The Role of Family Forestry in maintaining vibrant rural ... Organisation/OsloConference2015... ·...
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17.11.2015 1 Page 1 | Federation of Swedish Family Forest Owners The Role of Family Forestry in maintaining vibrant rural areas in Sweden and Europe Sven Erik Hammar President Federation of Swedish Family Forest Owners Page 2 | Federation of Swedish Family Forest Owners
Transcript of The Role of Family Forestry in maintaining vibrant rural ... Organisation/OsloConference2015... ·...
17.11.2015
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Page 1 | Federation of Swedish Family Forest Owners
The Role of Family Forestry in maintaining vibrant rural areas in
Sweden and Europe
Sven Erik HammarPresident
Federation of Swedish Family Forest Owners
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Three generations re-forestation
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1926 1936 1946 1956 1966 1976 1986 1996 2006
Trend for total standing volume since 1920
Tall, Scots pine Gran, Norway spruce
Lövträd, Broad-leaved Döda träd, Dead or windthrown trees
Mill m3
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Milj. m3
Forest growth and harvest (EU-27)
Source State of the European Forests UNECE/FAO
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1990 2000 2010
Bil. m3Mil. ha
Forest Area and Total Volume(EU-27)
Source State of the European Forests UNECE/FAO
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• Economic association
• Democracy: one member one vote
• Economic responsibility to equity capital limit
• Profit sharing via wood price bonus and interest on equity capital
Forest Owners Associations
Cooperative principles
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Finance• Member deliver wood - Payment
- 1,5-3% of value put into personal account ”Equity capital”
• For each year the Cooperative’s Yearly meeting decides1 Price bonus in relation to amount deliveredand cooperative’s profit
2 Interest rate on personal account (~ 4-6%)• Many members add capital to the personal account due to
trust in the cooperative and low bank interests
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The Family Forest Owners
• 330 000 individual forest owners
• 228 000 holdings• 33% live away from
their forest• 38% females• 31% >65 years old
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Business model Keep up the price,
Fair share of value to the producer
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Our own Processing industryand market access
Special tax system
Special generation shifts of farms Engagment of young and women
No Subsidies today
Extension service and management plansForestry services
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Forestry tax• The farm is considered a business entity
• When selling wood the money may be deposit as tax free ”Forest Account” for a time span of 10 years
• Alternatively, an Association Payment Plan
• The money at the Forest Account may be offset for costs at the farm such as planting, road construction, building etc
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• Up to 1/3 of the profit from forestry business can be taxed as an income of capital and not added as income on salary
• No property tax on forest land
• Expropriation compensation is 125% ofmarket value
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•Association
•District
•Members
The member structureMellanskog
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Activities of the forest owners associations• Pricing, marketing, timber trade• Forestry services• Industrial processing• Training, extension, information• Influencing forest and industrial policies
(together with LRF Skogsägarna)
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Bio energy
Pellet
Bio asch
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Thank you very much for your attention!
