Public funding for forestry

A private forest owner may receive financial support from the State for forest management and improvement work and for nature management. The objective of State support is to encourage forest owners to take measures with long-term impacts, whose benefits will be enjoyed after several decades.

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.

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 the prevention of Annosus root rot and remedial fertilisation. In 2014 private forest owners received over 1,65 million Euros of gross stumpage incomes. In tandem they used 226 million Euros for forest management and improvement work. 70 million Euros of the amount came from public funding.

Nature management in commercial forests is promoted through environmental support and forest nature management projects. Environmental support may be granted for additional costs and income losses due to preservation and management of habitats of special value. The works to be designed and implemented in nature management projects are defined in further detail in the legislation. Most of the forest nature management projects have special regional importance. Apart from habitats of special value, they may concern, landscape management, preventing damage to waters and restoration of ditched areas. 5.2 million Euros of environmental aid was granted in 2012.