Operating profit in non-industrial private forest 2020

Operating profit in non-industrial private forestry was EUR 114 per hectare (EUR 1,567 million) in 2020. The decrease continued for the second year, as felling volumes of industrial wood in non-industrial private forests decreased by 10% from the previous year and real standing sales prices fell, except for spruce pulpwood.
The operating profit per hectare decreased by EUR 13 from the previous year, down by 10% in real terms. The decline was similar when compared to the average of the previous five years.
In Southern Finland, the operating profit of non-industrial private forestry was EUR 145 per hectare (–11% compared with the previous year) and in Northern Finland, EUR 53 per hectare (–6%). Northern Finland consists of the regions of North Ostrobothnia, Kainuu and Lapland.
Studied by region, the highest hectare-specific operating profit was again achieved in Kanta-Häme (EUR 215 per hectare) and Päijät-Häme (EUR 214 per hectare). In Lapland, the operating profit was EUR 35 per hectare, showing an increase of 1% from the previous year. In real terms, operating profit declined most in South Karelia (–19%) and Kymenlaakso (–17%). The operating profit declined in all regions except in Lapland.
Earnings of wood production in non-industrial private forestry totalled EUR 1,803 million (EUR 132 per hectare). These earnings include wood sold to forest industries and for energy generation, as well as wood harvested for private use. The earnings comprise gross stumpage earnings that are calculated by multiplying the felling volume by standing sales prices.
Estimated investments in wood production were EUR 16 per hectare (EUR 222 million). The amount includes the estimated value of work carried out by forest owners. Investments are expected to remain at the previous year’s level. The total costs of non-industrial private forestry, including the estimated administrative expenses and equivalent, remained at EUR 21 per hectare.
Some investments are funded by state subsidies for non-industrial private forestry. In 2020, state subsidies were EUR 50 million (EUR 3.7 per hectare), being at the previous year’s level. Due to the lack of suitable silviculture and forest improvement projects, almost EUR 6 million of assigned subsidies remained unused.
The nominal values have been converted into real values using the cost-of-living index.