Forestry as an investment 2016

Real investment returns on wood production in private forests were 4.3 per cent in 2016. The returns were 2.2 percentage points higher than in the five previous years on average, when the results were reduced by the decrease in stump prices.
In 2016, of all factors, returns on wood sales increased total returns by 3.9 percentage points, the value of net increment by 0.7 percentage points and state subsidies for wood production by 0.1 percentage points. The increase in real stump prices increased total returns by 0.3 percentage points. Wood production costs decreased total returns by 0.6 percentage points.
In terms of regions, returns were 0.4–7.4 per cent in Mainland Finland. Stump prices formed the most significant factor affecting variation in returns, as they decreased in 13 regions and increased in five. Without any fluctuation in stump prices, returns were 3.2–4.7 per cent.
The highest returns were in Ostrobothnia (7.4%) where changes in stump prices increased returns by 3.2 percentage points. Additionally, in Northern Savonia (5.8%) and Satakunta (5.4%) returns were clearly above the whole-country average. In Southern Ostrobothnia, Central Ostrobothnia, Kainuu and Lapland, the decrease in stump prices reduced total returns by more than two percentage points. In Lapland, total returns remained at 0.4 per cent, while they were under two per cent in the other regions listed above.

Investment return in wood production (deflated using the cost-living index)

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