A concept for the calculation of financial losses when changing the forest management strategy

Abstract

The objectives of nature conservation can often only be realised by changing forest management regimes. Thus far, mainly institutional regulations have been used to achieve these goals. However, in Germany there is strong political interest in encouraging contract-based forest management whereby forest owners receive financial compensation for losses when changing over forest management regime. Such compensation is commonly paid in the German agricultural sector but is absent in forestry. When managing forests for social convenience, forest enterprises are faced with financial losses. With regard to practical experience in forestry there is a considerable lack of information about the economic consequences. To estimate the losses related to changes in silvicultural treatment, a calculation scheme based on the annuity method has been developed and figures have been calculated for different tree species and age classes. The annual timber production value determined per ha and year is documented in tables and, as shown by examples, could be applied to evaluate typical changes in forest management such as the renunciation of forest production, change of tree species, premature harvest and the preservation of mature stands. Standardised annual timber production values for different tree species, yield classes, management schemes etc. can be helpful to estimate the financial losses for forest-land owners when changing the management strategy. These financial losses can also be interpreted as the minimum price which has to be offered to forest land owners when a contract-based forest management is striven for by the government.