Family Forestry in Finland

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Structure of Land Use in Finland Total land area 30 415 thous.ha, forest land area 20 150 thous.ha Forest land 66 %

Other land 16 %

Agricultural land 9% Source: Finnish Forest Research Institute

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Other wooded land 9%

Who Owns Finnish Forest Land? Share of forest area, % Private families 62 % Pensioners 19,8% Farmers 20,4%

Wage & salary earners 15,5%

Entrepreneurs 3,7% Others 4,9%

Other private 2,4% Forest Industry 8,9%

  

State 24,4%

345 000 private forest holdings - 632 000 forest owners Average size 30 hectares Almost half of the holdings under 10 hectares Source: Finnish Forest Research Institute

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Family Forest Owners Main Objectives 40

% of forest owners

35 30 25 20 15 10 5 0 Multiobjective Recreationists Self-employed owners owners 1999

Investors

Indifferent

2009

Source: Finnish Forest Research Institute PEFC/02 -44-02

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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

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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 (60 – 120 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)

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Wood production is the backbone of sustainable forestry

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Forest owners’ organisation in Finland

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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 1917 - tenant farmers were given the right to buy the land they had held and managed under their tenancy agreements  Beginning of Finnish Family Forestry

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Effective organisation of forest owners is the key

The Organization of MTK 150 000 MEMBERS FARMERS

RURAL ENTREPRENEURS

LOCAL FARMERS ASSOCIATIONS (364) REGIONAL FARMERS UNIONS (14)

FUR BREEDERS´ ASSOCIATION

FOREST OWNERS

FOREST MANAGEMENT ASSOCIATIONS (FMA) (96) REGIONAL FOREST OWNERS’ UNIONS (7)

THE OFFICE OF THE CENTRAL UNION OF AGRICULTURAL PRODUCERS AND FOREST OWNERS Maaseudun Tulevaisuus (Newspaper)

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Organization of Private Forest Owners Protection of forest owners’ interests at all levels: - local

- regional

- national & international

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Members of Forest Management Associations 345 000 Forest Holdings, which have 632 000 Forest Owners

Forest Management Associations

96

Regional Forest Owners’ Unions 7 Central Union of Agricultural Producers and Forest Owners (MTK)

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

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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

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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 PEFC/02-44-02

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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

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THANK YOU FOR YOUR ATTENTION!

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