Documentation of statistics operating profit in non-industrial private forestry

Data description

The statistics show operating profit in non-industrial, private forestry based on income and expenses (earnings - costs). Some information is calculated per unit of forest land area. The statistics are published in the Statistics service of the Natural Resources Institute Finland. The database contains information starting from 1990.

Classification system

The information is provided by region. In 1990–2014 the regions include the regional districts of the Finnish Forest Centre (13) and the Province of Aland, and since 2015 the counties of Finland (19).

Sector coverage

The statistics are based on other statistics, the coverage of which is over 90%.

Statistical concepts and definitions

Non-industrial private forests include ordinary non-industrial private forest owners (natural persons, estates of deceased persons, and enterprises), as well as jointly owned forests and forests owned by municipalities, parishes, foundations and other similar communities or enterprises outside the forest industry. Until 2008, non-industrial private forests also included those state-owned forests that were not managed by Metsähallitus.

Operating profit is calculated by deducting operating expenses from operating income. Operating profit is one of the indicators of absolute profitability.

Regions included the 13 districts of public services of the Finnish Forest Centre and the Province of Aland between 1990 and 2014, and since 2015, the term has referred to the counties (19) of Finland.

Income includes gross stumpage earnings and government subsidies for wood production and energy wood harvesting in non-industrial private forests.

Expenses include investments in wood production (silviculture and forest improvement investments) and administrative and other expenses.  The value of silviculture and forest improvement work carried out by forest owners is included in expenses. Investments are usually directed at individual forest compartments. Administrative and other expenses cover forest holdings in their entirety.

Forest land area is based on the area of forest land allocated to wood production in the National Forest Inventory (VMI) per the Finnish Forest Centre’s regions, and since 2015, per the counties of Finland.

Statistical unit

Information on income is based on the statistics of Stumpage earnings published by the Natural Resources Institute Finland and the statistics on the use of state subsidies in non-industrial private forestry published by the Finnish Forest Centre. Investment costs in wood production are based on the Natural Resources Institute Finland’s statistics of Silvicultural and forest improvement work.

Administrative and other expenses are mainly based on estimates. Until 2014, information on forestry fees was obtained from the Central Union of Agricultural Producers and Forest Owners by forest management association. Since 2015, information on forest management associations’ membership fees has only been obtained at a national level.   

Statistical population

Income in the operating profit calculations includes gross stumpage earnings from non-industrial, private forestry and subsidies for wood production and harvesting of energy wood. Expenses include investments of non-industrial, private forestry, and administrative and other expenses.

Unit of measure 

Millions of Euros, Euros per hectare

Reference period

Calendar year

Reference area

Hole country and until 2014, by regional districts of the Finnish Forest Centre and Province of Aland. Since 2015, by counties of Finland.

Time coverage

Information is available starting from year 1990.

Frequency of disseminations

Both preliminary and final information is published yearly.

Base period

The statistics are not an index.

The statistics are compiled based on the Act on the Natural Resources Institute Finland (561/2014), the act on food and natural resource statistics (562/2014) and the Statistics Act (280/2004).

More information: Statistics legislation

Confidentiality is a base principle of statistics and assures the confidential processing of data provided by informants, and the Natural Resources Institute Finland has undertaken to follow this principle.

More information: Privacy policy – Statistics

The disseminations of the Natural Resources Institute Finland are published online on weekdays at 9:00.  Data is public after it has been published on the website.

Publication calendar

The publication dates are confirmed in autumn together with the action plans. The release calendar of the following year is published for users in the end of the year. The release calendar holds data on the dates of future publications. The calendar also contains direct links to already published statistical publication.

Access to the publication calendar

Statistical releases calendar | Natural Resources Institute Finland

Quality assurance

The Natural Resources Institute Finland follows the Code of Practice and the Quality Assurance Framework of European statistics when compiling statistics. The Code of Practice concern the independence and accountability of statistics authorities, and the quality of processes and published data. The principles are compatible with and supplement the Principles of Official Statistics, agreed upon by the United Nations Statistical Commission. The quality criteria of official statistics in Finland are also compatible with the Code of Practice of European statistics. The principles are also compatible with the European Foundation for Quality Management.

