EXHIBIT 12

RAYONIER INC. AND SUBSIDIARIES

RATIO OF EARNINGS TO FIXED CHARGES

(Unaudited, thousands of dollars)

	Nine Months Ended September 30,
	2004			2003
Earnings:
Net income	$	143,372		$	48,000
Add:
Income tax (benefit) expense		(32,272	)		12,289
Amortization of capitalized interest		1,842			1,868
		112,942			62,157
Adjustments to earnings for fixed charges:
Interest and other financial charges		34,740			36,853
Interest attributable to rentals		216			617
		34,956			37,470
Earnings as Adjusted	$	147,898		$	99,627
Total Fixed Charges	$	34,956		$	37,470
Ratio of Earnings as Adjusted to
Total Fixed Charges		4.23			2.66