EXHIBIT 12

RAYONIER INC. AND SUBSIDIARIES

RATIO OF EARNINGS TO FIXED CHARGES

(Unaudited, thousands of dollars)

	Six Months Ended June 30,
	2004			2003
Earnings:
Net income	$	119,248		$	39,908
Add:
Income tax (benefit) expense		(28,484	)		9,980
Amortization of capitalized interest		1,226			1,245
		91,990			51,133
Adjustments to earnings for fixed charges:
Interest and other financial charges		23,142			24,798
Interest attributable to rentals		144			412
		23,286			25,210
Earnings as Adjusted	$	115,276		$	76,343
Total Fixed Charges	$	23,286		$	25,210
Ratio of Earnings as Adjusted to Total Fixed Charges		4.95			3.03