Forestry extension activities in the new era case Finland
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1 Forestry extension activities in the new era case Finland Ritva Toivonen, Director General Pekka Ripatti, Development Manager Olli Mäki, Forest Economist Forestry Development Centre Tapio
2 Contents Forests and Forest Ownership Private Forestry and its Development Forest policy and its implementation Extension activtities and their impacts Insights into future; changes in the forest ownership structure and in forest policy, case Finland Conclusions : extension in the new era 2
3 Forests and forest ownership in Finland
4 Forests in Finland > 70 % land area, ~23 Mha Private small-scale 13,5 M ha State 6 M ha Industry 2 M ha Others 1,4 M ha 3 % of forest area is harvested annually 2,3 % in thinnings 0,6 % for regeneration fellings 4
5 Forest has always been mainly private property (~ 60%) Everyman s rights Importance to NA
6 Private Forestry Private ownership in Southern Finland, state ownership in the North ~ small holdings ~ consumers average holding area ha (36) Growing stock roughly 100 m 3 /ha, growth 4 m 3 /ha/y Commercial removals Mm 3, > 80 % from private forests, additional household utilization (firewood etc.) 5-6 Mm 3 6
7 NIPF holdings (Metla, Leppänen) Finland independent 1917-> independent farmers, WW II No of holdings "Metsälöiden" määrä, kpl Farms & rented holdings Itsenäisten tilojen määrä Torppien määrä Iindependent farms Rented Metsänomistaja 2010,
8 Private small-scale forest ownership (NIPF-ownership)
9 Research on NIPF owners 2000s 2003, 2005, 2007, 2008: data: structured mail surveys, qualitative interviews, structured interviews Age +, home-forest distance +, less farmers more on pension Motives, attitudes, segments: multivariate analysis, confirmatory factor analysis
10 Forest owner profile 2009 (Metla, Leppänen) Avg. age (2009) v v v. Profession (2000) 2009 area Forest property usually stays in family Male 75%, female 25% Increasing level of education -30% wage earners -6% entrepreneurs -22% farmers -37% on pension -5% other 10 10
11 64 % has home nearby their forest (2009) (same municipality; Metla) % 100 % 90 % 80 % 70 % 60 % 50 % 40 % 30 % 20 % 10 % 0 % Place of living ala Town/city Village Rural Distant owners avg 190 km. Metsänomistaja 2010,
12 Significance of forest ownership Incomes from timber sales Property (low risk, increasing value (?), value as long-term family property) Recreation Nature conservation Surroundings for home Ownership 12
13 Forest owners objectives Multitude of values; economics traditionally important; s: less clearly purely economic motives increasingly other, intangible motives Owner segments (roughly, several studies): - multivalue - ~50% - economic ~ 15-20% - recreation ~ 15-20% - nature conservation ~ 5 % - no specific/not interested 5 10% 13
14 Private forest owners Self-motivated Silvicultural works (planting, tending of young forests) Manual logging Wood for domestic use Services provided by Organisations (FCs, FMAs) Forest industry Small-scale entrepreneurs 14
15 Timber sales Finnish timber procurement highly concentrated Three large paper integrates (UPM, Stora Enso, Metsäliitto) buy over 90 % Forest owner may authorize local FMA to handle the sales process Stumpage sales cover % of sales Efficient wood procurement chains Machine contractors 1000 contractors covering over 90 % of harvests and transport, drivers 15
16 Forests policy and its implementation
17 Importance of Forestry nationally Important part of the Finnish economy Forestry ~ 2 % of GNP, Forest industry ~ 3,5 %, Forest cluster ~ 10 % = jobs NIPFowners, part of whom self-employed The rural society Employment in rural regions Tourism Author: Anssi Koskinen Cultural and recreational value Everyman s Rights 17
18 Forest policy: SFM National economy vs. private economy Sustainability regulation Private benefit and national benefit support each other Long-term supply : the larger the growing Long-term supply : the larger the growing stock, the stronger the supply (competitive markets) => incentives for long-term investments Short-term supply : P +1% - Q+1%: price information systems (competitive markets, derived demand)
19 Forest policy: SFM NIPF decisions: bunch of benefits Long-term investments in SFM: obligatory reforestation, - otherwise givernmnet provides incentives for long-term investments: 1 from government 3 from private owners Informational guidance: Best practices & market data, information and education; profitability (volume, price, costs) Recommendations for good forest management: combine economics, technology, ecology Incentives for voluntary conservation (METSO)
20 Policy instruments to integrate private small-scale forest owners in SFM and NFP - sustainability Normative Regulation Forest Act: obligations Nature protection Act Everyman s rights Financial Incentives & incl. Taxation Act on Financing Sustainable Forestry: For long term investments in wood & nature values Information Based Guidance incl. Education NFP (KMO 2015) Regional FP Management Planning service Extension by several organizations Soft Law Voluntary Systems Forest certification (1960s-70s MERA) Best practices Good Forest Management 20
21 Legal steering The Forest Act ensures the economically, ecologically and socially sustainable use of forests Example: The obligation to establish a new stand Forest Use Declaration Felling Measures to establish a seedling stand A seedling stand that has economic growth potential and binds carbon X 5 years a reasonable period of time
22 Financial incentives Grants according to Act on the financing of sustainable forestry (1997) Supported types of work: Forest regeneration (after disasters etc.) 9,8 mill. Root rot control 3,7 mill. Prescribed burning 0,05 mill. Tending of young forest 24,5 mill. Pruning 0,5 mill. Harvesting of energy wood 13 mill. Forest remedial fertilisation 1 mill. Renovation ditching 4,8 mill. Forest road construction and renovation 6,3 mill. Grants approx. 80 million in
23 Certified forests Finnish Forest Certicifation System (FFCS, PEFC-Finland), belongs to the international umbrella of PEFC Criteria for forest management, chain of custody and monitoring compliance > 90 % of forestry land in Finland certified FSC-criteria introduced in
