Operating profit in non-industrial private forest 2018

The increase in the operating profit of non-industrial private forestry continued, as record-breaking felling volumes and the increase in stumpage prices clearly improved the operating profit in 2018. The operating profit per hectare increased to EUR 157, up by almost EUR 30 per hectare from the previous year.
In real terms, the operating profit increased by 22 per cent from the previous year and by 47 per cent compared with the average of the previous ten years. The operating profit was close to the all-time record year of 2007. Measured in euros, the operating profit per hectare was as much as EUR 14 higher but, considering changes in real value, the operating profit of 2007 was 7 per cent higher.
In Southern Finland, the operating profit was EUR 202 per hectare, showing an increase of 22 per cent from the previous year in real terms. In Northern Finland, the operating profit was EUR 63 per hectare (+25 per cent). Northern Finland includes the regions of North Ostrobothnia, Kainuu and Lapland.
Earnings of wood production in non-industrial private forestry totalled EUR 2.32 billion (EUR 175 per hectare). These earnings include gross stumpage earnings calculated on the basis of the volume and standing sales prices of wood from commercial and energy wood felling and wood harvested for own use.
Investments in wood production were EUR 17 per hectare (EUR 229 million). The amount includes the estimated value of forest-owners’ own work. Investments increased by 5.7 per cent from the previous year. The total costs of non-industrial private forestry, including the estimated administrative expenses and equivalent, were EUR 22 per hectare (+5.3 per cent).
State subsidies for wood production totalled EUR 49 million (EUR 3.7 per hectare). Due to the lack of suitable forest amelioration projects, EUR 7 million of these subsidies remained unused. Compared to the previous year, subsidies decreased by almost EUR 4 million, or eight per cent in real terms.
The nominal values were converted into real values using the cost-of-living index.