Small  Private  Forestry  in  Finland   2016  Learning  Tour  Summary  Report   H.  Alexander,  Dr.  M.  Hobbs  P.Eng.  RPF,  P.  Burchill  RPF,  J.  Crooker,  J.  MacDougall  RPF         Sponsors   The  Forestry  Lab  (A  joint  project  of  NS  Woodlot  Owners  &  Operators  Association  [NSWOOA]  &  ACOA)   Port  Hawkesbury  Paper  (PHP)   Federation  of  Nova  Scotia  Woodland  Owners  (FNSWO)   NS  Landowners  &  Forest  Fibre  Producers  Association  (NSLFFPA)       T A B L E   O F   C O N T E N T S   F OREW ORD  ..........................................................................  i ii   E XECUTIVE   S UM M ARY    ..............................................................  v   1.0   I NTRODUCTION  . ................................................................  1   1 . 1   L E A R N I N G   T O U R   P A R T I C I P A N T S   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1   1 . 2   L E A R N I N G   T O U R   R O U T   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1   2.0   F ORESTRY  IN   F INLAND   —   T HE   B IG   P ICTURE    . ..............................  3   2 . 1   F O R E S T   C O V E R  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3   2 . 2   F O R E S T   O W N E R S H I P   S T R U C T U R E  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3   2 . 3   F O R E S T   M A N A G E M E N T   A P P R O A C H  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4   2 . 4   R O U N D W O O D   M A R K E T S  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6   2 . 5   N A T I O N A L   F O R E S T   E C O N O M Y  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8   2 . 6   N A T I O N A L   F O R E S T   P O L I C Y :   S T R A T E G Y   A N D   L A W  . . . . . . . . . . . . . . . . . . . .  9   3 . 0   P R I V A T E   F O R E S T   L A N D   M A N A G E M E N T   I N   F I N L A N D  . . . . . . . . . . . . . . . . . .  1 6   3 . 1   M T K  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1 6   3 . 2   I N T E N S I V E   S U S T A I N A B L E   F O R E S T   M A N A G E M E N T  . . . . . . . . . . . . . . . . . .  2 0   4.0   A   C OM PARISON  OF  THE   S M ALL   P RIVATE   F OREST   S ECTOR  IN                     F INLAND  AND   N OVA   S COTIA  . ..............................................   23   5.0   C ONCLUSION  AND   R ECOM M ENDATIONS  FOR   A CTION  IN                   N OVA   S COTIA  ................................................................   27   5 . 1   N E X T   S T E P S  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2 8   A PPENDICES  .......................................................................   30   A P P E N D I X   1   –   F I N L A N D   L E A R N I N G   T O U R   I T I N E R A R Y  . . . . . . . . . . . . . . . . . . .  3 0   A P P E N D I X   2   –   G E N E R A L   O V E R V I E W   O F   F I N L A N D ’ S   F O R E S T                                                   E C O L O G Y  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3 1   A P P E N D I X   3   –   F O R E S T R Y   E D U C A T I O N   I N   F I N L A N D  . . . . . . . . . . . . . . . . . . . . .  3 3   A P P E N D I X   4   –   T Y P I C A L   F O R E S T   M A N A G E M E N T   R E G I M E   I N   F I N L A N D ,                                                 I N V E S T M E N T S   A N D   C O S T   R E C O V E R Y    . . . . . . . . . . . . . . . . . . .   3 6   R EFERENCES  .......................................................................   38       i     L I S T   O F   T A B L E S     T ABLE   1.   L AND  BASE  AND  OWNERSHIP  COMPARISON  OF   F INLAND  AND   NS     4   T ABLE   2.   T YPICAL   F OREST   M ANAGEMENT   T REATMENT   R EGIME  IN   F INLAND     5   T ABLE   3.   T REATMENT  SCHEDULE  COST  AND  REVENUES  OVER  THE  FULL  TREATMENT  ROTATION     5   T ABLE   4.   T OTAL   H ARVEST  OF   L OGS ,   P ULPWOOD  AND   E NERGYWOOD  IN   F INLAND ,   2015     7   T ABLE   5.   F INLAND ’ S   F OREST   B ASED   M ARKETS  AND   V ALUE  TO  THE   C OUNTRY     9   T ABLE   6.   C OMPARING  THE   P OHJOIS –S AVO   R EGION  OF   F INLAND  TO  THE   S EVEN     W ESTERN   C OUNTIES  OF   N OVA   S COTIA     18     T ABLE   7.   A VERAGE   F OREST   O WNER   I N   P OHJOIS -­‐S AVO   R EGION  OF   F INLAND     21   T ABLE   8.   S TUMPAGE   E ARNINGS       22   T ABLE   9.   C OMPARING  THE   S MALL   P RIVATE   F OREST   S ECTORS  OF   F INLAND     AND   N OVA   S COTIA     23-­‐26   T ABLE   10.   P ROTECTED   L AND  IN   F INLAND     32   T ABLE   11.   F OREST   I NVESTMENT  COSTS ,  ADMINISTRATION  COSTS  AND  STUMPAGE     REVENUES ,   2015       36   T ABLE   12.   A VERAGE  STUMPAGE  RATES  BY  PRODUCT ,   2015       37   L I S T   O F   F I G U R E S   F IGURE   1.   C OMPARISON  OF   F OREST   O WNERSHIP  AND   W OOD   S UPPLY   4   F IGURE   2.   N ATIONAL  ANNUAL  GROWING  STOCK  VOLUME  CHANGE   (‘I NCREMENT ’)     VS .  HARVEST  VOLUME   (‘D RAIN ’),   1900-­‐2014.     6   F IGURE   3.   M AP  OF  BIOENERGY  FACILITIES  IN   F INLAND  IN   2016     11   F IGURE   4.   V OLUMES  OF   W OOD   F UELS   C ONSUMED  FOR   E NERGY   U SE  IN     F INLAND ,   2000-­‐2015     12   F IGURE   5.   T HE  ORGANIZATIONAL  SUPPORT  STRUCTURES  FOR  SMALL  PRIVATE  FOREST     OWNERS  IN   F INLAND       17   F IGURE   6.   T HE   O RGANIZATION  OF   MTK   (2011)     17   F IGURE   7.   F IVE  GEOGRAPHIC  REGIONS  COVERED  BY  THE   F INNISH   G OVERNMENT ’ S     R EGIONAL   F OREST   C ENTRES       19   F IGURE   8.   T WO  SERVICE  DELIVERY  AREAS  OF   F INNISH   G OVERNMENT ’ S   R EGIONAL     F OREST   C ENTRES       19   F IGURE   9.   O PERATING  PROFIT ,  PER  HECTARE ,   1991-­‐2015       22   F IGURE   10.   A VERAGE  STUMPAGE  RATES  PAID  IN   F INLAND  BY  PRODUCT ,   2015       37     ii     F O R E W O R D   There  has  been  wide  recognition  recently  that  rural  economies  throughout  the  province  of  Nova  Scotia   are  in  deep  decline  and  indeed  their  survival  is  uncertain.  In  February  2014,  the  report  from  the  Nova   Scotia  Commission  on  Building  Our  New  Economy  (ONE  Nova  Scotia),  entitled  Now  or  Never:  An  Urgent   Call  to  Action  for  Nova  Scotians,  stated,  “Alarms  continue  to  be  sounded;  almost  every  week  there  are   additional  voices  in  the  media  and  other  public  forums  expressing  serious  concerns  about  industry   failures,  slow  business  growth,  faltering  employment  levels,  the  loss  of  young  people  and  skilled  workers   to  other  provinces,  and  the  shrinking  viability  of  many  rural  communities.”1  The  ONE  Commission   consulted  with  a  lot  of  Nova  Scotians  in  community  meetings  and  concluded  that  the  situation  is  more   to  do  with  our  attitude  and  culture.  The  Commission  stated  there  are  problems  with  isolation,   competition  and  conflict  in  Nova  Scotia  and  the  way  to  overcome  them  is  through  dialogue,   collaboration,  and  co-­‐operation.  The  report  shows  that  there  is  a  need  for  fundamental  cultural  change   in  Nova  Scotia  to  produce  economic  change.   In  2015,  the  Nova  Scotia  Woodlot  Owners  and  Operators  Association  (NSWOOA)  wrote  about  similar   challenges  and  problems  of  decline  in  Nova  Scotia’s  forest  sector  because  of  “market  pressures,  eco-­‐ nomic  downturns,  mill  closures,  and  supply  constraints.”2  The  scope  of  challenges  is  significant  enough   that  stakeholders  and  communities  of  interest  must  collaborate  across  their  differences  to  find  workable   solutions.  Rather  than  continuing  to  expect  someone  else  to  solve  their  problems,  the  NSWOOA,  with   financial  support  from  ACOA  and  the  Nova  Scotia  Department  of  Natural  Resources,  initiated  the   Forestry  Lab,  modelled  on  similar  labs  in  other  countries  which  have  been  able  to  become  “stable   platforms  to  support  the  work  of  understanding  a  problem  and  experimenting  to  find  a  solution”.3  The   social  lab  methodology  is  uniquely  designed  to  offer  a  process  of  innovation  and  transformation.     Early  in  2016  the  NSWOOA  approved  funding  for  a  project  entitled  “Forestry  Learning  Tour  to  Finland,”   as  one  of  the  prototype  projects  of  the  Forestry  Lab.  Finland  was  chosen  for  the  tour  because  of  forest   sector  similarities  to  Nova  Scotia,  having  similar  land  ownership  demographics,  similar  forest  growing   conditions  and  most  importantly  because  Finland  is  considered  a  world  leader  in  the  successful   management  of  small  private  forests.  The  tour  took  place  in  the  fall  of  2016  when  a  group  of  five   advocates  for  Nova  Scotia  woodlot  owners  went  to  Finland  to  observe  the  organization  and   management  of  small  private  woodlots.  The  tour  group  talked  to  landowners,  teachers,  forestry   equipment  manufacturers,  foresters  and  government  representatives.  The  members  picked  up  on  the   intensity  of  the  atmosphere  and  after  a  few  days  started  to  call  it  the  Finns’  focus  on  forestry.  Their  gaze   is  fixed  ahead.  They  anticipate  demand  with  excellent  R&D  budgets  for  engineered  wood,  paperboard,   bioenergy  and  the  emerging  bioeconomy  markets.  They  assure  supply  by  making  intelligent  investments   in  woodlot  owner  support,  forest  inventory  and  contractor  training.  The  group  met  woodlot  owners   with  a  deep  connection  to  their  forest  who  also  have  business  acumen.  They  invest  in  silviculture  on   their  own  forest  land  in  order  to  supplement  their  future  income.  They  employ  others  in  their  forests.  It   is  their  culture.       iii     Like  the  ONE  Nova  Scotia  Commission,  this  report  from  the  Finland  tour  group  recognizes  the  need  for  a   cultural  shift.  It  is  imperative  to  create  a  sustainable  forest  culture  in  the  province  that  runs  as  deep  and   strong  as  the  forest  culture  in  Finland.  The  Acadian  forest  should  be  celebrated  and  our  forests  should   help  bring  our  people  sustenance.  The  prosperity  of  our  rural  areas  is  no  mystery:  it  is  tied  up  in  the   standing  resource  that  is  our  forest.  It  is  as  plain  as  the  trees  outside  your  window.   The  Finnish  focus  on  forestry  can  help  us  imagine  a  new  approach  to  socio-­‐economic  benefits  in  rural   Nova  Scotia.  This  is  the  Forestry  Learning  Tour  Group’s  vision  for  small  private  woodlots.  Creating  a   forest  and  wood  products  industry,  rooted  in  the  economic,  social  and  cultural  benefits  in  Nova  Scotia   tops  our  list  of  five  key  messages:   1.  Culture  and  attitude:  The  culture  of  forestry  needs  an  attitudinal  shift  from  negative  to  positive.  This   group  can  explain  and  show  that  forestry  can  be  a  safe  economic  driver  and  provides  paid  employment,   just  like  any  trade.  Forestry  in  Nova  Scotia  should  be  a  good  news  story.   2.  Strong  landowner  support  network:  Like  MTK,  the  Finnish  regional  and  national  forestry  entity,  there   needs  to  be  a  single,  unified,  provincial  lobby  for  woodlot  owners  in  Nova  Scotia.  With  multiple  local   offices  like  Finland’s  Forest  Management  Associations  (FMAs),  providing  forest  management  advice  and   related  services  to  woodlot  owners  throughout  the  province,  it  would  be  possible  to  link  with  farming   interests,  as  the  Finnish  lobby  has  done.   3.  Intensive  Sustainable  Acadian  Forest  Management:  It  is  necessary  to  update  our  Forest  Strategy  in   Nova  Scotia  with  regional-­‐specific  goals  for  annual  roundwood  harvests  and  to  intensify  sustainable   management  efforts  to  meet  these  goals.  There  is  an  abundant,  underutilized  standing  forest  resource   on  small  private  woodlots  in  Nova  Scotia.  Finland  manages  to  produce  over  three  times  as  much  annual   wood  supply  per  hectare  of  forest  land  than  is  done  in  Nova  Scotia.  The  tour  group  believes  there  is   significant  room  for  economic  growth  in  Nova  Scotia’s  forest  sector.   4.  Intensive  Market  Development:  With  a  fully  integrated  forest  product  value  chain  that  includes   conventional  forest  products  and  new  products  in  paper,  construction,  materials,  and  the  bioeconomy,   like  food  and  pharmaceuticals,  there  could  be  market  development.  Finding  low-­‐grade  markets,  while   leaving  enough  biomass  in  the  woods  would  be  a  first  goal.  Bioenergy  plants  for  district  heat  and  power   in  Finnish  towns  have  created  a  domestic  demand  for  low-­‐grade  wood  that  is  scalable  to  Nova  Scotia   towns.  We  need  regional  forest  products  market  development  teams  to  work  toward  this  goal.   5.  High-­‐quality  Forest  Inventory  and  Information  Transfer:  Gathering  data  for  a  reliable  forest   inventory,  and  implementing  IT  systems  to  make  the  data  publicly  available  and  the  analysis  user   friendly  would  be  a  critical  help  in  forest  management  planning,  motivating  woodlot  owners  and   attracting  investment.  It  is  necessary  to  see  proof  of  a  guaranteed  long-­‐term  sustainable  wood   supply  before  attracting  investors.           iv     All  of  this  will  take  a  long-­‐term  strategy  for  providing  stable  investment,  a  policy  framework  and  regular   consultation  with  the  stakeholders.  In  2007,  the  Finns  launched  a  plan  to  triple  the  investment  in  R&D  in   forest  products  by  2030,  and  this  long  view  makes  it  possible  to  improve  conditions  for  intensive   sustainable  forest  management  and  for  intensive  market  development.  When  municipal  and  provincial   governments  recognize  forestry,  they  will  recognize  that  a  sustainable  wood  supply,  improved   roundwood  markets,  increased  forest  products  manufacturing,  provide  economic  growth  and  job   creation.       v     E X E C U T I V E   S U M M A R Y     There  are  social  and  economic  barriers  to  small  private  forestry  in  the  Nova  Scotia,  which  the  people  of   Finland  seem  to  have  overcome.  