Current issue: 58(4)
This paper examines the changes in forest ownership and the farm properties for sale from a business economic standpoint. The changes in forest ownership are examined on the basis of statistics and literature. The empirical data both for farms for sale and farms sold are based on the purchases made by the National Board of Forestry in 1972.
There are a number of ownership groups actively buying and selling forest land, thus giving alternatives for ownership changes. The National Board of Forestry has been active in the market since 1960. For instance, in 1972 it purchased 60% of the forest estates it was offered. Of the forest area put up for sale, 75% originated from private individuals, and 20% from inheritance sales.
The PDF includes a summary in English.
The study sought to establish, whether a connection between forest ownership changes and regional differentiation process exists. Data were collected by interviewing fifty persons representing regional planning and forestry. In 1969–72 forest land area owned by the farmers decreased by some 600,000–700,000 hectares. The new owners were non-farmers (400,000–500,000 ha) and the State and forest industry companies (200,000 ha). These figures indicate a possibility for a reduction in the livelihood of rural developing regions in three ways: money incomes with their multiplier effects decrease, possibilities of the rationalization of farming decrease and the population confidence in the future diminishes.
The PDF includes a summary in English.
Finnish municipalities can be classed in towns and cities, market town and rural communes. In 1942 there was 27 market towns in Finland. The aim of this study was to investigate the amount and state of forests in market towns. The data was collected mainly by interviewing the authorities of the market towns in 1936-1938. The statistics about forests were often insufficient.
The total land area owned by market towns was 8,963 ha, 71.7% of which was forest land, 12.0% wasteland and 16.3% arable land. A total of 21 of the 27 market towns own forest. Of all the land owned by the market towns about half is situated within borders of the town, however, 57% of the forest land is situated outside the market town itself. The forest areas are small, only four towns own more than 500 ha of forests, and only six has a forest management plan. The silvicultural state of the forests seems, however to be relatively good.
The PDF includes a summary in German.
The shared forests of the villages were generally parceled out to farms in the general parceling out of land (isojako) in Finland, that begun in 1775. The state established also jointly owned forests, mostly in the beginning of 2000th century when land was donated for landless population. Some have been established voluntarily. Act on Jointly Owned Forests was enacted in 1925 to ensure proper management of the forests. It contains instructions of administration of the forests.
A survey was conducted to study the conditions of the jointly owned forests. The forests, a total of 37,843 ha, are distributed evenly over the country. Average size of settlement jointly owned forests in Southern Finland are 314 ha, initial jointly owned forests in Southern Finland 1,726 ha, settlement joined forests in the county of Oulu in Northern Finland 592 ha, and initial joined forests in Northern Finland 1,268 ha. The forest lands are poorer than in other private forests. The most common age class is 41-80 years in Southern Finland and 61-120 years in the north. The forests resources were larger in the initial joined forests than in the settlement joined forests when the joined forests were established. In settlement joined forests fellings were smaller than the increment, while in initial joined forests fellings were slightly larger than the increment. Joined forests have given the owners rather good and regular income, which has probably been larger than if the forests had been managed as farm forests. Joined forests have, therefore, met their objectives.
The PDF includes a summary in German.The shape of land lots formed in parceling of land has been affected by many variables. It is an important economic factor when the land is used in forestry or agriculture. The report concentrates on the larger farms with relatively large forest holdings. In the general parceling of the land that started in the middle of 1700s, the allotted plots were often long and narrow, and the width of the plot could be 20‒50 meters. Later these farms may have been further parceled.
Narrow plots are difficult to manage from the forestry point of view. For example, it is not possible to build a forest road in the plot, and wood harvesting is difficult. To use natural regeneration for a specific tree species is impossible, because the seed trees in the adjacent plot are so near. When the boundaries are long and the properties narrow, there is bigger risk for felling trees on the land of the neighbour. The optimal form for a plot is rectangle which is 3‒6 times longer than its width. Local examples of parceling and the effects of the shape of the plots are given in the article.
The PDF includes a summary in German.
The forest ownership of companies had been criticized which led in 1913 to legislation that restricted land purchases of the companies. The aim of the survey was to study the condition of forests in five municipalities in Southern and Central Finland, where landholding of the industry was most common. The companies owned 13-33%, private forest owners 45-83% and the state 1-22% of the forests in the studied municipalities. The forest holdings of the private owners were the smallest, while the companies owned larger estates. The forest site types did not differ markedly between the two owner groups. The dominant tree species in all municipalities was Scots pine (Pinus sylvestris L.). The age-classes varied in the forests of both owner groups, but in private forests the younger age-classes were more common, mostly due to shifting cultivation practiced in the previous decades. The wood volume of the stands was significantly larger in the forests of companies. The stands were of poorer quality in the private forest due to selection fellings. Forest regeneration was more usual in the company forests.
