PRIVATE FORESTS IN LITHUANIA forest policy developments since 2016 Nerijus Kupstaitis Head of Forest Policy Division Nature Protection and Forests Department Ministry of Environment September 25-26, 2018

National Forestry Sector Development Program 2012-2020 to complete Land (forest) Reform and intensify forest management activities in forests reserved for restitution to increase forest area via afforestation of abandoned agricultural land to strengthen sustainable forest management and maintain the economic viability of the forestry sector increasing efficiency of forestry activities new for 2018-2020: to carry out inventory of all forest roads in both state and private forests As regards legal regulation on private forestry, the most important provisions are laid down in the Forest Law. Regulations on the Management and Use of Private Forests was adopted 20 years ago and it was very important legal act for a log period of time, but today most of its provisions are the same ones as in Forest law or the ones in the specialized legal acts, such as Forest Cutting rules. In the future we expect to repeal these regulations and shorten the list of legal acts, which is too long and complicated. We also have special legal acts for specific areas, such as forest afforestation and reforestation and others.

Program of the Government 2016-2020 consolidation of 42 SFE into one legal entity (done) improvement of the system for financing of the common forestry needs (related to 5% income tax) decreasing of the amount of legal regulation and administrative burdens in forestry sector by transferring the decision-making and responsibility to the forest owners decreasing the amounts of clear cuttings, limiting those to the commercial forests only: about 20-30% of private forests would be affected discussion started in 2018 from the state forests As regards legal regulation on private forestry, the most important provisions are laid down in the Forest Law. Regulations on the Management and Use of Private Forests was adopted 20 years ago and it was very important legal act for a log period of time, but today most of its provisions are the same ones as in Forest law or the ones in the specialized legal acts, such as Forest Cutting rules. In the future we expect to repeal these regulations and shorten the list of legal acts, which is too long and complicated. We also have special legal acts for specific areas, such as forest afforestation and reforestation and others.

Forests ownership By 1st January 2017: Almost a half of all for­est land in Lithuania was of State importance. Almost 40 percent of forest land was private. A 10 percent was reserved for restitution. Data source: Lithuanian Statistical Yearbook of Forestry 2017

Number and area of private forest holdings by size of holding (%) +10 % During last 10 years : share of number of private forest holdings, that are smaller than 1 ha, increased by 6 percent – today we have more forests holdings, that are smaller than 1 ha, than we had 10 years ago share of number of private forest holdings, that are bigger than 1 ha, slightly decreased 73 percent of private forest holdings (by number of holdings) are not bigger than 3 ha. During last 10 years share of area of private forest holdings, that are bigger than 20 ha, increased by 10 percent. Data source: Lithuanian Statistical Yearbook of Forestry 2017

>249 000 private forest owners average private forest holding – 3,4 ha ~10 private forest owners cooperative companies ~50 private forest owners >500 ha (all fragmented) 2 private forest owners associations: Forest Owners Association of Lithuania Private Forests Owners’ Association By 1st January 2016 t we had almost more than 249.000 he private forest owners Size of an average private forest holding was 3.4 ha Today we have about 10 private forest owners cooperative companies. Most of them are small, have minimum number of members, which is five, and these cooperative companies basically work as private limited liability company. There are two private forests owners associations in Lithuania: Forest Owners Association of Lithuania Private Forests Owners’ Association

Forest cuttings (roundwood production) in private forests During last 10 years from 2 to 3,8 mill. m3 of round wood was produced in private forests . 10 year average of round wood production in private forests is 3,1 mill m3.

Priority right to purchase private forest holding Forest Law Article 41 Para 1: Priority right to purchase private forest holding for the same price and under the same other conditions, with the exception when the land is sold at public auction, according to the order belongs to: Co-owners of forest holding, in accordance with the procedure laid down in the Civil Code. Person, who owns bordering private forest holding (neighbor). As I have already mentioned, private forest holdings are small. Average is 3,4 ha. 73 percent of private forest holdings in number are not bigger than 3 ha. It is quite obvious than it is not economically efficient to engage in forestry activities, if you have forest holding that small. For this reason forest holdings consolidation or private forest owners cooperation are the best options. We have a provision in Forest law that establishes the priority right to purchase private forest holding. The first one is common regulation in many countries. The second one sets priority right for the neighbor and it should have its input in forest holdings consolidation process. These provisions are included in the Forest law in 2014, so it is difficult to make conclusions, whether it has any impact on forest holdings consolidation.

! Land tax on forest land and afforested agricultural land is not imposed Other reason slowing down forest holdings consolidation process, is that private forest owners are not interested in forestry activities, having a private forest holding does not cost them anything. Private forest owners, that are nor engaged and not planning to engage in economical activity in forestry, are not considering to sell their forest holding. To my personal opinion, one of the reasons is that land tax on forest land and afforested agricultural land is not imposed.

Consultation, information and forestry extension for private forests owners Ministry of Environment State Forest Service State Forest Enterprises consultations in the forest holding internet consultation Consultation TV radio internet regional newspapers educational publications, booklets Information seminars online seminars Forestry extension Most private forests owners do not have sufficient forest management knowledge or do not have any forest management knowledge at all. Therefore, private forests owners should get consultations, information and training. Consultations for private forest owners are provided by the Ministry of Environment, Nature Protection and Forest Department, as well as State Forest Service and State Forest Enterprises. Lithuanian Agricultural Advisory Service.

Thank you! nerijus.kupstaitis@am.lt +370 5 272 8289