THE PRICE OF A FOREST
The price of a forest and forest land is changing constantly, therefore the best way to find out your forest’s value is to contact us and submit a price enquiry about your forest land. If you have a forest management plan, it will make compiling the price offer easier because based on these data we can give you an indicative price. Without a forest management plan we can only estimate the price with the help of forest surveyors. If you have forest land to offer, have a look at the forest sales services we provide.
The price of forest land in 2023
The price of a forest greatly depends on the situation on the timber market. Because the market fluctuates, prices also change over time. The ban on imports from Russia kept the price of timber high in the second half of 2022, but the beginning of 2023 has seen a downward trend in the purchase price of timber. The prices of firewood and woodchips have also decreased because a severe energy crisis was avoided thanks to a mild winter.
Mature pine forests are the most valuable, their prices can reach 37,000 EUR/ha (forest reserves approx. 400 solid cubic metres). The price of fir forests can reach 26,000 EUR/ha and birch forests 20,000 EUR/ha. Alder forests are the least valuable, the price of one hectare can reach 6,000 EUR/ha.
The price of a hectare of forest
The average price of forest land in Estonia in the last 6 months was 8,300 EUR/ha based on the data of the Land Board. Please mind that these statistics also include the price of clear-cut forest land. The most valuable have been the forests of the counties of Tartumaa, Järvamaa and Harjumaa. The price of a hectare is lower in the counties of Hiiumaa, Põlvamaa and Võrumaa. Our average purchase price of forest land in the last 6 months was approx. 10,100 EUR/ha. Since the value of a forest is affected by various factors and the final price can vary, we recommend that the forest owner submit a price enquiry for getting a more specific estimate.
How is the price of standing timber determined?
The location and accessibility of a forest
The price of a forest depends on its location because it directly affects the expenses made on the transportation of forestry equipment and timber. The closer the location is to the final purchaser, the greater the income for the forest owner. Having official access roads and good accessibility make the extraction of timber easier. Also, the average price is higher for forests that can be managed all year round (e.g. on a dry and hard ground).
Forest land’s surface area and the volume of timber
The surface area and the volume of standing timber on the forest immovable are essential. The larger the immovable and the cutting volume are, the better it compensates the expenses made on the harvesting of the forest and the better a price it will generate for the forest owner.
The assortment of standing timber – significantly affects the price
The price of a forest is determined by the assortment of standing timber. Immovables where forest stands primarily consist of fast-growing deciduous trees are considered less valuable. These are mainly suitable for firewood and woodchips. Slowly growing deciduous trees and coniferous trees are more valuable because they yield logs.
The quality of improvement cutting ensures a strong forest in the future
The price of a forest is affected by the quality of the previous improvement cutting. A mature forest that is straight stemmed, well pruned and healthy (there is no wood rot, bark beetles, root diseases etc.) is more valuable. A timely cleaning and thinning give the trees with the most potential the necessary room for growth and the opportunity to later get high quality timber.
Restrictions affect the price of a forest
Restrictions that apply on the forest immovable or area can also have a certain effect on the price of forest land. For example, restrictions on forest management hinder the management of forest land located on nature conservation sites, therefore the price of such immovables might be lower than usual.
The value of forest immovables increases in time and the price of a forest is related to its maturity
Young growth development
The price of well-managed young growth developments of birch, pine or fir trees can reach 4,000 EUR/ha. Young fast-growing brushwood is quite cheap and its price is comparable to that of clear-cut forest land. These prices usually reach 3,000 EUR/ha. The price of forest land that has not been reforested is lower because reforestation entails many expenses that will pay off only in the distant future.
Pole stand development
The value of a pole stand development can be increased by a high-quality improvement cutting done at the right time. The value of such a forest can be up to 5,000 EUR/ha.
Middle-aged stand
Middle-aged stands are considered very valuable because at this age, you can use thinning to make space and create the best conditions for growing the best specimens and you can use the thinned trees for compensating some of the costs. The price of a middle-aged stand can reach 10,000 EUR/ha.
Mature stand
A forest has become mature when the age of trees or the circumference at breast height is suitable for regeneration cutting. The value of a mature forest can reach 40,000 EUR/ha.
Would you like to know more about the pricing of forests?
How is the price of a hectare of forest determined?
When the price of forest land is estimated, what matter are the location of the forest immovable, accessibility, the soil, the array of trees growing on the immovable, and their age. What also have an effect are the health of the forest land and the habitat type. Also, if any restrictions or other limitations apply to the immovable.
How can I get the best price from selling a forest?
If the owner has no interest in managing the forest, undoubtedly the most profitable thing to do is to sell the forest together with the land. In this case, there are fewer risks and the transaction is notarised. If you wish to maximise income in the long run, you can also sell only the cutting right. In this case, the owner needs to handle reforestation to maintain its value. We definitely recommend researching the background of forest buyers first and taking price offers from various forestry companies.
What do I need to take into account before selling forest land?
In order to find out the value of the land, it is necessary to order an impartial forest assessment for the forest immovable. We do not recommend selling the immovable to the first one to offer and without a notarial transaction. In addition, it is always worth asking for advice from forest associations and experienced forest management companies when you have no previous experience with selling forest land.
What is a forest management plan?
A forest management plan is also known as a forest plan. It is a document that describes the condition of your forest and determines the use of the forest and its resources as well as the goals and measures of managing it year by year. The plan gives an overview of the condition of the forest, which trees can be cut, how to manage different parts of the forest, when the forest will be mature for felling etc. On the basis of the plan, it is possible to estimate the value of the forest, it will help when you are selling the forest or doing other transactions with it, as well as transferring the cutting right.
Having a forest management plan is generally recommended but if your intention is to actively manage the forest and undertake felling, having a plan is obligatory.