Each year the University of Kentucky Department of Forestry and Natural Resource Extension documents and reports on the economic contribution of Kentucky’s forests and forest industry. Woodlands or forests cover approximately half of Kentucky; farmers and families own most of these woodlands. These woodlands provide many environmental benefits and support a diverse forest industry that is a key part of Kentucky’s economy. The forest industry in Kentucky is spread out across the state with relatively few Kentuckians understanding the significant importance of it and our woodlands to Kentucky’s economy. This economic contribution analysis utilizes a variety of data sources, including the Kentucky Wood Industry Directory maintained by UK Forestry and Natural Resources Extension and the Kentucky Division of Forestry.

More than 28,000 Kentuckians are directly employed by the forest industry and an additional 31,000 jobs are supported because of the economic activity of the Kentucky forest industry. In comparison, Kentucky had just under 4,000 direct jobs attributed to the coal industry in 2024. Not only is the Kentucky forest industry a major employer it is also responsible for a direct contribution of more than $12 billion annually. An additional contribution of nearly $7 billion annually is generated through indirect and induced activities of the Kentucky forest industry. In total, the Kentucky forest industry provides an $19+ billion annual economic contribution to the Commonwealth.

Results of this economic contribution analysis are published in an easy to read public report that has been disseminated to community and legislative leaders across Kentucky and is available at http://forestry.ca.uky.edu/economic-report. In addition, presentations based on this analysis have been delivered at statewide meetings of the Kentucky Farm Bureau, Kentucky Forest Industries Association, Kentucky Woodland Owners Association, and others. This forestry economic contribution analysis includes detailed reports for each Congressional District. Forestry economic contribution analysis and reporting is critical to raising the awareness of the importance of Kentucky’s forests and the forest industry.