Forestry as an investment 2017

The positive trend in the forest industry was reflected in investment returns on wood production in 2017 in Finland. Real investment returns on wood production in non-industrial private forests increased to 6.4 per cent. Returns increased by 1.7 percentage points from the year before and were 4.1 percentage points higher than the average for the previous five years.
The most significant factor affecting returns was income from wood sales that increased returns by 4.0 percentage points. The value of wood net increment increased returns by 0.8 percentage points, state subsidies for wood production by 0.1 percentage points and the real increase in stump prices by 2.1 percentage points. Wood production costs reduced total returns by 0.6 percentage points.
In terms of regions, returns were 2.4–10.4 per cent in mainland Finland. The real increase in stump prices increased returns in all regions.
The wood calculation results are based on forest inventories, whose measurements were conducted between 2012 and 2016. Returns have been calculated by region from 2012 onwards.
In the calculation of returns, income, costs and the value of net increment are proportional to the stumpage value calculated on the basis of timber volumes and stump prices. In 2017, the stumpage value was approximately EUR 45.5 billion.

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

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