3.- Activate private owners and cooperative forest management

The purpose of the act on the financing of sustainable forestry (Kemera-law) is to advance economically, ecologically and socially sustainable silviculture and use of the forests. A private forest owner may receive financial support from the State for forest management, forest improvement work and for nature management. Public funding for forestry is based on the Act on the Financing of Sustainable Forestry. The general objectives of forestry financing are stated in the Act: increase the growth of forests, maintain road networks for forestry purposes, secure the biodiversity of forests and promote the adaptation of forests to climate change.

Government subsidies are essential for safeguarding sustainable wood production, maintenance of forest biodiversity and improvement of the health of forests. The most common reason not to participate in the cost sharing program is the challenge in applying the support. The receipt of Kemera subsidies requires a implementation plan or an application for support and declaration of completion. The amount of Kemera support varies by type of work and by financial zone. Support is a taxable income and the funding is provided by the Finnish Forest Center. Forest management and improvement work which may be eligible for support include the tending of seedling stands, tending of young stands, ditch cleaning and supplementary ditching and construction of forest roads. Support may also be granted for remedial fertilisation.

Fragmented ownership structure is one of the main challenges of wood mobilization in Europe. Small-sized, dispersed forest property with difficult access to forests results in high costs for timber harvesting per hectare. The joint forests have been established in Finland since the end of the 1800. In the beginning of 2019 there were 460 common forests in Finland. The establishment of the common forest and the incorporation to existing joint forests have recently become more widespread. The total area of common forests is growing and it is already more than 700 000 ha. There are about 25 000 stakeholder in the common forests of our country, and they include over 5% of the surface area of our private forest. The smallest common forest is less than 20 hectares, while the largest, Kuusamo common forest has over 90 000 hectares of territory. The largest common forests are in North-Eastern Finland.

Changes in the common forest law have facilitated the integration of common forests and the creation of new joint forests. The common forest can provide a good and workable solution to many objectives of modern forest ownership. The common forest is a shared forest area for operating sustainable forestry in favour of the shareholder forest estates. The common forests are privately owned and have no public-law character or obligation. According to the Common Forestry Act, common forest must be used primarily for operating sustainable forestry. Sustainable forestry includes economic, social and ecological sustainability. The shareholders of common forest decide how to emphasise the utilization of different areas for the purposes of sustainable forestry.

There is a need for raising awareness of the positive possibilities of forest consolidation, including:

• Bigger forest units with easier access to forest property
• More cost-efficiency in harvesting, smaller unit costs in work and supplies
• Ease of foundation and joining$Ease of owning forest
• Better forest management with constant profits
• Easier management and administration
• Tax relief, lower income taxation
• Better recreational possibilities
• Functional and democratic administration
• Simple and safe investment

Demand for forestry-service products is increasing. This means the service providers must be easy to reach and be able to offer all services needed by forest owner. Providers have to take into account the diverse forest owners groups and their needs regarding the management and use of forests.
So far, the challenge have been scattered services for forest owners.
Now many companies and entrepreneurs have started to offer full forest management services from one place.

Full service from one company/association is attracting forest owners to take care of their forests.
The change of the business environment aims at better competitiveness and cost-efficiency in forest management.

Network of associations offering full service of forest management for forest owners: guidance, planning, call for bids, comparing offers, harvesting, forest regeneration, digital services and forest estate
brokerage.

The fragmented ownership structure is one of the main challenges of wood mobilization in Europe. In Finland, 4 million hectares of forest area are in need of forest arrangements. Small-sized, dispersed forest property with difficult access to forests results in high costs for timber harvesting per hectare. Forest management and harvesting are more difficult in small estates since boundaries and forest vehicle paths take up most of the estate.

 
Through the process of forest estate arrangements, it is possible to form bigger forest estates for cost efficiency.  Arrangements can be made by changing estates among forest owners to shape the size and form of the forest estate. The arrangements might need trading forest estates.  A new forest consolidation and forest conservation are possible also. Forest road network and drainage need to be adapted for the new situation. The process takes usually 3-6 years depending on the area.

Forest estate arrangements lead to bigger forest estates units, which contribute to better forest management and harvesting. Forest owners become more active in taking care of their forests and forestry companies are more interested in mobilizing wood from better harvesting conditions and easier access to forest.  
To gain the benefits, more discussion and communication are needed around forest estates. Forest owners need to be activated in taking action concerning the arrangements of their forests. 

Bigger forest estates with easier access to forest property.
Better conditions for harvesting.
Cost-efficiency in harvesting and forest regeneration.
Active management of forests.
Easier management of forests.
Increased forest growth.
Tax relief and financial support for forest owners.