Stumpage earnings at peak years’ level in 2021
Stumpage earnings of forest owners increased by EUR 2.7 billion in 2021, up by 15 per cent from the previous year in real terms. The stumpage earnings statistics of the Natural Resources Institute Finland (Luke) show that the earnings were seven per cent higher compared to the average of the previous five years.
Private non-industrial forest owners, communities and companies whose primary line of business is other than wood production accounted for the majority of the total earnings, EUR 2,238 million. Of this amount, private non-industrial forest owners covered roughly 90 per cent. The stumpage earnings of the forest industry and the state totalled EUR 353 million. The share of logs increased to 70 per cent, and spruce maintained its position as the most important tree species with its proportion of 46 per cent.
Record-high log removals increased earnings
Earnings increased by EUR 448 million from the previous year, up by more than a quarter measured at nominal prices. The increase in log removals from non-industrial private forests by more than 20 per cent had a significant impact on the increase in earnings. Earnings were also affected by the increase in the standing sales prices of all assortments, with the prices of softwood logs increasing the most.
“The record-high log removals were driven by the high demand for logs resulting from the high sales of sawn goods and wood prices that increased significantly from the previous year. As the majority of forest owners’ earnings comes from logs, it is no wonder that 2021 is in the top three of stumpage earnings, right behind the peak years of 2007 and 2018,” says Esa Uotila, research scientist at Luke.
Nothing new in regional earnings
The top three of regional earnings – Northern Savonia, Central Finland and Southern Savonia – remained unchanged. They were followed by North Karelia, Pirkanmaa and Northern Ostrobothnia. These regions accounted for significantly more than half of the total earnings. In real terms, earnings increased in all regions in Mainland Finland, the most in Päijänne Tavastia and Pirkanmaa (by 28 per cent).
The graphic below has been corrected on January 16, 2023.
Stumpage earnings as part of the national accounts
Gross stumpage earnings are calculated by multiplying the felling volume by standing sales prices. In addition to earnings from selling wood, the value of wood sourced for private use by forest owners is also counted as earnings. The gross stumpage earnings statistics are used, for example, in calculations for the national accounts and as background information for decision-making in the forest sector. Luke’s statistics database (stat.luke.fi/) includes statistics on stumpage earnings since 2002. Earnings are presented in accordance with the location in which they are generated.
