U.S. Endowment unveils plan to revive markets for forest residuals

The U.S. Endowment for Forestry and Communities has released a national action plan aimed at rebuilding markets for small-diameter wood and forest residuals. The framework targets mill closures, rural job losses and declining forest health tied to weak demand for low-value wood fiber.

Why it matters: - Weak markets for forest residuals are leaving more than 56 million bone-dry tons of wood fiber unused each year. - The shortage of viable markets is tied to mill closures, lost work for loggers and haulers, and declining tax revenue in rural communities. - The plan also aims to support forest thinning across more than 130 million acres, which could add more material to durable forest product markets. - The framework links market growth to forest health, wildfire risk reduction and rural economic vitality.

What happened: - The U.S. Endowment for Forestry and Communities released the Markets Matter Action Plan on July 29, 2026. - The plan is a national framework for rebuilding and expanding markets for small-diameter and residual wood fiber. - The Endowment says the plan is meant to guide organizations, policymakers, companies, investors and individuals working on forest health and rural economies. - The release follows the Markets Matter Convening in Madison, Wisconsin, in May, where more than 230 leaders gathered to move from diagnosis to action.

The details: - The Action Plan identifies three priority actions: advance enabling policy, identify and mobilize capital, and turn forest resilience into an investment opportunity. - The Endowment said the plan reflects priorities and solutions identified by people closest to the challenge. - The organization hosted a webinar on July 22 for convening participants and is posting the Action Plan and a recording of the webinar on its website. - An Endowment-led advisory group will coordinate implementation, with cross-sector partners leading specific actions. - The full convening proceedings and supporting analyses are available online, along with the U.S. Endowment's website.

Between the lines: - The plan treats forest residue not as waste, but as a potential feedstock for new markets. - The strategy is as much about industrial infrastructure as forestry policy, with sawmills and other wood products facilities positioned as part of the solution. - U.S. Forest Service Chief Tom Schultz said rebuilding and expanding the wood industry would support rural jobs and help the agency reduce wildfire risk, protect water and expand recreation access. - The emphasis on capital and policy suggests the Endowment sees market formation as the main bottleneck, not a lack of material.

What's next: - Cross-sector partners will lead specific actions under the advisory group. - The Endowment will continue coordinating implementation of the plan. - The release of the webinar recording, Action Plan and supporting materials gives policymakers and investors a common reference point for follow-up work. - The Endowment is inviting outside organizations to join the effort.

The bottom line: - The Endowment is pushing a market-based fix for a forestry problem that has become both an economic and ecological issue.