Timber Talk 6/3/25

Jenna Reese
Jun 2
10 min read

OFA Update

Major thanks to our sponsors from Pixelle Specialty Solutions, Superior Hardwoods of Ohio, Maverick Environmental Equipment, Hummel Group, Powell Valley Millwork,

R.L. Lute Logging, Scioto Land Company, and Rudd Equipment.

Schedule of Events:

Tuesday, July 8, 2025

4:00 PM - Reception

Wednesday, July 9, 2025

5:00 AM - Registration at Sawmill Creek Resort

6:00 AM - Registration at Wild Wings Marina

6:30 AM - Fishing Tournament

1:30 PM - Boats return to Wild Wings Marina

A valid Ohio fishing license is required to participate. Please plan for extra time to purchase one at the marina if you do not already have one

Please bring a cooler to transport your fish home.

Hotel rooms must be booked before June 8th to receive a discounted rate.

VIEW DETAILS/REGISTER

Camp Canopy begins this weekend!

From June 8-13th, Camp Canopy will welcome a group of promising young students into the outdoors, lead by a group of knowledgeable instructors within the forestry industry for a week to remember. We are pleased to have a fantastic group of both new and returning students ages 13-18 join us for a well-rounded curriculum at the beautiful Ohio FFA Camp Muskingum in Carrollton, Ohio. Camp Canopy combines educational sessions with instructors from Ohio’s top natural resource organizations (like the Ohio Department of Natural Resources) and industry experts from the state’s top educational institutions with the adventure of the great outdoors. Plus, the traditional summer camp activities (campfire, anyone?) we all know and love.

Lumber Grading and Kiln Drying Courses

Yoder Lumber Company is happy to host these enriching opportunities for our event registrants. Follow each link for more details about these upcoming opportunities.

LUMBER GRADING

KILN DRYING

Market Update

HardwoodReview Forecasting

Unfortunately, we are unable to say “we are not issuing guidance” at this time due to the ongoing tariff uncertainty, as a lot of public companies are now doing with regard to projected earnings. Instead, our forecasts this month are based on the most likely scenario of at least a dozen we could see playing out. With lumber production and log decks scaled back due to Canadian and Chinese tariffs, and uncertainty elsewhere, it is quite possible lumber shortages could materialize over the next several months.

The pauses on Chinese, Canadian and European tariffs will afford some short-term sales, but “pauses” leave enough uncertainty about the future that mills will remain cautious about ramping up production, even if they have the logs and labor to do so. At the same time, foreign buyers are not likely to demand much additional lumber with the lingering threat of tariffs on the sale of their manufactured goods back into the U.S. As such, a market “stalemate” seems more likely than a boom or bust over the next several months. Especially for the more export-dependent species, which have seen sales slow more than other species, the tariff pauses—together with the new UK trade deal—will work to stabilize prices and provide a window to turn some inventory.

Legislative Update

The following is brought to us by our national partner, the Forest Resources Association (FRA)

House Passes One Big Beautiful Bill (H.R. 1)

The House of Representatives voted 215-214 to advance a comprehensive budget reconciliation bill that encompasses GOP policy priorities. As we noted last week, the legislation includes robust tax provisions that revive and extend key business tax benefits, including full expensing, the research and development tax credit, and the Section 199A deduction for S-Corporations and pass-throughs. Regarding the latter, that benefit was bumped up to 23 percent (from 20 percent) and made permanent. To pay for these provisions and others, the bill reduces funding for food assistance programs and Medicaid and terminates tax credits authorized by the Inflation Reduction Act.

The legislation now proceeds to the Senate, where the upper chamber will attempt to revise the measure. Senators have opined that they would like to make full expensing and the R&D credit permanent (the House bill only extends for 5 years). Republican supporters of some of the clean energy credits have also signaled that they would like to see changes to the House-passed bill's approach to renewable energy investments. However, given the extremely narrow margin in the House—the bill passed by one vote—it will be interesting to see how the Senate proceeds, knowing that significant revisions may disrupt the fragile framework in the lower chamber that enabled this bill to pass.

