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Significance of subsidies for private forestry

More than half the income generated by private forest and woodland management comes from subsidies.

Operating results for private forestry companies
  1999 2000 2001
       
  Euro per hectare forest/woodland
       
Revenue, total 178 192 164
Timber 51 45 42
Subsidies 90 111 88
of which Management Programme (or its predecessor) 56 67 71
other subsidies 34 44 16
Leases for hunting 11 12 11
Recreation 14 14 14
Other 12 10 9
       
Costs, total 225 251 220
Labour 38 38 36
Management and supervision 64 72 68
Work carried out by third parties 61 76 51
Tools, raw materials and auxiliary materials 20 21 18
Taxes/insurance 28 28 31
Other 15 16 16
       
Revenue : Costs (%) 79 76 75
Source: LEI-Informatienet.   LEI/NC/Oct02

Trends


Owners of forest and woodland are increasingly managing their property for the purpose of recreation or as a nature area. In doing so, they adapt their management methods to those objectives, open up the area concerned to the public, and conclude relevant management agreements. Private owners have now concluded such agreements for some 80% of the forest or woodland in private hands and more than half their income is in the form of subsidies.

The Management Programme run by the Ministry of Agriculture, Nature Management and Fisheries (previously the Functiebeloning scheme) is intended to ensure the long-term preservation and increase in the amount of land devoted to forests, woodland and nature areas and to promote private nature management. Three-quarters of the agreements that the Ministry of Agriculture, Nature Management and Fisheries has with private owners of forest and woodland involve the basic set of subsidies for "forest and woodland"; one fifth involve the extended set of subsidies for "forest and woodland with enhanced nature value". The provinces and municipalities also provide subsidies.

While the subsidies provided within the context of the Management Programme increased, in 2001 there was a fall in the work subsidised in accordance with the old Effectgerichte Maatregelen scheme. The associated labour costs, especially for work for third parties, were also much lower in 2001.

Changes in management have also led to a fall in the contribution of timber sales, from an average of 40% in the 1980s to 25% in 2001. Income from timber, which now amounts to 42 euro per hectare, has never been so low. Income is also generated by hunting leases and recreation.

Technical note


The data are from the "private forestry" section of the LEI information network (LEI-informatienet). This is a sample survey of private owners of forest and woodland whose property amounts to more than 5 hectares. The LEI (Agricultural Economics Research Institute) only incorporates costs and revenues if they are associated with forestry operations. Interest that has been paid or calculated on the capital invested in land and standing timber is not included. Information applying to the total population comes from the Bosschap, the forestry industry board, which registers all owners with a minimum of 5 hectares of forest or woodland.

References


  • Berger, E.P., J.M. van den Hoek en J. Luijt (2001). Bedrijfsuitkomsten in de Nederlandse particuliere bosbouw over 2000. Rapport 1.01.04 Landbouw Economisch Instituut. Den Haag.
  • Bosschap (2001). Jaarverslag 2000 '2000 op hoofdlijnen'. Bosschap. Zeist.

Relevant sections and indicators in the Environmental Data Compendium
This page was last changed on 13 May 2004  (version 01).