1. Stanislaw Zajac Forests and Forestry in Poland Contact: Department of Forestry Economics and Policy Forest Research Institute 00-973 Warszawa Tel.: +(48 22) 822 49 37 Fax: +(48 22) 822 49 35 E-mail: stan.zajac@ibles.waw.plstan.zajac@ibles.waw.pl Rogów, March 2003

2. 1. INTRODUCTION 2. GENERAL INFORMATION 3. FOREST ADMINISTRATION 4. FOREST POLICY AND LEGISLATION 5. FOREST PROGRAMMES 6. FINANCING SYSTEM IN FORESTRY 7. FINAL REMARKS STRUCTURE OF THE PRESENTATION

3. POLISH FORESTS & FOREST RESEARCH INSTITUTE

4. GENERAL INFORMATION ON THE POLISH FORESTS AND FORESTRY FORESTS – 8 894 mill. ha – 28,4% (21% in 1945) OWNERSHIP STRUCTURE Public – 7 349 thous. ha (82,6%), within: State Forests – 6 968 thous. ha (78,3%) national parks – 181 thous. ha (2,0%) other – 200 thous. ha (2,3%) Private – 1 545 thous. ha (17,4%), within: private persons – 1 447 thous. ha (16,3%) other – 98 thous. ha ( 1,1%) STOCK VOLUME – 1 572 mill. m 3 (187 m 3 /ha) State Forests – 1 380 mill. m 3 private forests – 151 mill. m 3 other – 41 mill. m 3 INCREMENT – 39 mill. m 3 /year (5,0 m 3 /ha) HARVESTING: 26,7 mill. m 3 (State For. 25,1 mill. m 3 ) 1985 – 24,1 mill. m 3 (21,5 mill. m 3 ) 1991 – 18,1 mill. m 3 (15,5 mill. m 3 ) IMPORT – 0,732 mill. m 3 of round wood (36,2 mll. USD) EXPORT – 0,349 mill. m 3 (85% pulpwood, 15% saw logs) NET INCOME (USD): + 34,7 mill. (2000), – 20,7 mill. (2001)

5. Structure of land use in Poland

6. Species composition in the State Forests in 2001 (share in stock volume)

7. Assortment’s structure of the removals in State Forests (harvesting volume of 25,1 mill. m 3 in 2001) Specification 1985199019952000 [%] Total 100 Large wood *) 96949292 Coniferous807468 Sawlogs37393428 Veneer1100 Pit-props7543 Pulpwood2118231 Fuelwood963 4 Other5552 Broadleaved1620242426 sawlogs668 7 Veneer1111 Pulpwood581114 Fuelwood454 3 Small wood **) 4686 *) above 5cm u.b. at the top **) below 5 cm u.b at the top

8. Public Private Ownership structure of forests

10. Average size of private forest holdings Size of forest holding area Area Number of forest holdings (ha) (%)(thous.) (%) 0,1 - 0,577 1436,831237,0 0,5 - 1,0156 71213,821625,6 1,0 - 2,0219 79019,415418,3 2,0 - 3,0173 86515,3738,6 3,0 - 5,0199 46517,5536,3 5,0 - 10,0178 05515,6273,2 10,0 - 15,058 0485,150,6 15,0 - 20,025 5162,220,2 > 20,049 4374,320,2 Total1 138 31100,0844100,0

11. Comparison of some features of private and state-owned forests Feature Category of forest ownership privatestate 1. Share of poor quality habitats (%) 2. Share of youngest stands (%) 3. Standing volume (m 3 /ha) 4. Share of protective forests (%) 42,1 58,4 114,0 4,4 31,3 36,6 196,0 48,2

12. Economic importance of private and state-owned forests Feature Category of forest ownership privatestate 1. Share of forestry production per country (%) 2. Share of harvesting volume per country (%) 3. Share of fuelwood in harvested volume (%) 4. Share of large timber in harvested volume (%) 14 7 18 60 86 93 6 45

13. State Forests assistance 1) preparing of periodic large-scale inventories, 2) maintenance of a databank concerning forest resources, 3) providing professional opinion on projects of simplified forest management plans, 4) covering costs of forest protection, 5) providing professional advice service on forest economy, 6) providing seedlings for the purpose of forest regeneration, 7) financial assistance to afforestations, from a special forest fund.

14. Tax system 1)revenues are not subject to income-tax, 2)forest tax relates only to over 40-years-old stands, 2)the merest 7% VAT tax for raw timber. State budget subsidies 1) development of simplified forest management plans, 2) afforestation of the poorest agricultural land and waste land, 3) maintenance of supervisory services in non-state-owned forests.

