Quality description of stumpage earnings statistics
Compiler: Natural Resources Institute Finland (Luke), starting from 1 January 2015. The statistics were previously compiled by the Finnish Forest Research Institute (Metla) between 2002 and 2014, and Statistics Finland between 1958 and 2001.
Basis for compilation: The statistics are compiled pursuant to 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).
Funding for the statistics: Funding for the statistics is provided from Luke’s assets.
1. Relevance of statistical data
1.1 Data content and purpose of use
The statistics ‘Gross stumpage earnings by ownership category and roundwood assortment’ provide an estimate of the annual stumpage earnings in the forest sector on the basis of the felling volumes and standing sales prices. The felling volumes are determined on the basis of annual industrial roundwood and energywood felling volumes, and surveys on the volume of wood harvested for private use by non-industrial private forest owners. The wood prices are based on the assortment-specific standing sales prices. The results are presented by ownership category, roundwood assortment and region, and separately for various log and pulpwood assortments, and fuelwood/energywood. The private and other stumpage earnings are classified according to standing sales, delivery sales and wood sourced for private use.
The statistics are used, for example, in national accounts to support decision making concerning the forest sector, in the drafting and monitoring of the National Forest Strategy and regional forest programmes, the monitoring of sustainable forestry criteria and indicators, and forest certifications, and as a data source for research, planning and forecasting.
The statistics ‘Gross and net stumpage earnings by ownership category’ present the gross and net stumpage earnings throughout Finland. Net stumpage earnings are obtained by deducting investments in wood production from gross stumpage earnings.
1.2 Concepts and classifications
Forest ownership categories:
Non-industrial private forests = Ordinary private forests (owned by 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 wood production industry. Until 2008, ‘non-industrial private forests’ also included the state-owned forests that were not managed by the state-owned enterprise Metsähallitus.
Forest industries = Forest industry companies that own forest properties. Finsilva Oyj and Tornator Oy are also classified as forest industry companies.
The state = State-owned wood production forests managed by Metsähallitus. Starting from 2008, data concerning forest industry companies and Metsähallitus has been combined for data protection reasons.
Regions = In 2002–2014, ‘regions’ referred to the 13 districts of the Finnish Forest Centre, Public Services, and Åland, and since 2015, the term has referred to the regions of Finland.
Roundwood assortments = pine, spruce and birch logs; pine, spruce and birch pulpwood; and fuelwood and energywood.
Standing sales = In standing sales, the seller authorises the buyer to harvest wood from a predetermined area in their forest. The pricing is based on standing sales prices, i.e. stumpage prices
Delivery sales = In delivery sales, the seller is responsible for felling and transporting the wood to a location along a long-distance delivery route. Pricing is based on roadside prices.
1.3. Data sources
The data sources include the following statistics published by Luke:
- Standing sales prices: Volumes and prices in roundwood trade and Volumes and prices in energy wood trade
- Felling volumes: Industrial roundwood removals by region, Harvesting volumes of energy wood per region, Fuelwood consumption in small-scale housing, and Roundwood removals and drain of the growing stock.
- Investments in wood production: Operating profit in non-industrial private forestry and Silvicultural and forest improvement work.
1.4 Users’ perspectives
Feedback from users is monitored and taken into account when developing the statistics.
2. Accuracy and reliability of data
2.1 Research method
‘Gross stumpage earnings’ is an estimate of the wood sales earnings of forest owners, determined on the basis of the felling volumes and standing sales prices. The gross stumpage earnings of non-industrial private forestry also cover the estimated value of wood sourced for private use. Wood prices are based on the average assortment-specific standing sales prices for the calendar year. Regional stumpage earnings are reported according to their place of origin.
Gross stumpage earnings are obtained by multiplying the annual assortment-specific felling volumes by average assortment-specific standing sales prices separately for each region (starting from 2015) or Forest Centre district (between 2002 and 2014). The standing sales price used for fuelwood is 90% of the standing sales price for birch pulpwood. The statistics are compiled by forest ownership category and roundwood assortment. Earnings of non-industrial private forest owners are further classified into wood sales earnings from standing sales and delivery sales, and the value of wood sourced by forest owners for private use.
2.2 Factors affecting the reliability of the statistics
The accuracy and reliability of the statistics is discussed in the quality descriptions available from the homepage for each statistic.
The method applied to the calculation of the gross stumpage earnings means that
- the prices and felling volumes of different roundwood assortments do not fully match due to the delay between the wood trade contract and the actual harvesting of the wood; changes in felling volumes and wood prices resulting from significant cyclical fluctuations decrease the accuracy of the calculations;
- stumpage earnings from delivery sales are overestimated because the stand-related factors and their true standing sales prices (i.e. roadside price minus harvesting costs) are lower than in the case of standing sales, especially for logs;
- the use of prices for log and pulpwood assortments also in the case of special assortments leads to a minor underestimation of total stumpage earnings: the prices for small-diameter logs, wooden poles and special birch stems are higher than the prices for log and pulpwood assortments;
- Stumpage earnings of forest industry companies and the state are probably underestimated because economies of scale from mass production (e.g. concentration of stands) mean the related standing sales prices may be higher than in non-industrial private forests.
2.3 Correction of errors
Any errors identified in the statistics will be corrected as soon as possible, and the corrected data is published on the homepage of the relevant statistics.
3. Timeliness and promptness of data
Preliminary data on stumpage earnings is published in March. Final statistics concerning gross stumpage earnings by ownership category and roundwood assortment will be available in June, and the statistics concerning gross and net stumpage earnings by ownership category are published in September.
4. Coherence and comparability of statistics
Annual gross stumpage earnings calculated by ownership category for the whole country have been comparable since the beginning of the time series (1958). Forest Board-specific earnings are comparable between 1984 and 1995 and Forest Centre district-specific earnings between 1996 and 2014. Since 2015, the earnings have been published by region. Since the beginning of 2008, gross stumpage earnings have also included stumpage earnings from energywood delivered to energy companies from non-industrial private forests and other forests. Gross stumpage earnings are not comparable with wood sales earnings subject to forest taxation or any other datasets in which gross earnings also include harvesting compensation. Gross stumpage earnings are reported according to their place of origin, whereas earnings subject to taxation, for example, are reported according to the domicile of the forest owner.
5. Accessibility and transparency of data
Statistics Finland compiled gross stumpage earnings by ownership category between 1958 and 2001. The data was first published in the 1975 Statistical Yearbook of Forestry. Between 1984 and 1995, the data was published by the Forest Board, and between 1996 and 2014 by the Forest Centre district.
In 2002, the responsibility for the calculation of gross stumpage earnings was transferred to the Finnish Forest Research Institute. Since then, earnings have also been presented by roundwood assortment, and earnings of non-industrial private forest owners have been divided into earnings from standing sales and delivery sales, and the value of wood harvested for private use. Stumpage earnings data is available from Luke’s statistical services from 2002, as well as from the Statistical Yearbooks of Forestry and Forest Statistical Bulletins of the Finnish Forest Research Institute between 2002 and 2014.