Supporting Rural Economies Through Sustainable Land Management

In the United States, resilient rural economies rely on healthy forests and grasslands. The Climate Trust works directly with forest and grassland owners to diversify their revenue sources by implementing land conservation practices that reinforce the cultural heritage and economic contributions of timber management and ranching. 

In the Pacific Northwest, an important area for nature-based offset project development, the forest management sector is a significant employer in rural communities. As of 2023, the sector employed roughly 900,000 people, with a substantial portion of these jobs located in rural communities. These forest management sector jobs contribute significantly to the economic stability of rural areas (1). Similar trends hold for other timber-producing regions of the United States. The economic value of private lands used for ranching is estimated at $24.5 billion, with significant contributions from recreation, forage production, and ecosystem services (2). 

Natural resource commodity markets have been changing for a long time. In the timber sector, prices have declined and demand for certain product classes has shifted with mill closures and changes in product lines. This has impacted the ability of forestland owners to manage their lands sustainably. Similarly, ranchers in the western U.S. are facing significant economic challenges, including rising production costs, labor shortages, commodity market volatility, and trade uncertainty. These changes have significant implications for the economic outlook of rural communities. 

The voluntary carbon market can complement traditional commodity production on forests and grasslands by diversifying revenue sources for rural landowners. Offset project revenues can mitigate the financial impacts of fluctuating beef and timber commodity markets by providing revenues during lean times. Voluntary carbon markets can mobilize new and diverse sources of capital to support sustainable management of forests and grasslands and ensure there are healthy lands in the future for resilient rural economies. 

For example, where severe wildfire impacts large swaths of forestland, the timber revenue lost with the damage to mature forest stands impacts rural landowners twice over; first, the potential revenue of the current stand, accruing since the stand was established, is lost; second, the capital source needed to pay for site preparation, tree planting, and pre-merchantable stand management is lost as well. In this case, rural economies suffer when forestland cannot be re-established. The local timber jobs are lost, mills can’t adequately source material, game and non-game wildlife species lose habitat, and forests aren’t available to filter water or provide clean air. 

Through our partnerships with private landowners, The Climate Trust is working to deliver revenues to sustain rural landscapes and economies into the future. Interested in partnering with us or learning more about our forest and grassland projects? Get in touch to explore how we can help support your land stewardship goals. 

References :

1. Maher, Anna. 2024. Production, prices, employment, and trade in Northwest forest industries: 1958-2023. Portland, OR: U.S. Department of Agriculture, Forest Service, Pacific Northwest Research Station

2. Maher et al; An economic valuation of federal and private grazing land ecosystem services supported by beef cattle ranching in the United States;  Animal Science 2021 (5) p.1 – 15] Natural resource commodity