The Precision Forestry Cooperative was founded as part of the Washington State Advanced Technology Initiative (ATI), funded by the Legislature. The University of Washington's College of Forest Resources, in collaboration with the College of Engineering, created the Precision Forestry Cooperative to conduct pioneering research in forest production, management, and manufacturing at a new scale of resolution and accuracy with the goal of producing economic and environmental benefits.

The commercial forest sector has traditionally not had a high level of investment in research and development of new products and systems for process improvement. This creates an environment that is ripe with opportunities for the Precision Forestry Cooperative to leverage money and resources from both the private and public sectors to work cooperatively in developing new technologies that will bring economic benefits to the state. Overall, the forest products industry supports 7% of Washington's economy. Because most commercial forestry is in rural portions of the state, these areas will benefit the most from the technologies developed and deployed.