Maine diverts federal funds to forestry products industry

(The Middle Sq.) – Maine is pumping extra federal funds into the state’s lumber and forestry merchandise trade to assist it get better from the lingering impacts of the pandemic.

The state Division of Agriculture, Conservation and Forestry has awarded grants totaling $14 million to 19 Maine forestry firms within the newest disbursement from the Forest Restoration Initiative, which is funded with federal pandemic reduction cash. The state has already distributed $6 million in grants from the reduction program.

Gov. Janet Mills stated the funding will assist the trade get better earnings misplaced because of the pandemic, develop new merchandise and improve infrastructure to ease provide chain points.

“Maine’s forest merchandise trade will not be solely a key a part of our state’s heritage, but in addition a cornerstone of our financial future,” Mills stated in a press release. “These grant awards will assist Maine forestry firms on the leading edge compete on the world stage.”

Maine’s $8.5 billion forest financial system was hit exhausting by the pandemic, with an estimated 40% decline in markets for harvested wooden, and a shift in the usage of paper leading to a 19% lower in income for lumber mills.

The Mills administration stated the grant program targets “forward-looking trade initiatives that deal with new market calls for, present new sustainable merchandise, or in any other case advance the long-term stability of the forestry trade.” A earlier spherical of grant disbursements, totaling $6 million, went to 219 forestry product firms, the administration stated.

Pat Strauch, govt director of the Maine Forest Merchandise Council, welcomed the extra funding and stated non-public and public investments will “assist the trade proceed to adapt, thrive and create alternatives all through rural Maine.”

The brand new program is the newest spherical of pandemic-related disbursements from Mills’ $1 billion Maine Jobs and Restoration plan, which is funded with cash from the $1.9 trillion American Rescue Plan, which supplied direct funds to people, and billions of {dollars} for states and native governments.

Maine obtained greater than $4.5 billion from the pandemic reduction package deal, together with cash for companies and direct funds to residents, and funding for native governments.

Greater than $540 million of the ARPA funds has been devoted to infrastructure objectives, comparable to fixing roads and bridges, and constructing extra inexpensive housing.

The Mills administration has created related reduction applications over the previous 12 months focusing on different industries together with healthcare, childcare and the state’s farming sector.