Congress has begun its Memorial Day recess and will be back in town on June 2. The budget reconciliation legislation is sure to consume the Senate in the weeks leading up to July 4, the self-imposed deadline for Congressional leaders to send this measure to the President. Most believe this timetable is optimistic, but there were also skeptics on whether the House would pass the bill before Memorial Day. In any event, all eyes will be on the Senate beginning in June. FRA will continue to advocate for a permanent extension of key business tax benefits that support the forest products value chain, as well as provisions in the legislation that promote more forest management on federal forest lands.

Forestry provisions in the One Big Beautiful Bill (H.R.1)

Section 10105:

• Secure Rural Schools (SRS) Program Extension: Provides continued funding to support schools in forest-dependent communities, ensuring stable financial resources for education. Rescission of Forest Service Funds.

• Recension of unobligated funds for non-federal landowners that include cost sharing for non-federal landowners.

• Recension of unobligated funds for private forestry and conservation programs provided through the Forest Legacy Program.

Section 80311 and 80312:

• Long-Term Contracts for the Forest Service and Bureau of Land Management (BLM): Establishes multi-year contracts for forest management projects, ensuring long-term stability.

Sections 80313 and 80314:

• Expand timber production under the Forest Service and BLM by a minimum of 25%.

Section 80306:

• Recession of unobligated balances for the protection of old-growth forests on National Forest System land and to complete an inventory of old-growth forests and mature forests within the National Forest System.

EUDR

The European Commission released its much-anticipated EUDR country risk benchmarking on May 22, 2025. The benchmarking system classifies countries with low risk, standard risk, and high risk based on their likelihood of contributing to deforestation and forest degradation. Countries considered low risk include the United States, all European Union Countries, China, and other countries. For companies sourcing from low-risk countries, due diligence obligations are reduced compared to those operating in high-risk regions. Businesses must still submit a due diligence statement confirming that their products meet EUDR standards. Still, they face fewer inspections—only 1% of shipments are subject to compliance checks, compared to 9% for high-risk countries. The low-risk designation, however, still requires companies to provide geolocation data for harvested sites, which remains a concern for FRA members.

Following the release of the low-risk country classifications, FRA, alongside a coalition of associations representing the forest products value chain, has issued a statement urging the EU to simplify compliance requirements for forest product companies. The statement highlights concern regarding geolocation reporting requirements for forest products sourced from low-risk countries, emphasizing the need for a more practical approach. FRA will update members on EUDR developments and efforts to reduce regulatory burdens on low-risk countries.

H-2B Visas

Congressman Andy Harris (R-MD-01) has formally requested the inclusion of Certified Seasonal Employer Designation language in the FY26 Department of Homeland Security (DHS) Appropriations bill. This provision would allow employers with a proven track record of compliance—those who have received labor certification within the past five years—to be permanently exempt from the cap up to their highest certified worker count during that period. This provision aims to provide stability for businesses relying on seasonal labor while ensuring continued compliance with program requirements and effectively increasing the number of H-2B visas, a program where demand greatly exceeds the mandated cap of 66,000. FRA will work to include Congressman Harris's appropriations request in the final fiscal year 2026 spending bill.

Economist and Trump advisor Stephen Moore published an op-ed in the Washington Examiner, urging former President Donald Trump to support expanding H-2B visa availability. In his article, Moore cites survey data showing strong public support for seasonal guest worker programs like H-2B, with 55% of likely Trump voters favoring reforms to better meet employer demand. This finding underscores growing recognition of the program's importance in addressing labor shortages across key industries.

He concludes by emphasizing the program's broad benefits: "The seasonal worker visa program is a win-win for employers, immigrant workers, affected local communities, and the U.S. economy. Trump should expand it to meet the growing demand."

