%0 Research article
%T The financial and economic profitability of field afforestation in Finland
%A Niskanen, Anssi
%D 1999
%J Silva Fennica
%V 33
%N 2
%R doi:10.14214/sf.664
%U https://silvafennica.fi/article/664
%X The aim of the study was to assess the rate of return on invested  capital and soil expectation value in field afforestation from the  financial (business economic) and economic (national economic) point of  views in Finland using 1996 cost and price data. Risks for renewal  planting and negative growth impacts of reduction in plantation density  were explicitly included in the profitability assessments. Results  indicated that due to the subsidies and favorable regulations for  obtaining them in 1996, field afforestation was financially profitable  for farmers regardless of what species was used for planting. From the  national economic point of view, investments in field afforestation  provided only substantial return on invested capital, being highest  after risk adjustments in Norway spruce (Picea abies) plantations.