From  September  29  to  October  5,  2016,  five  woodlot  representatives   from  Nova  Scotia  travelled  to  Finland  on  a  learning  tour  funded  by  the  Forest  Lab  and  by  ACOA  to  study   Finnish  woodlot  management,  marketing  and  governance.  The  purpose  of  the  trip  was  to  explore  the   question  as  to  why  the  Finns  are  so  successful  in  small  private  forestry  in  comparison  with  Nova   Scotians.  The  goal  was  to  bring  back  best  practices,  especially  with  regard  to  using  or  reusing  pre-­‐ existing  systems  and  organizations.     This  report  is  a  summary  of  the  findings  from  the  Forestry  Learning  Tour.  The  evidence  of  a  small,  self-­‐ sustaining  private  forestry  sector  in  Finland  made  the  trip  very  worthwhile  because  the  authors  were   able  to  see  best  practices  that  could  be  applied  in  Nova  Scotia.  The  tour  group  noted  that  the  Finnish   government  has  played  a  role  in  achieving  conditions  where  woodlot  owners  can  organize,  carry  out   silviculture  treatments  and  access  domestic  and  international  markets  for  their  wood  products,  as  well   as  provide  training  and  education.  In  this  way  they  have  assured  both  supply  and  demand  for  woodlot   owners  today.     In  order  to  create  a  fully  integrated  framework  for  woodlot  owners  in  Nova  Scotia,  and  to  better   manage  the  resource,  the  authors  have  identified  five  key  areas:   1)     Culture  and  attitude:  Nova  Scotian  culture  around  forestry  needs  to  change,  starting  with   government  engagement  and  encouragement,  at  the  municipal  and  provincial  levels.   2)     Strong  landowner  support  system:  there  should  be  a  way  to  coordinate  existing  supports  for   woodlot  owners,  give  them  access  to  services  and  formal  channels  of  communication  with   government,  and  a  forum  for  sharing  best  practices.     3)     Intensive  sustainable  forest  management  regime:  early  and  periodic  silviculture  treatments   have  to  be  built  into  an  expanded  silviculture  program  designed  to  suit  and  sustain  the  health   and  structure  of  the  Acadian  forest.   4)     Intensive  market  development:  there  is  a  need  for  a  fully  integrated  forest  product  value  chain   focused  especially  on  markets  for  low-­‐grade  wood.  A  bioenergy  strategy  for  the  province  is   needed  immediately.  A  bioeconomy  strategy  is  also  needed  for  the  province  to  keep  pace  with   engineered  wood  products  innovation  and  chemical  derivatives  over  the  longer  term.       5)     Quality  forest  inventory  and  information  sharing:  with  a  reliable  forest  inventory  and  good   infrastructure  (IT,  transportation),  the  province  can  attract  investors.  This  will  happen  when   there  is  a  guaranteed  long-­‐term  sustainable  wood  supply.         vi     The  authors  believe  that  the  future  of  the  forest  sector  depends  on  a  renewed  framework,  and  that   acting  on  these  five  main  points  will  begin  the  process  of  invigorating  the  industry.  The  outcome  will  add   to  the  overall  health  of  the  rural  economy,  providing  paid  labour,  and,  in  addition,  giving  better   management  to  the  resource.   vii     1.0   I N T R O D U C T I O N   Finland  is  one  of  the  dominant  wood-­‐producing  nations  in  Europe.  It  has  been  intensively  studied  over   time  because  it  is  a  world-­‐renowned  model  of  intensive  forest  management,  in  particular  for  the  success   of  small  private  forests.  These  woodlots  currently  generate  80  percent  of  the  supply  in  a  massive  forest   industry  that  generates  significant  economic  benefits  for  the  country,  so  much  so  that  the  Finnish   people  consider  forests  to  be  their  “Green  Gold”.      The  Finns’  success  in  managing  their  small  woodlots  interested  a  group  of  Nova  Scotia  woodlot  owner   advocates.  From  September  29  to  October  5,  2016,  five  representatives  of  the  industry  participated  in  a   learning  tour  of  woodlot  management,  marketing  and  governance  in  Finland,  gaining  insight  into  the   policies  and  practices  of  their  Finnish  counterparts.  The  delegation  was  sponsored  by  the  Forest  Lab,  a   collaborative  research  project,  with  the  goal  of  understanding  why  this  is  a  vibrant  sector  in  Finland   compared  to  Nova  Scotia,  despite  a  similar  forest  ownership  structure.  With  the  majority  of  forest  land   in  small  private  holdings  in  both  places,  it  was  felt  that  lessons  could  be  learned  from  the  Finnish  model   that  would  benefit  the  economy  of  rural  Nova  Scotia.          This  report  is  a  summary  of  the  findings  from  the  learning  tour  showing  that  the  Finns  have  best   practices  that  can  be  adopted  in  Nova  Scotia  in  order  to  build  capacity.  This  is  not  a  proposal  to  replicate   the  forest  management  treatment  regime  in  Finland  because  it  is  not  wholly  applicable  to  our  more   complex  forest.  Reviewing  practices,  building  momentum,  and  effecting  positive  social  change  in  rural   Nova  Scotia  will  help  set  a  path  towards  a  gradual  improvement  in  the  management  of  small  private   forests.     1.1   L EARNING   T OUR   P ARTICIPANTS   The  team  of  delegates  was  made  up  of  staff  and  board  members  from  three  provincial  woodlot  owner   organizations  (NSWOOA,  FNSWOO  and  NSLFFPA)  and  two  new  regional  woodlot  service  organizations   (Service  Areas)  being  piloted  in  Cape  Breton  and  western  Nova  Scotia.  They  brought  a  wide  range  of   experience  in  private  woodlot  ownership,  entrepreneurship,  consulting  and  extension  service  delivery  to   landowners,  as  well  as  knowledge  in  wood  procurement  and  sales,  contracting  and  sawmilling.   The  tour  was  partly  hosted  and  organized  by  staff  of  the  Finnish  organization  MTK,  the  Central  Union  of   Agricultural  Producers  and  Forest  Owners.  It  is  a  service  organization  for  forest  owners  and  farmers  and   works  regionally  and  nationally  with  local  Forest  Management  Associations  (FMAs)  by  representing  and   lobbying  for  the  interests  of  hundreds  of  thousands  of  Finnish  woodlot  owners  in  national  sessions  of   government  and  at  the  European  Union  (EU)  in  Brussels.  It  is  significant  that  MTK  is  responsible  for   furthering  the  interests  of  both  farmers  and  forest  owners.   1.2   L EARNING   T OUR   R OUTE   The  tour  group  travelled  north  from  the  MTK  office  in  Helsinki,  the  nation’s  capital,  to  the  city  of  Kuopio,   in  a  central  forest  region  called  Pohjois-­‐  Savo  (also  called  Northern  Savonia  or  North  Savo).  Pohjois-­‐  Savo   was  selected  as  a  case-­‐study  region  because  it  shares  some  forest  and  demographic  traits  with  western   Nova  Scotia.  Within  this  region  there  are  4  FMAs,  one  of  which  is  located  in  the  Kuopio  area  called   Metsanhoitoyhydistys.  Staff  from  this  FMA  and  the  Pohjois-­‐Savo  region  hosted  the  tour  group  for  two   1     days  in  the  Kuopio  area.  They  provided  good  insight  into  the  direct  services  provided  to  small  private   woodlot  owners  at  the  local  level  by  the  FMA,  and  organized  a  visit  with  a  woodlot  owner’s  family.  The   family  gave  a  presentation  in  their  living  room  on  the  importance  of  small  private  woodlot  management   planning,  woodlot  economics  and  operational  logistics.  The  delegation  was  impressed  with  the  family’s   knowledge  of  the  inventory  and  harvest  decisions  on  their  woodlot.     The  tour  consisted  of  these  additional  host  sites  (for  dates  and  durations  refer  to  the  itinerary  in   Appendix  1):   • • • • Suonenjoki  Forest  Seedling  Nursery  and  Research  Station.  The  National  Research  Institute,  Luke   (formerly  Metla)  provided  a  tour  of  their  tree  seedling  research  facility  and  staff  gave  a  series  of   presentations  on  current  research  topics  at  Luke.   Observation  of  an  outdoor  forestry  machine-­‐operator  training  class  at  one  of  several  vocational   colleges  in  Finland  that  provide  state-­‐funded  training  programs,  one  to  three  years  in  length.   Kuopion  Energy  Oy.  A  tour  of  a  large  420  MW  bioenergy  plant  that  supplies  district  heating  and   electricity  to  Kuopio.  Managers  gave  presentations  on  current  trends  in  Finnish  bioenergy   production,  consumption,  research  and  market  challenges.   Tour  of  the  Ponsse  plant.  Staff  of  Ponsse,  including  one  of  the  four  brothers  who  inherited  the   company  from  their  father,  provided  a  plant  tour  and  presentations  describing  their  evolution   from  a  small-­‐town  forestry  equipment  manufacturer  to  cutting-­‐edge  developers  of  nimble   equipment  and  decision  support  systems  software.  Their  machines  and  software,  and  especially   their  particular  quality  of  family-­‐oriented  customer  service,  have  helped  them  become  a  world   leader  in  cut-­‐to-­‐length  harvester  and  forwarder  manufacturing,  sales  and  service.  Ponsse  also   provided  a  field  visit  to  a  thinning  operation  to  see  their  latest  model,  the  Ponsse  Scorpion   harvester,  at  work.   The  itinerary  was  varied  and  gave  a  cross-­‐section  of  forest  activity  in  Finland.  Importantly,  it  gave  tour   members  a  basic  sense  of  national  vs.  regional  and  local-­‐level,  small,  private-­‐forest  policy  and   organization.  Upon  return  to  Nova  Scotia,  tour  members  did  additional  research  to  complete   descriptions  of  forestry  in  Finland  as  a  nation  (See  Section  2.0  Forestry  in  Finland  –  The  Big  Picture),  and,   small  private  forestry  in  the  rural  regions  that  make  up  the  Finnish  countryside  (See  Section  3.0  –  Private   Forest  Land  Management  in  Finland).         2     2.0   F O R E S T R Y   I N   F I N L A N D   —   T H E   B I G   P I C T U R E   One  outcome  of  this  tour  was  that  the  delegation  gained  insight  into  how  Finnish  forestry  functions  at   the  national  level.  In  the  following  sections  the  authors  share  their  findings  about  forest  cover,   ownership  structure,  forest  management  approach,  the  country’s  current  growing  stock  and  wood   supply,  forest  inventory  and  information  management,  forest  economy,  forest  policy,  bioenergy   strategy,  ecologic  concerns,  forest  certification,  carbon  management  and  forestry  machine  operator   training.   2.1   F OREST   C OVER   Finland  is  a  land  dominated  by  forests  that  fall  within  the  Boreal  Coniferous  Forest  Zone  of  Northern   Europe.  The  commercial  forestry  focus  is  on  the  three  dominant  species:  Norway  spruce  (Picea  abies),   Scots  Pine  (Pinus  sylvestris)  and  Silver  Birch  (Betula  spp.).       Finland  is  a  northern  country,  but  the  area  south  of  the  Arctic  Circle  benefits  from  an  enhanced  growing   climate  due  to  the  warm  air  of  the  Gulf  Stream  and  relatively  low  wind  exposure.  The  risk  of  blowdown   from  thinning  appears  to  be  lower  in  Finland  than  in  Nova  Scotia.  Stem  form  was  also  noticeably  better   than  Nova  Scotia,  with  very  straight  trees.  This  may  have  something  to  do  with  the  superior  genetics  of   the  seedlings  used  to  reforest  after  harvest  across  Finland.  In  Nova  Scotia,  exposure  to  wind  from  the   open  ocean  results  in  problems  with  tree  blowdown  and  deformity.  An  overview  of  Finnish  forest   dynamics  and  ecology  is  provided  in  Appendix  2.       Finland’s  topography  is  fairly  level  with  low  hills  and  numerous  lakes.  The  topography  in  Nova  Scotia  is   more  challenging  for  forestry  operations,  particularly  in  central  and  eastern  counties  where  stream   crossings  and  hilly  slopes  limit  access.     2.2   F OREST   O W NERSHIP   S TRUCTURE   Forest  ownership  demographics  in  Finland  are  very  similar  to  Nova  Scotia,  with  private  small-­‐forest   owners  controlling  60  percent  of  the  forest  land.  There  are  346,400  private  woodlots  of  at  least  2   hectares  in  Finland.  There  are  632,000  woodlot  owners  (if  each  owner  of  a  shared  holding  over  2   hectares  is  counted).  This  means  that  about  13  percent  of  the  total  population  of  5  million  people  in   Finland,  or,  1  in  every  8  people,  is  a  woodlot  owner.  This  is  a  large  proportion  of  the  population  and  it   appears  that  the  majority  of  landowners  are  active.  The  remaining  forest  area  in  Finland  is  predomin-­‐ ately  owned  either  by  the  government  or  by  large  industrial  interests.  The  state  owns  26  percent  of   Finnish  forests,  including  13  percent  which  are  protected  lands.  State  lands  are  managed  by  an  agency   called  Metsähallitus.   The  mandate  of  the  learning  tour  was  to  study  small  private  forest  land  management  in  Finland,  with   very  little  attention  paid  to  management  of  industrial  or  state  lands.  Table  1  and  Figure  1  compare  the   breakdown  in  forest  land  ownership  between  Finland  and  Nova  Scotia  and  relative  wood  supply   generated  by  private  forests.       3     Table  1.  Land  base  and  ownership  comparison  of  Finland  and  NS  (Source:  M etsähallitus   and  Nova  Scotia  Department  of  Natural  Resources)   Region   Total  Land   base  (ha)   Forested  Land   base  (ha)   22,820,000   Protected  or   Private  Land   Strict  Reserve*   Ownership     Land   13%  of  total   60%  of  total   Wood  Supply   from  Private     80%   Finland   30,000,000   Nova  Scotia   5,258,400   4,240,000   14%  of  total   63%   53%  of  total   *  In  Nova  Scotia,  most  of  this  is  Crown  Land,  which  in  Finland  would  be  translated  as  state  land.     