Finnish Forest Owners in the Spotlight

Transcription

1 Finnish Forest Owners in the Spotlight Trip to Finland August 15, 2017 Heimo Karppinen Prof. of Private Forestry Dept. of Forest Sciences

2 Outline role of private forestry in Finland monitoring private forest owners number of forest holdings structural changes & ownership objectives forest owners views on storing carbon in their forests

3 Forest Ownership in Finland % of forest area 5 % 25 % 61 % Private Companies State Others 9 %

4 105.5 mill. m3 (2015) Sources: Finnish Statistical Yearbook of Forestry 2014 & Ruoka- ja luonnonvaratilastojen e-vuosikirja 2015

5 Origin of roundwood used by forest industries 2013 (commercial roundwood removals + imports) % roundwood Private Companies State Imported Source: Finnish Statistical Yearbook of Forestry 2014

6 Earlier NIPF studies the first study on Finnish private forestry was conducted as early as 1935 (Osara 1935). the first significant step toward creating a permanent monitoring system for the whole country was taken in 1975 (Järveläinen 1978) followed by another study in Southern Finland during (Karppinen and Hänninen 1990)

7 Finnish monitoring system for private forestry: national surveys 1990, 1999 &

8 Number of NIPF holdings Photo: Luke s archives NIPF holdings incl. all holdings despite location (> 2 ha) corresponding number of forest owners mean size 30.1 ha 12.1 mill. ha of forest land

9 Forest holdings in Finland During an increase of independent holdings by (Leppänen &Hänninen 2008) Number of forest holdings Total number of (forest) holdings War War Number of independent holdings Number of tenant holdings

10 Structural changes general changes in society: occupational differentiation, regional differentiation, urbanization, migration, aging structural changes in NIPF forestry from farmers to non-farmers polarization in the holding size distribution aging an increase in absentee ownership changes in ownership objectives Photo: Luke's archives

11 Inheritance system inheritance/donation/purchase from parents or relatives 85% free market 15 % of holdings some holdings change owners by year (number of holdings over 5 ha ) owners replaced in 30 years Photo: Metla s archives

12 Occupational status (Karppinen and Ahlberg 2008, Hänninen et al 2011) % of population over 14 years % of forest owners 100 % 100 % % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % Others Pensioners Entrepreneurs Farmers Wage-earners 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % , % e 2020e 0 % e e= forecast

13 Place of residence (Karppinen et al. 2002, Hänninen et al. 2011) % forest owners Urban municipalities 69 % 2013

14 New estimates of gender shares (Paaja 2015, Karppinen & Hänninen 2017) usually shares are based on mail survey: one response per holding, in general male persons respond new estimates: taking into account single ownerships and ownerships together with the spouse, female owners share 38% (if joint ownerships considered, female share 44%)

15 Age development by profession (Hänninen et al 2011) Years Mean age Full-time and part-time farmers Other forest owners All forest owners

16 Objectives of forest ownership (Karppinen et al 2002, Hänninen et al 2011) Recreation & Leisure Residential environment Berry-picking Hunting Outdoor recreation Forest work Wood production and timber sales income Regular sales income Funding of investments Labor income & employment Household timber Nature and scenery Biodiversity Aesthetic values Nature protection Economic security Credibility Security against old age Hedging motives Security against inflation Bequest motive Emotional aspects Inherent value Solitude and meditation Roots in native locality Object of investment Asset motive Speculative motives

17 Objectives of forest ownership (Hänninen et al 2011) % of forest area % forest owners

18 Gross stumpage earnings (deflated) bill. NIPF bill. NIPF NIPF Others Source: Ruoka- ja luonnonvaratilastojen e-vuosikirja 2015

19 Forest owners attendance in extension (Hänninen et al 2011) % forest owners Professional aid Mass extension Group extension Forest management plan

20 Forest owners views on storing carbon in their forests Heimo Karppinen, Maria Hänninen & Lauri Valsta

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22 CO2 in living trees NFI 11 Business as usual Policy Max sust. Salminen 2016

