2.1.2006

A Brief Background to Finnish Forestry

Forestry in Finland is based on family ownership. There are over 920 000 private forest owners in Finland owning 60% of the total forest area, 67% of the growing stock and 68% of the annual increment. The average size of these family forest holdings is less than 30 hectares. In the past, most forest owners were farmers. Now most of them, around 80%, are wage earners, pensioners and entrepreneurs.

Forest management in Finland is practised with future generations in mind. The number of forest owners is large and the forestry goals they set for themselves are diverse. According to recent surveys, timber production and other economic values are a priority to 71%, recreational and leisure values to 19%, conservation to 5% and emotional values to 5% of the private forest owners.

About 80% of the domestic wood purchased by the industry comes from family forests. Forest owners make about 100 000 – 150 000 wood sale transactions every year. The average private forest owner makes a transaction in 3 – 4 year intervals, the average size of a sale being 400m³.

The Role of Forest Management Associations

The co-operation between forest owners in Finland has long traditions. The first Forest Management Associations were founded in 1907. The Act on Forest Management Associations was passed in 1950. In 1999 the legislation was brought up to date. In the amendment the task of Forest Management Associations (FMAs) is set out as follows:

The forest Management Association is a forest owners' body, the purpose of which is to promote profitability of forestry practised by forest owners and the realisation of the other goals they have set for forestry, and to advance the economically, ecologically, and socially sustainable management and utilisation of forests.

(Forest Management Association Act, part 1)

Various Services to Forest Owners

Forest Management Associations are working in close co-operation with forest owners in all matters related to forests – from planting to harvesting. FMAs offer training and guidance and provide professional assistance in forestry issues thus protecting forest owners' interests and helping to achieve set objectives. The Associations take care of planning and implementation of forestry measures in private forests. They also provide consulting services in wood sales planning and wood sales transactions. About 80 – 90% of the activities related to timber production in private forests as well approximately 70% of preliminary planning of timber sales are carried out by FMAs. Much emphasis is placed on the profitability of forestry as it has a direct impact on the welfare of rural areas.

Forest owners can also grant their FMA the power of attorney concerning wood sales and deliveries. This has proved to be a valuable service to those forest owners who themselves do not have the time or opportunity to actively participate in the management of their forests or timber sales. The demand for power of attorney services has grown steadily with the urbanisation of the forest owners. Currently about 40% of timber sales from private forests are based on attorney sales.

There are 154 Forest Management Associations, each financed and administered by the forest owners themselves. The total number of members in the associations in nearly 330 000.

The current trend is to decrease the number of FMAs to around 100. Bigger FMAs have better preconditions to provide services in forestry issues and represent and look after forest owners' interests.

Forest Management Associations are governed and financed by forest owners. The Act on Forest Management Associations enables them to collect a forest management fee from forest owners. Every forest owner pays the fee and thus is automatically a member of the FMA in the area where his or her forest is located. Forest management fees account for approximately 20% of the associations' turnover. The rest is generated by the services provided.

FMA administration is based on elections that are open to all forest owners. A Council whose members are elected by mail voting holds the highest authority of the FMA. All FMA members have equal rights to participate in the elections and nominate candidates.

Regional Forest Owners´ Unions

The unions are regional central organs of the local Forest Management Associations. Their goal is to promote private forestry and protect private forest owners interests as well as guide and develop the activities of the FMAs and the co-operation between forest owners. Regional Unions also provide guidance and assistance in the marketing of forest products. The Unions are financed primarily by membership fees paid by the FMAs.

Forestry Council of the Central Union of Agricultural Producers and Forest Owners

The national central organisation of private forest owners looks after private forest owners' interests in timber trade and influences forest policy legislation. Forestry Council also guides the activities of the Regional Forest Owners´ Unions, protects the interests of the Forest Management Associations and develops co-operation between forest owners.