Land use changes and timberland use by ownership and forest type in Alabamaand Georgia between 1972 and 2000 are analyzed using a modified multinomiallogit approach. Low average land quality, federal cost-share incentives, andfavorable returns to forestry relative to agriculture were the main factorsassociated with timberland increase. Higher forestry returns helped increaseindustrial timberland but not nonindustrial private forests. An increase inhardwood forests at the expense of softwood and mixed forests was driven byincreasing hardwood returns. Increasing softwood returns and tree plantingassistance programs alleviated declines in softwood forests. Because factorsinfluencing timberland use changes differ by ownership and forest type,treating all timberland as one major category may lead to incorrectpredictions.