The text is included in Finnish, Swedish and German.
Questions of the small size of non-industrial private forest (NIPF) holdings in Finland are considered and factors affecting their partitioning are analysed. This work arises out of Finnish forest policy statements in which the small average size of holdings has been seen to have negative influence on the economics of forestry. A literature survey indicates that the size of holdings is an important factor determining the costs of logging and silvicultural operations, while its influence on the timber supply is slight.
The empirical data are based on a sample of 314 holdings collected by interviewing forest owners in 1980–86. In 1990–91 the same holdings were resurveyed by means of a postal inquiry and partly by interviewing the forest owners. The principal objective was to collect data to assist in quantifying ownership factors that influence partitioning among different kinds of NIPF holdings. Thus, the mechanism of partitioning was described and a maximum likelihood logistic regression model was constructed using seven independent holding and ownership variables.
One out of four holdings had undergone partitioning in conjunction with a change in ownership, one fifth among family owned holdings and nearly a half among jointly owned holdings. The results of the logistic regression model indicate, for instance, that the odds on partitioning is about three times greater for jointly owned holdings than for family owned ones. Also, the probabilities of partitioning were estimated and the impact of independent dichotomous variables on the probability of partitioning ranged between 0.02 and 0.01. The low value of Hosmer-Lemeshow test statistics indicates a good fit of the model, and the rate of correct classification was estimated to be 88% with a cut-off point of 0.5.
The average size of holdings undergoing ownership changes decreased from 29.9 ha to 28.7 ha over the approximate interval 1983–90. In addition, the transition probability matrix showed that the trends towards smaller size categories mostly concerned the small size categories. The results can be used in considering the effects of the small size holdings for forestry and if the purpose is to influence partitioning through forest or rural policy.
The field of work of the 7th National Forest Inventory was carried out during 1977–84. This report consists of the analysis of the forest resources, long-term development of forests and the results by ownership categories in Finland.
The area of forestry land, 26.4 million ha, has decreased slightly because of the increase of build-up areas and communication routes. Forest land, which is suitable to growing wood profitably, amounted 20.1 million ha. It has increased, although not as fast as earlier, due to drainage and fertilization of scrub and waste land swamps and the afforestation of agricultural land.
The growing stock volume was 1,660 million m3 and the estimated gross annual increment 68.4 million m3. A large quantity of young, rapidly growing stands, and fellings markedly below the increment, are the principal factors increasing the growing stock. The volume of Scots pine (Pinus sylvestris L.) has increased most but the greatest proportional increase has been in the volume of broadleaved trees.
The silvicultural quality of stands has improved and the increase in saw log tree volume has resulted in an increase in the total growing stock volume. The proportional volume of saw logs, however, has decreased. Both aging mature stands and postponed thinnings increase the risk of losses due to mortality and decay. Too dense stands retard the diameter growth of trees. The proportion of unsuccessful artificial regeneration has increased.
The area of private forests has slightly decreased, while companies and collective bodies have increased their ownership. Non-farmer private ownership already accounts for one half of the area of private forests. The silvicultural quality of company forests is best and the increase of the growing stock and its increment is proportionally greatest in these forests.
The PDF includes a summary in English.
The aim of this study was to explain both theoretically and empirically the formation of the unit price of a woodlot in the early 1980’s in Finland. The structure of the market in which woodlot transactions take place is described by analysing the volume of markets, the heterogeneity of the woodlots, institutional regulation of woodlot ownership and information concerning the market. The decision-making processes of both woodlot seller and buyer are examined using a theoretical model. Using a woodlot transaction sample for 1983 and 1984 woodlot unit price is explained empirically.
The PDF includes a summary in Finnish.
The goal-setting in forest policy and the means available for achieving the desired goal of forest policy are examined in this study. Examination of the goal is done using a macromodel of a closed economy. In the model GNP is assumed to be linearly dependent on the supply of raw wood. The model is used to derive the marginal conditions of the optimum equilibrium forestry with respect to the growing stock and the silviculture. The effect on the forest owners’ behaviour of the following means are examined: the taxation of ”pure income” from forestry, the taxation of income from selling raw wood, unit sales taxation and ad valorem sales taxation of forestry and corresponding sales subsidies, the support of silvicultural investments and the channelling of income from wood sales into silvicultural investments. The marginal conditions have been defined according to the maximum principle. An empirical study concerning the raw wood market in the case of softwood logs, and silvicultural investments in the case of young stand tending, has been carried out on the basis of the theoretical examination.
The PDF includes a summary in Finnish.