BANKS, Oregon — After being in operation since at least 1961, a lumber mill is closing in Banks, Oregon. 58 employees were laid off Tuesday, in a town of less than 2,000.
Hampton Lumber is giving employees the opportunity to transfer to another plant or receive a severance package.
Though the loss of the mill is a major blow for the community.
"It's hard to put into words how important it's been, because it's always been there," Marsha Kirk, president of the Banks Historical Society said.
Banks has always been rooted in the timber industry, Kirk said.
"Lumber, timber is our life blood,” she added.
The closure of the mill also came as a surprise for city leaders.
"All of our plans have included that mill being there," Banks mayor Stephanie Jones said.
The town also relies heavily on the mill for fees, like its water usage, Jones said.
"It's also kind of a big impact for our school district because one of the things that helps fund the school district are timber sales," Jones added.
Hampton Lumber said one reason they closed the mill was due to a potential change in state policy. Oregon is now considering the Habitat Conservation Plan, which would cut harvests on state forests by up to 34%, cutting the harvest from 285 million board feet to around 180 million feet.
"And that's a massive hit for local sawmills," Kristin Rasmussen, the communications director for Hampton Lumber said.
It’s especially detrimental for the Banks lumber mill, Rasmussen said. That mill heavily relies on timber from the Tillamook and Clatsop state forests.
Though issues they’re facing aren’t unique. In 1988, the Oregon Forest Resources Institute found there were 360 wood processing mills statewide. By 2022, there were just 167.
"It's a really hard time,” Rasmussen said.
The Oregon Department of Forestry realizes the conservation plan could cause difficulties for sawmills, though they said the plan is pivotal. It sets aside land to protect endangered species like the northern spotted owl, the marbled murrelet and 15 other species.
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The plan also puts Oregon in compliance with the endangered species act. In recent years, potential lawsuits in regard to land for endangered species, has become an issue for the state.
The conservation plan will cover 640,000 acres for 70 years.
Leading to increased concern in Banks.
"There needs to be a better balance between protecting our resources but also managing them in a way that makes sense for the economy," Jones said.