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Economic Sustainability of
Small-Scale Forestry

International IUFRO Symposium

Anssi Niskanen and Johanna Väyrynen (eds.)
EFI Proceedings No. 36, 2001

  • European Forest Institute
  • IUFRO Working Unit 3.08.00

  • Academy of Finland
  • Finnair

  • Metsämiesten Säätiö –Foundation
  • MTK – The Central Union of Agricultural Producers

and Forest Owners, Finland

University of Joensuu, Faculty of Forestry, Finland

EFI Proceedings No. 36, 2001 Economic Sustainability of Small-Scale Forestry Anssi Niskanen and Johanna Väyrynen (eds.)

  • Publisher:
  • European Forest Institute

  • Series Editors:
  • Risto Päivinen, Editor-in-Chief

Tim Green, Technical Editor Brita Pajari, Conference Manager

Editorial Office: European Forest Institute
Torikatu 34
Phone: +358 13 252 020 Fax. +358 13 124 393

WWW: http://www.efi.fi/

Cover photo: Layout: Printing:
Markku Tano Johanna Väyrynen Gummerus Printing Saarijärvi, Finland 2001

  • Disclaimer:
  • The papers in this book comprise the proceedings of the event mentioned on the

cover and title page. They reflect the authors' opinions and do not necessarily correspond to those of the European Forest Institute. The papers published in this volume have been peer-reviewed.

  • © European Forest Institute 2001
  • ISSN 1237-8801

ISBN 952-9844-82-4

Contents

Foreword ........................................................................................................... 5

Special Session: Economic Sustainabiliy of Small-Scale Forestry – Perspectives around the World –

John Herbohn Pentti Hyttinen Ikuo Ota

Prospects for Small-Scale Forestry in Australia ............................................... 9 Prospects for Small-Scale Forestry in Europe ................................................ 21 The Economic Situation of Small-Scale Forestry in Japan ............................ 29

Paul Mitchell-Banks  Small-Scale Forestry in Canada or

Mammals Living Amongst Governments and Dinosaurs ............................... 41

Special Session: Small-Scale Forestry Development in Central and Eastern European Countries

Ján Ilavský

Preparedness of Private Owners for the Management of Forests in the Slovak Republic ....................................................................... 53

László Jáger and Károly Mészáros

Current State and Conflicts of Small-Scale Forestry in Hungary ................................................................... 61

Stanislaw Zajac Pekka Alhojärvi

The Economic and Social Role of Small-Scale (Private) Forest Holdings in Poland .............................................................................. 71

International Financing Possibilities for Small-Scale Forestry Development Schemes ................................................. 81

Policy Measures and Forestry Extension to Encourage Small-Scale Forestry

Martin Lillandt

Forest Management Association – a Major Tool to Promote Economic Sustainability of Family Forestry .......... 93

Joakim Hermelin Olli Saastamoinen

Policy Measures and Forestry Extension, Education and Training to Encourage Small-Scale Forestry ................................................ 101

The Challenges of Small-Scale Forestry in Finland: Policy and Planning Perspectives ................................................................. 107

Sylvain Masse

Forest Tenant Farming as Tested in Canada by the Bas-Saint-Laurent Model Forest: Is it Socio-Economically Viable? ........... 119

Forest Management Planning – Tool for Sustainable Small-Scale Forestry –

Bill Wilson and Sen W a ng

Treading the Path to Sustainable Forestry: New Directions in Canada with Particular Reference to British Columbia 131

Laura Bouriaud

Sustainable Forest Management: with or without Privately Owned Forests? A Romanian Case Survey ................................... 143

Lennart Eriksson and  A Model Indicating Effects of Multi-purpose Use of

Anders Lindhagen

Forestry at the Stand Level ........................................................................... 161
Karl Stampfer et al.  Small-Scale Forestry Challenges in Austria ................................................. 177

Maria Iwarsson and  Interactive Knowledge System for Sverker Johansson

Family Enterprise Forestry ........................................................................... 185

Jouni Pykäläinen

Supporting Selection between Individual and Joint Ownership in Private Forestry: a Planning Example in a Death Estate .......................... 191

Monitoring the Socio-Economics of Small-Scale Forestry

Steve Harrison Walter Sekot

Research Approaches to Environmental-economic Issues in Small-scale Forestry ................................................................................ 201

Analysis of Profitability of Small-Scale Farm Forestry (SSFF) by Means of a Forest Accountancy Data Network – Austrian Experiences and Results ............................................................. 215

Jussi Leppänen Esa Uotila

Measuring the Direct Financial Assistance in Small-Scale Forestry Accounting ................................................................. 227

