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Articles containing the keyword 'non-industrial private forest'.

Category: Research article

article id 58, category Research article
Ilona Suuriniemi, Jukka Matero, Harri Hänninen, Jussi Uusivuori. (2012). Factors affecting enlargement of family forest holdings. Silva Fennica vol. 46 no. 2 article id 58. https://doi.org/10.14214/sf.58
This study contributes to the research of enlargement – a counterforce of parcelization – of forest holdings. To help planning policy measures aiming at increased average size of forest holdings, we study the characteristics of family forest owners who acquired additional forestland area during the years 2004–2008. Increases of forestland area due to purchases on the open market, purchases from parents or other relatives, inheritance or gift are studied. Survey data, containing information of 6318 forest owners, are analyzed with logistic regression analysis in order to establish a relationship between the probability of increasing the forestland area and the characteristics of landowners. The results indicate that young male owners, who appreciate economic values of the ownership and are active users of their forest estates, most often expand their forest property. This can be considered as an encouraging result from the point of view of the political objective to boost forest management activity through enlarging family forest holdings.
  • Suuriniemi, University of Eastern Finland, School of Forest Sciences, P.O. Box 111, FI-80101 Joensuu, Finland ORCID ID:E-mail:
  • Matero, University of Eastern Finland, School of Forest Sciences, P.O. Box 111, FI-80101 Joensuu, Finland ORCID ID:E-mail: jukka.matero@uef.fi (email)
  • Hänninen, Finnish Forest Research Institute, Vantaa Unit, P.O. Box 18, FI-01301 Vantaa, Finland ORCID ID:E-mail:
  • Uusivuori, Finnish Forest Research Institute, Vantaa Unit, P.O. Box 18, FI-01301 Vantaa, Finland ORCID ID:E-mail:
article id 178, category Research article
Raili Hokajärvi, Teppo Hujala, Leena A. Leskinen, Jukka Tikkanen. (2009). Effectiveness of sermon policy instruments: forest management planning practices applying the activity theory approach. Silva Fennica vol. 43 no. 5 article id 178. https://doi.org/10.14214/sf.178
Recent and ongoing societal changes have brought about a need to foster multiple-use forestry and to strengthen customer orientation in family forestry outreach. The study assesses how forest management planning in family forest holdings could be developed to tackle these challenges. The approach introduces a new way of evaluating the effectiveness of information- and communication-based policy instruments. Here, the cultural-historical activity theory is applied in studying the interwoven practices of present-day planning and the associated advisory services targeted at landowners. The data, comprising semi-structured in-depth interviews with 19 professional planners, were qualitatively examined, and a forest management planning activity model was constructed with the emphasis placed on the inherent contradictions of planning work. As the main contradiction, the forest and the forest owner compete as objects. The aims of making the forest productive and advising the landowners towards an increased activeness motivate forest management planning but the planners feel that they lack the opportunity to respond to the needs of the landowner. A wood-production-emphasizing interpretation of the benefits to the national economy frustrates the policy goal of genuinely promoting the goals of multiple-use forestry. The conclusion drawn is that the actors engaged in forest management planning can reveal the needs for change by discussing their opinions and practical innovations. This can be done with the aid of facilitation by e.g. researchers oriented to developmental work study.
  • Hokajärvi, Oulu University of Applied Sciences, School of Renewable Natural Resources, Metsäkouluntie 4–6, FI-90650 Oulu, Finland ORCID ID:E-mail: raili.hokajarvi@oamk.fi (email)
  • Hujala, Finnish Forest Research Institute, Joensuu Research Unit, P.O. Box 68, FI-80101 Joensuu, Finland ORCID ID:E-mail:
  • Leskinen, University of Eastern Finland, Department of Geographical and Historical Studies, P.O. Box 111, FI-80101 Joensuu, Finland ORCID ID:E-mail:
  • Tikkanen, Oulu University of Applied Sciences, School of Renewable Natural Resources, Metsäkouluntie 4–6, FI-90650 Oulu, Finland ORCID ID:E-mail:
article id 621, category Research article
Jyrki Kangas, Pekka Leskinen, Timo Pukkala. (2000). Integrating timber price scenario modeling with tactical management planning of private forestry at forest holding level. Silva Fennica vol. 34 no. 4 article id 621. https://doi.org/10.14214/sf.621
In forest management planning, deterministic timber prices are typically assumed. However, real-life timber prices vary in the course of time, and also price peaks, i.e. exceptionally high timber prices, might occur. If land-owners can utilise the price variation by selling timber with the high prices, they are able to increase their net revenues correspondingly. In this study, an approach is presented to study the timber price variation and its significance in the optimization of forest management. The approach utilizes stochastic timber price scenario modelling, simulation of forest development, and optimization of forest management. The approach is presented and illustrated by means of a case study. It is shown how the degree of uncertainty due to variation in timber prices can be analyzed in tactical forest planning of private forestry, and how the potential benefits of adaptive timber-selling behaviour for a forest landowner can be computed by using the approach. The effects of stochastic timber prices on the choice of forest plan are studied at the forest holding level considering also the spacing and type of cuttings and the optimal cutting order. A forest plan prepared under the assumption of constant timber price very seldom results in optimal forest management. Through studying the effects of stochastic timber prices, forest landowners and other decision makers obtain valuable information about the significance of adaptive timber selling behaviour. The presented methodology can also be used in analysing the land-owners’ economic risks as a function of time-price structure.
