Swedish non-industrial private forest owners: a survey of self-employment and equipment investments

It has been estimated that Sweden’s non-industrial private forest (NIPF) owners undertake a total of 12 M hours of self-employed forest work per year. This paper reports an evaluation of self-employment in Swedish NIPF’s in terms of the people and equipment involved. NIPF owners’ self-employment was determined by a nationwide survey. Complete equipment sales statistics were compiled from interviews with manufacturers and importers. About 66% of NIPF owners are undertaking self-employed forestry work. Pre-commercial thinning was the activity undertaken most frequently by them, followed by planting, cutting and extraction. In comparison to other NIPF owners, self-employed NIPF owners tend to be younger, and are more likely to be male, single owners, resident on holdings, farmers and members of forest owner associations. Sales of new equipment suitable for self-employed individuals amounted to €67 M, or 83,000 items. Based on sales numbers and the profile of self-employed NIPF owners, no major changes in the amount and nature of self-employment are expected in the near future.     

Challenges of Organizing Private Forest Owners in Serbia

Small-scale forestry in Serbia is characterized by high fragmentation of properties, a large number of parcels and forest owners. Numerous activities for private forest owners in Serbia supported by the State, FAO and CEPF have resulted in an increased interest of owners in forming private forest owners’ associations (PFOA). The goal of this paper is to explore preconditions that are necessary for organizing private forest owners in Serbia into effective associations. In order to reach this goal, results of PRIFORT project were used. The over-arching research questions of this paper are: “What is the level of interest among forest owners in forming owners’ associations?”; “Why has forest owner interest in organizing developed so slowly?” and “What are the necessary preconditions for the development of private forest owners’ organizations in the country?” In order to answer these questions, quantitative survey with 42 close, open and Likert scale questions was conducted. Sample size was determined following Malhotra’s proportion method and, in total, 350 private forest owners, from nine municipalities were interviewed. Results of this paper show that majority of respondents are very little or not at all aware of existing legislation. Almost half of respondents consider that their interests are not represented well. Although about 50% of interviewed forest owners miss interest organization, only 0,3% are members of PFOA. More than 70% are ready to join association, if it would provide some economic advantages.     

Attitudes of small-scale forest owners to their properties in an ageing society: Findings of survey in Yamaguchi prefecture, Japan

Populations of most developed countries have been ageing, and the populations of Japanese mountain villages are estimated to have reached into a super-ageing society. In particular, because forestry is unprofitable and due to the economic recession in Japan, many small-scale forest owners face the problems of ageing. For policy-makers, it is important to assess the socioeconomic impacts of forest owners’ ageing in order to ensure the sustainable management of forests. A survey was conducted of forest owners in Yamaguchi Prefecture, which is famous for overall depopulation and ageing of the rural population. It was found that 83% of 687 plantation forest owners who responded in the survey were 60 years or older and 76% did not have forestry income over the past three years, but 81% had kept up ownership of their forest as the traditional family property. In terms of forest management intentions, the respondents were found to consist of four types, namely ‘family management’, ‘commissioned management’, ‘de-accession’ and ‘possession without proper management’. Differences in evaluations of hypothetical policies were found among the four types.     

Technical efficiency in timber production and effects of other income sources

In Norway, as in many other European countries, income from forestry has become marginal to owners’ household economies and most employment of forest-owner households is now undertaken off the property. Also, many forest owners have focused increasingly on other revenue-earning activities on their properties, such as providing recreational services. It is a challenge in all kinds of production to find the optimal way of converting inputs into outputs, i.e., to be technically efficient. Extent of financial dependency on income from forestry differs between part-time and full-time forest owners. Since the two groups have different livelihood strategies, it is plausible that full-time forest owners have more professional forest management practices. Data for a cross-section of 3,249 active (i.e., harvesting) forest owners were extracted from the 2004 Sample Survey of Agriculture and Forestry representing the year 2003. A stochastic production frontier analysis was applied to evaluate forest management efficiency impacts of important factors including property and owner characteristics, outfield-related and agricultural activities, off-property income and geographical location in central or remote areas. It was found that many forest owners are technically inefficient, and there exist opportunities for improved performance. Off-property income was found to have an estimated negative impact on technical efficiency, the inefficiency arising (weakly) with increasing share of household incomes from outfield activities, and properties in urban centred areas are less efficient than those in remote areas. One policy implication of the study is that a potentially substantial efficiency increase might be achieved from allowing small inefficient woodlots to merge into larger units of forestry production. Also, providing support for forest management plans may improve efficiency.     