Monitoring Farm Forestry in Finland Using Wood Sales Profit Tax Information .................................................................................. 241

Social Dimension in Small-Scale Forestry

J ø rgen Amdam Johan Barstad

Future Challenges for Small-Scale Forestry – Examples from the West Coast of Norway ................................................... 253

Lowland Crofting and Urban Sprawl: New Aspects to Sustainable Forest Management in Local and Rural Development ............. 269

Programme .................................................................................................... 277 List of Participants ........................................................................................ 283 Most recent EFI Publications ....................................................................... 291

Foreword

The European Forest Institute, together with the Central Union of Agricultural Producers of Finland and the Faculty of Forestry of the University of Joensuu, organised an International Symposium on 'Economic sustainability of small-scale forestry' on 20-26 March 2001 in Joensuu, Finland. The symposium was also a Working Group meeting of IUFRO 3.08.00 Small-scale Forestry. There were 84 participants from 25 countries, and there were 26 high quality presentations on small-scale forestry problems, development prospects, policies, extension as well as forest management planning. We highly appreciate the assistance of those people at the European Forest Institute who helped us during the symposium. Their help was most valuable to the success of the event. We would like also to thank those who contributed in a valuable way to the field trip and post-conference tour of the Symposium: Mr Lasse Finér (North Karelia Regional Environment Centre, Joensuu), Mr Kyösti Hassinen (North Karelian Forestry Centre), Mr Jarkko Huovinen (Private forest owner, Tuupovaara), Mr Ari Karhapää (Forest Management Association, Ylä-Karjala), Mr Heikki Karhunen (Metsäliitto Ltd.), Mr Lasse Lóven (Finnish Forest Research Institute, Koli National Park), Mr Jari Parviainen (Finnish Forest Research Institute, Joensuu Research Centre), Mrs Marja Pitkänen (Private forest owner, Lieksa), Mr Reijo Svanborg (Tulikivi Ltd.), Mr and Mrs Tervo (Private forest owners, Nurmes), Mr Sakari Tikka (Centre of Forest Management Association, Joensuu) and Mr Ahti Ullgren (StoraEnso Ltd). We would also like to express our gratitude to scientific committee for selecting the voluntary papers to this proceedings, to keynote speakers on their excellent presentations, and to Mr Tim Green (European Forest Institute) for checking the language and helping prepare these Proceedings. Our last and very warmest thanks go to the following organisations and foundations for supporting the Symposium in many different ways: Academy of Finland, Finnair, Metsämiesten Säätiö –Foundation, Metsäliitto Ltd., City of Outokumpu and Tulikivi Ltd.

Joensuu, May 2001

  • Anssi Niskanen
  • Johanna Väyrynen

  • Symposium Chairman
  • Symposium Co-ordinator

Anssi Niskanen and Johanna Väyrynen (eds.) Economic Sustainability of Small-Scale Forestry EFI Proceedings No. 36, 2001

Special Session:
Economic Sustainabiliy of Small-Scale Forestry
– Perspectives around the World –
Prospects for Small-Scale Forestry in Australia

John Herbohn

Natural and Rural Systems Management
The University of Queensland

Abstract

This paper discusses the prospects for small-scale forestry in Australia. The nature of forestry in Australia is reviewed, including the historical development and current status of farm forestry. A number of significant impediments exist to further development of farm forestry, the most significant of which are associated with the lack of a farm forestry culture, concerns over harvest rights, availability of markets, the long wait for returns and satisfaction with current land uses. Recent research has made significant contributions to the development of forestry. As a result, there has been progress towards overcoming impediments, with substantial increases in the establishment of new plantations on private land in the past two to three years. The prospects of small-scale forestry in Australia are bright.

Keywords: Farm forestry, culture, impediments, conservation plantings

1. Background

Traditionally, forestry activities in Australia have been based on the exploitation of the extensive eucalypt forests that existed at the time of European settlement. The native forest resource is finite. It has been depleted since European settlement, and large tracts of forest land have been withdrawn from timber production as a result of bitter public policy debate between the forestry industry and conservation groups. At present some 17.5 million ha are currently in conservation reserves (Table 1). It is likely that over the next ten years further significant areas of native forest will be placed within conservation reserves. Control over the exploitation of the native timber resource has traditionally rested with the various state governments. However, the Commonwealth government has exerted increasing influence through a combination of economic incentives and the application of external powers provided by the constitution. Exploitation of Crown controlled native forests has been used as a means of achieving a number of social objectives such as regional development and

Anssi Niskanen and Johanna Väyrynen (eds.) Economic Sustainability of Small-Scale Forestry EFI Proceedings No. 36, 2001

10 Economic Sustainability of Small-Scale Forestry

Table 1. Area of native forest and plantation estate in Australia. Sources: State of Forests Report 1998; NPI (2000).

