Profitability of private forestry in Finland in 1986-1988 is determined according to the standards defined by the IUFRO Project Group (P. 3.04-00). Because book-keeping data on individual wood-lots are not available, the aggregate regional data have been used. Profitability varies greatly by region. In southern Finland the net income per hectare was FIM 524, while in Lapland only FIM 63 was received. In southern Finland the net income per cubic metre was FIM 113 in comparison with FIM 46 in Lapland. The results are largely explained by the varying growing potential of the forests; under favourable growing conditions in southern Finland well-stocked forests grow at a rate of 5.9 m3/ha/year, while in the harsh climate of Lapland poorly- stocked forests grow only a rate of 1.3 m3/ha/year. Net incomes are on average 69% of the gross income from forestry. Taking into account farm forest owners' other income sources, the forest income, including work income, corresponds to 15 to 20% of the total net earnings of an average farm forest owner. In the households of non-farm forest owners the role of forests as an income source is even less significant. Individual and annual variations are, however, rather large.
