Articles by Matti Keltikangas

Some of the quantification problems which face the designer of a forest policy program are discussed. Experiences drawn from the preparation of the Forest 2000 program in Finland are used as examples. Both the defining of goals and the choice of means are surveyed and their interconnection in the planning process emphasized.

• Keltikangas, E-mail: mk@mm.unknown

The aim of this study was to determine under what conditions and with what premises the growing of Betula pubescens Ehrh. is an economically competitive alternative to the growing of Scots pine (Pinus sylvestris L.) in drained peatlands. The basic material consisted of all drainage projects in Ostrobothnia in Western Finland in 1937–38 and 1957–59, according to the archives of the Central Board of Forestry Tapio, including such areas that were at least moderately fertile and had birch dominated young stands or no tree cover. A total of 202 sample plots were measured.

According to the results, the discounted timber yield of the thinned B. pubescens stands is about 10% greater than that of untreated stands. The removing of birch seedlings and the subsequent growing of fully stocked Scots pine is more profitable than growing B. pubescens stands only if the establishment and subsequent development of the pine stand involve no costs. If the site in question is a fertile open drained peatland, establishment of a pine stand is obviously a better financial proposition than a naturally regenerated birch stand. However, if there is already a fully stocked young birch stand on the site, it is more economical to let it grow using a shortish rotation time.

The PDF includes a summary in English.

• Keltikangas, E-mail: mk@mm.unknown
• Seppälä, E-mail: ks@mm.unknown

About one million hectares of forests are fertilized annually in Finland. The goal of the present study was to find out, by means of calculations, how the profitability of forest fertilization varies with variations in the stage of development of tree crops, the quality of the site and its geographical location. Calculations concerned bot fertilization of forests in mineral soil sites and in drained peatlands. The study is a part of a larger project concerning the order of profitability of different forest improvement measures in different conditions. The problems dealt with in this study were approached from the point of view of national economy.

On the basis of two empirical materials it is shown that there is a high correlation between the stand growth percentages before and after the fertilization. Applying the results to existing yield tables the authors calculate benefit/cost ratios showing the stage of development of the stand, the quality of the site and its geographical location. According to the results, fertilization is more profitable in sites of medium fertility than on poor sites. Profitability decreases rather fast from south to north and with decreasing timber prices. 

The PDF includes a summary in English.

• Keltikangas, E-mail: mk@mm.unknown
• Seppälä, E-mail: ks@mm.unknown

This article is a book review of a book ’World pulpwood’ by Thorsten Streyffert.

• Keltikangas, E-mail: mk@mm.unknown

One forest drainage undertaking in Finland often consists of woodlots belonging to several owners, and over hundred owners may be involved. In the present paper a method for allocation the costs to different owners in a joint drainage undertaking is worked out. The problem has been emphasised by the new Waterways Law, which enables also such drainage projects to be undertaken to which some of the land owners oppose. In those cased the costs must be allocated according to the benefit driven by each owner from the project.

The method attempts to assess the benefits to be driven from the forest drainage, those costs of the drainage that are joint and thus subjected to allocation, and what is the area affected by drainage as used as a basis for cost allocation.

The joined costs are apportioned in the following manner. The area of peatland adjusted to differences in the benefit obtained by drainage is ascertained by the land holder by multiplying the index number by the corresponding areas. In the case of cultivated agricultural land, also an index showing the need for drainage is used in computing the adjusted area. Each topographic unit in the map is provided with a notation of its apportionment area. Joined costs are allocated to different land owners in relation to their adjusted land areas.

The PDF includes a summary in English.

• Heikurainen, E-mail: lh@mm.unknown
• Keltikangas, E-mail: mk@mm.unknown
• Seppälä, E-mail: ks@mm.unknown

The agricultural committee appointed by the Finnish Government in 1958 pointed out a problem that the rural population needed to be ensured employment and earnings from forestry. A forestry study group was called to investigate the effects of forest improvement on employment and income, on four fields: a) forest drainage, b) afforestation, c) thinning of young stands, and d) construction of forest roads. Items a, b and c increase output, and d creates outlets for timber and increases stumpage value.

The study outlined three alternative silvicultural programmes. The Basic Programme corresponds average forest management in Finland in 1953–1959. The Medium Programme can be seen conditional to the realization of the felling plan worked out in a study group Heikurainen-Kuusela-Linnamies-Nyysönen in 1961 in a committee report of Forestry Planning Committee. Finally, according to an Intensive Programme to which forest management, especially afforestation and forest drainage, will be raised to the highest possible level.

The costs of different silvicultural measures of the three programmes were estimated. The allowable cuts were calculated corresponding to the silvicultural programmes for the period 1961–1970 and 2001–2010. After calculating labour input and costs, could the increase in employment and income be estimated for the whole economy, and separately in forestry, communications and industry. When calculating the labour input required for the forest management work and road construction, the probable rise in productivity following mechanization and rationalization has been taken into account.

