Finland forest management subsidies provide long-term societal benefits

A study by Pellervon taloustutkimus PTT indicates that subsidies for timber production provide significant long-term societal and economic benefits in Finland. The research suggests that these subsidies encourage forest owners to invest in timely forest management, which improves wood quality and strengthens the raw material base for the forest industry.

Furthermore, the subsidies help guide forest owners toward meeting climate and biodiversity goals within commercial forests. The state provides approximately 32 million euros annually in timber production subsidies. Of this amount, over 20 million euros is returned to the state through capital gains taxes, earned income taxes, and corporate taxes resulting from the increased economic activity.

In terms of employment, the subsidies are estimated to increase employment in the forest management sector by approximately 150 person-years. In the long term, the resulting increase in wood accumulation is expected to create an additional 394 person-years of employment in logging, transport, and the forest industry.