Operating profit in non-industrial private foresty 2024

In 2024, the operating profit in non-industrial private forestry was EUR 201 per hectare. The increased price of wood and the volume of logging boosted the operating profit compared to the previous year.

• The operating profit in non-industrial private forestry was EUR 201 per hectare in 2024.
• The operating profit per hectare increased by almost EUR 30 from the previous year, up by 14 percent in real terms compared to the previous year.
• In Southern Finland, the operating profit was EUR 259 per hectare on average, which was almost 14 percent more than the previous year. In Northern Finland, the operating profit was EUR 89 per hectare, up by 19% from the previous year. 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 370 per hectare) and South Karelia (EUR 346 per hectare). In Lapland, the operating profit was EUR 52 per hectare. Kainuu and North Ostrobothnia showed the most significant increase.
• Earnings of wood production in non-industrial private forestry totalled EUR 3 billion (EUR 220 per hectare), showing an increase of 13% in real terms. The earnings consist of gross stumpage earnings that are calculated by multiplying the felling volume by standing sales prices.
• Investments in wood production remained almost at the previous year's level EUR 16 per hectare. 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 equivalent averaged EUR 21 per hectare.
• Some investments in wood production are funded by state subsidies for non-industrial private forestry. In 2024, state subsidies were EUR 38.4 million (EUR 3 per hectare), showing an decrease of almost EUR 5 million from the previous year.

Background information about the statistics

In the statistics on operating profit in non-industrial private forestry, earnings include gross stumpage earnings and state subsidies in wood production. Expenditure includes investments in private silviculture and forest improvement, administrative costs and other expenses. Earnings and wood production investments are based on regional statistics, while administrative costs and other expenses are mainly based on estimates. The forest land areas defined for wood production in accordance with the National Forest Inventory (VMI) are used in the calculations.

Earnings and expenditure are recorded in the statistical database at fair prices valid at each time. However, changes are examined in the texts and graphs in real terms by eliminating the change in value using the cost-of-living index (1951:10=100). In 2024, the average inflation rate was roughly 1.6%.