The values and attitudes of forest owners towards forest management and the use of financial support in Estonia

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1 The values and attitudes of forest owners towards forest management and the use of financial support in Estonia Paavo Kaimre, Tarmo Vahter Department of Forest Management Planning Institute of Forestry and Rural Engineering

2 Structure of the presentation Background information concering private forests and private forest owners The aim of the study Material and method Results Conclusions

3 Private forestry in Estonia The legal base entered into force on November 1, 1991 (The Law on Land Reform) At the end of 1993, ha of private forests, on average 6.9 hectares per cadastrial unit

4 Formation of private forests 62% - restitution 25% - privatisation using privilege to buy 9% - privatisation of free land 4% - privatisation on auctions Source: Maamets, 2004

5 Forest transactions Year Number of transactions

6 Estonian forests by ownership, ; 18% 2545; 0% ; 39% ; 43% State forests Private forests Municipal forests Not in cadastre Source: Estonian Land Board

7 Functions of forests in opinion of Estonian forest owners, 2001 Forest function Share of forest owners % timber 82 environmental functions 69 nature protection 65 non wood products 55 recreation 52 hunting 28 defence function 24 science and training 21 Source: Centre of Forest Protection and Silviculture,2002

8 Public support to private forestry m illion E E K Year

9 Comparison with other countries, public support per forest ha, , ,13 eur/ha Netherlands Switzerland 159,72 Germany 153,85 France 122,16 Czech Rep 110,87 Belgium 94,48 Portugal 70,02 Slovenia 52,2 Finland 48,93 Norway 13,33 Poland 0,81 Estonia Source: EFFE, 2005

10 The aim of the study Starting point: the measure Increasing the economic value of forests and adding value to forest products, Intention of owners to invest and the need for financial support Information related the forest owners, their attitudes etc What kind of forms of entrepreneurship will be used by forest owners? Budget planning for Rural Development Plan, period

11 Method and material Questionnaire Quantitative survey in march april 2007, 3 target groups Individuals SMEs Forest owners associations First contacts by phone, then e mail; opportunity to choose paper version, web based formular, interview

12 Survey Directed sample: owners with larger area were favoured, database of those who already have applied for support Respondents: 472 individuals (out of 1000) 47 companies (out of 300) 24 forest owners associatons (out of 43)

13 Results some descriptive information Forest owners associations on average 4100 ha of forests and 53 members, median 3100 ha 86% of respondents intend to increase the number of members The prolems which have to be solved in private forestry: taxation (83% of respondents), compensation of land in public use (78%), hunting management (61%)

14 Results descriptive information, individuals Mean age 51 years The median area of forest property 27 ha Forest management plans do exist for 81% of forests Financial performance of forest management 51% expect the 0 result, 29% want surplus, 20% are ready for short run expenses (investments)

15 Results goals of for management, individuals timber 84% 91% Recreation Non timber products 40% 41% 40% 49% Hunting Environment protection Clear goal is missing 6% 11% 20% 14% 19% 14% Other goal 5% 6% 7% Reasearch and education 3% tourism Real estate trade 3% 2% 1% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Share of respondents (%) today In the future

16 Results need for support, answers of enterprises reforestation 79% Forest improvement (incl road construction) 75% Tending, first thinnings 71% Processing equipment Soil preparation, supporting natural regeneration 61% 64% Forest mashinery 54% Management of damaged forests Aforestation of agricultural land, plantations 46% 46% Increasing Non timber products 29% Production of seedlings 29% Avoiding of forest fires 25% Development projects 25% Avoiding of forest damages 25% Personal advising of forest owners 14%

17 Results Forest owners associations are active to apply for support (100% of respondents) and are informed about measures which are implemented by government Support for silvicultural measures like reforestation, tending etc are accounted to be most important, also the forest melioration and buying of forest machinery 60% of associations, 20% of individuals and 16% of enterprises were well informed about public measure for the period

18 Results The change of form of entrepreneurship by individuals: 40% intend to manage forest as entrepreneur, 12% will establish the enterprise The main reason behind such intentions is the taxation

19 Suggestions concerning administrative aspects Electronic applications, e procedures; Decrease bureacracy!; More information to forest owners! More trust to applicants! Increase the competence of officials! The process concerning applications and decision making should take less time

20 Conclusions Forest ownership is consolidating on economic reasons The economic policy concerning incentives has changed The incentives (cost sharing) have a positive effect on forest management in private forests There are opportunities for national approach and decisions within EU measures

21 Thank you Kreutzwaldi Tartu Estonia