The Values and Objectives of Private Forest Owners and Their Influence on Forestry Behaviour: The Implications for Entrepreneurship

There are many factors that determine what forestry activities forest owners carry out in their forest properties and that influence whether forest owners engage in entrepreneurial activity. This paper explores whether the values and objectives of forest owners influence their forestry behaviour and their engagement in entrepreneurial activity. This is done through a review of the literature on private forest owners’ typologies based on owners’ objectives. The review reveals that typologies typically divide forest owners into two main groups. The primary objective of the first group of owners is production (of wood and non-wood goods and services) usually, although not exclusively, so as to generate economic activity. The primary objective of the second group is consumption (of wood and non-wood goods and services). There is a tacit assumption in the studies reviewed that goals and objectives do influence forestry behaviour but few studies have actually assessed whether this is the case. The general finding is that forest owners whose objectives are timber production and who are business-oriented are more likely to manage and harvest their stands. No research focusing on the link between owners’ objective and wider entrepreneurial activity in forests was found.     

Cooperation in private forestry of post-soviet system: Forest owners’ cooperatives in Lithuania

The current state of cooperation in private forestry in Lithuania is examined, with a focus on the analysis of objectives, organisational structure and the ways forest owners’ cooperatives operate. A postal survey has been used as a main research instrument, the questionnaire consisting of a series of multiplechoice close-ended questions. This paper provides insights into the state forest enterprises and other private companies operating in the private forestry sector, and places forest owners’ cooperatives in a broader context of the private forestry sector. A typical forest owner’s cooperative in Lithuania has up to 10 members and about 20 clients to whom services are provided. The leaders of cooperatives indicate that the optimal number of clients using their services should not exceed 40. The main stated objectives of cooperatives are the provision of services to their members under the most attractive conditions, uniting members, and earning a profit for the members. These activities of cooperatives revolve around timber harvesting and trade. It is concluded that the process of cooperation of private forest owners in Lithuania is rather slow, although positive development can be observed.     

Property rights distribution and entrepreneurial rent-seeking in Romanian forestry: a perspective of private forest owners

In the framework of a broader political economics approach, this paper intends to enhance the understanding of the role of rent-seeking practices in the delineation of clear property rights in forestry. The research background is provided by the institutional changes occurring in the Romanian forestry sector as a consequence of the transition period and the accession to the European Union. The entrepreneurial approach to rent-seeking requires clarifications of the perspective under which private forest owners are analysed in order to position this study within ongoing discussions regarding the role of rent-seeking and its social impact. The conceptual framework employed distinguishes between rents resulting from entrepreneurship in conventional production functions and rents resulting from institutional entrepreneurship. A typology of entrepreneurial rent-seeking is developed for further understanding of the effects resulting from changes in the institutional setting of property rights. Using a qualitative approach, in the form of a case study, the research reveals perspectives of Romanian forest owners regarding barriers to production inherent in the current distribution of rights. Despite the extent of perceived profit-seeking barriers, owners’ entrepreneurial rent-seeking actions intended to change property rights in their favour appear limited and constrained. Hence, identified hypotheses regarding the institutional context dependency of entrepreneurial rent-seeking provide the basis for the future empirical identification of the role of institutional entrepreneurship within the forest production system.     

The nameless counterpart: a reconstruction of the experiences of private forestry extension officers with their clients

The changes to the forest ownership structure of small private forests in recent times have opened up an intensive field of research throughout Europe. Most of the studies completed to date adhere to the classic survey model and describe the behaviour and attitudes of forest owners. The research presented in this article analyses the changes to small private forests with the aid of data collected from focus groups comprised of forestry extension officers in Germany. Through the reconstruction of the experiences gleaned by the consultants, it was possible to describe the manner in which they characterise their clientele, and the changes they have observed, against the backdrop of changes occurring across rural areas. The consultants’ strategies for describing forest owners are presented. The orientation pattern presented by the extension officers is compared with the urban orientation of forest owners’ model developed by social scientists.     

