Rayonier Inc. and Subsidiaries

Exhibit 12

Ratio of Earnings to Fixed Charges

	Year Ended December 31
(Unaudited, thousands of dollars)	2002			2001			2000			1999			1998
Earnings:
Net Income	$	54,172		$	57,598		$	78,187		$	68,653		$	63,635
Add:
(Income) loss from discontinued operations		745			(688	)		(669	)		(84	)		(524	)
Income tax		14,880			23,747			29,398			29,082			25,825
Minority interest		—			—			—			—			—
Amortization of capitalized interest		2,531			2,625			2,578			2,308			2,331
		72,328			83,282			109,494			99,959			91,267
Adjustments to earnings for fixed charges:
Interest and other financial charges		62,433			70,314			87,199			43,705			36,505
Interest factor attributable to rentals		823			1,633			1,362			1,367			1,750
		63,256			71,947			88,561			45,072			38,255
Earnings as adjusted	$	135,584		$	155,229		$	198,055		$	145,031		$	129,522
Fixed Charges:
Fixed charges above	$	63,256		$	71,947		$	88,561		$	45,072		$	38,255
Capitalized interest		—			—			—			314			262
Total fixed charges	$	63,256		$	71,947		$	88,561		$	45,386		$	38,517
Ratio of earnings as adjusted to total fixed
charges		2.14			2.16			2.24			3.20			3.36
Effective tax rate		21	%		29	%		28	%		30	%		29	%