15. Forms of private forests supervision *)

16. DIRECTORATE- GENERAL OF THE STATE FORESTS (Office 1) DIRECTOR-GENERAL OF THE STATE FORESTS (1) DEPARTMENTS OF NATIONWIDE RANGE DIRECTOR OF THE REGIONAL DIRECTORATE OF THE STATE FORESTS (17) REGIONAL DIRECTO- RATE OF THE STATE FORESTS (Offices 17) SERVICE DEPARTMENTS (7) FOREST INSPECTO- RATES IN FOREST DISTRICTS (438) FORESTS RANGERS Forest Gene Bank in Kostrzyca Forest Gene Bank in Kostrzyca Transport & Forwarding (7) Storage Complexes (8) Forest Transport (3) Transport & Forwarding (7) Storage Complexes (8) Forest Transport (3) ORGANIZATIONAL STRUCTURE OF THE STATE FORESTS

17. FOREST POLICY AND LEGISLATION National Policy on Forests (1997)  Act on Forests (1991)  Act on Protection of Nature (1991)  Act on Protection of Environment (2001)  Act on Protection of Arable and Forest Land (1995)  Land Development Law (1994) Act on retention of the country’s character of the strategic natural resources (2001)

18. OBJECTIVES OF THE FOREST POLICY  Increase the part of forests in forming natural balance and life conditions  Reduction of destructive influence of the industrial civilization on the natural environment  Maintaining the persistence of forest ecosystems and the ecological continuity of forests areas (eco-development)  Preservation of genetic resources of plants and animals (bank of genes)  Enrichment of species composition and structure of the standing wood resources  Extension of the multi-sided utility of forests (protective, social, productive)  Enlargement the share of the forests and tree planting areas  Rationalized utilization of the wood raw material

19. REALIZATION OF THE FOREST POLICY OBJECTIVES  Approving the conception of eco-development  Performing the economical activity without involving damages in forests  Forming of multi-functional forest associations rich in the species composition and structure  Forming substitute nature communities on degradated areas  Afforestation of the grounds useless for agriculture  Elastic use of market mechanisms in forming supply and demand for material and non-material services of the forests  Exacting fully indemnities for damages caused by known authors  Defraying by the state budget the costs for redressing damages caused by unknown authors  Ensuring substantial and technical assistance for private forests  Forming and ecological consciousness of the society with regard to the part of forests and forestry in the economy and life of the country

20. Act on Forests … sustainable forest management is based on the forest management plan and focused on: 1) maintain forests and their beneficial influence on climate, air, water, soil, environment for people’s life and health and ecosystem /ecological balance/, 2) protect forests: variety of nature, preservation of forest genetic resources, landscape quality, scientific needs, 3) protection of soil, 4) protection of surface waters and underground waters, 5) production of wood, raw materials and non-timber products

21. FOREST PROGRAMMES  Parliament resolutions on sustainable development  Ecological Police of the State  Complex Forest Protection programme  Forest Act and its following amendments  Ordinances of Minister of Environment  Policy of Balanced Forest Economy  Regulations of General Director of State Forest Promotion Forest Areas National Programme of Forest Cover Increase National Forest Programme

24. Effects of afforestation of marginal agriculture lands establishing new work places additional income source for agriculture land owners decrease of greenhouse effect (carbon sequestration) water balance improv., water protection, counteracting water and wind erosion increasing biological diversity on agriculture areas Improving tourist attractiveness of agriculture areas

25. DRAFT SCHEME OF THE FINANCIAL SYSTEM OF THE STATE FORESTS or INCOMES Incomes from admi- nistrative activity Incomes from additional activity Incomes from grou- nds and forests sale Incomes from basic activity Incomes from side activity Event. surcharges from forest fund SUBSIDIES Purposeful subsi-dies for: repurcha-se of forests, recul-tivation and affore- station of grounds, cultivation and protection of threa- ted forests, main- taining of nature preserves etc. EXPENSES Remittance of incomes from grounds and forests sale Taxes Deduction on main- tenance of superior units and forests management Deduction on fore- sts fund and extra- ordinary reserves Costs of subsidiesed and entrusted works Costs of administrative and basic activity Costs of side and additional activity Deduction on purposeful funds SURPLUS / + / of incomes over expenses, within from side activi- ty, addititional activity, basic and administra- tive activity Purposeful funds Forest district investments Compulsory deduc- tion under General Directorate decision Investments Forest fund LOSS / - / St a t e b u d g e t GDSFGDSF