  • Forest type
  • Area (‘000 ha)

Native Forest1 Conservation reserves Multiple-use forests Leasehold land Other crown land Private forests

T o tal native forest

17 580 13 351 66 103 15 597 42 018

155 835

Plantations2 Softwood Hardwood
948 389

  • T o tal plantation
  • 1 337

1 As at December 1997 2 As at September 1999

the provision of low cost housing materials in addition to timber production (see O’Regan and Bhati 1991 for a comprehensive discussion of the pricing and allocation of logs in Australia). The ready supply logs at artificially low prices from public native forests resulted in a past lack of interest in private plantation forestry and a corresponding high level of public ownership of the plantation resource.

Figure 1. Total area under hardwood (HW) and softwood (SW) as at September 1999 by tree ownership. Source: NPI (2000). 'Joint' refers to plantations in which both private and public interests have some equity in the tree crop.

Prospects for Small-Scale Forestry in Australia 11

2. The Australian plantation estate

Domestic timber requirements are increasingly being drawn from the plantations. Softwood plantations currently comprise over 948 000 ha (over 70%) of the current plantation estate of 1 337 000 ha (see Table 1). The majority of the plantation estate in Australia is exotic softwood species and are owned almost exclusively by state governments and large industrial companies. A breakdown in the ownership and types of plantations is provided in Figure 1. There have been significant efforts in recent years to expand the plantation estate. Under the 2020 Vision (a joint policy statement agreement between the federal and state governments) it is planned to triple the existing plantation estate to 3.3 million ha. As part of this agreement, no native forest is to be cleared in order to establish plantations. This thus dictates that most of the expansion in the plantation estate will have to be on freehold cleared land. As such, the 2020 Vision has important implications for an increased role for the private sector, including farm foresters. This represents a major shift away from the current state domination of the forestry sector. The efforts to expand the plantation estate are reflected in the recent rate of plantation establishment. In 2000, it is estimated that almost 150 000 ha of new plantations would be established, of which almost 129 000 ha were to be hardwoods (NPI 2000, Figure 2). This represents an increase in the plantation estate of more than 10% in one year. The vast majority of new plantations were established on private land (Figure 3), which is a major shift away from the previous focus of establishing softwoods on public land by state forestry organisations. Most of the new plantation establishment occurred in Western Australia, Tasmania and Victoria (Figure 4).

Figure 2. Annual areas of new plantations established in Australia 1995. Source: National Plantation Inventory (2000).

12 Economic Sustainability of Small-Scale Forestry

Figure 3. New areas planted to hardwood and softwood in 1999 (up to September) by tree ownership. Source: NPI (2000).

Figure 4. New areas of plantations established in 1999 (up to September) by State/Territory. Source: NPI (2000).

3. Private forestry in Australia

Three common types of private forestry can be identified in Australia based on the motivations for participation, which range from predominantly environmental to a very strong production focus (Figure 5). Large-scale industrial plantings established primarily for timber production constitute by far the largest areas of plantation establishment. These plantations are managed primarily for wood production. Private large-scale plantations are typically owned by large forestry companies; or alternatively established under joint venture arrangements, either with forestry

Prospects for Small-Scale Forestry in Australia 13

Figure 5. An overview of the factors influencing the development of small-scale forestry initiatives in Australia. Source: Herbohn et al. (2000).

companies or government. There is also an increasing number of forestry investment companies establishing large-scale plantations. Conservation plantings or initiatives are at the other end of the production/environment spectrum. These planting tend to occur in environmentally sensitive areas such as along water courses. They are commonly established to ameliorate environmental damage such as stream bank erosion, and rising water tables leading to salinity caused by past poor land management practices. A significant proportion of the conservation planting in the past ten years in Australia has occurred under the umbrella of 'Landcare'. Landcare is an Australian community-wide program with strong government support at all levels and currently involves over 4000 autonomous groups (Marriott et al. 2000). Most groups are comprised of farmers and other landowners restoring land and increasing sustainability, and to a lesser extent groups based in towns and cities. Marriott et al. (2000) have observed that increasingly landcare members are focussing on whole catchments and regional themes, rather than confining themselves to their own properties. Many groups have amalgamated into loosely bound, but highly task-orientated and opportunistic regional networks. There are also a large number of other groups active at a regional level that promote or assist in tree planting for environmental purposes, which are not directly associated with Landcare. Due to the high establishment cost, limited financial support and a lack of direct economic returns (at least in the short term) conservation plantings tend to be small in area. While timber production is not excluded as a potential forest use, the environmental sensitivity of many of the areas established, or significant non-wood benefits generated from these areas suggest that it is unlikely that these will produce significant volumes of timber.