Appropriations

House Appropriations Chair Tom Cole (R-OK-04) has scheduled markup sessions for June and July to draft funding bills for fiscal year 2026. While he waits for President Donald Trump's complete budget request in early June, Cole is preparing bills that might exceed the administration's proposed spending levels. The initial budget from the White House indicated $163 billion in cuts to non-defense programs while maintaining military spending at current levels. Cole plans to have all 12 funding bills ready for debate and passage by the August recess. He sees his role as preparing "munitions" for House GOP leaders. Democrats are concerned about the partisan process, with minimal bipartisan talks anticipated.

Trade

This morning, President Trump announced via social media that the U.S. would be imposing 50 percent tariffs on imports from the European Union beginning June 1. Treasury Secretary Scott Bessent has been signaling frustration with the state of trade negotiations with the EU and voiced some optimism that this announcement would spur more productive talks. FRA will continue to monitor developments.

Safety Update

Sedgwick Safety Services

Did you know the Sedgwick Safety and Loss Prevention Department has safety consultants who can assist you and your company with developing and maintaining an effective safety and risk management program. Our goal is to provide professional safety consulting services and the resources necessary for employers to minimize risk, prevent injuries and implement an effective, on-going safety program. The key to a safe workplace starts with a strong and effective safety program.

As a Sedgwick customer, you have access to a wide variety of safety services, including the following:

OSHA and PERRP Recordkeeping Assistance – Understanding OSHA and PERRP guidelines are sometimes confusing and can be challenging. We are here to assist you and help you gain a better understanding of the recordkeeping requirements, what injuries are recordable and how to complete the forms. Many employers, including all public employers, are required to submit their injury and illness information online. Our experts can provide guidance on this as well.

High Level Site Inspections – A great way to identify hazards in your workplace is to perform a site inspection. Sometimes a second set of eyes will help uncover hazards you may have overlooked. The Sedgwick Safety Department can visit your facility and perform an evaluation to identify opportunities for improvement as well as positive observations. Upon completion, a detailed report with pictures is provided, along with guidance on implementing corrective actions, if requested.

Safety Program Reviews – Based on your industry type and a discussion of your operations, we can help identify what safety policies and programs are applicable. For those with existing safety programs, we can conduct a high-level review and offer suggestions for improvement. The Sedgwick Safety Team can also assist with development of these programs and provide templates.

OSHA/PERRP Citation Management - Dealing with OSHA and PERRP inspections and citations can be stressful to any organization, however, proper management is key. An explanation of the citation process, review of citations and general recommendations can help relieve the stress and provide you with a comfort level to successfully navigate the process.

Safety Help Desk - Sedgwick customers can contact the safety and loss prevention department by phone or email any time with safety questions, or to request services and materials. Our Safety Resources website has forms, materials, guidance documents, tool box talks and even pre-recorded webinars available for customer use: https://www.sedgwick.com/ohiotpa/resources.

Safety Training - Written Safety Programs help identify the company’s procedures on how the program effects their organization but training is key for employees to understand these policies. The safety department can offer high level training materials or content and/or review existing training materials. Web-based and on-site training is available for a fee.

Injury Trend Reports - One of the most effective ways to determine hazards in your workplace is to evaluate injury trends. A Risk Analysis report prepared by the Safety Department can help your organization determine your most frequently occurring injury causes and the most costly. The findings in this report can help you most effectively allocate your safety resources.

Follow-Up – We like to stay in touch with our customers and follow up on reports, emails and recommendations that may require further action. Our goal is to be your partner and help you throughout the process, and not just to provide a report and move on.

These are just some of the services that the Sedgwick Safety and Loss Prevention Department offers to our customers. These high-level services are provided at no additional cost to TPA customers, however there are fee-based services available as well, such as:

· Industrial Hygiene Monitoring

· Noise Monitoring

· Company Specific Safety Policy Development

· Job Hazard Analysis

· Personal Protection Equipment Evaluation

· Employees Safety Training (in-person or virtual)

A cost estimate will be provided for any fee-based services requested.

If you would like to know more about Sedgwick’s safety services or would like to schedule a confidential consultation, please contact Andy Sawan at andrew.sawan@sedgwick.com or 330.819.4728.