Ilona Suuriniemi, Jukka Matero, Harri Hänninen, Jussi Uusivuori. (2012). Factors affecting enlargement of family forest holdings. Silva Fennica vol. 46 no. 2 article id 58. https://doi.org/10.14214/sf.58

Keywords: economies of scale; structural change; forest ownership; non-industrial private forest owners; land policy; parcelization; consolidation

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This study contributes to the research of enlargement – a counterforce of parcelization – of forest holdings. To help planning policy measures aiming at increased average size of forest holdings, we study the characteristics of family forest owners who acquired additional forestland area during the years 2004–2008. Increases of forestland area due to purchases on the open market, purchases from parents or other relatives, inheritance or gift are studied. Survey data, containing information of 6318 forest owners, are analyzed with logistic regression analysis in order to establish a relationship between the probability of increasing the forestland area and the characteristics of landowners. The results indicate that young male owners, who appreciate economic values of the ownership and are active users of their forest estates, most often expand their forest property. This can be considered as an encouraging result from the point of view of the political objective to boost forest management activity through enlarging family forest holdings.

Suuriniemi, University of Eastern Finland, School of Forest Sciences, P.O. Box 111, FI-80101 Joensuu, Finland E-mail: is@nn.fi
Matero, University of Eastern Finland, School of Forest Sciences, P.O. Box 111, FI-80101 Joensuu, Finland E-mail: jukka.matero@uef.fi
Hänninen, Finnish Forest Research Institute, Vantaa Unit, P.O. Box 18, FI-01301 Vantaa, Finland E-mail: hh@nn.fi
Uusivuori, Finnish Forest Research Institute, Vantaa Unit, P.O. Box 18, FI-01301 Vantaa, Finland E-mail: ju@nn.fi

Category : Review article

article id 378, category Review article

Yaoqi Zhang, Daowei Zhang, John Schelhas. (2005). Small-scale non-industrial private forest ownership in the United States: rationale and implications for forest management. Silva Fennica vol. 39 no. 3 article id 378. https://doi.org/10.14214/sf.378

Keywords: non-industrial private forest; forest land parcelization; timber supply; transaction costs; economic efficiency; land use change

Abstract | View details | Full text in PDF | Author Info

The transaction cost approach is used to explain why small non-industrial private forest (NIPF) ownerships are increasing in the U.S. We argue that the number of small NIPF owners have increased because: 1) a significant amount of forestland is no longer used economically if primarily for timber production, but rather for non-timber forest products and environmental services (particularly where population density is high), 2) when a person makes frequent use of non-timber products and services, owning forestland is more efficient for them because it saves the transaction costs involved in getting them from the market, 3) forestland parcelization takes place when non-timber value increases faster than timber value, and 4) marginal value for non-timber product is diminishing much faster than that for timber production. The paper also discusses implications of the parcelization of NIPF ownerships on forest management.

Zhang, School of Forestry & Wildlife Sciences, Auburn University, AL 36849-5418, USA E-mail: yaoqi.zhang@auburn.edu
Zhang, School of Forestry & Wildlife Sciences, Auburn University, AL 36849-5418, USA E-mail: dz@nn.us
Schelhas, Southern Research Station, USDA Forest Service, Tuskegee University, AL, USA E-mail: js@nn.us

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