14 Economic Sustainability of Small-Scale Forestry

Small-scale forestry involving the establishment of woodlots as an integrated part of farm activities is growing in popularity, although accurate figures on the extent of planting are difficult to obtain. There are also some 42 million ha of native forest under private ownership (Table 1). Logging of these areas is often ad hoc and uncontrolled. The importance of these areas for conservation and as a source of sustainable timber production has recently been recognised and programs have been developed to improve the management of these forests.

4. The nature and extent of small-scale (farm) forestry in Australia

The nature of small-scale forestry differs from country to country (see for example Harrison et al. 2000) and it is difficult to define what is meant by small-scale forestry. Harrison and Herbohn (2000) suggest that large-scale forestry is typically owned or managed by government or large companies, and has a focus on large, even-aged, single species blocks, with plantations of varying ages. The aim of large-scale forestry is to provide regular volumes of timber over time in a cost-effective manner with minimal labour input to supply established long-term market contracts. In contrast, small-scale forestry typically consists of a single or smaller number of planting blocks, non-professional management and often a lack of silvicultural skills, with little planning for future marketing. The term 'farm forestry' is commonly used in Australia, although its meaning is poorly defined. The common interpretation is simply ‘forestry undertaken on farms’, which involves small-scale farm woodlots, but may also include windbreaks and shelterbelts, agroforestry and ‘break of slope’ plantings. These activities are consistent with the interpretation of smallscale forestry outlined by Harrison and Herbohn (2000). Figure 6 illustrates the overlap between land protection plantings, farm forestry plantations and industrial plantations. It is clear from this figure that farm-based forestry may also involve large-scale planting of monocultures under joint venture arrangements, and the leasing of farmland to industrial forestry companies for industrial plantations. These latter activities are more consistent with the definition of large-scale forestry suggested by Harrison and Herbohn (2000).

Plantation data from the National Plantation Inventory (NPI) discussed above is based almost exclusively on large-scale plantations of 1000 ha or greater, although it appears that some plantations of smaller size are included in this data set. As such, it is difficult to obtain accurate estimates of the current extent of small-scale forestry in Australia. This situation has recently improved however, with the establishment of National Farm Forestry Inventory (NFFI) project as a subset of the NPI database. Future reporting of Australia’s plantation estate will recognise and attempt to quantify farm forestry plantings, as a subset of the overall plantation figures. More detailed analysis of the farm forestry resource will also be reported under the NFFI (NPI 2000). The NFFI will focus on plantations whose owners hold total estates less than 1000 ha.

Preliminary NFFI data (Table 2) indicates that there are 76 250 ha of small grower plantations in Australia, most of which are found in the states of Victoria, New South Wales, Western Australia and Tasmania. Queensland, despite very favourable growing conditions and an abundance of suitable land, has few small-scale forestry plots. Table 2 does not contain data on the large number of individual landholders who have entered into farm forestry via joint venture agreements or leasing arrangements with commercial tree grower companies. This is significant because it is likely that up to 20% of Australia’s total plantation resource has been established via joint venture arrangements (Stephens 2001). Early analysis of data collected through the NFFI suggests that the size and nature of plantations can vary significantly between regions (Stephens 2001).

Prospects for Small-Scale Forestry in Australia 15

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    1 ISSN 2522-7211 (print) ISSN 2522-7211 (online) ISSN 2522-722X The future of food and agriculture Trends and challenges The future of food and agriculture Trends and challenges Food and Agriculture Organization of the United Nations Rome, 2017 Citation: FAO. 2017. The future of food and agriculture – Trends and challenges. Rome. The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. ISBN 978-92-5-109551-5 © FAO, 2017 FAO encourages the use, reproduction and dissemination of material in this information product. Except where otherwise indicated, material may be copied, downloaded and printed for private study, research and teaching purposes, or for use in non-commercial products or services, provided that appropriate acknowledgement of FAO as the source and copyright holder is given and that FAO’s endorsement of users’ views, products or services is not implied in any way. All requests for translation and adaptation rights, and for resale and other commercial use rights should be made via www.fao.org/contact-us/licence-request or addressed to [email protected].
  • Oil | Agriculture | Metals | Carbon & Power | Dry Freight Top News