Nova  ScoUa  %  Forest  Ownership   (2016)   Finland  %  Ownership  (2016)   Protected   Lands   13%   Other   (State,    Industry)   27%   Protected   Lands   14%   Small   Private     60%   Other   (Crown,    Industry)   33%   Small   Private     53%     Finland  %  Wood  Supply  (2014)   Other   (State,     Industry)   20%   Nova  ScoUa  %  Wood  Supply   (2014)   Other   (Crown,   Industry)   37%   Small   Private     80%           Figure  1.  Comparison  of  Forest  ownership  and  wood  supply   Small   Private     63%     2.3   F OREST   M ANAGEMENT   A PPROACH   Finland  is  historically  a  forestry  nation,  with  strong  forest  legislation  dating  from  1886  and  an  intrinsic   forestry  culture  that  runs  deep  in  its  people.  There  were  concerns  in  the  1960s  and  1970s  that  harvest   levels  were  exceeding  annual  forest  growth.  To  correct  this,  major  investments  were  made  in  silviculture   by  government  through  the  following  twenty  years.  This  included  site  preparation  and  seedling   management,  thinning  at  intervals  to  maximize  yields  over  the  full  rotation  and  ditching  5  million   hectares  of  poorly  drained  forest  land  to  improve  tree  growth.  The  damage  of  ditching  to  wetland   ecology  has  been  recognized  and  has  recently  been  curtailed  by  the  Finnish  government.     4     Planting  a nd  thinning  remain  the  m ainstays  o f  F innish  forest  m anagement.  T he  m ajority  o f  forests   in  F inland  today  a re  o f  p lantation  o rigin  a nd  a re  thinned  s everal  times  o ver  the  a verage  s tand   rotation  o f  7 0-­‐100  y ears.  F or  e xample,  7 3  p ercent  o f  the  6 12,000  h ectares  o f  forest  land  h arvested   in  F inland  in  2 015  w ere  m erchantable  thinnings.   T able  2  d escribes  the  typical  forest  m anagement   treatment  regime  in  F inland  c urrently  a nd  T able  3  p rovides  the  e xpenses/revenues  a ssociated  w ith   each  treatment.                                           Table  2.  Typical  Forest  M anagement  Treatment  Regime  in  Finland   Table  3.  Treatment  schedule  cost  and  revenues  over  the  full  treatm ent  rotation   1. Age  0.  Regeneration  —  Following  harvest,  all  sites  are  regenerated  either  through  planting   (~65%)  or  direct  seeding  (~35%).  All  cutovers  are  site  prepared  with  machines  through   mounding  (rich  sites)  or  scarification  (poor  sites).     2. Age  ~5.  Early  competition  control  —  All  stands  are  manually  or  mechanically  weeded  of  early   competition  to  favour  planted  or  seeded  regeneration.     3. Age  ~10-­‐15.  Second  stage  competition  control  —  Depending  on  the  site,  a  second  early   weeding  is  scheduled  to  reduce  competition  and  allow  ‘free  to  grow’  selected  trees.   4. Age  ~25-­‐30.  First  merchantable  thinning  —  First  thinning  in  which  the  landowner  receives   some  stumpage  revenues  and  begins  to  see  a  return  on  their  investment;  primarily  pulp  and  /   or  bio-­‐energy  wood  (lowest  grade)  are  removed.   5. Age  ~45  –  65.  Second  merchantable  thinning  —  As  with  the  earlier  thinning,  the  poorest   quality  trees  are  cut  at  roughly  one-­‐third  removal,  leaving  the  best  quality  trees  growing  for   the  final  cut.  While  some  logs  are  produced,  most  of  the  product  is  pulp  and  bio-­‐energy   wood.  On  the  best  sites  there  may  be  a  third  thinning  but  this  does  not  appear  to  be  the   norm.   6. Age  ~80-­‐100.  Final  harvest  –  Clearcut.  Most  of  the  wood  harvested  is  logs  which  are   optimized  to  the  highest  end  value.  This  stage  offers  the  full  economic  return  to  the   landowner  with  funds  set  aside  for  the  forest  rotation  to  begin  anew  by  planting  or  seeding.     (Source:  M etsähallitus)         5       When  travelling  the  roads  o f  F inland,  it  is  d ifficult  to  s ee  a ny  forest  s tands  o f  a ny  a ge  that  h ave  n ot   been  thinned.  Intensive  forest  m anagement  o f  forests  for  c ommercial  u se  is  c ommonplace.  In   Nova  S cotia,  the  o pposite  is  true,  w here  intensive  forestry  is  the  e xception  rather  than  the  rule  a nd   seeing  thinned  s tands  a long  the  roads  is  a ctually  rare.   2 . 3 . 1   C U R R E N T   G R O W I N G   S T O C K   A N D   W O O D   S U P P L Y   Following  more  than  40  years  of  intensive  silviculture  shepherded  by  the  government  of  Finland,  the   country  is  now  benefitting  from  a  significant  surplus  in  forest  growing  stock.  The  total  standing  timber  in   Finland  is  2.3  billion  cubic  metres.  The  annual  growth  is  104.5  million  cubic  metres  with  a  current  surplus   growth  over  annual  harvest  levels  of  23  million  cubic  metres  per  year.  Figure  2  shows  how  the  forest   growing  stock  increased  in  Finland  from  1965  to  present,  while  harvest  levels  also  increased  during  the   same  period.  These  increasing  harvest  levels  coincide  with  a  significant  expansion  in  Finland’s  forest   sector  since  1965.  The  current  excess  of  annual  forest  growth  over  annual  harvest  gives  Finland  a  huge   advantage  in  attracting  new  investment  in  their  forest  sector.  The  very  sophisticated  forest  inventory   information  available  in  Finland  enables  this  enviable  situation.   120   100   80   60   40   20   0   1900   1905   1910   1915   1920   1925   1930   1935   1940   1945   1950   1955   1960   1965   1970   1975   1980   1985   1990   1995   2000   2005   2010   million  m3   Annual  Growing  Stock  Increment  vs.  Harvest   Volume  Removed    (million  m3),  1900-­‐2014   Year   Drain   Increment       Figure  2.  National  annual  growing  stock  volum e  change  (‘Increment’)  vs.  harvest   volum e  (‘Drain’),  1900-­‐2014.  (Source:  National  Resources  Institute  Finland)   2.4   R OUNDW OOD   M ARKETS     Roundwood  markets  in  Finland  are  expansive  and  well  developed  for  any  of  the  three  major  commercial   species,  regardless  of  tree  size.  All  wood  fibre  harvested  in  Finland  is  sorted  for  the  highest  end  value   and  there  is  a  constant  effort  to  improve  efficiencies  along  the  full  value  chain.  The  effort  pays  off  in  the   collective  prosperity  for  woodlot  owners  (stumpage),  harvesting  contractors,  truckers,  industry,  and   governments  (taxes).  Currently,  woodlot  owners  and  forestry  operators  in  Nova  Scotia  are  having   difficulty  finding  and  accessing  roundwood  markets  and  can  only  dream  about  the  sheer  magnitude  of   the  roundwood  markets  for  all  grades  of  wood  now  existing  in  Finland.  Table  4  shows  the  breakdown  of   the  roundwood  harvest  in  Finland  for  2105,  with  64  percent  of  the  harvest  being  pulpwood  and   energywood.   6     Table  4.  Total  Harvest  of  Logs,  Pulpwood  and  Energywood  in  Finland,  2015  (Source  :   Luke  Natura  Resources  Institute,  Finland)     Primary  Product Logs Pulpwood Energywood Total  Harvest Harvest  (m3)                    24,873,000                    33,976,000                        9,186,000              68,035,000         In  Finland:   1.  Highest  quality  sawlogs  of  all  three  major  species  go  to  veneer  mills.   2.  Tree  sections  (bolts)  greater  than  15  cm  top  diameter,  of  all  three  major  species,  go  to  sawmills.   3.  Bolts  with  7-­‐15  cm  tops  of  all  three  major  species  go  to  pulp,  paper  or  paperboard  mills.   4.  Remaining  small  trees  and  tops,  branches  and  occasionally  stumps,  go  for  biomass  and  are   chipped  as  fuel,  mostly  for  district  bioenergy  plants.   The  highest  value  to  Finnish  forest  owners  is  the  log  market  for  the  wood  products  industry,  accounting   for  43  percent  of  the  harvest  but  three  times  the  stumpage  price  of  pulp.     2 . 4 . 1   N A T I O N A L   F O R E S T   I N V E N T O R Y   A N D   I N F O R M A T I O N   Finland  has  a  comprehensive  and  continually  updated  forest  inventory.  It  has  the  highest  proportion  of   private  land  inventoried  in  the  world  (10  Million  ha).  The  inventory  goes  back  over  150  years.  Early   attempts  at  resource  inventory  began  in  1858,  becoming  more  or  less  official  by  the  1920s.  Satellite   imagery  and  digital  map  data  were  introduced  in  the  early  1980s.4      Forest  growing  stock  and  the  annual  harvest  are  rigorously  documented.  Forest  treatments  are   registered  in  advance  and  all  harvest  volumes  are  documented  and  summarized  by  product  by  region.     The  online  availability  of  data  made  public  from  the  Finnish  Forest  Research  Institute  is  remarkable.  The   summary  information  is  publicly  available  online  by  region  through  downloadable  data  files.  These  are   updated  monthly.  The  MultiSource  National  Forest  Inventory  (MSNFI)  used  in  Finland  today  includes   LiDar  (Light  Detecting  and  Ranging)  data  combined  with  field  inventories  and  previous  technologies  for   publicly  available  forest  statistics  and  thematic  maps.5   The  forest  statistics  and  other  information  produced  by  the  MS-­‐NFI  are  used  in  the  following  ways:     • Forest  policy  at  national  and  international  levels   • Regional  and  national  forest  management  planning   • Planning  of  forest  industry  investments   • Assessing  sustainability  of  forestry  and  forest  certification   • Evaluation  of  greenhouse  gas  emissions  and  changes  in  carbon  storage   • Research     7     The  Finns  are  able  to  plan  because  of  the  wealth  of  forest  inventory  data  like  this,  and  the  open  and   frequent  information  sharing.  Obviously,  the  high  quality  of  Finland’s  national  forest  inventory  allows  for   accurate  sustainable  harvest  projections  and  growing  stock  calculations.  The  open  sharing  of  high   quality  inventory  data  has  led  to  progressive  management  planning  and  really  stimulated  the  use  of   forest  resources  over  time.  Having  accurate  wood  supply  projections  also  helps  to  attract  foreign   investors.     2.5   N ATIONAL   F OREST   E CONOM Y   Forest  products  are  the  number  one  export  from  Finland,  totalling  roughly  €11.6  billion  ($17.5  billion   CAD)  in  2015.     Pulp  and  paper  industries  account  for  over  80  percent  of  exports  and  are  a  main  driver  of  the  forest   industry,  accounting  for  $11  billion  CAD  in  exports  and  50  percent  of  the  harvest.  While  most  of  the   world  experienced  a  decline  in  pulp  and  paper  production  after  2008,  the  Finnish  Industry  reorganized   by  adapting  some  mills  to  produce  new  products  like  paperboard  and  by  attracting  additional  pulp  mills.     The  total  forest  industry  production  was  valued  at  almost  €20  billion  ($30  billion  CAD)  in  2013.  The   forest  industry  accounts  for  4  percent  of  GDP  and  160,000  direct  and  indirect  jobs  in  Finland.  According   to  a  2016  Gardner  Pinfold  report  for  Forests  Nova  Scotia,  the  Nova  Scotia  forest  sector  generated  11,500   total  jobs  in  fiscal  2015.  This  means  that  Finland  currently  generates  approximately  3  times  as  many  jobs   per  hectare  of  forest  land  as  Nova  Scotia.  It  is  not  unreasonable  to  think  that  Nova  Scotia  could  add   10,000  new  jobs  in  the  forest  sector  over  the  next  several  decades  with  an  improved  forest  strategy  and   effort.     In  2013,  there  were  49  pulp,  paper  and  paperboard  plants  and  190  large  industrial  sawmills  in  Finland.   Domestic  roundwood  production  totaled  68  million  cubic  metres  in  2015.  Over  9  million  cubic  metres   was  consumed  in  the  form  of  chips  from  stumps,  small  trees  and  logging  residues  for  bioenergy.  In  Table   5  there  is  also  an  accounting  by  agencies  like  Statistics  Finland,  the  Natural  Resources  Institute  of   Finland  and  the  Bioenergy  Association  of  Finland  to  track  non-­‐timber  market  values  like  recreation,   berries  and  game  husbandry  specific  to  Finnish  customs  and  culture.  It  is  telling  how  the  government   values  and  tracks  these  small,  specialized  markets  like  any  other  commercial  market  (Table  5).       8     Table  5.  Finland’s  Forest  Based  M arkets  and  Value  to  the  Country  (Source:  Statistics   Finland;  Natural  Resource  Institute  Finland;  Bioenergy  Association  of  Finland;   *preliminary  data)   Forest  Based  Market   Pulp  and  paper  industry,  gross  value  of  production   (2012)     Wood  product  industry,  gross  value  of  production   (2012)   Stumpage  money  income,  gross   Nature  tourism,  estimated  value  added  (2011)     Forestry,  output  at  basic  price*    Value  (1000   euros)      €  12,945,000      €  5,578,000      €  1,950,000      €  1,226,000      €  4,216,000     Energy,  garden  and  environment  peat,  estimated   total  turnover  (2012)   Forest  chips  +  fuelwood,  value  at  the  place  of  use    €  300,000      €  361,000     Berries,  mushrooms  and  lichen,  trade  value  +   estimate  of  household  use,  direct  sales  and  sale  in   open-­‐air  market  places  (2012)   Game  husbandry,  calculated  value   Reindeer  husbandry,  calculated  value    €  220,000      €  64,000      €  15,000     The  value  of  recreational  use  of  forests  by  pricing  the  visits  to  forests  for  outdoor  recreation   has  been  calculated  at  about  1.93  billion  euros  a  year.     2.6   N ATIONAL   F OREST   P OLICY :   S TRATEGY  AND   L AW                                                         Finland  has  a  long  history  of  implementing  forest  policies  that  anticipate  the  needs  of  future  generations   because  successive  governments  have  understood  the  significance  of  the  forests  and  forestry  to  the   nation’s  economy.  