Full text of this article is only available in PDF format.

Antrei Lausti, Markku Penttinen (email)

The analysis of return and its components of non-industrial private forest ownership by forestry board districts in Finland

Lausti A., Penttinen M. (1998). The analysis of return and its components of non-industrial private forest ownership by forestry board districts in Finland. Silva Fennica vol. 32 no. 1 article id 701. https://doi.org/10.14214/sf.701


Non-industrial private forest ownership returns and risks in Finland are both estimated and disaggregated to local Forestry Board Districts (FBD) level. Additionally, the FBD level return is divided into price change, felling and change in the growing stock components, which are compared with the inflation rate. The results are based on a complete count of the stumpage prices, silvicultural costs and state subsidies as well as the National Forest Inventory (NFI) data. The influence of taxation is discussed as well. Although this database is excellent for economic studies as well, the estimation methodology is vitiated by a host of problems, the resolution of which is the major contribution of this study. The study period is 1972–1996. The results show that there have been fairly large differences in forest ownership returns and prices depending on the Forestry Board District. Results show that the price change component has been larger in Northern Forestry Board Districts, as much as 0.9% above the inflation rate in Lapland FBD, than in Southern Forestry Board Districts, 1.5% less than the inflation rate in southern Helsinki FBD. The net increase, however, has been larger in Southern Forestry Board Districts than in Northern Forestry Board Districts. Using the average net increment in Finland as a comparison base, the net increment in South Karelia exceeded it by 0.6%, but fell below it by 1.8% in Northeastern Finland. Finally, the return over the whole period is compared to the return on private housing and inflation in the case of North Savo. In all, the estimation methodology developed also serves as spin-off product development for the Forest Statistics Information Service (FSIS).

non-industrial private forests; risk; return; portfolio management; forestry board district; performance evaluation

Author Info
  • Lausti, Helsinki School of Economics and Business Administration, Centre for Doctoral Programme, Runeberginkatu 15 A, FIN-00100 Helsinki, Finland E-mail al@nn.fi
  • Penttinen, Finnish Forest Research Institute, Helsinki Research Centre, Unioninkatu 40 A, FIN-00170 Helsinki, Finland E-mail markku.penttinen@metla.fi (email)

Received 8 April 1997 Accepted 11 February 1998 Published 31 December 1998

Views 2792

Available at https://doi.org/10.14214/sf.701 | Download PDF

Creative Commons License CC BY-SA 4.0

Click this link to register to Silva Fennica.
Log in
If you are a registered user, log in to save your selected articles for later access.
Contents alert
Sign up to receive alerts of new content

Your selected articles
Your search results
Pesonen M., Kettunen A. et al. (1995) Modelling non-industrial private forest landowne.. Silva Fennica vol. 29 no. 2 article id 5555
Hyder A. S., Lönnstedt L. et al. (1994) Outline of accounting for non-industrial private.. Silva Fennica vol. 28 no. 2 article id 5401
Järveläinen V.-P., (1993) Private forestry and the changing values Silva Fennica vol. 27 no. 3 article id 5516
Ripatti P., (1992) Forest area changes of non-industrial private fo.. Silva Fennica vol. 26 no. 3 article id 5485
Shimotori S., (1986) Private and municipal forests and the forestry p.. Silva Fennica vol. 20 no. 4 article id 5299
Cubbage F. W., Hodges D. G. (1986) Public and private technical assistance programs.. Silva Fennica vol. 20 no. 4 article id 5298
Gendreau C., (1986) Historical considerations and evolution of the f.. Silva Fennica vol. 20 no. 4 article id 5293
Järveläinen V.-P., (1975) Forestry expert’s and appointed representatives’.. Silva Fennica vol. 9 no. 1 article id 4913
Yli-Vakkuri P., (1955) Studies on crop marking of District Forestry Boa.. Silva Fennica vol. no. 87 article id 4646
Virolainen J., (1943) Forestry in the Karelian isthmus and its influen.. Silva Fennica vol. no. 60 article id 4580
Metsänhoidon edistämiskomitea ., (1938) Promotion of private forestry in Finland Silva Fennica vol. no. 45 article id 4545
Hahtola K., (1967) Farm forestry and its socio-economic environment Acta Forestalia Fennica vol. 84 no. 2 article id 7183
Alho P., (1967) Influences of partitioning of land in forestry i.. Acta Forestalia Fennica vol. 82 no. 1 article id 7174
Yli-Vakkuri P., (1954) Marking trees for cutting by professionals of ad.. Acta Forestalia Fennica vol. 61 no. 6 article id 7418
Ennevaara P. A., (1946) Fellings not meeting the requirements of the Pri.. Acta Forestalia Fennica vol. 54 no. 2 article id 7388
Appelroth E., (1942) Requisite for periodical inventories of private .. Acta Forestalia Fennica vol. 50 no. 12 article id 7365
Toijala V. R., (1934) Promotion and supervision of private forestry in.. Acta Forestalia Fennica vol. 40 no. 35 article id 7312
Ripatti P., (1996) Factors affecting partitioning of private forest.. Acta Forestalia Fennica vol. 0 no. 252 article id 7514
Vesikallio H., (1974) Regional cooperation in farm forests in Finland... Acta Forestalia Fennica vol. 0 no. 135 article id 7569
Kangas J., Leskinen P. et al. (2000) Integrating timber price scenario modeling with .. Silva Fennica vol. 34 no. 4 article id 621
Karppinen H., (1998) Values and objectives of non-industrial private .. Silva Fennica vol. 32 no. 1 article id 699
Zhang Y., Zhang D. et al. (2005) Small-scale non-industrial private forest owners.. Silva Fennica vol. 39 no. 3 article id 378
Ripatti P., (2000) Use of log-linear models in forecasting structur.. Silva Fennica vol. 34 no. 3 article id 631