Forestry as an investment 2017 (provisional)

The positive trend in the forest industry was reflected in investment returns on wood production in 2017. According to preliminary data, the real investment returns on wood production in private forests increased to 6.3 per cent. Returns increased by 2.0 percentage points from the year before and were more than 4.0 percentage points higher than on average in five previous years.
The most significant factor affecting returns was income from wood sales that increased returns by 4.0 percentage points. The value of 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 0.8 percentage points.
In terms of regions, returns were 2.4–10.1 per cent in Mainland Finland. The real increase in stump prices increased returns in all regions.
The wood calculation includes the results of National Forest Inventory (VMI12) that are based on measurements conducted in 2012–2016. Returns have been calculated by region since 2012.
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 billion.

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

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