The economic future for timber products is sound. Projections indicate that the timber supply will fall short of demand, increasing timber stumpage prices and returns to the timberland owner. Timber historically has increased in value 2 percent a more above the annual inflation rate. This has been achieved during times of good timber supply. But, with the timber supply decreasing rapidly, returns on investment could show annual rates of 10 percent and more over the next timber growth cycle in the South.