Barriers and Opportunities for the Development of Small-scale Forest Enterprises in Europe

The article introduces the background and summarises main research findings of the research articles in this special issue. The focus is on the key issues relevant for forest-based entrepreneurship development in small-scale forestry in relation to both wood and non-wood forest products and services (NWFP&S). The article draws special attention to changing forest ownership, changing owners’ motives and values, and the evolving role of forest owners’ associations in Europe. The paper draws attention to the finding that many small-scale forest owners do not treat their forest as an income-generating asset. The ownership of the forests may be more important as symbolic capital than as a source of income. This is quite opposite to the traditional wood production model that for instance most of the Forest Owners Association’s still follow. In relation to NWFP&S, the taxonomy and indicators for NWFP&S are discussed and some conclusions from studies on forest recreation innovation and NWFP&S marketing are presented. The NWFP&S sector is traditionally product-oriented, which is strategically peculiar because the long distances from rural production areas to the customers would suggest highest orientation on marketing. Also surprising is the low level of segmentation in the sector.

A typology of small-scale private forest owners in Sweden

Abstract

Planning instruments have to be consistent with the underlying values of the forest owners to have an influence on their management activities. The aims of the present study were to identify different types of Swedish forest owners, to quantify their objectives and to validate a previous, qualitative study of the objectives of the small-scale forest owners. A survey was conducted and forest owners were classified by means of cluster analysis into five types: the “economist”, the “conservationist”, the “traditionalist”, the “multiobjective owner” and finally the “passive owner”. Significant factors characterizing these owners are presented and discussed. The results showed that clear subgroups of forest owners can be differentiated by their objectives and confirm recent studies suggesting that a sole emphasis on economic benefits is not desirable from the forest owners’ point of view. The findings should give a better understanding of the behaviour of the small-scale forest owners and provide a basis for further research, counselling and development of forest policy.     

Motives and Incentives for Joining Forest Owner Associations in Estonia

The development of private ownership is an important outcome of structural changes for the whole economy as well as for the forestry sector in Estonia. Cooperation between forest owners has been seen as one possibility for increasing the provision of various forest-related benefits and goods. Yet the extent of cooperation between forest owners is still not at a sufficient level, but the reasons have not been extensively studied. The authors’ aim was to find out the key determinants for forest owners to join a forest owner association and to explore how cooperation between owners could be increased. Survey data were used to divide the respondents into two groups according to whether they were members of forest owners associations or not. It was found that one key aspect is the size of the forest property—association members usually manage larger forest areas than non-members. In addition, the members tend to be more active and consistent in forest management activities than non-members. Also there is potential towards cooperation within non-members as their plans for the future are much more targeted. Although there are limits to voluntary cooperation, a huge potential for Estonian private forest owners could be realised by diversifying forest owner association activities and services to meet the different expectations of forest owners.     

Typology of non-industrial private forest owners in Tasmania

The heterogeneous nature of non-industrial private forest (NIPF) owners and the challenge this heterogeneity presents for effective policy and program design and delivery is widely recognised. Understanding the socio-economic and motivational differences between various types of landowners will better equip policymakers and forest extension professionals to design policies and programs that efficiently promote private sector timber production and forest conservation outcomes. The purpose of this study was to develop a survey-based empirical typology of Tasmanian NIPF owners based on their stated objectives of forest ownership and to relate owner type to a range of observable property and owner characteristics as well as to timber harvesting and forest management behaviour. Using principal component analysis (PCA) followed by means cluster analysis, four distinct groups are identified: income and investment owners, non-timber output owners, agriculturalists, and multi-objective owners. Members of these groups are found to differ significantly in terms of their personal and property characteristics, as well as their timber harvesting and management behaviour. For example, members of the non-timber output owners, who are motivated solely by objectives related to the production and protection of the non-timber outputs of forests, have similar proportions of timber on their property, but are less likely to have harvested timber from their property, than all other groups.     

