Earlier this month, the USDA Forest Service announced over $105 million in funding for a range of projects that support the forest industry. Through the Wood Innovation Grant program and the Community Wood program, these grants are meant to “promote wood and energy infrastructure by increasing manufacturing capacity and operational efficiencies and support rural economic prosperity and jobs.”

“The greatest threat to forest landowners and those who use forests is the lack of critical markets in today’s timber and wood products industries,” said U.S. Forest Service Chief Tom Schultz when announcing this year’s awards. As markets change – often quickly – in so many parts of the country, these grant programs can offer critical support as forest industries seek to invest in expanded production, new uses of low-grade wood, or increased operational efficiency.

With this round of grants announced, now is a great time for FRA members to start thinking about whether they have projects on the drawing board that would be a good fit for this annual program. While there are modest changes to the funding focus each year, the following summaries – based on last year’s announcement and subject to change – can help provide some guidance and help you consider potential projects:

In a quick summary:

• The Wood Innovation Grants Program stimulates, expands, and supports U.S. wood products markets and wood energy markets to support the long-term management of forest lands. National focus areas include mass timber, renewable wood energy, and technological development that supports sustainable forest management. With some exceptions, the maximum award for this program is $300,000.
• The Community Wood Grant Program provides funding for grants to install thermally led community wood energy systems or to build innovative wood product manufacturing facilities. The program places extra emphasis on assisting sawmills in economically challenged areas to retool or add advanced technology. The maximum for this award is $1 million to pay for up to 35% of total capital costs.

Based upon previous year’s timing, FRA expects the next funding opportunity to be announced in October, with applications due in December and grants awarded in May.

Examples of Wood Innovation Grants awarded this year include:

• Dupont Pine Products, LLC: Installs wood energy system to increase low-value wood use by over 100,000 tons annually in Georgia, $1,000,000;
• ND Paper, Inc: Upgrades wood processing equipment to enhance production by 15,000 tons annually while supporting low-value wood markets in Maine, $300,000;
• Stimson Lumber Company: Upgrades sawmill production equipment to increase lumber production by 25 million board feet annually in eastern Oregon, $346,712;
• Jackson Hardwood, LLC: Upgrades sawmill production technologies to expand production by 10,000 tons annually in Louisiana, $278,000.

Examples of Community Wood Grants awarded this year include:

• Vaagen Bros. Lumber, Inc: Upgrades two kilns to improve drying efficiency, process control, and throughput, while consuming additional low-value residuals, Washington, $1,000,000;
• Roseburg Forest Products Co: Retrofits a manual laminated veneer lumber (LVL) layup line with commercially proven automated layup equipment to improve efficiency of a facility using low-value material, Oregon, $577,231;
• Lebanon Oak Flooring Co. LLC: Installs a new grinder, upgrades kiln control technology, and refurbishes an inactive kiln to add drying capacity to support sawmills in Kentucky, $167,198.

A complete listing of awarded grants is available at the link below, and reading the brief public summaries can help a company understand the types and range of projects that can be funded. When the next Wood Innovations Grant cycle opens – expected in October – FRA will be sure to let our members know.

Note: The FRA team has significant experience with these grants; both Western Region Manager Lindsay Warness and Northeast Region Consultant Eric Kingsley have previously served as grant reviewers for the USDA Forest Service. In addition, the FRA federal advocacy team has been working aggressively to ensure that both of these programs are reauthorized as part of the Farm Bill. Both WIG and Community Wood are included in the House and Senate Farm Bill reauthorization measures. We are also working to ensure that these programs are fully funded as part of the Fiscal Year 2027 Interior, Environment and Related Agencies appropriations bill.

Additional Information

Wood Innovation Program Grants Awarded 2023 – 2026 – https://www.fs.usda.gov/science-technology/energy-forest-products/wood-innovation/grants

Press Release – https://www.fs.usda.gov/about-agency/newsroom/releases/us-forest-service-invests-1055-million-grants-support-wood-industry

Program Website – https://www.fs.usda.gov/science-technology/energy-forest-products/wood-innovation