Forest2Market.com reports that loggers in the US South have seen profits hemorrhage due to the rising cost of diesel. High fuel costs have pushed a number of loggers, already hit hard by the housing slump, out of business and, without state aid, many more could follow says the Mississippi Loggers Association (MLA).

In an open letter sent to Mississippi Governor Haley Barbour, the MLA requested “immediate relief” from the state that would help stem the loss of thousands of jobs in the logging industry. According to the MLA, the logging industry contributes more than $14 billion per year to the state economy and directly employs more than 52,000 people. The association proposes four measures that will determine the “survival” of the Mississippi logging industry: ¨ A state fuel tax waiver for off-road and on-road diesel during the remainder of 2008 ¨ An increase in highway weight limits to 88,000 lb ¨ A sales tax waiver for equipment and truck supplies and parts ¨ A waiver of landowner severance taxes collected at mills ¨ A waiver of landowner long-term capital taxes.