24 Impacts?
25 Finnish forest resources and private ownership Importance to national economy --> strong policy intervention for SFM but aim for competitive markets 25
26 The growth of trees and removal
27 Energy wood potential 60 Stump Logging residue Small tress Total Techno-ecological potential, TWh ,9 15,7 12,5 14,7 48,3 15, ,6 0 Basic scenariou Maxium scenariou Scenario Source: Kärhä et al
28 The role of private forests Commercial harvest Energy biomass 3 Mm 3 3 /m 3 Industrial round wood 21 Mm 3 15 /m 3 Net growth in private forests ~70 mill.m 3 /year 20 Mm 3 /a Remain in the growing stock (increase of growing stock) Private household use 5 Mm Sawlogs 21 Mm 3 55 /m 3 Total/a ~45 Mm 3 Total value/a 1,5 B
29 Short term wood mobilization with tax exemptions NIPF-owners behavior is market-driven Increase in Russian export duties seized import from Russia A need to mobilize domestic wood for industry In 2008 total tax exemption for incomes from first thinnings , announced % tax reduction for incomes from round wood sales during and 25% for What happened? 29
30 Intended harvesting (ha) by months, Regeneration fellings, Private forests Precommercial thinning tax exemption about to end ha Increasing harvesting activity, when 50 % tax exemption about to decrease to 25 % KK 30
31 Extension has been included in policy implementation since the early 1900s
32 Information-steering Advisory services given by 13 Forestry Centres 113 Forest Management Associations FMAs Private entrepreneurs & forest industry services Tools NFP and Regional Forest Programmes The Forest Management Practice Recommendations Forest management plans on a holding-level Work services Market Information Statistics by Metla & FMAs Forestry Centres of Finland
33 Private forestry administration and organizations 13 Regional Forestry Centres (~1000 pers.) Forestry Development Centre Tapio (~100 pers.) Private non-industrial forest owners appr Metsä- hallitus (State forest enterprise) (~2000 pers.) Finnish Forest Research Institute Metla (~900 pers.) 113 Forest management Associations (~1000 pers.) Central Union of Agricultural producers and Forest Owners Ministry of Agriculture and Forestry Ministry of the Environment 33
34 Participation of private forest owners in forestry counseling st owners % of fore At least one advice event during last five years period Personal advice Small group counseling Large group counseling Advice type Lähteet: Metla, TTS, PTT Source: Finnish Forest Research Institute 34
35 The society and thenipf-owners change continuous need to develop extension services
36 Global challenges in forestry Climate change mitigation Deforestation Bioeconomy: Sustainable Forest Management increasingly important efficiency and effectiveness 36
37 Forest chip sources and future targets Stem w ithout branches Stem w ith branches Logging residue Trunk w ood Stumps Undifferentiated Target m³ Annual use 37
38 Challenges from changes in the society and in the NIPFstructure - smaler holdings - smaler holdings - senior citizens average age increases (-> 2020s, then decreases) - urbanization distant ownership - higher education - higher incomes - changing motives - more segments
39 Forest owners (2009) (Rämö et al. 2009) Age (60) Urban 50% (26%) distant ownership, need for silvicultural services Wage earners 50% (30) higher incomes, importance of forestry incomes decreases Farmers 5% (16) On pension 35% (45%) 39
40 Forest owners 2030 (2009) (Rämö et al. 2009) Segments increasingly diversified: - multivalue - ~25% - forest entrepreneurship ~ 10% - investors ~ 5% - recreation ~20% - nature conservation ~ 10% - urban multiusers 25% - passive/not interested 5%
41 Challenges in the new era forest extension Continuously needed Research & knowledge base! Motivation building: combination of regulation, information & advice & monetary incentives The society s changing values need to be considered in the contents and practices of extension Increasingly individual SERVICE
42 Case Finland -> 2020 ( - New services via internet (e-service), more frequently updated inventory data, - Moving toward market-based implementation - support for service entrepreneurship - The development of extension contents: - Diversified Forest management strategies - Market information availability - Voluntary conservation - Subsidies for bio-energy production - Update of the Forest Act (liberalization)?
43 Challenges in the new era extension 1) Extension is needed combination of regulation, information steering and economic incentives efficient and effective in NIPF-ownership 2) Contents and technology: continuous development services in internet and e-service, new technologies - individual service - help in actual forest work - diversified FMS 3) Service providers: Government role as financing, goal-setting and controlling actual service may be increasingly business-based 5) The values and needs of the society need to be recognized, anticipated and respected (consumers) the needs and motivations of NIPF-owners 6) Clear rights and law enforcement
44 Thank you! 44
45 Forestry Development Centre TAPIO Research Policy Practice Interface for 102 years: We refine research and the latest technology into best practices and systems for sustainable forestry. Tools and knowledge to achieve better forest management. Turnover 16,5 million, Personnel 100 Recommendations for good forest management Information technology systems Biodiversity conservation and environment GOOD FORESTS FOR ALL Forest resource assessment & data management Communication & marketing Quality control systems Systems & Practices for profitable private/ small scale forestry Forest Seedlings and Seeds (daughter companies) Publishing Company 45
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