Quality assurance on the statistics was performed in the spring of 2020.

User needs

The quality of the statistics matches the quality of statistics used as data sources.

User satisfaction

Feedback is collected from the users of the statistics, especially when revising the statistics. Feedback is also received directly. In addition, we investigated the wishes of users for developing the statistics in the autumn of 2021 and beginning of 2022, when updating the work programme for the Natural Resources Institute Finland. We follow the received feedback and take it into consideration in developing the statistics.

Overall accuracy and reliability

The accuracy and reliability of the statistics are presented in the quality descriptions available from the homepage of the relevant statistics.

The reliability of the statistics is decreased by the information on the value of work carried out by forest owners and administrative and other expenses not being reliable.  However, expenses from investments in wood production and administration are low compared to income (16% on average between 1999 and 2018). This means that any inaccuracies do not have any significant impact on operating profit.

Collected data is always compared to the figures of previous years. This is done to try to prevent the collection of faulty data.

Sampling error

Data is not collected for the statistics.

Timeliness

Preliminary data is published in March and final data is published in September or October. Release schedule is determined by the release date of the statistics used as data sources.

Punctuality

The statistics have usually been published according to the publishing date declared in advance. Delays in publications have been caused by delays in the publishing of statistics used as data sources.

Comparability - geographical

The statistics are geographically comparable.

Comparability - over time

The statistical database is fully comparable. Due to changes made in 2015 to the method of calculating administrative and other expenses, operating profit figures are not comparable to data published before 18.6.2015. Due to corrections made to areas, data by hectare is not comparable with data published before 12.3.2020.

The time series of administrative and other expenses of 1990–2013 was changed in 2015. Estimates of forest owners’ travel costs for travel between their municipality of residence and municipality of farm, insurance costs, course fees, and forest property transfer taxes were excluded from the calculation. In 2004–2013, these expenses were 6.0 Euros per hectare. Travelling costs were clearly the highest (4.6€/ha).

Results per hectare in the database were revised on 18.3.2020. The numbers have changed since 1990. Ownership categories, the incomes and expenses of which are included in the calculation for operating profit in non-industrial private forestry, have been missing from the area data used for the calculation. These include, for example, limited liability companies with a primary line of business other than forestry, and state-owned forests not managed by Metsähallitus. The forest land areas for wood production were also calculated for the entire time series. Until 2014, forest land areas were used. The revision of area data decreased the income per hectare for the whole of Finland in 1990–2017 by 1.6–3.0% compared to data published previously in the time series. Additionally, areas of jointly owned forests, which were missing, were added the data for 2018. Results per hectare calculated using the revised area data decreased by 3.3% in 2018.

Coherence - cross domain

No comparable statistics are published.

Coherence - internal

Data in the statistics is coherent. The statistics are the only statistics regarding the operating profit of wood production.

Source data

Information on income is based on the statistics of Stumpage earnings published by the Natural Resources Institute Finland and the statistics on the use of state subsidies in non-industrial private forestry, published by the Finnish Forest Centre. Investment costs in wood production are based on the Natural Resources Institute Finland’s statistics of Silvicultural and forest improvement work.

Administrative and other expenses are mainly based on estimates. Until 2014, information on forestry fees was obtained from the Central Union of Agricultural Producers and Forest Owners by forest management associations. Since 2015, information on forest management associations’ membership fees has only been obtained at a national level.

Frequency of data collection

No data collection

Data validation

Results are compared to results from previous years.

Data compilation

Operating profit in non-industrial private forestry is calculated by subtracting administrative and other expenses and investment costs in wood production from income from wood production. Income includes gross stumpage earnings and government subsidies for wood production and energy wood harvesting in non-industrial private forests. In 2008–2014, subsidies for harvesting energy wood were recorded separately from subsidies for management of young stands. During this period, they were considered as income together with stumpage earnings.