Family Forestry in Finland

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1 Family Forestry in Finland

2 Structure of Land Use in Finland Total land area thous.ha, forest land area thous.ha Forest land 66 % Other land 16 % Source: Finnish Forest Research Institute Other wooded land 9 % Agricultural land 9 % 2

3 Who Owns Finnish Forest Land? Share of forest area, % Private families 62 % Pensioners 19,8% Farmers 20,4% Wage & salary earners 15,5% Other private 2,4% Forest Industry 8,9% State 24,4% private forest holdings forest owners Average size 30 hectares Almost half of the holdings under 10 hectares Source: Finnish Forest Research Institute Entrepreneurs 3,7% Others 4,9%

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6 Family Forest Owners Main Objectives 40 % of forest owners Multiobjective owners Recreationists Self-employed owners Investors Indifferent Source: Finnish Forest Research Institute

7 Family forest owners priorities MTK promotes sustainable family forestry in accordance with the following principles: Landowners constitutional rights are respected Forest owners have the right and the opportunity to manage and use their forests in compliance with their objectives Forestry is economically profitable Forests are managed in compliance with the principles of sustainable forestry All forest owners regardless of the size and location of forest have to have access to advisory and management services 7

8 Forest Management Wood production and protection of biodiversity combined Only domestic species used One tree stand (< 2 ha) treated at a time Long rotation period ( years) Normally 2-3 thinnings and final felling forest management methods will diversify in the future => 80 % of the forest management activities in private forests are carried out by FMAs (= forest owners associations) 8

9 Wood production is the backbone of sustainable forestry

10 Forest owners organisation in Finland

11 Background of forest owners organisation Slash and burn agriculture and emerging forest industry led to vast decrease of Finnish forest resources in the middle of 19 th century In 1859 a first governmental forest management authority Metsähallitus (State Forest and Park Services) was established In 1886 first Forest Act was passed aiming at prohibiting the destruction of forests and safeguarding regeneration after fellings The fear of decreasing forest resources and the lack of negotiation power towards forest industry led to establishment of forest owners first Forest Management Association in 1906 In 1920 s - after Finland s independence in tenant farmers were given the right to buy the land they had held and managed under their tenancy agreements Beginning of Finnish Family Forestry 11

12 Effective organisation of forest owners is the key The Organization of MTK MEMBERS FARMERS RURAL ENTREPRENEURS FOREST OWNERS LOCAL FARMERS ASSOCIATIONS (364) FOREST MANAGEMENT ASSOCIATIONS (FMA) (96) REGIONAL FARMERS UNIONS (14) FUR BREEDERS ASSOCIATION REGIONAL FOREST OWNERS UNIONS (7) THE OFFICE OF THE CENTRAL UNION OF AGRICULTURAL PRODUCERS AND FOREST OWNERS Maaseudun Tulevaisuus (Newspaper) 12

13 Organization of Private Forest Owners Protection of forest owners interests at all levels: - local Members of Forest Management Associations Forest Holdings, which have Forest Owners Forest Management Associations 96 - regional Regional Forest Owners Unions 7 - national & international Central Union of Agricultural Producers and Forest Owners (MTK) 13

14 Central Union of Agricultural Producers and Forest Owners (MTK) A national central organisation of private forest owners: to influence forest policy legislation both nationally and internationally to guide the activities of the Regional Forest Owners' Unions, to protect the interests of the Forest Management Associations to look after the private forest owners' interests in timber trade strategic management of FO organisation MTK has no position to oblige FO Unions or FMAs all co-operation is based on voluntariness 14

15 Regional Forest Owners Unions Regional central organs for local Forest Management Associations: to promote private forestry and to protect private forest owners' interests to guide and develop the activities of the Forest Management Associations and co-operation between forest owners The Unions are mainly financed by Forest Management Associations s membership fees. MTK and Forest Owners Unions are not granted any state subsidies Organisation reform going on Forest Owner s Unions will be merged with MTK 15

16 Forest Management Associations Founded, administrated and funded by forest owners themselves Advice to forest owners seen critical FMA law regulates the functions and financing of FMAs Currently 96 associations covering the whole country and every municipality fusions decrease the amount of FMAs Employ 1000 officials and 620 permanent forest workers Employ also high number of contractors and entrepreneurs Forest owners service organisation on local level to support all forest owners in all matters relatad to forests: forest management services (planning, harvesting, regeneration, thinning, ditching etc.) timber sales services training and advisory services practical organiser of PEFC group certification 16

17 Forest Management Associations a key player in Finnish forestry 80% of the forest management activities in private forests are carried out by FMAs 70% of preliminary planning of timber sales, 45% of timber sales through power of attorney Mandatory forest management fee for holdings over 4 hectares Average 30 hectare forest holding in Southern Finland pays around 100 /year New FMA law (in force 2015) will be based on voluntariness and level playing field for all service providers 17

18 THANK YOU FOR YOUR ATTENTION! 18

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