauled 850,000 loads of wood to mills annually before the 2023 closures and that weight‑restricted bridges can add 10–15 miles per trip.

Regulatory and workforce issues

Witnesses named multiple factors contributing to mill closures: high operating and property tax costs at some mill sites, capital needs to upgrade older facilities, federal environmental rules, reduced demand for specific paper products and a shrinking skilled workforce. Phillips and Crawford said federal air quality and renewable fuel definitions factor into market feasibility for wood‑based fuels and energy products and that federal policy changes could expand viable uses for woody biomass.

Local economic and conservation consequences

Phillips noted there are about 12,800,000 acres of forestland in South Carolina, more than 11,000,000 of which are privately owned, and he warned that without viable markets landowners may convert stands to other uses. He told the committee that forestry supports more than 100,000 jobs statewide and that forest wages historically have been higher than comparable industries.

What the task force will do next

The South Carolina Forest Recovery Task Force planned further meetings and a trade mission program; Crawford said the task force would discuss recruitment priorities, the Department of Commerce study results, and the Clemson University bulk‑loading feasibility study before returning to the General Assembly with more detailed asks.

Ending: Lawmakers at the committee hearing generally expressed support for a combined approach — preventing further mill losses while recruiting higher‑value, lower‑carbon markets — and several members volunteered to work with forestry officials on bridge priorities and workforce programs in upcoming budget negotiations.