EXHIBIT 12

Rayonier Inc. and Subsidiaries

Ratio of Earnings to Fixed Charges

(Unaudited, in thousands of dollars)

	Six Months Ended June 30,
	2003			2002
Earnings:
Net Income	$	39,908		$	25,643
Add:
(Income) / loss from discontinued operations		—			927
Income tax		9,980			10,350
Amortization of capitalized interest		1,245			1,313
		51,133			38,233
Adjustments to earnings for Fixed Charges:
Interest and other financial charges		24,798			30,817
Interest factor attributable to rentals		412			817
		25,210			31,634
Earnings as adjusted	$	76,343		$	69,867
Total Fixed Charges Above	$	25,210		$	31,634
Ratio of earnings as adjusted to total fixed charges		3.03			2.21
Effective tax rate		20	%		28	%