What is new about new forest owners? A typology of private forest ownership in Austria

With structural changes in agriculture, new types of forest owners have become increasingly important. This article develops an empirically-based typology of forest owners in Austria. Based on a representative survey and by means of cluster analysis, seven types of forest owners are identified. These types form a sequence, ranging from forest owners with a strong agricultural background to forest owners with no agricultural background at all. The latter exhibit markedly different behaviour in various respects, e.g. in their interest in forest-related information. The increasing number of ‘new’ forest owners raises important questions for forest policy, especially how policy instruments can reach these owners and how extension services can address them.     

The Diverse Values and Motivations of Family Forest Owners in the United States: An Analysis of an Open-ended Question in the National Woodland Owner Survey

The number of family forest owners in the USA has increased continuously in recent decades, and the fate of much of US forests lies in the hands of this diverse and dynamic group of people. The National Woodland Owner Survey (NWOS) is a recurring and comprehensive national survey of US private forest owners, including family forest owners. The NWOS includes an open-ended question that explores forest owners’ motivations and values related to their woodland. The open-ended question format allows respondents to express their own frame of reference in their own words, rather than respond to predetermined, fixed-response categories of motivations. This paper describes the system of values and motivations that emerged from analysis of responses to the open-ended question, and compares these findings to a closed-ended, fixed-response question also included in the NWOS. Diverse and multidimensional motives were expressed by respondents. Eight broad categories and 37 sub-categories of motives and values emerged from analysis of the open-ended question. The fixed categories of the closed-ended question failed to capture many dimensions of forest owner motivations. A more detailed, qualitative understanding of forest owner motivations and values is needed to provide extension foresters and others who work with family forest owners important insights and help guide public policy related to private forestland. Open-ended survey questions can help provide such understanding.     

Skepticism of state action in forest certification and voluntary set-asides: a Swedish example with two environmental offsetting options

Non-industrial private forest owners in Sweden are encouraged to mitigate environmental damages from forestry on their properties under a principle of “freedom with responsibility,” although the level of mitigation is generally left to the owners’ discretion. One voluntary measure private forest owners are encouraged to take is setting aside a part of their productive forests for conservation. The purpose of this paper is to evaluate how non-industrial private forest owner beliefs concerning both their own and the Swedish state’s responsibility for nature protection differ among owners of certified forests, who automatically leave a set-aside, and those who have stayed out of forest certification but have decided to leave a set-aside. Results of a Heckman selection bivariate probit model show that the more a respondent believes the state is responsible for fulfilling environmental goals compared to private forest owners, the less likely it is that an owner of a non-certified forest will leave a set-aside for conservation. Beliefs about responsibility do not, however, differ among owners of certified and non-certified forests. From a policy perspective, Swedish government agencies may have difficulty steering specific measures taken by private forest owners who are interested in conservation but have stayed out of forest certification regimes.     

Carbon banking: Creating flexibility for forest owners

The focus of forest-based systems for sequestering carbon has largely been on creating permanent stores of carbon on defined areas of land with a single payment to the forest owner for the carbon. In terms of forest management, this focus leads to two outcomes, continuing production of timber if the forest area is sufficiently large to create an effective permanent carbon pool, or a cessation of harvesting if the forest area is too small. In addition, the payment system for carbon is generally based on matching a specific buyer and seller of carbon using a single payment to the forest owner. In combination, both of these factors create a carbon sequestration system that is too inflexible to attract anything but the largest land or forest owners. The paper presents an alternative system for carbon sequestration, carbon banking. Carbon banking treats sequestered carbon in the same way that a financial institution treats capital. In essence, forest owners ‘deposit’ carbon, in exchange for an annual payment, and those who need carbon offsets ‘borrow’ carbon by making an annual payment. The role of the carbon bank is to aggregate deposits of carbon and use these to meet various demands for carbon. There are a number of benefits of this system. It provides an opportunity for small forest owners with different types, age classes and management strategies to participate in carbon markets because payments are based on current carbon sequestered. It also allows participants in the carbon market to receive current value for carbon rather than what effectively represents the capitalised value of the future benefits of sequestering carbon, thus removing some uncertainty about locking into the wrong value for carbon.     