  • Kangas, Finnish Forest Research Institute, Kannus Research Station, P.O. Box 44, FIN-69101 Kannus, Finland ORCID ID:E-mail: jyrki.kangas@metla.fi (email)
  • Leskinen, Finnish Forest Research Institute, Kannus Research Station, P.O. Box 44, FIN-69101 Kannus, Finland ORCID ID:E-mail:
  • Pukkala, University of Joensuu, Faculty of Forestry, P.O. Box 111, FIN-80101 Joensuu, Finland ORCID ID:E-mail:
article id 701, category Research article
Antrei Lausti, Markku Penttinen. (1998). The analysis of return and its components of non-industrial private forest ownership by forestry board districts in Finland. Silva Fennica vol. 32 no. 1 article id 701. https://doi.org/10.14214/sf.701
Non-industrial private forest ownership returns and risks in Finland are both estimated and disaggregated to local Forestry Board Districts (FBD) level. Additionally, the FBD level return is divided into price change, felling and change in the growing stock components, which are compared with the inflation rate. The results are based on a complete count of the stumpage prices, silvicultural costs and state subsidies as well as the National Forest Inventory (NFI) data. The influence of taxation is discussed as well. Although this database is excellent for economic studies as well, the estimation methodology is vitiated by a host of problems, the resolution of which is the major contribution of this study. The study period is 1972–1996. The results show that there have been fairly large differences in forest ownership returns and prices depending on the Forestry Board District. Results show that the price change component has been larger in Northern Forestry Board Districts, as much as 0.9% above the inflation rate in Lapland FBD, than in Southern Forestry Board Districts, 1.5% less than the inflation rate in southern Helsinki FBD. The net increase, however, has been larger in Southern Forestry Board Districts than in Northern Forestry Board Districts. Using the average net increment in Finland as a comparison base, the net increment in South Karelia exceeded it by 0.6%, but fell below it by 1.8% in Northeastern Finland. Finally, the return over the whole period is compared to the return on private housing and inflation in the case of North Savo. In all, the estimation methodology developed also serves as spin-off product development for the Forest Statistics Information Service (FSIS).
  • Lausti, Helsinki School of Economics and Business Administration, Centre for Doctoral Programme, Runeberginkatu 15 A, FIN-00100 Helsinki, Finland ORCID ID:E-mail:
  • Penttinen, Finnish Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, FIN-00170 Helsinki, Finland ORCID ID:E-mail: markku.penttinen@metla.fi (email)
article id 699, category Research article
Heimo Karppinen. (1998). Values and objectives of non-industrial private forest owners in Finland. Silva Fennica vol. 32 no. 1 article id 699. https://doi.org/10.14214/sf.699
The purpose of the study was to create an empirical typology of non-industrial private forest owners based on forest values and long-term objectives of forest ownership, to identify these types by owner and holding characteristics, as well as to analyze silvicultural and harvesting behavior in these groups. The analysis was based on survey data on 245 forest owners in southeastern Finland. The results indicated that general forest values and long-term objectives of forest ownership are not strongly correlated. The results further suggested that the sole emphasis on economic benefits of forests does not lead to the most active silvicultural and harvesting behavior. Multiobjective owners, who underlined both monetary and amenity benefits of their forest property, were the most active in their silvicultural and cutting behavior. Non-timber objectives seemed not to exclude wood production: a group called recreationists harvested slightly less than other owners. Recreationists were willing to invest in forestry but were selective with respect to management practices. The results can be used in planning and implementation of public forest policy such as allocation of the resources of forestry extension services. Forest industries should also benefit from a knowledge of the objectives of roundwood sellers.
  • Karppinen, Finnish Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, FIN-00170 Helsinki, Finland ORCID ID:E-mail: heimo.karppinen@helsinki.fi (email)
article id 698, category Research article
Kalle Kärhä, Sami Oinas. (1998). Satisfaction and company loyalty as expressed by non-industrial private forest owners towards timber procurement organizations in Finland. Silva Fennica vol. 32 no. 1 article id 698. https://doi.org/10.14214/sf.698
The satisfaction and company loyalty as expressed by non-industrial, private forest (NIPF) owners towards timber procurement organizations were clarified via a mail questionnaire. The results denoted that there is a positive correlation between the levels of forest owners’ expectations (EXP) and perceived performance (PERF). In addition, the lower EXP and the higher PERF were, the greater was the overall satisfaction index (SAT). About two thirds of forest owners were characterized by a negative SAT value or then they were dissatisfied with the performance of the procurement organization in their last timber-sales transaction. Furthermore, the results obtained indicated that the SAT index significantly influences the company loyalty expressed by NIPF owners – their willingness to give favourable reports of the company to the others, and their willingness to engage in future timber-sales transactions with the same company. Nonetheless, the SAT index did not affect the market share of a particular company, and this could be partly accounted for by the similar level of performance among the companies and the lack of competition in the timber trade. Finally, the results revealed several dimensions of timber procurement, and some seller segments to which companies could pay more attention to in order to be able to achieve better satisfaction levels and the loyalty of NIPF owners in the future. One approach to successfully addressing these challenges could be the adopting of a satisfaction decision support system (SatDSS).
  • Kärhä, Faculty of Forestry, University of Joensuu, P.O. Box 111, FIN-80101 Joensuu, Finland ORCID ID:E-mail: karha@forest.joensuu.fi (email)
  • Oinas, Faculty of Forestry, University of Joensuu, P.O. Box 111, FIN-80101 Joensuu, Finland ORCID ID:E-mail:

