Ore. timber country ponders future with fewer logs

Jennifer Phillippi's grandparents started producing lumber in Oregon timber country in 1922, when the forests were full and work was plentiful. Now what was the last sawmill in Josephine County has closed, after the Phillippis had to give up hope that the land could provide enough of the logs they needed to stay afloat.

"What they tell me is one door closes and another door opens," said former employee Randy Hults. "I'm waiting for the open door."

So are many of the 1 million who live in Oregon's timber country. The region's troubles have reached a tipping point since the expiration of federal subsidies to offset revenue losses caused by reduced logging on federal lands. Today these communities are looking for what's next, as some drift closer to bankruptcy.