STEVENS POINT, Wis. — The U.S. Department of Agriculture announced Monday a $140.2 million investment across nine states to expand wood processing capacity and reduce wildfire risks, including more than $2.4 million for two Wisconsin operations.

The funding is part of the Timber Production and Expansion Guaranteed Loan Program, a partnership between USDA Rural Development and the U.S. Forest Service aimed at supporting sawmills that process ecosystem restoration byproducts.

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In Warrens, Delaneys Trees and Tires, LLC received a $1,660,000 loan to expand its timber processing operations through the purchase of real estate and equipment. Federal officials said the project is expected to create three jobs and save 12 existing positions.

In Shawano County, the Timber Professionals Cooperative Enterprises in Tilleda was awarded an $800,000 loan to assist in reopening a sawmill. The funds will cover the purchase of 49 acres of real estate and equipment to manufacture wood chips and higher-value products. The project is expected to create six jobs.

J.R. Claeys, Administrator of the Rural Business Cooperative Service, said the investment supports sustainable timber harvesting to protect rural areas.

“We cannot allow wildfires to devastate and destroy our rural communities,” Claeys said. “That’s why the USDA is taking this bold action to stop the destruction of our forestlands by investing in sawmills and wood processing facilities.”

The national announcement includes projects in California, Idaho, Kansas, Louisiana, Maine, Nevada, Oklahoma, and Virginia. USDA Forest Service Chief Tom Schultz said the program provides a necessary outlet for wood that must be removed from national forests to maintain forest health.

State Director Andrew C. Iverson said the administration is committed to timber industry innovations that improve forest health while creating jobs in forest-dependent communities.

“The funding that is being announced nationally today will support projects in Wisconsin that are a win for Wisconsin’s economy, consumers who want American-made products, and forest management,” Iverson said.

The program is designed for lenders whose applicants seek to establish or improve facilities that process byproducts from USDA Forest Service National Forest System lands.