Finland’s  assertive  and  innovative  forest  legislation,  started  in  1886,  has  had  a   profound  effect  on  the  country’s  forestry  resource,  working  on  the  principle  of  using  the  carrot,  not  the   stick,  to  motivate  people  to  comply.  Consistent  with  their  culture,  Finnish  forestry  laws  operate  on  a   philosophy  of  co-­‐operation,  consensus  and  incentives.         The  Private  Forest  Act  of  1928  set  up  a  forestry  extension  service  to  help  small  forest  owners.  Some   innovations  of  this  Act  were:   • the  requirement  to  replant  after  harvesting   • limits  on  how  much  land  companies  can  acquire,  thus  helping  maintain  the  small  private   ownership  structure   • creation  of  forestry  organizations  to  supervise  and  assist  private  forest  owners  to  meet   requirements  under  the  Act.     In  the  1960s  financial  subsidies  were  created  as  incentives  for  silviculture,  and  in  1996  the  Act  on  the   Financing  of  Sustainable  Private  Forestry  set  out  a  schedule  for  grants  from  government  to  small  forest   owners  for  government  sanctioned  silviculture  and  harvest  activities.     Finland’s  national  forest  laws  and  forest  strategy  were  updated  in  2014-­‐15,  giving  direction  for  the   management  of  the  resource  until  2050.6  The  intent  of  the  reforms  is  to  promote  biodiversity,   9     profitability,  energy  wood,  and  freedom  of  choice  for  forest  owners.  The  document  states  objectives  for   the  next  10  to  35  years.  Eleven  specific  projects  were  designed  to  implement  the  strategy.  In  addition  to   ecological  benchmarks,  encouraging  more  uneven-­‐aged  forest  treatments,  silviculture  investment   forecasts,  carbon  sequestration  estimates,  social  benefits  and  numerous  other  indicators,  there  are   stated  targets  of   • • • • • an  increase  in  annual  forest  growth  by  10-­‐30  percent  by  2050  (from  99  million  to  130  million   cubic  metres  per  year)   15  million  cubic  metres  of  forest  chips  used  for  solid  fuel  energy  use  by  2025   public  infrastructure  funding  for  secondary  private  and  public  roads  to  support  forestry  network     public  infrastructure  funding  for  a  railway  network  that  supports  timber  transportation   an  additional  15  million  cubic  metres  of  annual  harvest  by  2025.   Today,  in  Finland,  the  portfolio  of  the  Ministry  of  Agriculture  and  Forestry  is  comprehensive.  Forestry  is   one  of  twelve  files  including  food,  fisheries  and  rural  areas.  In  addition  to  five  regional  Forestry  Centres,   the  ministry  operates  the  natural  resources  research  institute,  Luke  (formerly  called  Metla),  and  the   state  forest  enterprise  Metsahallitus.     The  current  government  is  also  looking  ahead  to  the  new  bioeconomy.  The  Strategic  Programme  for  the   Forest  Sector  worked  in  conjunction  with  the  Ministry  of  Employment  and  the  Economy  to  get  the   market  conditions  and  precursors  right  by  2015  for  wood  products  use,  exports  and  the  new   bioeconomy.  Forestry  is  part  of  their  ‘green’  bioeconomy  strategy,  which  includes  the  high-­‐end   refinement  of  wood  fibre  into  chemicals,  pharmaceuticals,  cosmetics  etc.  for  export  markets.     The  benefits  of  these  policies  and  statutes  in  Finland  were  very  obvious  to  the  Forestry  Learning  Tour   Group  in  2016.  They  include  a  culturally  intact  sense  of  pride  in  the  nation’s  forests,  as  well  as   recognizing    forestry  as  a  major  economic  driver,  and  as  a  result,  an  incredible  forest  setting  for  a  people   who  vigorously  embrace  outdoor  activities.   2 . 6 . 1   B i o e n e r g y   S t r a t e g y   The  use  of  wood  biomass  for  generating  energy  (both  heat  and  electricity)  is  a  growing  component  of   the  forest  sector  in  Finland,  and  is  a  high  priority  for  its  current  government.  Through  a  country-­‐wide   effort  in  the  last  decade,  the  bioenergy  share  of  the  heat  and  electricity  generation  market  in  Finland   has  increased  almost  four-­‐fold,  from  8-­‐9  percent  ten  years  ago  to  30  percent  today.  There  are  over  800   heating  and  power  plants  which  use  wood  chips.  These  range  in  size  from  small  (1-­‐4mW)  local-­‐level   heating  centres  to  large  CHP  (Combined  Heat  and  Power)  district  heating  and  electricity  production   centers  which  can  generate  more  than  400mW  (see  Figure  3).     Kuopion  Energia,  a  large  combined  heat  and  power  plant  in  Kuopio  City,  was  visited  by  the  forestry  tour   group.  The  plant  was  located  in  a  residential  neighbourhood,  beside  a  lake.     Biomass  supply  can  come  from  thinning  and  harvest  waste  or  mill  residues.  Small  trees  thinned  from   young  stands  and  branches,  tops,  stumps  and  otherwise  unmerchantable  stemwood  from  harvesting   operations.  The  material  is  piled  on  the  forest  site  to  dry  for  one  season  (six  months  to  a  year)  then   brought  to  roadside  where  it  is  covered  in  a  tarpaulin  for  another  six  months  to  a  year.  Then  it  is  chipped   and  delivered  to  a  nearby  district  heating  plant  or  sold  into  the  bioenergy  market.  The  piles  are  covered     10     BIUENERBIAN TUUTTAJAT 2016 BIUPDWER AND HEAT PRODUCERS 201E 3i KUOPION ENERGIA Valmet) FORWARD a unswu 1n-4aswn 50-45mm 3 sun-ssaswu . METSAHALLITUS unanswn Gunpo BKELENIH Em sauna BI . 1mm: FEAT VANIEMI nunsxs FOREST FUELS TEDLLISUUIJEN wnnu RESIDUE. worm . PUUPELLETIT m? wnnu PELLETS . EIDKAASU moans - a? '8 ENERSTENA ?9 PUMMSIHI vnlmun nulunenergia? -KA NI 0 .mpavasl 36;? :3va .- -LAHT .. -KHUVULA RANIA BioEnergia 0N -I.EHTIW RY: El" ll KUNTILIITDN "0 0 0.35.090 0 ti? .. uunnzu m: uumu. MAARIANHAM NA . . El 5mm nnammusuunzu 1. Ki?nuvu urnormxum. HELSINKI DIES FLAME HDIISE HF il??ll 1:150000 Aumuml ull'rA-milml mm!) Figure 3. Map of bioenergy facilities in Finland in 2016 to  aid  the  drying  process  and  keep  snow  off,  since  most  forest  residues  are  chipped  in  winter  during   peak  heat  loads.  This  biomass  is  referred  to  as  energy  wood  in  Finland.  Significant  quantities  of  biomass   also  come  from  forest  industry  residues  such  as  bark,  sawdust  and  shavings.  Table  4  (page  7)  shows  the   volume  of  energywood  produced  relative  to  pulp  and  roundwood  in  Finland  in  2015.       The  two  main  drivers  of  the  recent  nationwide  growth  of  the  bioenergy  industry  in  Finland  are   1.   The  European  Union  initiative  to  cut  greenhouse  gas  emissions  by  40  percent  in  2030  from   1990  levels.  Burning  forest  biomass  to  generate  energy  is  considered  to  be  carbon  neutral   compared  to  burning  fossil  fuels  in  Finland.   2.     The  financial  benefits  to  the  Finnish  economy  by  improving  energy  self-­‐sufficiency  through   using  locally  grown  and  produced  forest  biomass  to  replace  imported  coal  from  Russia.     District  heating  plants  provide  significant  markets  for  energy  wood  for  the  Finnish  forest  sector.  The  rise   in  the  consumption  of  chips  for  energy  from  2000  to  2015,  shown  in  Figure  4,  is  the  result  of  the  effort   to  increase  the  use  of  low-­‐grade  wood  from  harvest  sites  for  bioenergy.  This  pays  the  landowner  a  small     amount  (~2  €  per  cubic  metre)  but  it  is  an  important  link  in  the  value  chain  and  helps  maintain  the   domestic  market  created  to  meet  national  energy-­‐use  targets.   20000   18000   16000   (1000  m3)   14000   12000   10000   8000   6000   4000   2000   0   2000  2001  2002  2003  2004  2005  2006  2007  2008  2009  2010  2011  2012  2013  2014  2015   Year   Forest  chips,  total   Forest  industry  by-­‐products,  total   Other   Wood  fuels,  total   Figure  4.  Volumes  of  W ood  Fuels  Consumed  for  Energy  Use  in  Finland,  2000-­‐2015.   (Source:  Natural  Resources  Institute  Finland,  W ood  in  energy  generation)     The  domestic  bioenergy  market  for  low-­‐grade  wood  seen  in  Finland  is  something  that  should  be   explored  for  Nova  Scotia.  Since  the  closure  of  the  former  Bowater  Mersey  paper  mill  in  Liverpool  in   2012,  there  are  no  economic  low-­‐grade  roundwood  markets  in  western  Nova  Scotia  and  insufficient   12     markets  throughout  the  rest  of  the  province.  An  intelligent  and  ecologically  aware  bioenergy  program  in   the  province  would  create  markets  for  low-­‐grade  wood  and  insure  that  enough  woody  debris  and   harvest  residues  on  the  forest  floor  are  conserved  to  maintain  ecosystem  structure,  habitat  and  soil   nutrient  cycles.   2 . 6 . 2   E C O L O G I C   C O N C E R N S   I N   F I N L A N D   Major  sustainability  policy  changes  were  made  in  the  1990s  in  Finland  to  reflect  concern  for  the   environment.  The  current  status  of  forest  sustainability  in  Finland  has  been  explained  in  the  2016   European  Union  Policy  report.7  This  document  is  a  good  source  of  information  for  further  reading  on   current  biodiversity  and  sustainability  concerns  in  Finland  today.   Prominent  biodiversity  concerns  raised  in  Finland  today  include  the  following:   • Biodiversity  reduction  through  intensive  plantation  management   • Decline  and  under-­‐representation  in  old  growth  forest  types   • Not  leaving  enough  coarse  woody  debris  for  nutrient  management  and  wildlife  habitat  after  the   removal  of  fuel  grade  products  like  unmerchantable  wood,  branches,  tops  and  stumps  from  the   harvest  site  for  energy  wood.  Managed  forests  currently  have  about  3  cubic  metres  per  hectare   of  coarse  woody  debris  while  natural  forests  have  about  100  cubic  metres  per  hectare.  Also  tied   to  fuel  consumption  is  the  assumed  neutrality  of  the  carbon  flux  over  time  from  burning  wood.   This  has  come  under  renewed  debate  in  2016/2017.   • Uneven  distribution  and  representation  of  protected  and  restricted-­‐use  forest.  The  vast  majority   of  protected  forest  areas  are  in  the  northern,  less  productive  areas  of  the  country.  Efforts  are   underway  to  protect  significant  or  representative  forest  types,  like  herb-­‐rich  forests,  over  the   remainder  of  the  country  but  this  remains  a  challenge  considering  the  high  proportion  of   privately  owned  and  intensively  managed  forest.     • Pesticide  use   Forest  certification  and  carbon  management  systems  have  been  instituted  in  Finland  as  the   understanding  of  forest  ecology  and  science  has  improved.   2 . 6 . 2 . 1   F o r e s t   C e r t i f i c a t i o n   i n   F i n l a n d   Forest  certification  is  widely  accepted  and  practised  throughout  the  whole  value  chain  in  Finland.  It  is  a   voluntary,  market-­‐based  tool  that  verifies  that  Finnish  forests  are  managed  sustainably.  PEFC  (Program   for  the  Endorsement  of  Forest  Certification)  is  the  chosen  forest  certification  model  for  small  or  family   forest  owners,  as  well  as  for  large-­‐scale  forest  owners.  PEFC  absorbed  the  original  Finnish  certification   scheme  for  private  forests  and  has  been  in  place  since  1999.  The  Finns  view  is  that  sustainability  is  for   the  whole  of  society  and  that  for  their  goals  to  be  reached,  everyone  needs  to  do  their  part:   governments,  the  private  sector  and  civil  society.  About  90  percent  of  Finnish  forests  are  PEFC  certified,   equivalent  to  about  16.5  million  ha.     The  Sustainable  Forest  Management  Associations  (SFMAs)  hold  regional  PEFC  group  certificates.  In  2015   there  were  13  regions  and  6  certificates.  Further  consolidation  to  five  regions  was  planned  in  2016.     Individual  PEFC  certificates  exist  for  forest  companies  as  well,  like  UPM-­‐Kymmene  Oy  and  for   Metsahallitus  (the  company  that  manages  state  forests.)   13     Private  forest  owners  who  become  members  of  an  SFMA  will  automatically  get  a  PEFC  Certified   management  plan  and  become  part  of  the  PEFC  management  system.  There  is  no  additional  charge  to   the  forest  owner  for  certification.  The  cost  of  certification  is  paid  for  by  MTK  (1/3)  and  the  various  forest   companies  (2/3).   Forest  owners,  forest  industry,  and  other  entrepreneurs  who  work  in  certified  forests  are  required  to   follow  PEFC  criteria.  If  a  forest  owner  uses  a  contractor  who  has  not  participated  in  PEFC,  the  forest   owner  is  responsible  for  the  PEFC  criteria.  In  standing  timber  sales,  the  owner  of  the  harvesting  rights  is   responsible  for  the  PEFC  criteria.  Information  about  PEFC-­‐enrolled  companies  and  entrepreneurs  is   updated  regularly  in  a  pefc.fi  database  to  verify  commitment  of  subcontractors.  Forest  owners  use  the   database  to  verify  the  quality  of  forest  service  providers.   The  Finns  believe  they  have  a  global  responsibility  for  sustainability  and  the  carrying  capacity  of  nature.   Sustainability  is  already  a  traditional  procedure  and  PEFC  certification  provides  a  common  way  for   different  actors  to  improve  quality  and  social,  ecological  and  economic  sustainability.     2 . 6 . 2 . 2   C a r b o n   M a n a g e m e n t   The  forest  carbon  cycle  in  Finland  is  fairly  well  researched  and  inventoried  by  today’s  standards.  The   management  of  the  sink  and  source  of  carbon  dioxide  equivalents  in  Finland  is  within  the  context  of  the   European  Union’s  targets  for  regulation  and  trade.  However,  there  is  currently  no  known  carbon  trade   market  for  forest  owners  in  Finland.     The  national  approach  appears  to  be  to  demonstrate  the  current  and  projected  sequestration  level  as  a   result  of  current  management  practices.  These  levels  are  undeniably  high  relative  to  the  rest  of  the   Europe  and  most  of  the  world.  