Category: Review article

article id 378, category Review article
Yaoqi Zhang, Daowei Zhang, John Schelhas. (2005). Small-scale non-industrial private forest ownership in the United States: rationale and implications for forest management. Silva Fennica vol. 39 no. 3 article id 378. https://doi.org/10.14214/sf.378
The transaction cost approach is used to explain why small non-industrial private forest (NIPF) ownerships are increasing in the U.S. We argue that the number of small NIPF owners have increased because: 1) a significant amount of forestland is no longer used economically if primarily for timber production, but rather for non-timber forest products and environmental services (particularly where population density is high), 2) when a person makes frequent use of non-timber products and services, owning forestland is more efficient for them because it saves the transaction costs involved in getting them from the market, 3) forestland parcelization takes place when non-timber value increases faster than timber value, and 4) marginal value for non-timber product is diminishing much faster than that for timber production. The paper also discusses implications of the parcelization of NIPF ownerships on forest management.
  • Zhang, School of Forestry & Wildlife Sciences, Auburn University, AL 36849-5418, USA ORCID ID:E-mail: yaoqi.zhang@auburn.edu (email)
  • Zhang, School of Forestry & Wildlife Sciences, Auburn University, AL 36849-5418, USA ORCID ID:E-mail:
  • Schelhas, Southern Research Station, USDA Forest Service, Tuskegee University, AL, USA ORCID ID:E-mail:

Category: Research note

article id 631, category Research note
Pekka Ripatti. (2000). Use of log-linear models in forecasting structural changes in Finnish non-industrial private forest ownership. Silva Fennica vol. 34 no. 3 article id 631. https://doi.org/10.14214/sf.631
This paper presents how log-linear models can be used for modelling and forecasting structural changes of Finnish non-industrial private forest ownership. Two cross-sectional sets of data, which were collected in conjunction with two separate surveys by means of mail questionnaires in 1975 and 1990, were employed. A total of six non-industrial private forest holding and ownership attributes are forecast focusing on the earlier pace of structural change. The results show that the pace of change in the forecast attributes appears to be less than it would be when derived from extrapolation of the earlier trends. The results of the study can be applied to forest policy and forestry extension planning, by providing a more realistic outlook of the future structure of non-industrial private forest ownership.
  • Ripatti, Finnish Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, FIN-00170 Helsinki, Finland ORCID ID:E-mail: pekka.ripatti@metla.fi (email)

Category: Article

article id 5555, category Article
Mauno Pesonen, Arto Kettunen, Petri Räsänen. (1995). Modelling non-industrial private forest landowners’ strategic decision making by using logistic regression and neural networks: Case of predicting the choice of forest taxation basis. Silva Fennica vol. 29 no. 2 article id 5555. https://doi.org/10.14214/sf.a9206

In this study, logistic regression and neural networks were used to predict non-industrial private forests (NIPF) landowners’ choice of forest taxation basis. The main frame of reference of the study was the Finnish capital taxation reform of 1993. As a consequence of the reform, landowners were required to choose whether to be taxed according to site-productivity or realized-income during the coming transition period of thirteen years.

