The economic contribution of stewardship contracting: Two case studies from the Mount Hood National Forest

Abstract

We conducted an economic analysis of two case study stewardship contracts on the Mount Hood National Forest in western Oregon. Stewardship contracting has been embraced by some federal managers to achieve restoration goals while providing economic benefits to local communities. Little is known about economic contributions from stewardship contracts, including how they compare against Secure Rural Schools funding or the century-old payments to counties revenue sharing system. Using expenditure data from sale purchasers, contractors, and fiscal agents, we developed methodology to track spending and used IMPLAN software to estimate economic contributions and multipliers. Results showed that (1) commercial thinning, service work, and retained receipts projects all contributed to local economic activity; (2) expenditures accounted for $4 million in output and generated 36 jobs, with output and job multipliers of 1.42 and 1.82, respectively; and (3) benefits were distributed across a wider variety of economic sectors than timber harvesting alone.