This  information  in  turn  is  lobbied  to  the  EU  for  policy  and  regulatory   influence.8  Forest  management  carbon  markets  fall  within  a  regulatory  and/or  voluntary  jurisdiction.  In   both  cases,  actual  carbon  credits  are  eligible  through  the  proven  increase  of  C02e9  storage  within  a   forested  land  base  over  time,  through  a  change  in  forest  management  over  the  baseline,  or  status  quo   scenario.  This  approach  would  not  reward  Finnish  forest  owners  as  the  management  practices  today   (status  quo)  already  maximize  yield.     2 . 6 . 3   F O R E S T R Y   I N   F I N L A N D   The  Finns  deliberately  and  with  consideration  adapt  their  forestry  curricula  and  professional  training  to   keep  pace  with  changes  in  logging  equipment,  logging  electronics  and  communications,  and  general   industry  organization.  While  the  technological  changes  are  obvious,  more  subtle  is  the  change  in  human   organization  around  forestry  work.     In  1970,  industry  organized  the  wood  supply  and  their  foremen  did  site  and  harvesting  planning  and   hiring  of  fleets.  In  2017,  it  is  the  forest  machine  operators,  working  for  small  private  harvesting   companies  that  are  responsible  for  the  quality  of  logging,  production  report  transmission  from  their   machine  to  the  mill,  the  maintenance  of  their  machine  and  identification  of  habitats.  They  are  therefore   likened  to  harvest  process  instructors  and  managers  rather  than  as  rote  machine  operators.  There  is  a   weight  of  responsibility  and  an  elevated  sense  of  regard  for  forest  machine  operators  in  Finland.   14     Vocational  Qualifications  in  Forestry  takes  3  years  of  schooling  during  which  120  credits  are   accumulated  (See  Appendix  3).  This  is  equivalent  to  the  European  Qualifications  Framework  (EQF)   system  of  an  EQF  Level  4.  This  assures  competence  to  enter  employment  in  the  field.   Students  graduate  with  Qualifications  in  one  of  these  specific  occupations:   a) Forest  worker   b) Forest  machine  operator  (harvester/  forwarder)   c) Forest  mechanic   d) Timber  truck  driver   Through  work  experience,  also  available  as  apprenticeship  training,  students  can  obtain  ‘Further   Vocational  Qualifications’  to  be  considered  a  skilled  worker,  and  ‘Specialist  Vocational  Qualifications’  to   show  they  have  mastered  the  most  demanding  tasks  of  the  job  in  their  field.  These  levels  of  training   equate  to  Europe’s  scale  as  EQF  5  and  EQF  5-­‐6.  By  comparison,  a  bachelor’s  degree  in  Forestry  is  EQF  6.   Curricula  are  designed  by  committees  that  include  employers  from  industry.  This  is  to  keep  the  lesson   plan  for  new  forest  workers  practical  and  relevant.  It  must  be  noted  that  vocational  and  university   education  in  Finland  is  free.         15     3.0   P R I V A T E   F O R E S T   L A N D   M A N A G E M E N T   I N   F I N L A N D     Small  private  forests  in  Finland  make  up  60  percent  of  the  forest  land  base  and  generate  80  percent  of   the  wood  used  by  the  forest  industry.  Forest  owners  play  a  very  active  role  in  maximizing  growth  and   yield  on  their  woodlots.  While  there  are  some  government  subsidies  and  incentives  for  silviculture,   woodlot  owners  willingly  pay  some  of  the  site  preparation,  planting  and  weeding  costs  associated  with   early  plantation  establishment.  This  is  basically  returning  some  of  their  significant  stumpage  revenues   from  forest  harvesting,  as  an  investment  in  their  future  forests.  The  interdependence  of  woodlot  owners   and  the  economy  is  well  understood  in  Finland  where  there  is  a  tremendous  amount  of  cooperation   between  woodlot  owners,  government  and  industry.   Supports  for  woodlot  owners  in  Finland  consist  of  government  Forest  Centres  operated  by  the  Ministry   of  Agriculture  and  Forestry,  local  Forest  Management  Associations  (FMAs)  and  the  Central  Union  of   Agricultural  Producers  and  Forest  Owners  called  MTK.     3.1   MTK   MTK  is  a  lobbyist  for  the  FMAs,  in  partnership  with  industry,  to  the  national  government  and  to  the   European  Union  (EU).  The  state’s  Forest  Centres  and  the  FMAs  offer  regional  and  local  support  and   services  to  small  owners  throughout  Finland.  In  effect  there  is  support  for  woodlot  owners  at  all  levels   (see  Figure  5).  This  has  created  an  ‘enabling  environment’  for  woodlot  owners,  defined  by  MTK  as  ‘the   right  balance  of  guiding  tools,  legislation,  funding,  advice  and  service  providers  to  reach  set  goals.’     The  Pohjois-­‐Savo  region  visited  on  the  tour  is  one  of  13  designated  forest  regions  in  Finland  where   regional  MTK  offices  serve  and  represent  woodlot  owners  through  the  FMAs.  In  2016  MTK  had  over   400,000  members,  between  farm  producers,  the  forestry  FMAs  and  other  rural  entrepreneurs,  so  it  is  a   powerful  lobby  that  is  about  to  celebrate  its  100th  anniversary.  Figure  6  shows  the  organizational   structure  of  MTK  in  2011.  Although  the  2011  numbers  are  a  little  dated  ,  it  still  shows  the  association   between  small-­‐forest  owners,  farmers  and  other  rural  entrepreneurs  in  Finland,  under  one  umbrella   that  is  MTK.   3 . 1 . 1   F M A S   Forest  Management  Associations  (FMAs)  are  collectives  of  woodlot  owners  managing  their  own  forestry   activities.  For  decades  they  have  been  the  mandatory  forest  advisor  and  service  coordinator  for  small   woodlot  owners  in  Finland.  In  fact,  until  2014  it  was  legislated  that  private  woodlot  owners  had  to   belong  to  an  FMA,  although  this  statute  was  recently  changed  to  allow  small  private  forest  owners  the   freedom  to  choose  management  service  providers.  Despite  the  new  freedom,  80  percent  of  forest   management  activities  on  private  forests  are  still  carried  out  by  FMAs.  In  2016  there  were  76  FMAs  in   Finland,  after  an  amalgamation  of  smaller  FMAs  took  place  in  recent  years.  This  amalgamation  resulted   in  more  efficiency  of  service  delivery,  and  the  benefits  of  the  economy  of  scale  for  wood  supply  and   treatment  scheduling  that  comes  from  a  larger  land  base  .       16       Figure  5.  The  organizational  support  structures  for  sm all  private  forest  owners  in   Finland  (2016  data).       Figure  6.  The  Organization  of  M TK  (2011). 17       FMA  staffing  includes  managers,  clerks,  foresters,  engineers,  GIS  experts,  and  sales  managers.  Trust  in   the  local  FMA  was  high  at  the  one  family  woodlot  we  visited  because,  as  the  woodlot  owner  explained,   they  have  had  decades  of  contact  with  the  same  FMA  forester.  The  FMA  manager  reports  to  an  elected   board  of  woodlot  owner  members.  As  an  example  of  the  power  that  comes  from  the  collective,  the  MTK   region  visited  during  the  tour,  Pohjois-­‐Savo  (North  Savo)  represents  26,000  woodlot  owners  from  the   general  population  of  250,000.  The  landbase  covers  1.4  million  hectares  of  forest  land,  71  percent  of   which  is  privately  owned.  The  tour  visited  one  of  the  four  FMAs  in  the  region,  called  Metsanhoitoy-­‐ hdistys.  In  2015  this  FMA  had  5742  members,  with  258,411  hectares  of  forest  land.     Woodlot  owners  pay  for  services  provided  by  the  FMAs  in  three  ways:  (1)  annual  membership  fees,   which  are  about  €100  per  owner;  (2)  commission  on  harvest  sales  (€0.15  /  cubic  metres);  and  (3)  fees   for  services,  such  as  updating  of  management  plans.  These  fees  cover  the  full  cost  of  all  required  FMA   services.  For  woodlot  owners,  these  expenses  amount  to  a  small  fraction  of  the  significant  stumpage   revenues  received  from  wood  sales.  Table  6  compares  the  Pohjois–Savo  Region  statistics  with  the  seven   western  counties  of  Nova  Scotia.  This  table  shows  the  positive  impact  the  services  provided  by  FMAs   have  on  small  private  forest  production  in  Finland.   Table  6.  Com paring  the  Pohjois–Savo  Region  of  Finland  to  the  Seven  W estern  Counties   of  Nova  Scotia.     No.  of  Forest  Owners                         Small  Woodlot  Forest  Area                                   Annual  forest  Growth   Annual  Harvest  (2015)                     Pohjois  –  Savo   26,000   1,000,000  ha   Large  Sawmills  (150  km.  radius)   Pulp,  Paper  and  /  or  Paperboard  Mills  (150   km  radius)   Forestry  Professionals  working  with  woodlot   owners   8-­‐10   6   [unknown]   3 756,000  m /year     1  (Freeman’s)   0   50-­‐70   1   3 5,200,000  m /year   3 4,400,000  m /year             Seven  Western  Counties   [unknown]   935,000  ha       3 . 1 . 2   G O V E R N M E N T   F O R E S T   C E N T E R S   Government  support  for  the  small  private  forest  sector  also  comes  from  the  state  funded  Finnish  Forest   Centres  (Suomen  metsäkeskus)  which  are  staffed  by  the  Ministry  of  Agriculture  and  Forestry.  The  state   is  acknowledged  as  the  central  actor  in  bolstering  the  forest  sector  through  services  such  as  this.  The   Forest  Centres  cover  five  service  areas  defined  by  region  (Figure  7)  and  employ  approximately  530   people  (2016  figures).     Figure  8  shows  that,  in  2016,  the  Forest  Centres  focused  on  two  service  delivery  areas:  forestry  business   services  and  forest  data  and  auditing  services.  The  tour  group  spent  some  time  with  a  Forest  Centre   employee  whose  main  responsibilities  involve  offering  business  counselling  services  to  forestry     18       Figure  7.  Five  geographic  regions  covered  by  the  Finnish  Government’s  Regional  Forest   Centres  (Source:  M etsakeskus)     Figure  8.  Two  service  delivery  areas  of  Finnish  Government’s  Regional  Forest  Centres   (Source:  M etsakeskus)   contractors  in  an  effort  to  ensure  they  are  successful  and  profitable.  No  such  services  are  available  to   forestry  contractors  on  a  widespread  basis  in  Nova  Scotia.   Within  their  forest  data  responsibilities,  the  centres  also  provide  full  inventory  support  for  private   woodlot  owners,  collecting  the  inventory  and  audit  data  and  sharing  the  information  with  all  forest   owners  and  forestry  professionals  through  the  Metsaan.fi  database.  Their  programs  have  evolved  to   19     online  and  mobile  apps  to  give  owners  rapid  access  to  their  woodlot  information  and  timber  sales.  The   marketplace  software  allows  for  landowners,  managers  and  wood  purchasers  to  show  available  harvest   volumes  and  make  bids.  It  resembles  Kijiji,  with  a  real-­‐time  tracker  of  individual  transactions  not  unlike  a   newsfeed  or  stock  ticker.  There  is  another  e-­‐marketplace  for  sales  of  firewood  and  non-­‐timber  forest   products.   The  web  and  mobile  phone  interfaces  permit  free  access  to  information  for  forest  owners  and,   therefore,  better  informed  decision-­‐making  by  absentee  owners.  As  has  been  the  case  in  Nova  Scotia,   there  is  a  trend  where  the  newer  generations  of  woodlot  owners  are  less  connected  to  and  less   dependent  on  the  land  than  their  predecessors.  This  easy  access  to  woodlot  information  online  allows   woodlot  owners  to  be  involved  in  the  management  of  their  forest  holdings  even  though  they  may  live  a   long  distance  away.     The  Forest  Centres  are  also  responsible  for  the  implementation  of  regional  forest  management   planning,  using  the  forest  inventory  data  for  this  purpose.  The  regional  plans  are  mainly  a  stand  map   and  inventory  database  with  stand-­‐by-­‐stand  proposals  for  cuttings,  silviculture  and  other  forest   activities.  These  regional  plans  are  delivered  at  a  reasonable  price  to  the  local  FMA  to  support  their   extension  services  and  operational  annual  planning  for  woodlot  owners.     Under  the  regional  plan,  each  owner  is  offered  a  more  detailed  individual  management  plan  for  their   forest  holding.  Each  regional  Finnish  Forest  Centre  and  local  FMA  has  specialists  on  staff  (GIS  systems,   timber  cruisers,  management  plan  writers,  business  analysts)  responsible  for  putting  data  together  for   the  woodlot  owner  or  forest  entrepreneur  (contractor).  On  average,  about  60  percent  of  owners  use   this  opportunity  to  receive  a  plan,  available  to  them  at  half  the  actual  cost.  The  plan  comes  with   treatment  schedules  and  associated  harvest  volumes  and  financial  estimates.  Forest  management  plans   for  individual  forest  holdings  are  created  for  a  planning  period  of  10  years  (20  years  in  northern  Finland).   The  contents  of  an  individual  plan  are  confidential  and  accessible  online  only  to  the  landowner  and  the   responsible  professional  forester.   The  Forest  Centres  also  conduct  audits  of  forestry  operations  on  small  private  forests  in  order  to  enforce   forestry  legislation.  Compliance  is  documented  as  very  high,  as  the  FMAs  ,  MTK  and  the  Forest  Centres   work  together  to  create  an  ‘enabling  environment’  for  woodlot  owners  that  motivates  owners  to   sustainably  manage  their  forests.  Woodlot  owners  in  Finland  are  constantly  reminded  of  the  need  to   manage  their  forest  lands  for  the  benefit  of  society.   3.2   I NTENSIVE   S USTAINABLE   F OREST   M ANAGEM ENT   Private  forests  in  Finland  are  predominantly  artificially  regenerated,  known  as  plantation  forestry,  and   are  intensively  managed  through  several  thinnings,  to  maximize  quality  and  volume  over  the  full   rotation  of  a  given  stand.  