Economic Impact

UA provides $3 billion annual economic impact to Arkansas

by Jeff Della Rosa (JDellaRosa@nwabj.com)

The University of Arkansas’ economic impact on the state exceeds “a fairly conservative” $3 billion annually, UA leaders said. They expect the impact to rise as the university continues to break enrollment records.

In a Tuesday (Sept. 10) press conference, UA leaders released an overview of its 2024 Economic Impact Report completed over the past year by the Center for Business and Economic Research in the Sam M. Walton College of Business. Leaders said the full report will be released online in the coming weeks.

The economic impact is up 36.36% from a 2018 report showing the university’s $2.2 billion annual economic impact on the state. The new report is based on 2023 data and comprises workforce development, applied research and innovation, student expenditures, visitor spending, and construction and operations.

UA provides $3 billion annual economic impact to Arkansas

University of Arkansas Chancellor Charles Robinson announced Tuesday (Sept. 10) the UA's $3 billion economic impact on the state.

Economic impact of Arkansas timber damage from May tornadoes estimated at $89 million

By Traci Rushing
Arkansas Center for Forest Business
U of A System Division of Agriculture 

MONTICELLO, Ark. — In May Arkansas saw a record number of tornadoes touch down in our state causing an estimated $89 million in total economic impacts and potential environmental risk associated with the forest damage experienced in five northern counties.

ECONOMIC IMPACTS — In May Arkansas saw a record number of tornadoes touch down in our state causing an estimated $89 million in total economic impacts and potential environmental risk associated with the forest damage experienced in five northern counties. (Division of Agriculture graphic.)

The National Weather Service (NWS) reported a record number of 17 tornadoes recorded across Arkansas on May 26 with one tornado having a path width of nearly 2 miles in Benton County. The Arkansas Department of Agriculture Division of Forestry estimated the tornadoes destroyed $18.4 million worth of timber over 12,400 acres in Benton, Madison, Marion, Baxter and Fulton counties. Given these numbers, the Arkansas Center for Forest Business conducted an analysis of the full economic impact of this timber loss, which totaled $89 million. This estimate includes the cost of hazard reduction, loss in labor due to timber not being harvested, carbon storage loss, and losses of both local and state tax revenues.

To support landowners in this area, the Arkansas Center for Forest Business prepared and reported the economic losses experienced in the five northern counties. Data was shared with the Arkansas Department of Agriculture Division of Forestry which led to the Division requesting financial support from Farm Service Agencies to assist landowners in the area.

“The Arkansas Center for Forest Business assists landowners with strategic planning and provides economic values to the Arkansas Agricultural Department Forestry Division and the Arkansas Forestry Association as needed to support in policymakers’ decision-making to coordinate disaster funding,” said Dr. Shaun Tanger, Associate Professor of Forest Policy and Trade at the University of Arkansas at Monticello College of Forestry, Agriculture, and Natural Resources.

While the economic impact on the surrounding communities is devastating, the environmental impact of not properly caring for the fallen timber could be detrimental to the ecosystem. According to Dr. Matthew Pelkki, Director of the Arkansas Center for Forest Business and Professor at the UAM CFANR, these lands are very susceptible to seeing an infestation of negative pests and fire hazards.

“The potential is that the chemicals released from a dead or recently killed tree are going to attract insects, which in a natural scenario is not necessarily a bad thing. However, in this scenario, there is a potential to draw in populations of insects that are detrimental to our forest,” said Pelkki. “Insects such as bark beetles and red oak borers could thrive in the fallen timber and then start affecting living trees around the area. Then, there is also a fire hazard. We have a lot of dead, down material that will dry out and create a fire hazard.”

The Arkansas Center for Forest Business encourages landowners to be proactive with land management efforts.

“It is important that Arkansas’ forest landowners work with foresters to manage their forests for greater resiliency to insects, diseases, and climate events and one of the tools for that is timber harvesting,” added Pelkki.

Inquiries about financial assistance from Farm Service Agencies for landowners from the affected region can be directed to the Arkansas Department of Agriculture, Division of Forestry. The Arkansas Center for Forest Business is also available to provide landowners with valuable information and connections to assist with land management. More information about the Arkansas Center for Forest Business can be found on their website.

Arkansas tourism officials welcome rebound of visitors

KUAR | By Daniel Breen

Arkansas’ tourism industry is nearly back to pre-pandemic levels, according to a new study.

The 2021 Arkansas Tourism Economic Impact Report shows tourism jobs in the state rose to 95% of pre-pandemic levels last year. Jobs in the tourism industry grew by nearly 24% compared to 2020, with over 64,000 more Arkansans employed.

Stacy Hurst, secretary of the Department of Parks, Heritage and Tourism, says the state’s economy is also seeing a rebound thanks to the increase in visitors.

https://www.ualrpublicradio.org/local-regional-news/2022-09-19/arkansas-tourism-officials-welcome-visitor-revenue-rebound

Jared Sorrells/Little Rock Convention & Visitors Bureau

Cyclists ride one of the Monument Trails at Pinnacle Mountain State Park in Little Rock.