About 48% (29.7 million acres/12 million hectares) of Oregon is forested. Oregon's forests are divided into two major geographic regions. Douglas-fir is a primary conifer species in western Oregon, with western hemlock and sitka spruce found along the coast. In eastern Oregon, ponderosa pine is the main species. Several species of true fir, larch, and lodgepole pine also grow east of the Cascades. Noncommercial forests are found along the crest of the Cascade Range and in the high-desert country of eastern Oregon. These species include alpine fir, mountain hemlock and western juniper.
Over 60% of Oregon's forests are publicly owned. National Forest Service lands cover 17.5 million acres (7.1 million hectares). Most of these are federal lands. Federal timber harvest levels have steadily declined over the last several years as timber sales have been appealed and forest set-asides for habitat protection have increased. Reduced revenues have affected local services and infrastructure—where a percentage of harvest tax dollars are reinvested—and the overall structure and funding of federal agencies. The Oregon Department of Forestry manages about 786,000 acres (318,000 hectares) of forestland. About 654,000 acres (265,000 hectares) are managed by the department for the counties, and a further 132,000 acres (53,000 hectares) are Common School Fund forestlands, managed for the State Land Board. State forestlands are not managed with the same "multiple-use" strategy as lands managed by the US Forest Service. According to statute, state lands are managed to produce sustainable revenue for counties, schools, and local taxing districts. About 80% of the state's forestland, or 23.8 million acres (9.6 million hectares), is land capable of producing timber for commercial harvest. However, less than 60% of this commercial land is available for full-yield timber production. The remaining forestland base contains commercial forest, but at reduced levels, and provides vital environmental and recreational functions.
Forestland available for commercial timber management has decreased since the 1970s. Estimates show that Oregon's commercial land base has decreased by more than 24% since 1945. Private forestland has been lost due to urban expansion and other non-timber uses. Private forestlands, however, have assumed a much more important role as Oregon's timber supplier due to harvest limitations placed on federal forestland. Timber harvest levels on non-industrial forestlands—parcels typically smaller than 5,000 acres (2,000 hectares) and owned by individuals, not corporations—have more than doubled since 1981, and harvest levels on industry-owned forestlands have also increased during the same period. The relative percentage of overall harvest, however, emphasizes the importance of Oregon's private forestlands.
In 2002, Oregon led the nation in total lumber production, with 6.4 billion board feet, and contributed about 13% to the national total. Nearly all of the timber harvested from private forestlands is second-growth—trees originating from 1920 to 1940. Private forestlands are being reforested and play a major role in sustaining Oregon's long-term timber supply. Oregon law has required reforestation following timber harvesting since 1941. Oregon was the first state to pass a Forest Practices Act, in 1971. About 100 million seedlings are planted in Oregon each year.