The real return on investment in wood production in non-industrial private forestry in Finland reached 14.9% in 2024, up four percentage points from the previous year. The increase was mainly driven by higher stumpage prices, which significantly boosted the return index, according to the Natural Resources Institute Finland (Luke).
Earnings from wood sales contributed +3.4 percentage points to returns, while wood production subsidies added +0.1 and the net increment of the growing stock +1.0. In contrast, total wood production costs reduced returns by 0.4 percentage points. The rise in stumpage prices alone increased the felling value of private forests used as capital value by +10.8 percentage points.
When excluding changes in stumpage prices, the return stood at 4.1% in 2024. Based on earnings from wood sales, production costs, and the value of the net increment of the growing stock, the return has fluctuated between 4.1 and 4.7 percentage points during the past ten years.
Across Finland, the net increment of the growing stock added 1% to returns in 2024, reflecting a higher value of growing stock compared with removals. However, in four regions, the increment had a negative effect, as removals exceeded the value of new growth.
The stumpage value of standing trees nationwide increased to Euro 80 billion in 2024, highlighting the scale of capital tied to private forestry assets.