On  average,  across  Finland,  clearcutting  accounts  for  only  21  percent  of  the   total  harvest  area  while  merchantable  thinnings  are  73  percent  of  the  total.  Typical  activities  scheduled   over  a  forest  stand  rotation  are  listed  in  Table  2  (page  5).  These  treatments  have  widespread  cultural   acceptance.  Forest  owners  are  offered  free  training  and  understand  the  concept  of  silviculture.  They   accept  the  labour-­‐intensive,  time-­‐consuming  and  unprofitable  planting  and  weeding  as  necessary  steps   20     in  growing  a  forest  and  are  part  of  the  business  model  of  owning  a  private  woodlot.  While  some   government  subsidies  do  exist,  the  woodlot  owner  pays  most  of  the  cost  (~  70  percent)  for  regeneration   and  early  tending.  Planting  and  early  tending,  including  weeding,  are  considered  pragmatic  long-­‐term   investments  for  maximum  wood  supply  and  economic  return  for  woodlot  owners.  Table  7  shows  forest   statistics  and  woodlot  income  earned  for  the  average  woodlot  owner  in  the  Pohjois-­‐Savo  region  of   Finland.  Equivalent  information  is  not  readily  available  in  Nova  Scotia.     Table  7.  Average  Forest  Owner  In  Pohjois-­‐Savo  Region  of  Finland     • • • • • • He  is  a  retired  man  or  older  worker.   He  is  60  years  old.   He  owns  about  38  hectares  of  forest  land.   Total  standing  volume  of  trees  on  his  woodlot  is  over  5000  cubic  metres  (2200  cords).   Annual  harvest  is  180  cubic  metres  (80  cords)  or  550  cubic  metres  every  3  years.   Income  is  about  $7500  CAD  per  year  or  $210  per  hectare  per  year  before  taxes.       In  2015,  the  total  net  annual  stumpage  paid  to  small  private  woodlot  owners  in  Finland  was  over  €1.3   billion  ($2  billion  CAD).  If  all  things  in  the  small  private  forest  sector  in  Nova  Scotia  were  equal  to   Finland,  this  would  mean  that  in  2015,  woodlot  owners  would  have  received  approximately  $400  million   in  stumpage  for  sustainably  harvested  wood  from  their  forest  lands.   The  annual  incremental  growth  (in  Pohjois-­‐Savo)  is  currently  9.5  million  cubic  metres  with  harvest  levels   at  7.3  million  cubic  metres  annually  from  operating  on  a  landbase  of  65,000  ha.  This  translates  to  112   cubic  metres  per  hectare  over  all  harvest  treatments,  77  percent  of  which  are  in  merchantable   thinnings.  The  return  on  this  long-­‐term  investment  and  commitment  can  value  at  just  under  $19,000   CAD  per  hectare  in  today’s  dollars  (see  Appendix  4).     In  Finland,  the  average  woodlot  size  is  38-­‐44  hectares  and  the  average  final  clearcut  harvest  area  is  3-­‐4   hectares.  This  means  that  on  average,  a  small  woodlot  owner  would  have  10-­‐12  of  these  small  harvests   spread  out  over  80-­‐100  years,  that  is,  the  growth  cycle,  or  stand  rotation,  on  their  woodlots.  On   average,  woodlot  owners  in  Finland  earn  $145  CAD  per  hectare  annually  before  taxes  on  their  forest   holdings  (Figure  9).  The  estimated  gross  yearly  income  for  a  woodlot  of  38  hectares  at  $145  per  hectare   is  $5510  CAD  per  year.10     In  2015,  the  net  annual  stumpage  paid  was  over  €1.5  billion  or  $2.27  billion  CAD,  of  which  87  percent   was  paid  to  owners  of  non-­‐industrial  small  private  forests  (Table  8).         21         Figure  9.  Operating  profit,  per  hectare,  1991-­‐2015  (€  /  ha).  (Source:  Natural  Resources   Institute  Finland)     Table  8.  Stum page  Earnings  (Source:  Natural  Resources  Institute  of  Finland)   Land  Tenure   Gross  stumpage   earnings     Net  stumpage   earnings   Non-­‐industrial,   private  forests   (NIPF)    €  1,708,364,000      €  1,345,000,000     Forest  industries   and  the  State   Total    €  292,910,000      €  2,001,274,000      €  198,000,000      €  1,543,000,000               22     4.0   A   C O M P A R I S O N   O F   T H E   S M A L L   P R I V A T E   F O R E S T   S E C T O R   I N   F I N L A N D   A N D   N O V A   S C O T I A     In  this  section,  Table  9  compares  the  Finnish  and  Nova  Scotian  small  private  forest  sectors  side-­‐by-­‐side   on  select  attributes.     Table  9.  Com paring  the  Sm all  Private  Forest  Sectors  of  Finland  and  Nova  Scotia   ATTRIBUTE   FINLAND   1.  Forest  Statistics  and   ownership     The  total  forest  area  is  22,820,000   The  total  forest  area  is  4,240,000   hectares;  the  total  annual  harvest   hectares;  the  total  annual  harvest  is   is  68,000,000  cubic  metres/year.   4,000,000  cubic  metres/year  (2015)       Small  private  ownership:  60   percent  of  the  total  forest  area;   supply  80  percent  of  the  total   annual  harvest.   There  are  632,000  owners.   346,400  owners  have  parcels   greater  than  2  hectares  in  size.   The  average  woodlot  size  is  35-­‐40   hectares.   2.  Tree  species     Northern  Boreal  Forest  (simple   forest)     Three  main  species:     Norway  Spruce,  Scots  Pine  &   Silver  Birch   3.  Tree  growth/Site   Productivity     4.  Forest  terrain   conditions   In  Pohjois-­‐Savo  region  of  central   Finland  tree  growth  is   approximately  7  cubic  metres  per   hectare  per  year  for  Norway   spruce  and  Scots  pine.  Tree   improvement  programs,  site   preparation,  thinning  regimes  and   forest  fertilization  over  a  long   period  of  time  positively  impact   this  growth.   NOVA  SCOTIA   Small  private  ownership:  53  percent  of   the  total  forest  area;  supply  63  percent   of  the  total  annual  harvest  (2015).   There  is  a  deficit  in  data  on  cataloguing   the  number  of  owners  in  Nova  Scotia.  It   is  estimated  that  there  are  35,000  small   private  forest  parcels.       Acadian  Forest  (complex  forest)   Sixteen  species  with  significant  growing   stock,  eight  of  which  are  hardwood.   Nova  Scotia  has  potentially  higher  value   softwoods  and  hardwoods  than  Finland.   According  to  NSDNR  forest  inventory   information,  average  potential  tree   growth  in  Nova  Scotia  for  all  forest   lands  is  approximately  6  cubic  metres   per  hectare  per  year.  This  growth  could   likely  be  enhanced  with  intensive  forest   management  practices.  Nova  Scotia  has   challenges  with  windthrow  and  form   because  of  exposure  to  open  ocean.   (See  Appendix  2)  Very  similar  to   Nova  Scotia;  not  as  hilly     Very  similar  to  Finland;  steep  terrain  is   more  common  particularly  in  eastern   Limited  access  in  summer  because   Nova  Scotia.   of  wet  ground.   23       Table  9  Cont’d   ATTRIBUTE   FINLAND   5.  Forest  Policy,  Culture   Strong,  focused  forestry   &  Attitude   legislation.  Countrywide   acceptance  of  forests  and  the   Advantage:  Finland     sector  as  green  gold  for  the   Finnish  economy.  Strong  co-­‐ operation  between  owners,   industry  and  government.  The   government  is  currently  focused   on  the  new  bioeconomy.   NOVA  SCOTIA   Lack  of  focused  forest  policy,   particularly  for  small  private  forests.   Disengaged  small  private  woodlot   sector.  Described  as  a  culture  of   conflict.  The  economic  potential  of   intensive  sustainable  forest   management  is  not  well  known  or   understood.  There  is  huge  untapped   potential  to  create  wealth  for  woodlot   owners  and  the  economy  by  sustainably   intensifying  forest  management.     6.  Woodlot  owner   support  network     Advantage:  Finland     100  percent  coverage  of  the  small   private  landbase  by  local  Forest   Management  Associations  (FMAs).   85  percent  of  woodlot  owners   belong  to  FMAs.  FMAs  are   assembled  under  13  regional  MTK   offices  and  the  national  office.   This  creates  a  lobbying   organization  for  discussions  with   government.  Woodlot  owners  are   very  well  organized  and  appear  to   be  the  power  brokers  in  the   Finnish  forest  sector,  supplying  80   percent  of  the  wood  used  by   industry.   The  woodlot-­‐owner  support  network  is   fragmented  with  inconsistent   availability  and  delivery  of  forest   management  services  across  the   province.  There  is  very  low  participation   rates  by  woodlot  owners  in  intensive   sustainable  forest  management.  Six  of   the  original  18  former  group  ventures  in   the  province  are  still  offering  various   levels  of  forest  management  services  to   woodlot  owners,  mostly  in  central  Nova   Scotia  and  Cape  Breton.  The  ‘Service   Area’  concept  is  being  slowly  rolled  out   across  the  province.  This  started  with   the  Cape  Breton  Privatelands   Partnership  (CBPP)  which  is  in  Year  3  of   a  five-­‐year  pilot  project  to  serve  Cape   Breton  Service  Area.  In  2017  the   Western  Woodlot  Services  Co-­‐operative   was  launched  to  serve  the  seven   westernmost  counties.     24     Table  9  Cont’d   ATTRIBUTE   FINLAND   NOVA  SCOTIA   7.  Intensive  sustainable   forest  management   Major  investments  were  made  50-­‐60   years  ago  by  the  government  in   tree/seedling  improvement,   thinning  and  ditching  wet  sites  to   improve  tree  growth.  Finnish  forests   now  grow  80  percent  more  wood   than  they  did  in  1970.  There  is  100   percent  participation  in  intensive   sustainable  forest  management  by   woodlot  owners.  Plantation  forestry   is  the  accepted  regeneration   strategy.  Harvest  is  followed  by  site   preparation,  planting,   manual/mechanical  weeding,  2-­‐3   commercial  thinnings  and  a  final   harvest  over  70-­‐100  rotations.  Each   woodlot  is  managed  as  an   independent  forest  entity  with  its   own  sustainable  Annual  Allowable   Cut  (AAC).  The  focus  is  on   maximizing  forest  growth  for   woodlot  owners  and  the  Finnish   economy.   Less  than  10  percent  of  woodlots   are  being  intensively  and   sustainably  managed.Many   woodlots    are  being  “mined”,   meaning,  clearcut  from  boundary   to  boundary.  This  is  more  the   norm  than  sustainable   management.  Very  little  attention   is  paid  to  regeneration  after   harvest  on  the  majority  of  small   woodlots.  Minimal  consideration   is  given  to  future  forests,  their   quality  or  their  value.   The  Finns  have  an  inventory  of  every   tree  growing  in  their  forests   …species,  age,  size,  location  and   who  owns  it!  This  extensive,   accurate  forest  inventory  and  forest   growth  information  uses  leading   edge  technologies  including  LiDar.   They  have  the  most  private  forest   inventoried  of  any  country  in  the   world  and  this  information  is  used  in   forestry  policy  decision-­‐making,   forest  management  planning,  new   investments,  sustainability,   certification,  carbon  storage  data   and  research.  All  data  is  made   available  to  the  public  on-­‐line   through  the  Finnish  Forest  Research   Institute  and  other  government   outlets.  Inventory  is  easier  because   forests  are  less  complex.     Nova  Scotia  has  out-­‐of-­‐date  forest   resource  information,  strategies   and  technologies.  Best  guess   estimates  are  made  on  standing   timber  volumes  and  forest   growth.  The  task  of  gathering  and   managing  inventory  data  is  made   more  difficult  by  the  variety  of   species,  problems  with  form  and   uneven-­‐aged  stands  of  poor   quality.     Advantage:  Finland   8.  Forest   Inventory/Information   Technology       Advantage:  Finland     25     Table  9  Cont’d   ATTRIBUTE   FINLAND   NOVA  SCOTIA   9.  Roundwood  markets   Roundwood  markets  are  extensive   for  all  products  generated  from   thinning  and  final  harvests  of  all   three  commercial  species.  All   roundwood  goes  to  the  highest  value   end  use:  first,  veneer  logs,  second,   sawlogs,  third,  pulpwood,  and   fourth,  energywood.  There  had  been   significant  roundwood  market   expansion  since  the  mid-­‐1990s.   Newsprint  mills  have  been  retooled   to  produce  other  pulp  and   paperboard  products,  resulting  in   continuing  high  demand  for   pulpwood  throughout  the  country.   The  market  for  forest-­‐based   biomass,  small  trees,  branches  and   stumps  used  in  community  district   heating  plants  has  seen  rapid   expansion  over  the  past  10  years.   Government  incentives  have  been   provided  to  the  bioenergy  industry   to  support  conversions  from  foreign   coal  and  oil  to  local  renewable  wood.   Approximately  50  percent  of  forest   product  markets  for  both  sawn   products  and  pulp  and  paper  have   disappeared  over  the  last  ten  years.   Currently,  most  mills  that  are  still   operating  are  over-­‐supplied  with   roundwood.  This  results  in  depressed   roadside  roundwood  prices  and   extreme  challenges  to  forest   operators  to  secure  markets  for  all   grades  of  wood.  Intensifying  forest   management  activities  on  small   private  forests  will  not  be  possible   without  expansion  of  market   opportunities  that  are  economically   viable.  No  effective  process  in  place   for  developing  new  roundwood   markets  at  the  present  time,  even   though  global  markets  for  wood  in   energy  production  and  construction   are  rapidly  expanding.     Advantage:  Finland   10.  Economic  Benefits   from  Forests   In  2015,  Finland  sustainably   harvested  3  cubic  metres  per   hectare.   In  2015,  Nova  Scotia  harvested  only  1   cubic  metre  per  hectare  from  its   small  private  forest  area,  even   Finland  generated  5.7  times  as  much   though,  on  average,  the  productivity   and  growth  rates  are  not  significantly   export  value  from  every  hectare  of   forest  land  compared  to  Nova  Scotia.   different  from  Finland’s.     Finland  generated  1.8  times  as  much     export  value  per  cubic  metre   harvested  compared  to  Nova  Scotia.   