Operating profit in non-industrial private forest 2021

The operating profit in non-industrial private forestry improved clearly from the previous year. Only in the peak years of 2007 and 2018 has there been more income in real terms. The boom in the forest industry kept demand for wood strong. In particular, harvesting of logs increased and the price paid for wood was higher than in the previous year.

• Operating profit in non-industrial private forestry was EUR 155 per hectare in 2021.
• The operating profit per hectare increased by more than EUR 40 from the previous year, up by 33 percent in real terms. Compared with the average of the last five years, earnings increased by one fifth.
• In Southern Finland, the operating profit was EUR 200 per hectare, showing an increase of 34 percent from the previous year in real terms. In Northern Finland, the operating profit was EUR 65 per hectare (+22%). Northern Finland comprises the regions of Northern Ostrobothnia, Kainuu and Lapland.
• Studied by region, the highest hectare-specific operating profit was achieved in Päijät-Häme (EUR 302 per hectare) and Kanta-Häme (EUR 293 per hectare). In Lapland, the operating profit was EUR 40 per hectare. The operating profit increased in all regions. In real terms, operating profit increased most in Päijät-Häme (49%), Pirkanmaa (48%) and North- Karelian (45%).
• Earnings of wood production in non-industrial private forestry totaled EUR 2,329 million (EUR 171 per hectare). These earnings include wood sold to forest industries and for energy generation, as well as wood harvested for private use. The earnings comprise gross stumpage earnings, which are calculated by multiplying the felling volume by standing sales prices.
• Investments in wood production decreased to EUR 15 per hectare (EUR 199 million. The amount includes the estimated value of work carried out by forest owners. The total costs of non-industrial private forestry, including the estimated administrative expenses and equivalents, decreased to EUR 19 per hectare (-10%).
• Some investments are funded by state subsidies for non-industrial private forestry. In 2021, state subsidies were EUR 43 million (EUR 3.1 per hectare). The total of subsidies decreased by 17 percent from the previous year. Due to a lack of suitable forest management and improvement projects, almost €17 million of the funds earmarked for support remained unspent.

Background information on the statistics

In the statistics Operating profit in non-industrial private forest, income comprises stumpage earnings calculated on the basis of industrial and energy wood harvesting, the volume of wood harvested for own use and vertical stumpage sales prices, as well as state subsidies for wood production. Expenditure includes investments in forest management and improvement in private forestry, as well as administrative and other expenditure. Revenues and investments in wood production are based on regional statistical data, while administrative and other expenditure is mainly based on estimates.

The areas used in the calculations are the areas of forest land for timber production according to the National Forest Inventory (NFI).

The change in the value of money has been made using the cost of living index (1951:10=100)