EXHIBIT 12

Rayonier Inc. and Subsidiaries

Ratio of Earnings to Fixed Charges

(Unaudited, in thousands of dollars)

	Nine Months Ended September 30,
	2003			2002
Earnings:
Net Income	$	48,000		$	41,281
Add:
Loss from discontinued operations		—			767
Income tax		12,289			16,716
Amortization of capitalized interest		1,868			1,946
		62,157			60,710
Adjustments to earnings for Fixed Charges:
Interest and other financial charges		36,853			45,349
Interest factor attributable to rentals		617			1,225
		37,470			46,574
Earnings as adjusted	$	99,627		$	107,284
Total Fixed Charges Above	$	37,470		$	46,574
Ratio of earnings as adjusted to total fixed charges		2.66			2.30
Effective tax rate		20	%		28	%