Forestry as an investment 2022 (provisional)

In 2022, the real return on investment in private forest wood production was 6%, according to preliminary data. Compared to the previous year, the return fell by 6 percentage points, and was one percentage point lower than the average for the previous five years.

• Timber sales revenue accounted for +3.7 percentage points of output, timber production subsidies +0.1 and the value of net increment +1.6 percentage points. The increase in standing prices contribution to output was +1.1 percentage points*. The impact of the total cost of wood production on yield was -0.4 percentage points.
• The regional returns to wood production in mainland Finland were between 0% and 9%.
• The change in standing sale prices reduced yields in five regions, i.e. the increase in prices paid for timber was not sufficient to compensate for the effect of the fall in the value of money.
• The effect of net increment on yield was positive in all regions, i.e. the value of grown stock in the area was higher than the value of the timber harvested from the area.
• In the profit calculation, income, costs and the value of net increment are related to the stumpage value calculated on the basis of the volume of standing timber and stumpage prices. It was €61.5 billion in 2021, rising to €63.3 billion in 2022.
• The nominal values have been converted into real values using the cost-of-living index. 
• Data from 2020–2022 is preliminary. 

*The text contained incorrect information: "The increase in standing prices did not quite keep pace with inflation, so its contribution to output was -0.2 percentage points." The text was corrected as follows: The increase in standing prices contribution to output was +1.1 percentage points. "