%0 Research article
%T Industrial timberland ownership in the USA: arguments based on case studies
%A Lönnstedt, Lars
%D 2007
%J Silva Fennica
%V 41
%N 2
%R doi:10.14214/sf.303
%U https://silvafennica.fi/article/303
%X The forest product companies’ ownership of timberland is decreasing in  the United States as in many other countries. In aggregate the forest  product industry owned 26.5 million hectares (11.6% of the U.S.  timberland) in 2002 compared with 28.5 million hectares in 1987 (FIA  2006). Reasons for this decrease of timberland ownership are several and  complex. This article presents four case studies of U.S.-based forest  product companies. The vertical integration theory and empirical studies  about timberland ownership give a base for the study. Four hypotheses  are formulated on the basis of the literature. The results give support  to two of them. An important reason for timberland ownership is a wish  to secure deliveries. Market conditions are important for the need of  owning timberland. Two of the companies did not own timberland, the main  reason being more profitable alternative uses of capital. The ownership  structure of the company, tradition, and culture are other important  explanations for timberland ownership. This study did not show the  advantage of timberland ownership for information and coordination.