Operating profit in non-industrial private forest 2019 (provisional)

• In 2019, felling volumes and the price of logs decreased clearly from the peak year of 2018. Even though the operating profit of non-industrial private forestry decreased to EUR 128 per hectare, it still remained high compared with long-term averages. 
• According to preliminary data, the operating profit per hectare decreased by more than EUR 20 from the previous year, down by 17 per cent in real terms. Nevertheless, the operating profit was four per cent higher than on average in the past five years and 18 per cent higher than the average of the previous ten-year period.
• In Southern Finland, the operating profit was EUR 164 per hectare, showing a decrease of 18 per cent from the previous year in real terms.  In Northern Finland, the operating profit was EUR 54 per hectare (-11 per cent). Northern Finland includes the regions of Oulu, Kainuu and Lapland.
• Earnings of wood production in non-industrial private forestry totalled EUR 2,011 million (EUR 147 per hectare). These earnings include wood sold to forest industries and for energy generation, as well as wood harvested for private use.
• Estimated investments in wood production were EUR 18 per hectare (EUR 243 million). The amount includes the estimated value of work carried out by forest owners. Investments are estimated to be five per cent higher than in the previous year in real terms. The total costs of non-industrial private forestry, including the estimated administrative expenses and equivalent, were EUR 22 per hectare (+3 per cent). 
• Some investments are funded by state subsidies for non-industrial private forestry.  In 2019, state subsidies were nearly EUR 50 million (EUR 3.6 per hectare), being at the previous year’s level. Due to the lack of suitable silviculture and forest improvement projects, more than EUR 6 million of assigned subsidies remained unused.
• The forest land areas defined for wood production in accordance with the National Forest Inventory (VMI) are used in the calculations. Areas defined in VMI12 have been used for 2014–2018.
• The nominal values have been converted into real values using the cost-of-living index. 
  
  

The hectare-specific results available in the database were adjusted on 18 March 2020. The figures have changed since 1990. The information about forest land areas used in the calculations has not included groups of owners whose income and expenses have, however, been included in the calculation of operating profit in non-industrial private forestry. These include limited liability companies whose primary field of business is other than forestry and state forests not managed by Metsähallitus. Forest land areas assigned to wood production have been calculated over the entire time series, while forest land areas were used until 2014. The adjustment in areas reduced hectare-specific income at a national level in 1990–2017 by 1.6–3.0 per cent compared with previous information published in the time series. In addition, areas of non-industrial private forest were added to 2018 information. The hectare-specific operating profit, calculated using the adjusted areas, decreased by 3.3 per cent in 2018.