Nearly half of Kentucky is covered in forests (or woodlands). These woodlands provide many environmental benefits and support a diverse forest industry that is a key part of Kentucky’s economy. Because of the diffuse nature of the forest industry in Kentucky relatively few people realize how significant it is or the importance of woodlands to Kentucky’s economy. To address this knowledge gap, UK Forestry Extension along with faculty and graduate students in the UK Department of Forestry and Natural Resources have taken the lead on updating the economic contribution analysis and reporting of this important industry. This economic contribution analysis utilizes a variety of data sources, including the Kentucky Wood Industry Directory maintained by UK Forestry Extension and the Kentucky Division of Forestry.

More than 26,000 Kentuckians are directly employed by the forest industry and an additional 30,000 jobs are supported because of the economic activity of the Kentucky forest industry. In comparison, Kentucky had just over 6,000 direct jobs attributed to the coal industry in the first quarter of 2018. Not only is the Kentucky forest industry a major employer it is also responsible for a direct contribution of more than $8 billion annually. An additional contribution of nearly $5 billion annually is generated through indirect and induced activities of the Kentucky forest industry. In total, the Kentucky forest industry provides a $13+ billion annual economic contribution to the Commonwealth.

Results of this economic contribution analysis have been compiled 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. In the future, this forestry economic contribution analysis will include detailed reports for each Extension District, Congressional District, and eventually county. Forestry economic contribution analysis and reporting is critical to raising the awareness of the importance of Kentucky’s forests and the forest industry.