Explaining gender differences in private forest risk management

In many countries, lower levels of forest management activities have been observed among female forest owners compared to male owners. The present study examined potential explanations for gender differences in private forest risk management among forest owners in Sweden (n?=?1482) using a questionnaire. Results from this study confirmed a slightly lower level of forest risk management among female owners in proactively combating damage caused by climate change and animal browsing when compared to their male counterparts. Further gender differences were revealed on a structural level. For example, female owners displayed higher levels of education and were more often non-resident owners and urban owners, as compared to their male counterparts. In addition, female and male owners differed regarding social-psychological variables (e.g. forest values and threat and coping appraisals). However the greatest gender difference was found in involvement in forest planning and forestry work. Even though gender differences were evident on multiple levels, involvement in forest issues and forest planning were found to be most important for explaining gender differences in forest risk management. By disentangling predictors of gender differences in private forest risk management, this study may contribute to a more strategic gender approach to forest risk governance.     

The formation of small-scale forestry in countries with economies in transition: Observations from Lithuania

Lithuania has been undergoing a transition from one political culture (based on a centrally planned economy and a one-party system) to a radically different political culture (market economy and a democratic political system). After the declaration of independence in Lithuania, some new phenomena emerged in forestry: the privatisation of forest industry, the formation of a free timber market; increasing timber export levels; and new modes of ownership (private forests) and enterprise (private business logging companies). Private forest owners control approximately 680,000 ha of forest, 33% of the total forest area, projected to increase to 40–45% in the future. Small-scale private forestry is developing in Lithuania but there is a lack of information about the objectives and problems of private forest owners. This paper presents the main results of a survey carried out in 2004 by the Lithuanian Forest Research Institute. The most important forest ownership objectives are firewood production for home consumption, income generation from wood and non-wood product sales, and protection of nature and biodiversity. The main problems for private forest owners are that the forest properties are too small to achieve efficiency, owners lack money for silviculture activities and there is a heavy bureaucratic system for forest-related activity documentation. A cluster analysis of respondents’ ratings of importance for various forest management objectives reveals four groups of private forest owners. These groups are named according to their dominant management objective, as multi-objective owners, businessmen, consumers and ecologists.     

An Internet-Supported Planning Approach for Joint Ownership Forest Holdings

This article proposes a planning approach for private forest holdings that have more than one decision maker, e.g. a heirship group or a joint ownership between siblings. Through a case study example, we illustrate the phases of the proposed planning process and describe the communication and planning tools used in this process. The final aim is that in the future the forest planners’ toolkit would include this kind of approach for rather common situations where it is not easy to reach all the owners for synchronous face-to-face planning sessions. The process started with initial telephone interviews with the forest owners. From these interviews appropriate alternative forest plans were developed. Indicators and their values from the forest plans were inputted into the Mesta internet application. The forest owners were also given guidance on how to use the program. After this they were given time to independently use the program. Once the forest owners finished the use of the program, the results were collected and analyzed. Among the alternative forest plans, one was approved by all of the forest owners. The results of trial use involving a North-Karelian forest holding were encouraging. The main benefits of the approach according to the participants were learning that there are alternatives between which to choose, and reaching a common base level of understanding holding’s production possibilities for future decisions. After developing the process and technical tools further, the proposed model could serve joint ownerships over distance also in practice and in larger scale, and, as a result, foster owners’ engagement on their own forest.     

A conceptual model for understanding social practices in family forestry

This paper presents a conceptual model for better understanding of the various aspects or phenomena in family forestry. In this model, land is considered as the basic resource around which work and family life are organised. With the land follows specific property rights, giving the children, as a result of marriage, the right to inheritance. To generate revenue from the capital invested or to increase the value of the property, self-employment in practical work and decision-making is needed. Taxes are charged on the revenue of the property. Gender has an impact on inheritance position, division of work, and pattern of marriage. By connecting these institutions or concepts to each other with threads of social practices, a ‘cobweb model’ is developed which allows the structure of the social reality in family forestry to be visualised. The cobweb model has been applied in order to examine social practices in contemporary Swedish family forestry. Results based on a nationwide survey, reveal significant differences between different forest owner categories regarding the impact of gender, inheritance, marriage, property rights and self-employment. Furthermore, the analytical potential of the model is demonstrated.