Finland  generated  2.6  times  as  many   jobs  per  hectare  of  forest  land   compared  to  Nova  Scotia.       26     5.0   C O N C L U S I O N   A N D   R E C O M M E N D A T I O N S   F O R   A C T I O N   I N   N O V A   S C O T I A   The  basic  purpose  of  the  Forestry  Learning  Tour  to  Finland  was  to  answer  the  research  question  ‘Why  is   Finland  so  successful  in  managing  their  small  private  forests,  while  Nova  Scotia  is  not?’  The  tour  was  one   of  several  ‘prototype’  projects  of  the  Forest  Lab,  a  collaborative  project  of  woodlot  owners,  industry   workers  and  forest  consultants  from  across  Nova  Scotia  assembled  to  address  social  problems  in  the   forest  sector.     From  September  29  to  October  5,  2016,  five  representatives  from  Nova  Scotia,  participated  in  a  forestry   learning  tour  to  Finland.  The  itinerary  was  designed  to  introduce  tour  participants  to  the  system  of   service  organizations  that  support  the  small  private  forest  sector,  giving  woodlot  owners  access  to   government,  as  well  as  providing  tools  for  managing  their  woodlots,  in  the  context  of  a  national   strategy.   This  report  is  a  summary  of  the  findings  from  the  learning  tour,  which  was  successful  in  providing   relevant  information  to  conclude  that  Finland  can  be  an  effective  model  for  small  private  forestry  in   Nova  Scotia.  The  tour  participants  are  proposing  that  Nova  Scotia  woodlot  owners,  service  organizations   and  policy  makers  examine  how  the  best  practices  observed  in  Finland  could  be  implemented  in  order   to  build  momentum  and  effect  positive  social  and  economic  change  in  rural  Nova  Scotia.     1.  Culture  and  attitude  –  The  culture  of  forestry  needs  an  attitudinal  shift  from  negative  to  positive  in   Nova  Scotia.  We  need  to  explain  and  show  that  forestry  is  an  economic  driver  and  a  safe  and  worthwhile   industry  for  the  province.  Forestry  should  be  a  good  news  story.   2.  Strong  landowner  support  network  –  Nova  Scotia  needs  a  single,  unified,  provincial  lobby  for   woodlot  owners,  similar  to  MTK  in  Finland.  In  addition,  we  need  local  extension  offices  —  Forest   Management  Associations  (FMAs)  —  providing  advice  and  services  to  woodlot  owners  throughout  NS.   This  initiative  has  begun  in  the  form  of  pilot  projects  in  Cape  Breton  and  the  western  counties.  This   approach  requires  long-­‐term  commitment  with  support  at  all  levels  of  government.     3.  Intensive  Sustainable  Forest  Management  —  The  Forest  Strategy  for  Nova  Scotia  needs  to  be   updated  with  specific  goals  for  annual  roundwood  harvests  at  the  county  level  and  steps  must  be  taken   to  intensify  sustainable  management  efforts  to  meet  these  goals.  There  is  an  abundant,  underutilized   standing  forest  resource  on  small  private  woodlots  in  the  province.  Finland  manages  to  produce  over   four  times  as  much  annual  wood  harvest  per  hectare  on  small  private  forest  land  than  Nova  Scotia.  The   tour  group  believes  there  is  significant  room  for  economic  growth  in  Nova  Scotia’s  small  private  forest   sector.   4.  Intensive  Market  Development  –  With  a  fully  integrated  forest  product  value  chain  that  includes   conventional  forest  products  and  new  products  in  paper,  construction,  materials,  and  the  bioeconomy   27     like  food  and  pharmaceuticals,  the  industry  would  become  economically  viable.  There  is  a  particular   need  to  find  low-­‐grade  wood  markets,  while  leaving  enough  biomass  in  the  woods.  Bioenergy  plants  for   district  heat  and  power  in  Finnish  towns  have  created  a  domestic  demand  for  low-­‐grade  wood  that  is   scalable  to  Nova  Scotia  towns.  With  regional  forest  products  market  development  teams,  the  province’s   forest  industry  could  work  toward  this  goal.   5.  High  quality  forest  inventory  and  information  transfer  -­‐  A  reliable  forest  inventory  and  IT  systems  to   make  the  data  publicly  available  and  user  friendly  would  bring  significant  change  to  forest  management   planning,  motivating  woodlot  owners  and  attracting  investors.  Investment  is  necessary  but  cannot   happen  without  proof  of  a  guaranteed  long-­‐term  sustainable  wood  supply.         The  foregoing  will  require  a  stable  environment  for  investment,  both  time  and  money.  The  current   situation  in  Nova  Scotia  —  unlike  Finland  –  is  hesitation  and  uncertainty,  lack  of  information,  and  a   policy  framework.  Currently,  small  private  forests  in  Finland  produce  4  times  as  much  wood  harvest  per   hectare  annually  than  Nova  Scotian  small  private  forests,  even  though  tree  growth  is  very  similar  in  both   places.  By  doubling  the  harvests  to  2  cubic  metres  per  hectare  per  year,  one  can  estimate  an  increase  of   more  than  7,000  direct  and  indirect  jobs,  mostly  in  rural  communities.     The  Nova  Scotia  government  should  give  greater  recognition  to  forestry  and  the  small  woodlot  owners.   In  Finland  the  government  has  enabled  the  small  private  forest  sector  transformation  over  the  past  100   years.  If  the  municipal  governments  and  economic  development  agencies  in  Nova  Scotia  became   involved  in  this  forest  sector  makeover,  an  increased  sustainable  wood  supply,  improved  roundwood   markets,  increased  forest  products  manufacturing,  economic  growth  and  job  creation  would  follow.       5.1   N EXT   S TEPS   The  team  that  travelled  to  Finland  are  of  one  mind  when  it  comes  to  the  usefulness  of  their  trip,   because  they  saw  that  the  challenges  the  forest  sector  faces  in  Nova  Scotia  could  be  mitigated  by  the   implementation  of  some  of  the  best  practices  that  they  saw  in  Finland.     For  this  reason  they  have  organized  their  observations  and  data  into  this  report,  giving  details  and   comparative  analysis  that  demonstrate  how  forest  management,  particularly  for  small  private  forests,   can  be  improved  in  Nova  Scotia.  They  are  convinced  that  such  improvements  would  benefit  the   economy,  especially  the  rural  areas  in  terms  of  providing  jobs,  by  managing  the  Acadian  forest.  It  would   also  create  new  and  diversified  markets  for  wood  products.  This  report  is  useful  to  policy  makers,  the   media,  woodlot  owners,  chambers  of  commerce,  RENs  and  other  economic  development  agencies.     The  5  key  areas  set  out  in  the  Conclusion  are  the  outline  for  a  framework  that  can  initiate  a  concerted   effort  by  all  three  existing  woodlot-­‐owner  organizations  in  Nova  Scotia  towards  a  common  goal.  A   working  group  would  begin  to  develop  policy  initiatives  and  continue  to  establish  service  area   organizations  across  the  province,  until  there  is  forest  management  advice  and  service  to  every  woodlot   owner  in  Nova  Scotia.  This  cannot  be  done  without  the  assistance  and  coordination  of  the  relevant   28     government  departments  (Natural  Resources,  Environment,  Labour  and  Advanced  Education,   Agriculture).  Therefore,  the  next  steps  must  include  communication  across  government,  and  throughout   the  value  chain  of  the  forest  sector.     The  Finland  tour  group  suggests  that  their  findings  can  be  the  foundation  for  renewal,  and  that  best   practices  can  be  modelled  and  adapted  for  Nova  Scotia.  In  Finland,  government  and  industry  took  the   long  view,  and  included  a  wide  range  of  stakeholders  in  order  to  develop  the  forest  sector  over  the  past   fifty  years.  Given  the  current  state  of  decline  in  the  sector  in  Nova  Scotia,  it  is  recommended  that  this   initiative  be  commenced  without  delay,  that  it  be  broad  and  inclusive,  so  that  these  changes  will  be   more  than  just  a  benefit  to  one  sector,  but  will  have  a  ripple  effect  throughout  the  province.                       I                             29     A P P E N D I C E S   A PPENDIX   1   –   F INLAND   L EARNING   T OUR   I TINERARY   M onday  Sept  26   Evening   Tuesday  Sept  27   Morning   Afternoon     Depart  Halifax  9:30  pm  Icelandair  Flight  606       Arrive  Helsinki  1:50  pm&  pick  up  rental  vehicles     Travel  to  and  check  in  at  hotel   Meet  for  dinner  as  a  group   W ednesday  Sept  28     Morning   History  &  Information  about  the  Finnish  Forest  Sector   -­‐ MTK  Helsinki   Mr.  Juha  Hakkarainen  and  Ms.  Satu-­‐MarjaTenhiala   Afternoon   Utilize  Wednesday  afternoon  or  evening  to  travel  from  Helsinki  to  Kuopio   (Note:  4.5  min  hours  driving  time  to  Kuopio)   Overnight  lodging  in  Kuopio   Thursday  Sept  29     Morning   Activities  of  the  Forest  M anagement  Associations  (FM A)   -­‐ Forest  Management  Association,  Metsanhoitoyhdistys                      Pohjois-­‐ Savo  Region,  Kuopio   -­‐ Mr.  Juha  Huttunen  and  Mr.  Jukka  Hujala   Afternoon   Activities  of  the  FM As  continued,  field  visits?   -­‐ Mr.  Juha  Huttunen  and  Mr.  JukkaHujala  /  Overnight  lodging  in  Kuopio   Friday  Sept  30     Morning   Activities  of  the  FM As  continued,  selected  topics   -­‐ Mr.  Juha  Huttunen  and  Mr.  JukkaHujala   Afternoon   Activities  of  the  FM As  continued,  field  visits?   -­‐ Mr.  Juha  Huttunen  and  Mr.  JukkaHujala  /Overnight  lodging  in  Kuopio   area   M onday  Oct  3     Morning   Visit  Forest  Research  Station  in  Suonenjoki   -­‐ Ms.  Katri  Himanen   Afternoon   Visit  Forest  Harvester  Training  Site  in  Airaksela   -­‐  Mr.  Jouni  Seppanen      /  Overnight  in  Kuopio   Tuesday  Oct  4     Morning   Visit  Ponsse  in  Vierema   -­‐ Mr.  Eero  Lukkarinen   Afternoon   Visit  with  Ponsse  (continued)   -­‐  Mr.  Eero  Lukkarinen  /  Overnight  in  Kuopio   W ednesday  Oct  5     Morning   Visit  with  Kuopion  Energia   -­‐  Mr.  Esa  Lindholm   Afternoon   Travel  to  Helsinki   Evening   -­‐  Meeting  with  Mr.  Ero  Jarvinen   Thursday  Oct  6   Depart  for  Halifax,  NS   30     A PPENDIX   2   –   G ENERAL   O VERVIEW  OF   F INLAND ’ S   F OREST   E COLOGY     This  overview  was  transcribed  and  paraphrased  from  a  website  on  the  Boreal  Forest11   Geology –The  bedrock  and  the  soil  in  general  have  been  formed  by  the  ice  ages.  The  inland  ice  has   eroded  the  bedrock,  scraping  off  soil  from  here  and  leaving  heaps  there.  In  places  the  rock  is  totally   exposed.  The  tens  of  thousands  of  lakes  in  Finland  are  post-­‐glacial.  Another  unique  phenomenon,  land   elevation,  is  also  an  effect  of  the  glaciers.  Finland  is  rising  from  the  Baltic  Sea  at  an  annual  rate  of  0.5-­‐0.8   cm,  which  means  that  its  land  area  is  continuously  growing.   Peatland  —  Various  kinds  of  peatlands  are  a  fundamental  element  of  the  Finnish  landscape.  In  the  cool   and  humid  climate,  the  soil  becomes  waterlogged,  which  creates  the  right  conditions  for  peatland   vegetation  and  the  formation  of  peat.  Originally,  about  one  third  of  Finland  was  covered  by  peatlands.   They  have  been  drained  for  farming,  forestry  and  peat  extraction  purposes.  About  half  of  the  original   peatland  area  has  been  preserved  in  its  virgin  state.   Climate  —  Finland’s  climate  is  affected  by  the  Gulf  Stream,  maintaining  favourable  growing  conditions   at  latitudes  of  60-­‐70  degrees.  Winters  average  3-­‐6  months  (south  to  north),  and  in  Lapland,  in  the  north,   there  can  be  a  metre  of  snow.  In  southern  Finland  the  average  annual  precipitations  is  700  mm,  while  in   the  north  it  is  400  mm.  Although  the  growing  season  is  short,  there  is  more  or  less  full  light,  enabling   intensive  growth.     Forest  Type  —  About  half  of  the  forest  area  consists  of  mixed  stands.  Rarer  species  are  found  mostly   as  solitary  trees.  The  south-­‐western  corner  and  the  south  coast  of  Finland  are  touched  by  a  narrow  zone   growing  oak,  maple,  ash  and  elm.  Finnish  forestry  aims  at  imitating  the  natural  succession.  Here  it  is  quite   unproblematic  to  practice  near-­‐nature  forestry:  the  commercially  valuable  tree  species  belong  to   Finland's  natural  flora  and  can  be  grown  on  their  natural  sites.  Forest  regeneration  is  comparable  with   forest  fires  or  storms,  and  intermediate  felling  resembles  natural  thinning.  The  forests  are  managed  one   compartment  at  a  time,  i.e.,  felling  or  management  work  is  directed  at  a  part  of  the  forest  with  a   homogenous  tree  stand.  The  average  size  of  a  compartment  is  less  than  two  hectares.  Even  a  natural   forest  has  a  certain  mosaic-­‐like  structure:  young  stands  here  and  more  mature  ones  there.  Forests  are   allowed  to  grow  for  between  60  and  120  years,  depending  on  the  tree  species  and  the  composition  of  the   site.   Tree  Species  —   There  are  about  twenty  indigenous  tree  species  growing  in  Finland,  the  most   common  ones  being  pine  (Pinus  silvestris),  spruce  (Picea  abies)  and  birch  (Betula  pendula  and  B.   pubescens).  Usually  two  or  three  tree  species  dominate  a  forest.  Naturally  pure  pine  stands  are  found  in   rocky  terrain,  on  top  of  arid  eskers  and  on  pine  swamps.  Natural  spruce  stands  are  found  on  richer  soil.   Birch  is  commonly  found  as  part  of  a  mixed  wood,  but  it  can  occasionally  form  pure  birch  stands.   Forest  Ecology  in  Management –  Rather  than  being  systematic  and  dull,  the  forests  are  rich  in   variety  and  subtlety  of  detail.  