This paper comments on the article written by Simo Hannelius that is published in the same issue of Silva Fennica (Who is the non-farmer forest owner? Silva Fennica 14 no. 4). Hannelius suggests that researchers dealing with the behaviour of private forest owners should change their classification to agree with the concepts presented in the Farm Economy statistics, and that the recommended concept of farmer forest owner is understood as a forest owner who has taxable net incomes (state taxation) from farming. Other private forest owners would be classified as non-farmers. Veli-Pekka Järveläinen states in his opinion that when distinguishing a farmer and a non-farmer, the key criterion should be the profession, which has been proved to be an important parameter in behavioural research.
Research into the forestry behaviour of private forest owners in Finland began 10 years ago. The private forest owners have been dichotomously classified into two groups, farmers and non-farmers. The farmer forest owner was considered to derive his main income (earnings) from agriculture. This classification is compared to the concepts in statistical publication Farm Economy 1976 (Maatilatalous). On the basis of this examination, it is recommended that researchers dealing with the behaviour of private forest owners should change their classification to agree with the concepts presented in the Farm Economy statistics. The recommended concept of farmer forest owner is understood as a forest owner who has taxable net incomes (state taxation) from farming. Other private forest owners are classified as non-farmers.
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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 ministry of agriculture appointed a committee to prepare a proposal for the reorganization of Finnish forest statistics. The committee suggests that the forest statistics will be prepared by forest district board areas. National forest surveys and national wood consumption surveys should be carried out at intervals of 10-15 years by Forest Research Institute.
Felling and price statistics for private forests should be prepared by using a sampling method described in the report. The statistics of total commercial roundwood felling will be obtained by adding to the result the annual felling from state and company forests. Also, wage and employment statistics in forestry will be prepared by a sampling method.
Statistics concerning timber transportation should be improved, and finally, a central organ for forest statistics should be established within the Forest Research Institute to collect and develop forest statistics. The statistics should be published as an annual yearbook. To ensure co-operation between the authorities, a special sub-committee should be appointed to collaborate with the permanent committee of statistics in Finland.
Silva Fennica Issue 39 includes presentations held in professional development courses in 1935 that were arranged for foresters working in public administration. The presentations focus on practical issues in forest management and administration, especially in regional level.
This presentation lists statistics available on forestry.
Farm forestry in northern Ostrobothnia has met different kinds of obstacles that decrease its profitability, some national, some local. One of the later is partitioning of land. The purpose of this investigation was to survey the division of farm land in the coastal municipalities of northern Ostrobothnia in Finland, where the conditions are among the most unfavourable in the country in this respect. The material used in the investigation was collected in a previous study about the structure of the farms in the area. First part of the paper summarises the history of partitioning of land in Finland.
The results show that division of the woodlots of a farm are in the coastal municipalities of northern Ostrobothnia very disadvantageous for forestry. The average distance of a woodlot to the farmhouse is 8.3 km, but there is a great variation between the municipalities, and the distance varies from 30 to 1.9 km. The form of the lots, as the long ribbon-like woodlots in the municipality of Liminka, complicates often practical forestry. In addition, the number of separate woodlots is high, in average 9.2 per farm.
The great distance of the woodlots from the main farms hinders the use of forests and diminishes the financial result of forestry. Unfavourable form of the woodlots posts similar hindrances to harvesting of timber and forest management as the long distances and high number of separate plots. The problem is heightened by the abundance of peatlands in relation to productive forest lands in the area.
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Forests have been priced by assessing separately the value of the land, small timber and heavy timber, and adding them together. This method of summing up gives a small woodlot the same price per hectare as a large forest area. In real estate sales the actual prices paid per hectare, however, are higher for small woodlots. The summing-up method thus over-values big forest holdings.
The figures obtained by the summing-up method should be corrected by using a reduction percentage. This value should increase with the growth of the forest area and should be higher for fully-stocked areas than those with small growing stock. A table of reduction percentages is presented, where an effort is made to eliminate the effect upon the statistics of the potential value of the land as building site and field. The results clearly indicate that the effect of area upon the price of a woodlot is fairly marked, even with very small parcels.
On the other hand, determination of the reduction percentages has some theoretical weaknesses. The author recommends a method of price evaluation which takes the factor of area directly into account, excluding arbitrary correction percentages. In this method the marketable part of the growing stock is evaluated at its felling value and its relative role decreases with the growth of the area. The rest of the growing stock together with the ground is priced as rental value. This method of professor Eino Saari does justice both to the area and to the fact that forest land and the growing tied to it form an inseparable whole.
The Acta Forestalia Fennica issue 61 was published in honour of professor Eino Saari’s 60th birthday.
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The aim of the investigation was to study the effect of size of a forest holding to its forest resources or state and quality of the forests. The data was collected in the second national forest inventory in Finland, carried out in 1936-1938. The study focuses on farms in two areas in Southern Finland: provinces of Pohjois-Häme and Satakunta, and provinces of Uusimaa and Kaakkois-Häme.
In 1938 about 53% of forests in Finland were owned by private forest holdings, the sizes of which varied from under 5 ha to over 1,000 ha. About 75 % of the holdings were under 50 ha. After 1918 the number of private forest holdings increased markedly, mainly due to settlement and tenant farmers gaining ownership to their farms.
The smaller the forest holdings were, the poorer was the silvicultural state of the forests and the smaller the standing stock. When the area of the forest holding increases, also the volume of the standing stock per hectare, the number of timber-trees, and average size of the timber trees increases. This is due to larger proportion of older age-classes and somewhat better forest management. Fellings have usually been stronger in the smaller forest holdings. The poor state of the forests originates often from use of the forests before the present ownership, such as slash and burn culture, grazing and cutting wood for household use. To improve the state of the forests, education and forest improvement practices are needed.
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This methodical study aims at assessing discount value and its nature and function in setting a price for a forest holding. The aim is to study how the subject interested in buying or selling a woodlot could in the most meaningful way use discount value to prepare the sale and aid the decision making, taking account his personal interests. The paper includes a literature review on the determination of value.
It is concluded that woodlots have no «correct and real» values and, therefore, they cannot be calculated. Value is formed for the woodlots only in connection to the subject running the household, and his environment and actions. A discount value can be defined as a discount value of future net incomes. In the study different ways to calculate discount value are analysed.
The PDF includes a summary in German.