Current issue: 58(5)
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.
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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.
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It is impossible to survey the results and profitability of forestry a hundred years hence of measures taken today. Financial reports in forestry should be kept as separate as possible from stocktaking. Under sustained forest management it is the task of silviculture to supervise the care of growing stock. As long a sufficient money is being used for forest improvement, the situation can be considered satisfactory. To ascertain just what is sufficient, in the analysis of the costs of forestry the investigators should concentrate on establishing which costs are fixed and which are direct (marginal).
Short-time changes of capital can also best be considered by means of a cost analysis of silvicultural measures and other operations. On the other hand, classification of the cost must be correct if the operational statistics are to be of any value. The calculations become much easier if fixed costs do not need to be distributed per production unit. Therefore, there may be good reason to try out marginal costing in forest enterprises. The fixed costs are increasing steadily.
This paper aims at giving ideas in determining the profitability of a forest enterprise. A marginal costing balance sheet mainly illustrates the structure of an enterprise, which gives a general picture of its profitability. If profitability is to be expressed by comparing yield with capital, yield can be treated as interest and capitalized. None the less, this is certain to result in different capital values depending on whether we take the yield to represent 3, 4, or 5% of the capital. A marginal balance is no substitute for the long-term planning which will be needed in a forest enterprise.
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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.
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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.
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.
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