Profitability of growing Scots pine on cutaway peatlands

• Main Authors: Aro, Lasse, Ahtikoski, Anssi, Hytönen, Jyrki
• Other Authors: 4100310810, 4100110310, Luonnonvarakeskus
• Format: Article in Journal/Newspaper
• Language: English
• Published: Suomen metsätieteellinen seura
• Subjects: metsämänty; metsitys; suonpohja; bare land value; afforestation; financial performance; peat cutaway area; stand-level optimization; Northern Finland
• Online Access: https://jukuri.luke.fi/handle/10024/546022

A major after-use option for former peat harvesting areas has been afforestation. The profitability of afforestation with Scots pine trees (Pinus sylvestris L.) was studied in two 31–32-year old experiments in southern and northern Finland. The stands were established by seeding and planting, and various fertilization treatments and drainage intensities were tested. The financial performance for each plot was assessed in three steps. First, the costs occurred during the measurement time were summed up according to their present value. Then, for the rest of the rotation (i.e., from the age of 31/32 onwards) the stand management was optimized in order to maximize the net present value (MaxNPV). Finally, bare land values (BLVs) were calculated by summing up the present value of costs and the MaxNPV and converting the sum of the series into infinity. The afforestation method did not affect the mean annual increment (MAI; 9.2–9.5 m3 ha–1 a–1) in the southern experiment. In the northern experiment the afforestation method, ditch spacing and fertilization had significant effects on the MAI of the stands. The average MAI of the planted pines was 8.9 m3 ha–1 a–1, and for seeded pines it was 7.5 m3 ha–1 a–1. The BLV at an interest rate of 3% was positive for all stands in both regions. In the northern region afforestation method, ditch spacing and fertilization also had a significant effect on the BLV. When the interest rate was 5%, almost two thirds of the stands had a negative BLV in both regions. 2020