(The Center Square) – Maine is pumping more federal funds into the state’s lumber and forestry products industry to help it recover from the lingering impacts of the pandemic.
The state Department of Agriculture, Conservation and Forestry has awarded grants totaling $14 million to 19 Maine forestry companies in the latest disbursement from the Forest Recovery Initiative, which is funded with federal pandemic relief money. The state has already distributed $6 million in grants from the relief program.
Gov. Janet Mills said the funding will help the industry recover income lost due to the pandemic, develop new products and upgrade infrastructure to ease supply chain issues.
“Maine’s forest products industry is not only a key part of our state’s heritage, but also a cornerstone of our economic future,” Mills said in a statement. “These grant awards will help Maine forestry companies on the cutting edge compete on the world stage.”
Maine’s $8.5 billion forest economy was hit hard by the pandemic, with an estimated 40% decline in markets for harvested wood, and a shift in the use of paper resulting in a 19% decrease in revenue for lumber mills.
The Mills administration said the grant program targets “forward-looking industry projects that address new market demands, provide new sustainable products, or otherwise advance the long-term stability of the forestry industry.” A previous round of grant disbursements, totaling $6 million, went to 219 forestry product companies, the administration said.
Pat Strauch, executive director of the Maine Forest Products Council, welcomed the additional funding and said private and public investments will “help the industry continue to adapt, thrive and create opportunities throughout rural Maine.”
The new program is the latest round of pandemic-related disbursements from Mills’ $1 billion Maine Jobs and Recovery plan, which is funded with money from the $1.9 trillion American Rescue Plan, which provided direct payments to individuals, and billions of dollars for states and local governments.
Maine received more than $4.5 billion from the pandemic relief package, including money for businesses and direct payments to residents, and funding for local governments.
More than $540 million of the ARPA funds has been dedicated to infrastructure goals, such as fixing roads and bridges, and building more affordable housing.
The Mills administration has created similar relief programs over the past year targeting other industries including healthcare, childcare and the state’s farming sector.