The PDF includes a summary in English.

• Heikinheimo, E-mail: lh@mm.unknown
• Heikurainen, E-mail: lh@mm.unknown
• Holopainen, E-mail: vh@mm.unknown
• Keltikangas, E-mail: mk@mm.unknown
• Kuusela, E-mail: kk@mm.unknown
• Möttölä, E-mail: tm@mm.unknown

The present study proposes to calculate the economic sequence of two of Finland’s three main tree species, Norway spruce (Picea abies (L.) H. Karst.) and silver birch (Betula pendula Roth) when planted on Oxalias-Myrtillus type sites where both species are equally suitable, on biological grounds. In addition, the accuracy and applicability of the present Finnish yield tables to an economic comparison is tested. Benefit/cost ratio was selected as criterion of profitableness. All future net incomes and costs were discounted into the planting time and added together. The ratio between the discounted net revenues and the discounted investment costs (later called profit ratio) was the criterion. There is no reliable method to forecast the future wood prices, therefore two price ratios, birch veneer timber to spruce pulpwood and birch cordwood to spruce pulpwood, were chosen as free variables. The economic sequence of the tree species was determined as the function of these variables.

The main conclusions are, first, that under the present price ratios spruce appears to be the better choice for the forest owner, and the most promising policy for changing the situation seems to decrease the production costs of plants in birch nurseries. Second, the present Finnish yield tables are not consistent or accurate enough to enable any sufficiently reliable economic comparisons of tree species in artificial regeneration. The possible error of difference between two rather uncertain estimates is big. More work is needed to construct a uniform system of yield tables covering all main tree species, all site types, all macro climate conditions and all types of regeneration.

The PDF includes a summary in English.

• Keltikangas, E-mail: mk@mm.unknown
• Tiililä, E-mail: pt@mm.unknown

An extensive field-based survey was conducted to establish the distribution of site types on drained peatlands, the condition of the drainage networks, the post-drainage development of the tree stands, their structure and silvicultural condition and the corresponding requirements for operational measures. The data is based on sampling of the forest drainage undertaking during 1930–78 and consists of 1,312 km inventory transect, 6,030 relascope sample plots and 21,700 studied ditches.

Of the studied peatlands more than 60% were Scots pine (Pinus sylvestris L.) mires, slightly under 20% Norway spruce (Picea abies) mires, and under 10% each treeless mires and paludified upland forest sites. The remaining peatland area that is to be considered suitable for forest drainage according to criteria used by Heikurainen (1960) now consists mainly of spruce mires and paludified upland forest types; about 1 million ha both groups still remain undrained.

The proportion of ditches in need of ditch cleaning was estimated to be under 10% in the youngest drained areas and under 30% in the oldest. The mean tree stand volumes of the drained peatlands of different site types show the same dependence on the trophic level as in earlier studies but the volumes seem to be some 5–10% lower. These results compare favourably with those of the 7th national forest inventory.

Trends in the post-drainage development of tree stand volumes and increment are also, generally, in accordance with earlier findings but have somewhat lower values. The development of the nutrient-poor site type stands, especially in Northern Finland, seems to be significantly poorer than was earlier assumed.

The PDF includes a summary in English.

• Keltikangas, E-mail: mk@mm.unknown
• Laine, E-mail: jl@mm.unknown
• Puttonen, E-mail: pp@mm.unknown
• Seppälä, E-mail: ks@mm.unknown

The aim of the study was to determine how the spacing of drains affects the economic results of forest drainage projects. On the basis of empirical material consisting of 411 sample plots, it is presented marginal cost curves showing how many meters more of drains it is needed to increase the value of stock, 35 years after the drainage, by a value equivalent of one cu.m of coniferous pulpwood. Results indicate that wider spacings ought to be used on poor sites, on sloping swamps, and in the north.

The PDF includes a summary in English.

• Keltikangas, E-mail: mk@mm.unknown

The role of the time factor is discussed from the viewpoint that investment calculations are expected to be used to transform and condense information and not necessarily to show the optimum. Some general conclusions are drawn concerning the recommendable form of such a calculation when used by a consultant advising a forest owner. A few of the practical problems arising in the connection of applications to timber growing are also discussed.

In conclusion, a recommendation was developed for the calculation procedure to be used in the so-called contractual research into the profitability sequence of forest improvements. It would seem advisable to carry out the calculations using both varying interest rates and varying time horizons. In addition, it is justifiable also to present the expected series of cash flow changes, such as they are, among the results. Further studies will follow.

The PDF includes a summary in Finnish.

• Keltikangas, E-mail: mk@mm.unknown