Especially  in  the  southern  and  central  parts  of  the  country,  one  can  find  a   great  variety  of  forest  types  within  even  a  small  area:  dense  stands  of  spruces,  pines  scattered  thinly  on   poor,  heathy  soils,  clearcut  areas,  scrub  in  river  and  stream  valleys  and  stunted  growth  in  valley  bogs.   31     Individual  hardwood  trees  grow  scattered  among  conifers  and  here  and  there  one  finds  homogeneous   stands  of  white  birches.  The  trees  also  vary  widely  in  age.  They  are  not  monocultures,  nor  do  the  trees   stand  in  straight,  evenly  spaced  lines.  Yet  Finnish  forests  could  not  be  said  to  be  in  a  natural  state,  either.   Agriculture,  tree  harvesting  and  active  silviculture  have  been  re-­‐shaping  the  forests  down  through  the   ages.  As  a  rule,  not  even  the  oldest  and  apparently  most  natural  forests  prove  to  have  remained   completely  untouched  by  the  woodsman's  axe  when  one  looks  two  or  three  centuries  back  into  their   history.  Prolonged  use  has  gradually  made  the  forests  more  uniform  and  consistent  in  character.  In  the   20th  century,  foresters  have  favoured  conifers,  especially  pine,  at  the  expense  of  other  species.  The   oldest  generations  of  trees  have  been  gradually  felled  and  the  forests  have  in  general  become  younger.   Forestry  and  forest  roads  have  fragmented  large  contiguous  wilderness  areas.  Forest  fires  and  other   natural  disasters  have  been  largely  prevented,  and  effective  management  has  increased  growth  rates.   Managed  commercial  forests  of  this  kind  now  cover  over  90%  of  Finland's  productive  forest  land.   Protected  Areas –  Finland  excels  in  forest  land  protection  relative  to  total  forested  area.  Most  of  this   is  in  the  north.  This  amounts  to  9  percent  of  the  forested  landbase  (productive  and  non-­‐productive).     Table  10.  Protected  Land  in  Finland   Land  Classification   Area  (ha)   Total  Area  (ha)   Protected   Restricted  Land  Use   Total  Protected  and  /  or  Restricted   Forestry  Use   Total  Forested       2,048,000    915,000          2,963,000   %  of   Total   Forested   9%   4%   13%     22,820,000     References  and  other  reading:   BorealForests.org.  https://www.borealforest.org/world/world_finland.htm   Biodiversity.fi.  http://www.biodiversity.fi/en/habitats/forests/   Finnish  Forest  Association:  http://www.smy.fi/   This  is  Finland:  https://finland.fi/life-­‐society/environmental-­‐protection-­‐in-­‐finland/   Ministry  of  Agriculture  and  Forestry:  http://mmm.fi/en/forests/biodiversity-­‐and-­‐protection   Unfolding  the  organised  irresponsibility:  Ecosystem  approach  and  the  quest  for  forest  biodiversity  in   Finland,  Peru,  and  Russia.  http://www.rktl.fi/www/uploads/pdf/EY/hiedanpaa_et_al_2010_unfolding.pdf   World  Wildlife  Fund.  https://wwf.fi/en/WWF-­‐Finland-­‐s-­‐forest-­‐vision/   32     Forest  Biodiversity  Programme  for  Southern  Finland  (METSO).  http://www.metsonpolku.fi/en-­‐ US/METSO_Programme   Biodiversity  at  risk.   https://cmsdata.iucn.org/downloads/finland_s_biodiversity_at_risk_fact_sheet_may_2013.pdf   Sustainable  Forestry  in  Finland:  ENVI  Delegation  in  May  2016.   file:///D:/Finland/Sustainable%20forestry%20in%20Finland,%20ENVI%20delegation%20in%20May%2020 16.pdf     A PPENDIX   3   —   F ORESTRY   E DUCATION  IN   F INLAND   General  Education   Basic  descriptors  of  the  Finnish  school  system  that  Finns  themselves  consider  set  their  system  apart,  are:   • • • • • Lower  pressure,  self-­‐paced  learning.  Young  students  can  voluntarily  take  an  additional  year.   Later  start  for  young  children  (age  7).  Shorter  school  day  and  longer  recess.   More  freedom  of  choice  and  guided  but  self-­‐directed  learning  for  students.   Abundant  resources  and  full  support  for  the  mix  of  ability  deliberately  placed  in  the  same  class.   Respected,  juried  teachers  who  compete  for  acceptance  in  training  and  are  well  paid.   This  is  the  basic  education  of  7-­‐16  year  olds  in  comprehensive  schools.  This  information  sets  the  context   for  understanding  how  forestry  training  happens  in  Finland.     Forestry  Training   The  Finns  deliberately  and  with  consideration  change  their  forestry  curricula  and  professional  training  to   keep  pace  with  changes  in  logging  equipment,  logging  electronics  and  communications,  and  general   industry  organization.  While  the  technological  changes  are  obvious,  more  subtle  is  the  change  in  human   organization  around  forestry  work.     In  1970,  industry  organized  the  wood  supply  and  their  foremen  did  site  and  harvesting  planning  and   hiring  of  fleets.  In  2017,  it  is  the  operators,  working  for  small  private  harvesting  companies,  who  are   responsible  for  the  quality  of  logging,  production  report  transmission  from  their  machine  to  the  mill,  the   maintenance  of  their  machine  and  identification  of  habitats.  They  are  therefore  likened  to  harvest   process  instructors  and  managers  rather  than  as  rote  machine  operators.  There  is  a  weight  of   responsibility  and  an  elevated  sense  of  regard  for  forest  machine  operators  in  Finland.   Forestry  schools  in  Finland   According  to  the  Tampere  University  of  Applied  Sciences,  there  are  in  Finland  in  2015   • 9  institutes  to  train  forest  machine  operators  (out  of  27  vocational  institutes  in  the  country)     33     • • 6  universities  of  applied  sciences  in  forest  education  where  a  Bachelor’s  Degree  in  Forestry  can   be  obtained.  Universities  of  applied  sciences  are  distinct  from  other  universities.   2  universities  offer  Masters  and  PhD  degrees  in  Forestry   Vocational  and  university  education  in  Finland  is  free.   Forest  Concepts  for  Children  and  the  Public   Nature  games  and  wood  use  and  wood  products  are  used  in  young  children’s  programs.  Outdoor  play   and  appreciation  is  important.  Also  significantn  is  the  bringing  inside  of  outdoor  imagery  and  wood  as  a   building  material.  Images  of  forest  tree  species  and  nature  appear  in  public  spaces  in  the  form  of  murals,   wall  panels,  sculpture,  architecture  and  art,  business  and  home  décor  and  Finnish  brand  logos.  Nature   imagery  seems  to  be  imprinted  on  the  general  population  this  way.  The  Finnish  Forest  Association,  the   second  oldest  forest  organization  in  Finland  after  Metsahallitus,  takes  on  many  responsibilities  for   outreach  to  young  children  and  the  public.   Youth  entrants  in  forestry  school   A  child  may  grow  in  the  Finnish  education  system  to  select  forestry  as  a  career  option,  starting  at  age  16.   It  can  be  approached  two  ways:   1. Upper  Secondary  School  &  University  of  Applied  Sciences  —  Students  at  16  years  of  age  can   take  matriculation  examinations  and  proceed  for  three  years  in  a  general  upper  secondary   school.  These  students  can  enter  the  university  stream  for  a  Bachelor’s  degree  in  Forestry  from   a  university  of  applied  sciences  which  can  take  another  3-­‐4  years.  They  can  also  choose  to  enter   the  vocational  school  system  at  this  point.       2. Comprehensive  School  &  Vocational  School  —  From  upper  secondary  school,  or  more  typically   direct  from  their  basic  comprehensive  schooling  at  age  16,  students  can  enter  a  vocational   institution  to  receive  vocational  qualifications.       Vocational  qualifications  in  Forestry  take  3  years  of  schooling  during  which  120  credits  are   accumulated.  This  is  equivalent  to  the  European  Qualifications  Framework  (EQF)  system  of  an   EQF  Level  4.  This  assures  competence  to  enter  employment  in  the  field.   To  receive  ‘Qualifications’  in  a  trade  requires  periods  of  on-­‐the-­‐job  learning  under  a  written   contract  with  an  accepted  company.  The  student  has  an  on-­‐the-­‐job  instructor  and  they  are  not   considered  an  employee.  Demonstration  of  competencies  is  also  arranged  in  genuine  working   environments  over  the  three-­‐year  training  period.   Students  graduate  with  Qualifications  in  one  of  these  specific  occupations:   e) Forest  worker   f) Forest  machine  operator  (harvester/  forwarder)   g) Forest  mechanic   34     h) Timber  truck  driver   Through  work  experience,  also  available  as  apprenticeship  training,  students  can  obtain  further   vocational  qualifications  to  be  considered  a  skilled  worker,  and  specialist  vocational  qualifications  to   show  they  have  mastered  the  most  demanding  tasks  of  the  job  in  their  field.  These  levels  of  training   equate  to  Europe’s  scale  as  EQF  5  and  EQF  5-­‐6.   By  comparison,  a  bachelor’s  degree  in  Forestry  is  EQF  6.   Adult  entrants  in  forestry   An  adult  may  receive  forestry  training  at  a  later  point  in  their  career,  and  it  can  take  1-­‐2  years.  The   process  of  building  qualifications  with  adults  is  based  mainly  on  demonstrating  certain  competencies.     The  system  is  regulated  by  Ministry  of  Education’s  Vocational  Education  Act  and  Decree.  The  Finnish   National  Board  of  Education  developed  the  nation’s  Core  Curricula.   The  Requirements  for  Competence-­‐Based  Qualifications  are  guidelines  set  by  the  Finnish  National  Board   of  Education.  This  guideline  sets  out  the  requirements  for  the  ‘further’  and  ‘specialist’  vocational   qualifications  noted  above.  The  vocational  training  modules  have  been  developed  with  people  in  the   business  of  each  profession  (Subject  Matter  Experts  or  SME’s)  for  real  life  work  tasks.   National  qualification  requirements  are  developed  collaboratively  with  employers,  trade  unions  and   student  unions.  Regardless  of  the  wider  structural  decisions  students  have  personal  study  plans.   Breakdown  of  credits  for  Vocational  Qualifications  as  a  Forest  Machine  Operator   3  years  equates  to  120  credits.  90  credits  are  in  vocational  studies,  with  20  credits  in  common  or  core   (cross-­‐sector)  subjects.  10  credits  are  free  choice  studies.  On  the  job  periods  have  a  minimum  of  20   credits  in  the  vocational  studies.           35     A PPENDIX   4   —   T YPICAL   F OREST   M ANAGEM ENT   R EGIM E  IN   F INLAND ,   I NVESTM ENTS   AND   C OST   R ECOVERY     Table  11.  Forest  Investment  costs,  administration  costs  and  stum page  revenues,  2015   (euros  /  ha)   Source Total   Preparation  of  regeneration  areas Artificial  regeneration Total  Cost Profit   (e/ha) 2.2 2.7 Forest  regeneration 4.9 2.7 Tending  of  seedling  stands Management  of  young  stands 4.7 1.2 0 Improvement  of  young  stands Pruning Initial  clearings  of  intermediate   felling  areas Forest  fertilisation Forest  ditching Construction  and  basic   improvement  of  forest  roads 0.8 0.5 0.6 1.5 Forest  improvement 2.7 Forestry  fees Maintenance  of  forest  roads Other  costs  (roundwood  sales,   education,  membership  fees  etc.) Forestry  administration  costs 1.3 0.6 2.6 4.5 16.80 Total  costs  in  wood  production Revenues Plus  State  Subsidies Operating  Profit (16.80) 128.4 4.3 115.9 OSF:  Natural  Resources  Institute  Finland,  Operating  profit  in  non-­‐industrial   private  forestry           36     Table  12.  Average  stumpage  rates  by  product,  2015  (cubic  metres)   Stumpage  Price  by  Treatment   (e/m3) Regeneration   Second   First   felling thinning Thinning Product Pine  l ogs 56.01 47.33 38.58 Spruce  l ogs 55.31 46.89 39.24 Birch  l ogs 43.44 36.90 33.35 Pine  pulpwood 17.30 14.76 11.55 Spruce  pulpwood 18.17 15.02 11.05 Birch  pulpwood 17.17 14.31 11.47 Small-­‐sized  l ogs,  pine 24.96 20.55 17.17 Small-­‐sized  l ogs,  s pruce 24.83 20.23 Source:  Na tura l  R es ources  I ns ti tute  F i nl a nd,  Vol umes  a nd   pri ces  i n  i ndus tri a l  roundwood  tra de     Stumpage  Rates,  2015  (e/ha)   60.00   50.00   40.00   30.00   20.00   10.00   0.00   Regenerazon  felling   Thinning   First  thinning     Figure  10.  Average  stum page  rates  paid  in  Finland  by  product,  2015.  (Source:  Natural   Resources  Institute  Finland,  Volum es  and  prices  in  industrial  roundwood  trade.)         37     6.0   R E F E R E N C E S                                                                                                                             1.  Nova  Scotia  Commission  on  Building  our  Economy,  Now  or  Never:  An  Urgent  Call  to  Action  for   Nova  Scotians,  2014,  page  vi   2.    Forestry  Lab,  Summary  Report,  2017  (http://www.theforestrylab.ca/about.html),  page  3   3.    ibid.     4.    Multi-­‐Source  National  Forest  Inventory  of  Finland,  METLA.   http://www.metla.fi/ohjelma/vm1/infoen.htm   5.    Finnish  Forest  Research  Institute  National  Forest  Inventory  (NFI).   http://www.metla.fi/ohjelma/vmi/vmimonien.htm   6.    National  Forest  Strategy  2025  –  Government  Resolution  of  12  February  2015.  Ministry  of   Agriculture  and  Forestry  of  Finland.  May  2015   7.    Sustainable  Forestry  in  Finland:  ENVI  Delegation,  May  2016   8.  Karppinen,  Heimo,  Maria  Hänninen  &  Lauri  Valsta,  “Forest  ownership  changes  in  Europe:   trends,  issues  and  needs  for  action.”    Conference:  Forest  ownership  changes  in  Europe:  trends,   issues  and  needs  for  action.  7-­‐9  September  2016,  Vienna,  Austria   http://facesmap.boku.ac.at/library/Final_conference_Presentations/Parallel_session_8/Karppinen%20e t%20al_Forest%20owners%20views%20on%20storing%20carbon.pdf   9.    C02e:  Unit  of  Carbon  dioxide  equivalent.  This  is  the  standard  unit  for  greenhouse  gas   equivalency  ratios.  Carbon  offset  markets  report  in  C02e.   10.  North  Savo  Forest  Management  Association  presentation,  Kuopio,  Finland,  September  28,   2016   11.    http://www.borealforest.org/world/world_finland.htm   38