23 Increasing carbon storages in forests refraining from timber harvesting completely postponing thinnings or final harvests enhancing forest growth by fertilizing forest soil by selection of tree species varying replanting and growing density using selective cutting methods Photo: Lauri Valsta

24 Four types of factors affecting participation in carbon sequestration programs general economic factors such as the underdevelopment of carbon markets and low price of carbon owner and holding characteristics objectives of forest ownership factors related to policy instruments Ahtikoski et al. 2009, Fletcher et al. 2009, Markowski-Lindsay et al. 2011, Wade and Mosley 2011, Dickinson et al. 2012, Miller et al. 2012, Thompson and Hansen 2012, Urquhart et al. 2012, Rämö et al. 2013, Tian et al The study aims to describe Finnish family forest owners perceptions on climate change and their opinions on increasing carbon storages in their forests by new kinds of management activities and policy instruments.

25 Material and methods 1 the data were collected by thematic face-to-face interviews among Helsinki Metropolitan area forest owners (n=15) in 2015 these city-dwellers were expected to represent new kinds of forest owners with more education, the mean age rather high though (72% of members > 60 years old) their forests were spread throughout the country (see fig.) and represented different size classes and various landowner objectives (variation in the sample) the tape-recorded data were transcribed word for word, and themes and typologies were created based on these talks Source: Helsinki Metropolitan Area Forest Owners Assocation member survey

26 Knowledge on climate change forest owners had general knowledge on global climate change taking place in a very long run but did not often connect these changes to their own forests I have never thought about it [climate change] here in Finland, but all they show in tv, you know, about the cuttings in rain forests (Female, 66 years) I am rather old, so long-term worries, they are the worries of the next generation (Male, 83 years)

27 Forest owner s role forest owners also felt that they had only minor possibilities to affect climate change individually My role through my forest ownership is so small, what I do in my forest does not save the earth or [affect] climate change, the greater change should happen when forest owners willingness would change (Male, 40 years) fertilization was accepted generally as a means to increase carbon storage in the forests

28 Four views on storing carbon in the forests: a forest owner typology Pioneers utilize their land versatilely and have already adopted practices to mitigate climate change (selection of tree species or maximizing biomass). Potentials emphasizing recreational objectives are concerned about climate change such as more frequent storms. They are willing to take actions to mitigate global warming but this interest has not yet realized into forestry practices. Deniers are investors who are mainly interested in timber incomes but could be interested in increasing carbon storages when sufficiently subsidized. Indifferent owners have no specific ownership objectives and their forests have remained unmanaged. Subsidies would be needed in order to encourage them to manage their forests.

29 Conclusions forest owners appear to have positive attitudes towards storing carbon in their forests economic factors are important for many owners when they consider their participation in potential carbon sequestration programs for many owners the pecuniary compensation is the primary motivation participate in storing carbon the absence of value-driven willingness to mitigate climate change makes this instrument vulnerable for changes in the amount of compensation or other mechanisms informational guidance on the role of forests and tailored forest management for reducing carbon emissions along with flexible terms of the agreement should be key elements in the cost-share programs the most challenging forest owner type are naturally Indifferent owners Photo: Erkki Oksanen

30 Selected literature: publications/summary in English Järveläinen, V-P Yksityismetsätalouden seuranta. Metsälöotokseen perustuvan tietojärjestelmän kokeilu. Summary: Monitoring the development of Finnish private forestry. A test of an information system based on a sample of forest holdings. Folia Forestalia p. Karppinen, H. & Hänninen, H Yksityistilojen hakkuumahdollisuuksien käyttö Etelä-Suomessa. Summary: Actual and allowable cut in nonindustrial private woodlots in southern Finland. Folia Forestalia p. Karppinen, H. & Hänninen, H Monitoring Finnish family forestry. The Forestry Chronicle 82(5): Leppänen, J Finnish family forest owner 2010 survey. Scandinavian Forest Economics 43: Karppinen, H., Hänninen, M. & Valsta, L Forest owners views on storing carbon in their forests. A submitted manuscript.