Exhibit (12)



Potlatch Corporation

Computation of Ratio of Earnings to Fixed Charges

(in thousands)



|                                                                  |  |        |  |         |   |  |         |   |  |         |   |  |         |  
|----------------------------------------------------------------- |  | ------ |  | ------- | - |  | ------- | - |  | ------- | - |  | ------- | -
|                                                                  |  | 2004   |  | 2003    |   |  | 2002    |   |  | 2001    |   |  | 2000    |  
|Earnings (loss) from continuing operations before taxes on income |  | 25,297 |  | (12,990 | ) |  | (67,575 | ) |  | (71,471 | ) |  | (78,308 | )
|Add:                                                              |  |        |  |         |   |  |         |   |  |         |   |  |         |  
|Interest expense                                                  |  | 45,863 |  | 48,172  |   |  | 59,882  |   |  | 77,853  |   |  | 59,438  |  
|Rental expense factor (1)                                         |  | 5,446  |  | 4,582   |   |  | 3,688   |   |  | 2,846   |   |  | 2,956   |  
|Discount and loan expense amortization                            |  | 3,075  |  | 3,757   |   |  | 2,688   |   |  | 3,755   |   |  | 508     |  
|                                                                  |  |        |  |         |   |  |         |   |  |         |   |  |         |  
|Earnings available for fixed charges                              |  | 79,681 |  | 43,521  |   |  | (1,317  | ) |  | 12,983  |   |  | (15,406 | )
|                                                                  |  |        |  |         |   |  |         |   |  |         |   |  |         |  
|Fixed charges:                                                    |  |        |  |         |   |  |         |   |  |         |   |  |         |  
|Interest expense                                                  |  | 45,863 |  | 48,172  |   |  | 59,882  |   |  | 77,853  |   |  | 59,438  |  
|Capitalized interest                                              |  | 383    |  | 2,907   |   |  | 300     |   |  | 1,032   |   |  | 3,964   |  
|Rental expense factor (1)                                         |  | 5,446  |  | 4,582   |   |  | 3,688   |   |  | 2,846   |   |  | 2,956   |  
|Discount and loan expense amortization                            |  | 3,075  |  | 3,757   |   |  | 2,688   |   |  | 3,755   |   |  | 508     |  
|                                                                  |  |        |  |         |   |  |         |   |  |         |   |  |         |  
|Total fixed charges                                               |  | 54,767 |  | 59,418  |   |  | 66,558  |   |  | 85,486  |   |  | 66,866  |  
|                                                                  |  |        |  |         |   |  |         |   |  |         |   |  |         |  
|Ratio of earnings to fixed charges                                |  | 1.5    |  | 0.7     |   |  | 0.0     |   |  | 0.2     |   |  | (0.2    | )

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|(1) | Rental expense factor is the portion of rental expense estimated to be representative of the interest factor within rental expense.
|--- | -------------------------------------------------------------------------------------------------------------------------------------



The dollar amount of deficiency in earnings available for fixed charges for a one-to-one
ratio for the years 2003, 2002, 2001 and 2000 are $15,897, $67,875, $72,503 and $82,272, respectively.



Certain amounts for 2000-2003 have been reclassified to conform to the 2004 presentation.