    Oil | Agriculture | Metals | Carbon & Power | Dry Freight Top News

    Oil | Agriculture | Metals | Carbon & Power | Dry Freight Click on headers to go to that section Top News - Oil U.S. shale industry tempers output even as oil price "The quality of the acreage for privates is not as good as jumps the publics," Sheffield said, estimating private companies Even with oil prices surging toward $75 a barrel, U.S. account for 40% to 50% of U.S. rig count. shale producers are keeping their pledges to hold the line "We’re not seeing the upward pressure we would on spending and keep output flat, a departure from normally have predicted based on $73 oil," said Paul previous boom cycles. Mosvold, president and COO of driller Scandrill, which This year's run up in crude prices, and oil output curbs operates super-spec drilling rigs, equipment in high imposed by the OPEC+ producers group, historically demand since the oil market recovered. would have triggered a drilling boom. But investors are Mosvold reported a slight uptick in calls as oil prices have demanding financial returns over more volume and climbed, but said they are "not substantial." energy financiers are shifting to renewables, so shale firms are determined to stay disciplined. U.S. Supreme Court backs refineries in biofuel waiver "I'm still confident the producers will not respond" to the dispute run-up in prices, said Scott Sheffield, chief executive of The U.S. Supreme Court on Friday made it easier for Pioneer Natural Resources, the largest producer in the small oil refineries to win exemptions from a federal law Permian Basin shale field.
  • A Case Study in Buon Me Thuot City, Daklak, Vietnam

    A Case Study in Buon Me Thuot City, Daklak, Vietnam

    A Service of Leibniz-Informationszentrum econstor Wirtschaft Leibniz Information Centre Make Your Publications Visible. zbw for Economics Nguyen, Giang N. T.; Sarker, Tapan Article Sustainable coffee supply chain management: A case study in Buon Me Thuot City, Daklak, Vietnam International Journal of Corporate Social Responsibility (JCSR) Provided in Cooperation with: CBS International Business School, Cologne Suggested Citation: Nguyen, Giang N. T.; Sarker, Tapan (2018) : Sustainable coffee supply chain management: A case study in Buon Me Thuot City, Daklak, Vietnam, International Journal of Corporate Social Responsibility (JCSR), ISSN 2366-0074, Springer, Cham, Vol. 3, Iss. 1, pp. 1-17, http://dx.doi.org/10.1186/s40991-017-0024-x This Version is available at: http://hdl.handle.net/10419/217410 Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Documents in EconStor may be saved and copied for your Zwecken und zum Privatgebrauch gespeichert und kopiert werden. personal and scholarly purposes. Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle You are not to copy documents for public or commercial Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich purposes, to exhibit the documents publicly, to make them machen, vertreiben oder anderweitig nutzen. publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, If the documents have been made available under an Open gelten abweichend von diesen Nutzungsbedingungen die in der dort Content Licence (especially Creative Commons Licences), you genannten Lizenz gewährten Nutzungsrechte. may exercise further usage rights as specified in the indicated licence.
  • A Sustainable Model for Intensive Agriculture

    A Sustainable Model for Intensive Agriculture

    Grantham Centre briefing note: December 2015 A sustainable model for intensive agriculture It is widely accepted that global food production will have to increase dramatically over the coming decades to meet the needs of growing populations and developing economies, and that this will be increasingly difficult as we feel the effects of climate change. Intensive agriculture is currently unsustainable so a different path is needed. Sustainable intensification is heralded as the saviour of agriculture but what does it mean in practice? This paper sets out a model that combines the lessons of history with the benefits of modern biotechnology, to redesign sustainability in intensive agriculture. A sustainable model for intensive agriculture Grantham Centre briefing note: December 2015 Sustainable intensification is heralded as the saviour of agriculture, but what does it mean? At first glance, the terms “sustainable” and “intensification” appear to be incompatible: indeed as the FAO has noted1, whilst agriculture based on the intensive use of inputs has increased global food production over the last half- century, it has in the process, depleted the natural resources of many agro-ecosystems, jeopardising future productivity. The new paradigm of sustainable intensification of agriculture1,2 attempts to balance these competing imperatives, envisaging a system in which yields are increased from the same area of land while conserving resources and reducing negative impacts on the environment. But the concept of sustainable intensification has proved controversial3 with widely different views of what it could or should look like on the ground. Figure 1: Yield stagnation in cereals. Graph illustrating Achieving sustainability targets within agricultural the yield trajectory for several major cereal crops in the systems requires us to evaluate whether the agricultural UK.