The most important factor affecting the landowners’ choice of taxation basis was the harvest rate during the transition period, i.e. the chosen timber management strategy. Furthermore, the estimated personal marginal tax rate and the intention to cut timber during next three years affected the choice. The descriptive landowner variables did not have any marked effect on the choice of forest taxation basis.

On average, logistic regression predicted 71% of the choices correctly; the corresponding figure for neural networks was 63%. In both methods, the choice of site-productivity taxation was predicted more accurately than the choice of realized-income taxation. An increase in the number of model variable did not significantly improve the results of neural networks and logistic regression.

  • Pesonen, ORCID ID:E-mail:
  • Kettunen, ORCID ID:E-mail:
  • Räsänen, ORCID ID:E-mail:
article id 5401, category Article
Akmal S. Hyder, Lars Lönnstedt, Markku Penttinen. (1994). Outline of accounting for non-industrial private woodlots. Silva Fennica vol. 28 no. 2 article id 5401. https://doi.org/10.14214/sf.a9167

For non-industrial private forest (NIPF) owners land with its timber production is an example of a capital asset. Developments in the asset’s value and yield depend not only on forest management but also on other factors that the owner cannot control, for example timber prices and the production circumstances, such as soil and climate. One important basis for decision making related to management strategy and, in the short run, to cutting and silvicultural activities is economic analysis and accounting. The owner has to decide whether to invest more in his property (planting, cleaning, building of forest roads) or disinvest (sell timber or the holding). He has to find ways to increase revenue and cut costs.

However, generally accepted accounting practices for NIPF owners are lacking. Applying business economic accounting principles and forestry accounting traditions, we outline a proposal for a profit and loss accounting and balance sheet for NIPF holdings with a view towards increasing economic awareness among private owners. Key concepts are net profit of the enterprise and calculated profit of the property. Other profit measurements that are used are gross margin, forestry margin, operating margin and operating profit. Calculated profit is based on adjusted net profit. The main concern, however, is to consider the change in the holding’s market value caused by changes in stock volume, quality and price. The contents of the accounting framework development here are applied to three management strategies. The return on investment (ROI) of forestry is compared with other investment alternatives.

  • Hyder, ORCID ID:E-mail:
  • Lönnstedt, ORCID ID:E-mail:
  • Penttinen, ORCID ID:E-mail:
article id 7509, category Article
Mauno Pesonen. (1995). Non-industrial private forest landowners’ choices of timber management strategies and potential allowable cut. Acta Forestalia Fennica no. 247 article id 7509. https://doi.org/10.14214/aff.7509

In the study, the potential allowable cut in the district of North-Savo, Eastern Finland was clarified  based on the non-industrial private forest landowners’ (NIPF) choices of timber management strategies. Alternative timber management strategies were generated, and the choices and factors affecting the choices of timber management strategies by NIPF landowners were studied. The choices of timber management strategies were solved by maximizing the utility functions of the NIPF landowners. The parameters of the utility functions were estimated using the Analytic Hierarchy Process (AHP).

The level of the potential allowable cut was compared to the cutting budgets based on the 7th and 8th National Forest Inventories (NFI7, NFI8) in Finland, to the combining of private forestry plans, and to the realized drain from non-industrial private forests. The potential allowable cut was calculated using the MELA system that has been used in calculating the national cutting budget.

The data consisted of the NIPF holdings that had been inventoried compartmentwise and had forestry plans made in 1984–92. The NIPF landowners’ choices of timber management strategies were clarified by a mail inquiry.

The most preferred strategy obtained was ”sustainability” (chosen by 62% of landowners). The second was ”finance” (17%) and the third ”savings” (11%). ”No cuttings”, and ”maximum cuttings” were the least preferred (9% and 1%, resp.). The factors promoting the choices of strategies with intensive cuttings were: a) ”farmer as forest owner” and ”owing fields”, b) ”increase in the size of the forest holding”, c) agriculture and forestry orientation in production, d) ”decreasing short-term stumpage earnings expectations”, e) ”increasing intensity of future cuttings”, and f) ”choice of forest taxation system based on site productivity”.

The potential allowable cut defined in the study was 20% higher than the average of the realized drain in 1988–93, which was at the same level as the cutting budget based on the combining of forestry plans in Eastern Finland. The potential allowable cut defined in the study was 12% lower than the NFI8-based greatest sustained allowable cut for the 1990. Using the method, timber management strategies can be clarified for private forest owners.

  • Pesonen, ORCID ID:E-mail:

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